vonnie: from new york to london the next hour. covering japan and brazil, this is what we are watching. season kicksngs off, the s&p 500 is setting a record high in today's action. ftse 100 set to enter a bull market. in u.k.e latest twists politics, andrea leadsom dropping out, leaving a clear path for theresa may to become the prime minister. the only question is when. global airline industry get a list? our interview is coming up. -- bloomberg's

matt miller has the latest. 500. are there for the s&p the question is, chemical this until the close? previously inse 2015 was 30.82. we are six points above that. we have to hold on to that green arrow. with all the stimulus coming out of japan with the now decided p.m. race in the u.k., and the fed rate hike off the table in the u.s., even with that surprisingly good jobs number, it seems like we are holding these gains. the nasdaq gaining 6/10 of 1%. big gainers today are tech stocks. 500, techk at the s&p stocks and financials are big gains. here you see the record.

last time we had a record, may of 2015 until today, 286 days between those points. that is the longest stretch we have gone in a bull market without hitting a new record since the 1961. that may make you think about this bull market and how long it is. the tech stocks we are gaining are obviously the names that you know. facebook, outft, the bit -- which we all still no and the financials are leading which is good for a rally. jpmorgan, wells fargo, all showing gains today. other stocks rising because of energy. we have the oil prices actually coming up a little bit right now . very little change at 45-42.

copper, nickel, all of these commodities arrived today. you do see gains in commodities today. stocks are up, commodities are up. if we have a new high on the s&p 500 and a new low in a 10 year, that would be the first time it has ever happened. as is, people are selling off the 10 year. that is the conundrum that we see. should i record over to mark? mark: you better believe it. the last record high we had for our european benchmark, the stoxx 600 was april 15 last year. the game has actually fallen by 20%. you are far and away outperforming and you look at the valuation, 15.6 times estimated earnings versus 18.1 times. still, we are rising for the

third consecutive day. still, all 19 industry groups rising today. we are 5% below the levels. before the brexit result came through, ftse 100 is on track for a bull market. if it closes these levels, the ftse will be in a bull market. since those loans in february, that was a three and a half year low for the ftse. the index is being propelled higher by the american glencore, and these miners have been benefiting from the weaker pound. hedge funds and large speculators increased net bets for a weaker pound and the week ending july the fifth. this chart tells you the difference between those who are long and those who are short.

new 31n falling to a year low, against the dollar following the brexit recommend them -- referendum. early in june, right there, they were not as bearish as they were. they did rebound after andrea led some -- andrea leadsom dropped out. burberry says mark pocan bessie essie will replace bailey as the ceo. he will join the board sometime next year. to grapple with a subdued luxury market, falling demand. he is trying to cut costs. been calls for the appointment of an experienced executive to work alongside him so it seems those calls have

been listened to and we are seeing a rally in burberry shares. shares are up 5.3%. vonnie: the question will be who will celine get to replace them. ator market conditions index 1.9 index points. better butision was it was down 2.6 points. -- dashboard.llen looking at the unemployment rate, private payrolls, things that are all gathered together. let's check in on first word news. we have an much andra. the way has been cleared for theresa may to become britain's next prime minister. her support among conservative lawmakers -- earlier today, may said there

was no going back on the boat. she said, "brexit means brexit and we are going to make a success of it." the u.s. is sending 600 more troops to iraq. secretary ash carter made a surprise visit to the country today. the new forces will be used to help iraq retake mosul. germany is to take on greater military leadership in global conflict. that is according to plans for the first country's overhaul of its security policy in a decade. hascellor angela merkel artie taken a more assertive stance overseas. it has armed kurds in iraq and take in air strikes in syria. of australiaister is claiming victory in parliamentary elections. more than a week after votes were cast, it is unclear if those national coalitions actually have enough seat to form a majority government. both are still being counted.

