rk: i am mark barton and this is "bloomberg markets on bloomberg television. ♪ vonnie: we are going to take you from los angeles to london and cover stories at a japan in the next hour. here's what we are watching. all took was a few words from opec to encourage oil from climbing higher after its biggest weekly gain since april. they will revise formal talks to state was prices. -- stabilize prices. mark: the first numbers from post brexit british economy coming this week. speculators are most bearish on sterling since records began. vonnie: a week after donald trump unveils his economic plan, we sat down with trump economic advisor tom barrack. and exclusive take on a new protective is trade agenda.

30 minutes into the trading day in the u.s. and hitting records already. let's head to the markets desk were julie hyman is watching things. three intraday records again. you can see the gains that we are seeing across the board. i should mention that the gains are on relatively low volume still. the s&p 500's volume is to percent below a 30 day average. it is 20% for the dow. both of them seeing relatively low volume. theou look at the s&p since most recent lows back in july, you only got a gain of 2.5%. a lot of the movement has been sideways but up enough to keep hitting these new records. just a reminder however as we get into the dog days of august what last august looked like as we talk of these new records for the s&p 500. here is august 2015 and this is

something the traders have been bring up more often. the fact that we did have that unexpected plunge last august as we had some economic troubles out of china and yuan re-fixing actions othere. here was the sideways action going up into that drop. whether there's going to be a catalyst in that direction is anyone's guess. the only catalyst we have had today is a positive one. vonnie quinn said it has to do with opec and the talk from ondi arabia and now russia willingness to perhaps take some sort of action to stabilize oil prices. oil is now above $45 a barrel. you can see energy stocks are on the rise as one of the best-performing energy groups on the s&p 500 today. elsewhere and what we are watching with assets, if you look at the 10-year note and the action we are seeing today, a little bit of a bounce in yields -- 1.54%.

we have some selling and treasuries. we have been watching the u.s. dollar as well. that not going in the same direction as yields and is down a quarter of a percent. it is falling versus the euro today. 90 minutes left of today's equity session on this monday. we are well below the average daily volume over the last three months. we were 4/10 of 1% higher. a little bit lower now. benchmark in europe rose to the highest since may 30 . the dax turned positive for the year for the first time in 2016. this is the big gainer on the stoxx 600 today. the belgian drugmaker is the big gainer was shares of as much as 5.9%. is the most since 2009. it won a u.s. court ruling confirming the validity of stocking a generic version of its epilepsy drug.

they say the ruling is a long-awaited boost. analyst have a 12 month price target. one, private firm kkr has emerged as a potential bidder. pig"own the "peppa cartoon, which is massive and the barton household. entertainment one rejecting a bid from itv worth 236 pence. is a bidding battle about to brew? i love this chart, showing sterling pessimism. the white line is the level of the pound against the dollar, the lowest at over a month. the blue line is the net speculative position. as you can see, we are negative by 90,000 contracts to the tune of 90,000, which is the most

bearish since records began in 1992, as we await a massive week of data. it is the first batch of hard data since brexit. let's check in on bloomberg first word news today. alisa prunty has the latest. urginggermany is tensions to cool over crimea. vladimir putin has accused ukraine of killing russian soldiers in crimea. putine denies it and says is looking for an excuse for military action. russia annexed crimea two years ago. the uk's exit from the european union could be delayed until 2019. that is according to the "sunday times. " they say the transition may not be ready to start with negotiations early as predicted could it may be a full year before the u.k. invokes article

50. fighting in syria has killed dozens of civilians. that is according to a group monitoring this in the u.k.. syrian and russian bombers hit the city, killing 46 people. in those areas helped kill nine,. donald trump going to declare an end to nation building. he says if he is elected, he will give up nation building in favor of a foreign policy that focuses on destroying the islamic state and other terrorist organizations. he is also to propose a new ideological test for screening for proposed immigrants to the u.s.. hillary clinton and joe biden are hitting the campaign trail in scranton, pennsylvania. he will argue that he is less prepared on national security than any nominee in history and

that trumps a red it rhetoric and bluster will make americans less safe. global news 20 for hours a day powered by more than 2600 journalists in more than 120 countries, i am elisa parenti. vonnie: getting back to oil on the rise. wti crude continuing to climb. producers will revised discussions to stabilize the markets. for more on what is fueling this inly, let's bring bloomberg's chief energy correspondent. sentiment.acting will these words from opec members and nonmembers actually impact supply? javier: i do not take it will have impact on supply. the latest news minutes ago reporting that russia does not think that there will be a

freeze agreement when the two sides meet in algiers later in september. at the moment, we are hearing a lot of rhetoric similar to what we are hearing with another moment of weakness in the prices. it seems that opec has taken some cues from the central bank. while it is trying to monitor expectations and talk up the price of oil, we have seen success with wti at $45 a not aboutt it is borrowers an actual supply. vonnie: saudi arabia is really the chair. they impact the market more than any other. will that continue? javier: the comments from saudi arabia are the critical ones. it will make the market take it more seriously than in the past when other countries in the past have been talking about a potential freeze. what thek about saudi's are saying and that they are open is needed to take some

corrective action. it is unclear what that collective action with the. would be. production is at a record high today. there's a gap between what saudi arabia is saying and what saudi arabia is actually doing. mark: we have been here before with doha in april and we were so optimistic. what have we learned from april? javier: the main lesson was iran. iran is key for any deal. you need the saudi's and iran to be on the table to freeze production. because what matters the most is what level they are freezing. i do not see any signs of iran being ready to freeze production. they claim they're coming back from sanctions and they need to continue increasing production. the oil factories -- what level of production are we talking about for the freeze? the last time they were talking

countriese have been positioned a lot more. isre are no signs that it freezing. increasing.ction is its like if i was going on a diet after visiting a hamburger restaurant for the last two weeks, i'm happy with this. this is going to be my diet. mark: ahead of this possibility in algiers the next month, we have got money managers increasing wages on rising crude prices by the most since january. this is speculative long positions, which are at the highest since may 2015. that is the white line. features is the blue line. what is telling us right now is that money managers are getting quite excitable. javier: liquidity is low in the summer and that is one factor. there were a lot of negative

positions on the oil market, so they're are taking the money and opening their own position. the trend at the moment is rising oil prices. i think saudi arabia was very successful at scaring those bears than they were with massive short positions by convincing them to take the money and stop pushing presses down. the saudi's are in not trying to talk up the prices but prevent that prices were going to drop below $40 a barrel. mark: great to see you. p.m. in london. k gives us anrac exclusive inside look at trump's vision for america. this is bloomberg. ♪

mark: live from london and new york, it is a sunny london. i am mark barton. vonnie: you are watching "bloomberg markets." it is time now for the bloomberg business flash, a look at the biggest is in stores in the news right now. private equity firm ptg has agreed to buy broadband services providers. tpg will pay about $2.3 billion. they are owned by private equity firms. rcn offers cable, phone, internet service on the east coast and chicago. grande is in texas. the price is about $1.7 billion in cash. senses provides smart meters and network technology for its water, electric, and other industries.

the biggest ever privatization deal in hong kong. shareholders one approval to buy out the commercial properties unit according to people familiar with the matter. he will eventually move to mainland china where companies are going higher in terms of valuations than in hong kong. that is your business flash. demographicsn, seem to be getting in the way of growth. that is the assessment from high frequency economics carl weinberg. isnberg says japan's problem height of local. he made the case on "bloomberg surveillance" today. >> if our population goes down, our economy will shrink. since there is no sign of our population going down and since we are not going to build that

mexico or cut off immigration, we are going to get through the baby boomer crisis and continue to grow. maybe not as fast as we did before, but we will grow. japan needs people. it does not need more fiscal policy or monetary policy. it needs more people. >> i'm going to push back against not what you said now, but what you said previously. this is my japan chart. the blue line is unemployment. we are at 3.3%. other western economies would love and kill for this kind of thing. this is the balance sheet of the boj. this is a clear demographic problem. even if you see gdp not rising, how do you get out of this? it needs to be open borders. it needs to come for immigration. >> they need to have more people. when you have a contracting economy, it's different. the unemployment rate is an