a typhoon has battered china will -- china's coastal province. at least six people were killed, more than 400,000 people were evacuated. global news, 24 hours a day, powered by 2,400 journalists in 150 news bureaus around the world. i'm an much andra. this is bloomberg. the markets up, the markets down friday. today, among other things, the japanese promise of new stimulus. the global economy cannot seem to break out of a low growth. ,oining us is daniel moss executive editor for global economics. we just had another example of economy, down worse

than expected. >> it looks like what we saw with friday's jobs report. a pretty good number, it assured people there was not going to be this collapse into labor market , but job growth is slowing. not disastrously but it is slowing. we have averaged 150,000 in the u.s. in the past month. what is the missing ingredient? for a while things were taking up. -- things were picking up. it looked like the pace was picking up. years into aen global expansion, which hangs in there but doesn't seem to go anywhere fast. there is no one real single growth story. pretty much every decade since 1945. we are missing that. there is a series of micro-stories but none of them

is enough to propel us dramatically forward. mark: does that mean the lackluster status quo will continue? probably but the important thing to remember is while it is not super awesome, we have had a procession of people that have predicted in and sit things and that hasn't happened either. -- an end to things but that has not happened either. it is just lacking impetus. is it too early to gauge the impact of brexit on global growth? it depends on whether this is a mere blip in the story of global integration or whether it does spell the beginning of the end of the post 1945 order? let's take the most immediate stance. there is going to be a hit to u.k. growth and eurozone growth but eurozone growth will probably still keep on the plus side. vonnie: eurozone growth will keep on the plus side but does

it all depend on currency moves over the next six months? >> it might. it will be interesting to see where the weakness in the pound prevents an aggressive bank of england as opposed to the moderate that is now forecast and could begin as soon as this week. the meeting thursday, forecast from a majority of economists, it is not unanimous, there will be a quarter-point cut and mark carney will hold off until later. is important that britain avoids recession so we don't get into this vicious cycle in the world. is theh of a reality potential for a vicious cycle of recession after recession? cuts,the event the boe that may not prevent a recession. this is about being there,

saying we are on the case. we are not going to get hysterical. looking at these headlines about theresa may, it is arguable that the real head of government for the past 10 days has been marked carney. -- mark carney. mark: who addresses parliamentarians tomorrow. let's talk about china. we would've let with china, but isn't it interesting that china is been a side issue, yet it an economy that is slowing. so.t is, very much we cast our minds back to january and the first half of larry. there wasthis sense going to be an implosion in china. we get an update on friday with more gdp numbers that are likely to show the same. it is down from the mega rates

that characterized it once upon a time but it has not fallen apart either so more drift there. anticipating a lot of very active central banking activity over the next 12 months? england, japan, china? with thisent micro-story, china it is hard to tell. he will probably hang out there. bank of england, we are expecting a reduction. if not this month, certainly august. it wants tods like increase rates but again, consistent with drift, there is not a huge amount of conviction there either. ony people are focused december as a possible date for a quarter-point increase. yet we have the sb at a record high.

and in earnings recession. dan is executive editor of global economics. head, when it comes to credit card security, the u.s. is just a few swipes behind europe. willie race to chip reading technology? this is bloomberg. ♪

>> you are watching bloomberg. vonnie: this is your global

business report. mark: we are watching today, airbus and boeing getting a lift in britain's farnborough airshow. japan's prime minister scores a big win in parliamentary elections and it could lead the way to a fiscal stimulus package. it comes to credit card security, the u.s. is a few swipes behind europe. will it switch to chip cards? vonnie: asian airlines are providing the biggest used to boeing and airbus at the farnborough air show in the u.k.. jets.ght 30 747 max the price is at 3.4 billion u.s. dollars. discount carrier air asia will order as many as 100 airbus a320 one planes.

planes.one boeing says it is working methodically to complete the $25 billion deal with iraq. preventing the company from selling up to 100 planes to iran's airlines. the planes could be used for military purposes. bloomberg spoke to boeing's chief executive about the airshow in britain. >> we made some good progress over the last few months. it is a significant opportunity for us but we are methodically going through the licensing process right now. i am encouraged by the progress we made. mark: boeing has said the iran sale complies with u.s. regulations. winningime minister is a victory in parliamentary elections.