irrelevant statistic. the unemployment rate measures how growing labor force is pressured by growing employment. when population is coming down, it doesn't matter what the unemployment rate is an. there is no tightness of capacity. you have more of everything. >> with all that said, we know the bank of japan will try anyway to do more to provide more monetary accommodation. it said that it will conduct a comprehensive assessment of its policies to date to see if they work. it seems they are worried about the impact on financial institutions a very long term interest rates. what do you expect of this comprehensive assessment? what you think they will do? your and my idea of comprehensive is very different. there's only one monetary policy

in japan it is qqe. we have seen that coming from the boj board members as well. i do not think we will see anything in september. >> but carl, you need businesses and consumers to start spending. negative rates backfired and every thing else backfired. what will it take for people to start spending in japan? >> people are spending in japan, but there is not as many as before. this is what people are missing about japan. >> i'm looking at the numbers. hold on. business spending actually declined 0.4%. consumer spending increasing 0.2%. that is barely spending. >> fairly spending -- that's right. there is one quarter of 1% fewer people in japan then there were the quarter before. the fact that consumer spending did not go down at all is great. that's an economic success.

meanwhile, their population is going down. there debt is not. the debt to population is rising and the debt burden is rising. inevitably consumer expenditures will have to fall because after they pay their taxes and that, they are going to have less money to spend on blu-ray's and dvds and sushi and whatever else they buy and japan. >> it seems that double be growing faster than gdp. how will they get out of the debt dilemma? to have a norm is of debt relative to gdp. >> their problems and then there are facts. problems and not a solution, it's not a problem to be solved anymore, but it's a fact. they are going to fail. it's just a question of how long they can put it off. when you look at what they're doing now with the negative interest rates, they have been out to try to prevent it from happening and they can't. mark: high frequency economics chief economist carl weinberg there with bloomberg's tom keene

and francine lacqua. still ahead, oil is on the rise and chinese stocks are rallying in japan. storieslay mondays big with etf's. this is bloomberg. ♪

mark: live from london and new york, i am mark barton. vonnie: i am vonnie quinn and you are watching "bloomberg markets." looking at etf's to watch this week, let's head over to julie hyman. julie: i'm joined by eric balchunas, the senior etf analyst. he is joining us from our princeton office. great to see you. let's map out the week and what we should be watching. as i was talking earlier, one of the big movements in the market has been oil prices. they had a big bounce from the

lows and entered a bear market a week and a half ago. they are now up 13% from that level. there is an etf for that. there is an etf tracking this game that we have been seeing. eric: there's about 30 of them that track oil in one form or another. the one that you need to watch his uso. is the united states oil fund. this tracks oil futures and it has the most sensitivity to the moves of spot. spot was up 7% in the past two days. uso is up 7%. however, the bad news is that over the long-term, because the cost rolling a longer futures position, it corrodes returns. year to date spot is up 15% and uso is down 5%. i was asked on friday why would anybody by uso and the reason is that if you want to play short-term moves in spot, the long-term will probably go down, even if you get your call right on oil. the one that tracks the oil energy stocks is the one that

most retail would use to play oil in the long-term and that is up 50% year-to-date. it only went up 2% in the past few days. julie: it obviously matters if you are long-term or short-term investors. another etf that you are watching has to deal with china. we have seen chinese stocks rally. your options are somewhat more limited. eric: for the china a share toket, shares only available mainland consumers, they are opening that up. the csi 300 is the one that most people use. it is far and away the biggest one in the area. this is up a bit in the past week. it has had a rough year and is trailing the a shares. what came outat in 2013, and you would think that after all the bad news that this is horrible, but it is actually tied with the s&p since 2013.

they're both of about 26%. that is how amazing how the early part of 2013 was for china a shares. julie: interesting. ssi is that a shares etf that you were referring to. switching again to a different part of the globe, the u.k., we have inflation data coming out this week. what is one way to play that in either direction? eric: sure, so that ishares u.k. etf ticker is the one to watch. , this etf is up 15%, but it is seeing zero flows. investors are little gun shy in that investing in. the one that we have seen flows is the pound etf. that tracks the currency and we have seen this double in size to 250 million. the pound is down 2% since the brexit. investors heavily call this wrong in terms of etf place. whether you go along or short,

that is the one to watch. julie: very quickly, japan as well. wisdom tree japan hedged equity fund, you're watching that one. eric: it is getting killed. watch this one for flows. it is literally half the size it used to be. it was 18,000,000,001 year ago. -- 18 billion one year ago. you wg would be the one that does not do that. japan is up a little bit this year. julie: we've got to leave it there. thank you so much. vonnie: still had, an exclusive aterview with tom barrack, senior economic adviser to donald trump. he is talking everything from taxes to regulation. this is bloomberg. ♪ [ clock ticking ]

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vonnie: from bloomberg headquarters in new york and london, i'm vonnie quinn. mark: i'm mark barton. you are watching "bloomberg markets." let's get a check on the first word news with alisa parenti. a car bomb exploded at a police station in southeast turkey today. two police officers and a child were killed. 25 others were wounded. authorities blame kurdish rebels. last week, and attack killed 12 people. in switzerland, a man who attacked passengers on a plane with a knife has died of burns and one of his victims also died. police say there is no indication the suspect had ties to extremist groups. a new poll finds most americans favor limited u.s. military action in syria.

72% of americans approved of air strikes against terrorists. 57% approved of sending special operations forces into syria. only 42% favored sending u.s. ground troops into the region. much of louisiana is underwater after days of catastrophic flooding. more than 20,000 people have been rescued. at least six have died in the disaster. 40,000 businesses and homes are without power. president obama has declared a state of emergency. wildfire in northern california has forced 4000 people from their homes. the fire has destroyed more than 100 homes. it is one of 11 large wildfires burning in the state to own by edgh temperatures and parch conditions brought on by a five-year drought. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. thank you.

one controversial remark following another. donald trump has made it easy to forget the details of his economic plan. it includes tax cuts for businesses and individuals, and a new protectionist trade agenda. tom barrick is a real estate investor and a member of donald trump's economic advisor council. he is with erik schatzker this morning. rik: a pleasure to have you here this morning. you want people to focus on the economy, but your candidate is not making it easy. tom: that is the good news and bad news. asset is's greatest that he is his own person and he creates his own agenda. us that areof trying to support him on the economic and business side are saying, terrific, we are where

we are, let's move on from that. we are exhausted from the negativity on both sides. it is a choice between status quo -- hillary is very qualified, competent, she has proven that in various venues. president obama has done a good of a job as any individual can. he is well-meaning, there is no malice in his heart in trying to accomplish a difficult and impossible job. so let's move on from all the degreessm and find the that we can move as a group. i think everyone is ready to do that, including us. that is what we are advising donald to do. he will do it. he is better than all the negativism that is out there, and that is the message we are trying to get to him. the very least, you and

i can move on to talk about the details of his economic plan. both candidates say they will reject the transpacific partnership and reworked trade deals that cost american jobs. both candidates say they will prioritize infrastructure spending. given that, what is special, what stands out about the trump plan? tom: all of these plans are really complicated. they would not be complicated if we had a dictatorship. i haveividual could say a great idea, i have thought through it, and i will implement it. the problem is, the president can only advise and consult. the process through these bureaucracies is massively complex. when we talk about trade, most people don't understand. what is that? you have gigantic, multilateral institutions, to whom we have allocated our trade responsibilities. , startedke the wto