the conservative coalition now has a majority in the country. his liberal democratic party wants 56 of the 121 seats in contention. a junior coalition party, 114. broad, bolde measures to expand japan's economy. shares of nintendo rose as much as 25% in tokyo today. the company's new "pokemon go" game at rankings. the game lets players crackdown virtual characters in real locations using their phones. vonnie: time now for our bloomberg take on interest of interests -- issues of interest. the u.s. is behind when it comes to credit and debit card security. the burden of liability for

credit card fraud tested. any banks that issue new cars without a chip or any retailer that hadn't switched to the new technology is shouldering the cost. the magnetic strike is not going anyway -- anytime soon. end ofestimated by the 2015, only 36% of americans credit cards and only 13% of debit cards would have those chips. here is the background. credit card boards when they were introduced in 1950. cards moved over plastic in 1960's and in the 70's, magnetic stripes -- were added. in 1999, europe a international, mastercard and these the established the emv standard which included the option of chip technology. it caught on with europe.

here is the argument. the payments industry has relied far more on self-regulation than in europe. that seems like a good thing when american companies are pioneering the economy. of in the wake well-publicized breaches, president barack obama and some lawmakers have called for national standards to database security for notifying customers when breaches occurred. mandates like that are all part of the reason banks are speeding up adoption of chip technology. chip cards become common in the u.s. over years and the battle with packages compound -- with hackers is come down -- is bound to continue. ahead, with the s&p 500 reaching an all-time high, the ftse 100 headed for a bull market, we will look at companies who are moving the most today. this is bloomberg.

mark: live from london and new york, i am mark barton. vonnie: and i am vonnie quinn. it is time for the bloomberg business. volkswagen will repay a pair of loans to the european investment bank early. the amount, 1.1 billion u.s. dollars. the move comes as volkswagen raffles on its diesel emissions scandal. reuters will sell its intellectual property and science center. price tag $3.55 billion in cash. the company will use $1 billion to reduce its debt. bloomberg news competes with thomson reuters.

is hosting starbucks the pay for all u.s. employees managers by at least 5%. two employees of have been with starbucks who have been with starbucks for 15 years. and that is your business flash. let's head to the markets desk where matt miller has the latest on movers. >> movers, analyst calls, and companies that mean a lot to me. i'm going to kick it off with gamestop, bank of america saying there are a number of drivers -- unexpected drivers to traffic and eps growth for this video game sales company and the shares are up three and a half percent. a big move on the bank of america up rate and i am hoping we can get over there afterwards and pick up some new games since bank of america reminded me of it.

, soter cut by suntrust twitter getting a couple of big cuts today, chairs at 17-57. i get excited whenever i hear about the apple iphone seven. apparently, intel gets excited about the iphone seven as well. intel's new modem design is so good that it can be cut out completely from the iphone seven. what is a modem? vonnie: i can't remember. thank you. i am looking forward to it. still ahead, we will keep watching for new highs in the market. ♪

bonnie: live from liberty headquarters, i'm vonnie quinn. jonathan: in the chandra has the

latest -- emma chandra has the latest. ma: there is no going back on leaving the european union. theresa may said brexit means brexit, and we are going to make a success of it. she said is premised, she will make no intense -- no attempts to stay into the eu. he will try and shore of investor confidence in the wake of the vote to leave european union. after his trip to the u.s. county will go on similar missions to china and singapore. indian troops have been battling protesters in the disputed region of kashmir. at least 18 people have been killed. the anti-india demonstrations rogue out after a popular rental -- rebel leader was killed. the rebels either wanted independent kashmir or a merger.

i campaign stop in indiana on tuesday is fueling speculations that governor mike pence will be named donald trumps -- donald trump's running mate. names have emerged as possible running mates, retired army general and it would to a general. it may be a sign that bernie sanders is about to endorse hillary clinton. he will campaign with the likely democratic residential nominee tomorrow in new hampshire. -- presidential nominee marlin enhancer. he says we've got to do everything we can to defeat donald trump and elect clinton. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. vonnie: let's get you caught up.

the nikkei up overnight. are aboutnsion funds to become multibillion-dollar stock market players. it is a $300 billion war chest that could soon make it to market for a. bond markets are handing over some of their cash to the national council for security -- social security fund. it is expected to hit the market later this year, as part of the plan to boost yield for a pension system that has been suffering low returns. the system was previously limited to investing in only deposits and government bonds. it's likely the nsf f will buy blue stick -- blue-chip staples. this is like warren buffett saying he is buying the stock. hopefully the war chest will grow for china's aging population. juliette saly, bloomberg, hong

kong. jonathan: just under 60 minutes left of today's equity session in europe. third rising for the consecutive day. the stoxx 600 is up, gains in london propelled by higher commodity prices. the dax in germany of by 1.6%. in paris, 1.6% higher. the currency board today, starting -- sterling was lower against the dollar ahead of the announcement that she is dropping out of the leadership race to be the next party leader and thereby prime minister. it got a bit of a boost, and sterling is down against the dollar, hitting record lows. the euro is up against the pound, big news out of japan, the ruling party had a good night were a good day in the upper house elections, which could pave the way for more fiscal stimulus in japan, and the euro is unchanged against the dollar. in the bond market today, a big week for the u.k..

bank of england set to announce its latest late. we see the first rate cuts since march 2009. the yield was at a record low, up by a basis point, as is the german 10 year, the italian 10 year, and the spanish 10 year. there is appetite for risk it today, boosting equities and pushing bonds marginally lower. let's get back to the u.s. bloomberg, abigail doolittle has the latest live from the nasdaq in midtown manhattan. amazingly, today, two weeks ago we were in the middle of the worst selloff for the nasdaq, the worst two-day selloff since the middle of february with the brexit uncertainty. now we are on a four-day rally after all of that brings a volatility. , thepretty amazing recovery we have seen. unlike the s&p 500, the nasdaq is not flirting with all-time highs, about 4% low those levels. not even across the psychologically important 5000 level. will have to see how this one

plays out as the day goes on. despite that fact, we have a bit of a rally for the nasdaq, up by .5%. tech stocks are driving the strength, the most including amazon, microsoft, facebook, and apple. itson is rallying into prime day tomorrow. last year, this was a huge success for the company, its bigger financial success for the company than black friday. many investors may think that tomorrow's prime day, available for all of prime numbers on amazon could be another big boost for the shares of amazon. jonathan: what about another winter -- winner? abigail: tesla shares are up, elon musk said he hopes to two ofhard to -- part the secret master plan for tesla. this fanning the flames for those who love elon musk and his push to make the electric vehicle available on a mass scale. as a 26% short interest on the

stock, a lot of bears may see this as the beginning of yet another big promise. --have bloomberg intelligent intelligence analysts saying the best thing that could come out of this plan is something about manufacturing. it will have to see what the plan actually turns out to be. market: abigail doolittle, thank you. let's get back to markets, the s&p rising to new records, the ftse is on track to close at a bull market of north of 20% from lows this february. is it time to look at u.s. stocks? cioael jones's chairman and ,f riverfront investment group he's live in richmond virginia. michael, thanks for joining us. how important is this, psychologically, that the u.s. has reached a state record finally? jones: it's critical.

with been a long suit -- two years chop, and investors of gotten impatient to see gains in their portfolios. i think in light of the volatility that we have seen in the last few weeks, to get some reassuring economic data and to have the markets drive higher on the basis of that data, this is a really good confidence boost that equity markets around the world really needed. mark: will that confidence boost be enhanced by the upcoming earnings season in the united states? believe so.e don't we think the clear evidence is that the u.s. really accelerated in the second quarter. we left some of the drag from the oil patch behind it, we picked up some consumer spending and wage gains. most of portland, we accelerated and housing, and all of that suggests to us this is going to be a good earnings season, which will only be improved by the fact that the dollar has been much friendlier for u.s.

earnings over the last quarter than it was in the first quarter. vonnie: you are saying we are not going to get the 5.7% drop that analysts are looking for an earnings, that we might get something better. i think expectations are too pessimistic going into this quarter. i think a lot of things broke right for the u.s. economy in the second quarter. non-foreign payroll number, the purchasing managers surveyed, particularly the service assigned, it also just payroll,000 non-foreign is an aberration. i think analysts backed off to aggressively because of it and i think we will see better than expected numbers in this earnings season. vonnie: if that is the case, what sectors do you see the best value in, if you think stocks are going to keep rallying? mr. jones: there's no question that technology, the friendlier dollar environment will help us stocks. no health care is a great place to be. , ands very hot quarter that means that the utility