right after world war ii, when trade was not for the purpose of creating jobs. trade was for the purpose of having a postage stamp to stop the penetration of what was then , to ensure then fact that you are could recover. , europe was inle disarray, asia was following. really implemented from foreign policy, not domestic. we were always the strongest and best country in the world, we consumed more than we produced, and the idea was how to subsidize these other countries from a foreign policy point of view. the reason i ask the question the way i did is because i am trying to give others allow you to help , to understand what it is about the trump economic plan they should be focusing on, what makes it distinct, in your mind,

that makes it special, next to the clinton plan. if both are saying the same thing about trade, and effectively about the same thing about infrastructure, what should we be focusing on? tom: let me give you a simple example of the difference. , tpp, no longer is viable because it is a multilateral, 5000-page agreement that only the bureaucracy that created it understands. the difference is in approach. what people criticize about trump is the abruptness and the lack of inside bureaucratic process that he is using to come up with these ideas. in essence, that is the answer. the difference between them is, you have thousands of people, hundreds of committees involved in the trade decision. if the average person saw how

many congressional committees, how many agencies, independent thatlateral bureaucracies their life depends on comedy continuation of these agreements , it is mind-boggling. there is not one entity that has control. president obama did a good job and came up with a fast-track head. if i sat down with china and wanted to negotiate a deal with the chinese chairman, he knows i have the authority to make a decision. chairman to chairman, we can make a deal. if i'm representing america, it is a diplomatic process. the person on the other side knows i have 100 traps to go through before i have the efficacy to make a decision. for: excuse me interrupting, but those traps are the same whether a president trunk or clinton. that is not correct. it is president trunk, those

traps will be eliminated. erik: he will no longer have to negotiate with congress? he will no longer have to negotiate through these multilateral tribunals where you are allocating. nobody understands what to debut to does. is that our entity, are they negotiating on our behalf? when you talk about going through congress, what is already in place is the fast-track mechanism to give the trade representative the authority on behalf of congress and the executive branch, pre-approved, so that everybody comes to consensus. the consensus is we need more jobs, higher pay, and we had to go to kind of a protectionist environment. if you are flying, the pilot does not tell you to put the oxygen mask on your neighbor first and then yourself or you put it on yourself first, and then you worry about what is next. you have to chip away at these

bureaucracies. that is what is killing us. i know how much trade fascinates you. it fascinates me. we could talk about it all day, but in interest of covering a few other things that are in or out of the trump economic plan, allow me to move on. specifically point to entitlement spending is one of the greatest threats to the american economy over time. i have been wondering, why isn't there anything in the trump economic plan about entitlement reform? putting your very good question in context for the viewers -- entitlements are 67% of the budget. today on our deficit is another 7%. defense is another 14%. do the math. there is very little left.

everybody talking about what they will do, and you look at entitlements, 67%, why doesn't anyone talk about it? the american public does not want to reduce entitlements. the public still wants more for less. it is not the american way, it is not the system that is failing, it is us that is failing. why? we built a prison in which we are the prisoners. when we talk about the department, interior, energy, none of us have an idea of what they do, but the allocation of revenues to these departments across government are humongous. it is not just the distributions in health care or education, or defense. somebody has to take accountability. where are the revenues going? precisely why i asked, isn't this a clarion call to donald trump to take leadership on entitlement reform?

yet, there is not a word in his plan about entitlements. tom: well, not yet. what you will see is a rolling out of these pieces. it is kind of parry and thrust on the economic issues that are at the top of the list. entitlement reform is not a wonderfully politically accepted act -- erik: if you are going to be a disruptor -- pardon me again for disrupting. if you are going to be a disruptor, which is how you describe the donald trump candidacy, shouldn't you be willing to embrace and champion these admittedly unpopular ideas, like entitlement reforms? tom: absolutely, and i think you will see it. is also parteform of dismantling all of these bureaucracies that are in place, and that takes a little bit of time. we still have 80 days left. you are right, almost 70% of the budget. whatever you do to encourage