stocks may continue to surprise with the earnings strength. you save a big risk is an earnings to the u.s. and in economics. it's actually politics. but a huge uncertainty has been removed today, one of the candidates who are vying to be leader of the conservative party has dropped out, thereby opening the door for home secretary theresa may to be prime minister. that essentially removes nine weeks of political uncertainty. that must be a positive for markets. no question that the premises to race in great britain has been reassuring to the markets. also, i don't think anyone abected all they -- shinzo week'supported in this elections. those are powerful reassuring messages from the financial -- from the electorate. we have to recognize that we are in the midst of negotiating the bank bailout in italy. they've got to come to a conclusion before those stress

tests are published at the end of the month. and the bailout will have huge determination on the referendum, the constitutional referendum in november. there is still several very important local risks sitting out there for financial markets that we hope and expect that the big impact on brexit will get the people in the eu to be more, native to italy, not make the mistake they made in greece, where they were too hard for too long, and they got a political backlash they didn't want. vonnie: speaking of italy and euro, rates are ever more negative. the german 15 year -- what impact does that have on u.s. stocks? we've been doing the chart of the s&p 500, and the 10 year treasury yield, the whole thing is record low, obviously. is it a direct correlation? mr. jones: no question. impacts ofironic

brexit has been a positive to the u.s. financial market, because despite the stronger-than-expected economic data, our bond market has continued to be knocking on the door of all time lows and interest rates. that's obviously because negative rates overseas make the 2.15 yield onest the long bond in the u.s., suddenly that looks good by comparison. of course, the more that interest rates here in the u.s. are held down, the more that the fed, the next fed increase his push down into the future, that all makes our stockmarket look more attractive on a relative basis. mark: on the matter of relative the stoxx 600 is trading on 15.6 times estimated earnings. 18.15. is on the last on the stoxx 600 hit a record was in april last year. record aselow that the s&p hits the new record

today. is that valuation that warranted? mr. jones: i do not believe it is. the valuation gap between u.s. and european equities i believe is largely a function of the political uncertainty. obviously, the brexit vote increase that political uncertainty. but i believe that if we can get through the italian bank bailout with a good outcome that help support the constitutional referendum in november -- if you can just lower some of the political risks, they've engineered a fairly good economic recovery in europe. their growth in the first quarter was three times that of the united states. i think if we can get some of these clinical risks behind us, with one clear implication of brexit across the rest of europe is that polling data has actually gone the other way for some of the other candidates,

the people they were afraid might follow great britain. if we can get some reasonable policy accommodation on the italian bank bailout, i think we can see a nice rally in europe, vis-à-vis the rest of the global markets. , thank you for joining us. michael jones, riverfront investment group. coming up next on "bloomberg markets," british cyclist david miller is just one of the athletic champions you could train and travel with this small. .- this fall we look at the opportunities to vacation with olympic greats. this is bloomberg. ♪

vonnie: you are watching "bloomberg markets," i'm vonnie quinn along with mark barton. david miller is one of the top

cyclists in the world, and for more than $4000, you can train and travel with him. cycling program is one of many opportunities for those interested in running elbows and pounding iron with a linda greats. eckstein -- nikki ekstein joins us now, what are our libyan are wanted to go -- vacation with an olympian? nikki: it depends on what you want to do. mallorcao cycling in with one of the top athletes from the tour de france. you can go skiing with an olympian gold medalist or bronze medalist. there's really a lot of options. basically every corner of the globe. i love the one with james greco, the linda grover, which

will take place in london. he will give an inspirational talk, it takes place here in a hotel. what about the cost? nikki: i was surprised, there are affordable options. you can go nordic walking with an olympic -- with an olympian for $10. some of these other programs that are multi-day weekend long events, those will run you in the thousands. vonnie: what are some of the stars? i presume they are former olympians, are there any current? nikki: they are training for rio, but you may see them later when they are taking it easier. these are all folks that have retired from their lengthy careers, but some of the more recent olympians, in the 2012 games, or before that. it's pretty phenomenal. vonnie: you get great stories. nikki: talk about instagram gold for sure. vonnie: i was wondering if there

was a gymnastics holiday you could go on? nikki: not yet, but i know people who would book that right away. mark: just to be superfit, or can i turn up mr. unfit? you are selling yourself short. anyone can turn up, but there are some that required vance training. if you want to go biking, you actually get a regimen given to you so you are in shape and you are capable of doing the trails before you arrive. vonnie: i think we should send you somewhere just to check it out. mark: let's do it. vonnie: you can report back. -- thank youin nikki ekstein. ,you can learn more at bloomberg pursuits on the bloomberg. coming up on "bloomberg markets," and air show where some of the most notable leaders are gathered. baker --ith fellow

pharrell baker -- akbar al baker. ♪

vonnie: you are watching "bloomberg markets," i'm vonnie quinn in new york. mark: live from london, i mark barton. shownternational air started today. some of the biggest aviation companies are there joining us now from the show. johnson --nswer guy anchor guy johnson, with akbar old baker. -- akbar al baker. , good'm joined by the ceo afternoon. i'd like to apologize for the british weather in the british politics, so tell me what brings it means for your business?

mr. baker: other than the foreign exchange of people due to the brexit, we are not affected. we still see the passengers traveling in and out of europe. more and more people are flying into the u.k. because of the lower count. you have a 50% stake in iag, wouldn't this be a golden opportunity to raise the stakes? mr. baker: we have 15.24, we like to stay at that level. we are long-term investment, so we are confident that this relationship between us and iag will keep on growing. then we will keep on benefiting from each other's purchasing power. guy: you don't see this as an opportunity to raise the stake? mr. baker: we're not thinking about that at all. guy: his abrasive related -- is that brexit related? mr. baker: we have full

confidence in the british economy and the british government. rebound and business will be as usual. this is what i think will happen. do you worry that this is a story that's going around the world, that political instability is something we just have to get used to? mr. baker: i think political instability will stabilize. you already have theresa may, the only candidate going to be in the run. i think she will be a very strong prime minister, and there will be level heads that will sit across the negotiating table in europe. in the things not-too-distant digital stabilize and everything will be back to business as normal. what yous talk about are doing with your business. let's talk about a320, it's more of your favorite subject and i'm absolutely certain you ordered a whole bunch of a new engine

option, the new version of the aircraft that came with the engines. pratt had a few problems with the engines. you want away from one of them. how many more of the three 20's we walk away from? -- baker: we will welcome a walk away from as many as possible as long as they don't fix the problem. i have confidence in my friend, he has assured us that things will be sorted out before the year-end. we have accepted that. and we will wait and see what happens. guy: are you talking to boeing? mr. baker: yes, we are talking to boeing very seriously. we hope that we will be able to get the light at the end of the the 320 isar as concerned. it exercise plan b. guy: plan b is boeing. what about the 350? mr. baker: we have a second one

that will be delivered to us this month, and we hope that the remaining nine aircraft will be delivered to us before the end of the year. guy: when you wake up in the morning, how frustrated you feel? you talk about him being your friend, when you have a conversation with john lecky, what do you say? i alwaysmr. baker: deal with the top people. for dealing with us, i take that as the top people. qatar airways joining us. mark: thanks for joining us, guy johnson a bloomberg television at the farmer he international with akbar- air show al baker. let's work on, another while day for u.k. politics. theresa may is on course to

succeed david cameron's prime minister after her only opponent in the tory leadership race dropped out. we are expecting to hear from prime mr. david cameron shortly. tro's litchfield from the eurasia group will join us as well. and signal of european stocks as we approach the close. 35 minutes away from the end of the monday session i'm a stocks are rising today, gaining for a third consecutive day, the stoxx 600 is up i 1.5%. don't forget, it is still 20% loads record set last year as u.s. stocks, more specifically the s&p 500, region new record today. the european close is next, this is bloomberg. ♪

mark: breaking news in london, david cameron has just announced the u.k. will have a new prime minister by wednesday night. he was speaking at downing

, and the u.k. will have a new prime minister by wednesday night. as andrea letson drops out of the leadership race, paving the way for home secretary theresa may to become leader of the conservative party. the homeaiting secretary, we gather she will speak later this evening as early as 6:00 p.m. we are also expecting to hear from the chairman of the 1922 committee as well, to hereby inform us that theresa may will be the leader of the conservative party. ,hat's the big news, vonnie cameron said the new prime mr. will be in place by wednesday night. vonnie: a relief for a lot of investors. the pound is rallying off the back of