jobs, wages, all the things that both candidates are saying are necessary, you are right. at the foundation of this, you have to redirect this aircraft carrier, -- erik: so we will see something like that. tom: absolutely. budgetou can look at the sheet.corporate p&l a proposal thus far is not revenue neutral. there is nothing on a backend apart from a one time 10% holiday on overseas profits and closing the carried interest loophole to raise revenue, or cut expenses, for that matter. tom: it is an infinite mathematical equation. as you go to the supply side and produce investment tax credits,

encourage people to make , andtments and hire people the hiring of those people and the investment tax credits over time will increase gdp. that revenue line should rise. that is 1980's supply-side economics. you are right. congress and the executive branch, and the people saying, it is time we tighten our belt, take accountability for what we have got. we know we are not going to get more of everything. we are going to get less of everything and i will be better in the long run. let's go back to something you said earlier about negativism. you are supporting donald trump because you are his friend and believe in his vision. you told us that you and others have been encouraging him to be less negative. for the moment, it is obvious he is not taking your advice, but i want to know, is it getting

harder for you as a friend to maintain that support, when he makes remarks, inflammatory, controversial remarks about second amendment people that would seem to be inviting them to take matters into their own hands in the event of a hillary clinton presidency? or saying things like president obama founded isis. look, so many things are taken out of context. it has been a bit of a war between donald and the news media. he is probably right in a lot of aspects, but the bottom line is, the establishment is not happy to see disruption. he should just mark that up and say that is the way it is. i will not fall into that trap. erik: i fully understand, which is why i asked you if it is becoming harder for you. i understand how it is portrayed in the media, and as a

consequence, americans tend to perceive things differently, might perceive things differently than they may have otherwise. that is a fact. so what happens to you? tom: let me explain to you why it is not bothersome to me. i am in this not for politics. i am in this because of the debate we are having. americans never have the opportunity to look at what is underneath all of this. it is too much alike, every candidate is too much alike. now it is not. have this conversation with donald, he would say, if i would have listen to anybody, tom there are, i would still be on "the apprentice." and he is right. today, nobody knows whether he is right or wrong in the approach he is taking. i am neutral on that approach and have great respect for his instinct, but more than that, i

have great respect for his ability. me, if you left all of this behind and focused on the man's ability to distort, execute, create consensus, from outside a system which takes tremendous understanding, he would be great. however this process ends, it will be a great thing for america. hillary is a good choice. we have discussed this before. everybody that you focus on will have negatives. she is tremendously competent. erik: you have distinguished yourself by making it clear, tom, that you do not want to say negative things about hillary. you said that at the beginning of your speech at the republican national convention. the thing that people are left wondering, having seen you take such a mature, high road, if you will, approach to the trump campaign and the candidate

, andlf, is how you intelligent, educated, accomplished businessman and human being do not find some of the things that he is saying offensive, and do not wonder to is, or not, the kind of infected we should be hearing from a potential president. tom: sure i do. we are all tired of negativism. including me. a lot of us are. but i do not personally want to continue in that dialogue. it is not productive for anyone at this point. personally, -- it is like finding a statue under a granite cube. the statute does not automatically appear, you have to start chipping away. he has good people around him

saying, you are better than that, america needs the answers to the questions you are asking. we are all just athletes in a field, we do not have the answers, we just have a bit of experience. we can criticize the american system how we want, but as i go across the world, there is no better system. the dialogue, even with donald being negative, [no audio] better tax capital gains, while the middle class is vanishing and the poor are getting poorer is not an option. i am happy to step into the middle of the prey, not happy to listen to some of donald's

comments, and i disagree with his personal opinion on a lot of things. it is not my personal opinion. but the man, as an engine to change, as a vessel to change, as distortion -- you never understand disruption when it is coming. he can be affected, and congress would follow on, and the people would go behind him, and i think we are ready to sacrifice something of ourselves if we get better quality across the board, but people have to define that. days, the people will make an intelligent choice. at least the debate will have been better. out of this will come better decisions, whether it is hillary or donald. my contribution is not political, it is chipping away at these tiny things, where i have some modicum of expertise in trade and the middle east.

i feel like a prisoner in my own prison. erik: i certainly hope you are right and i do want to, i guess, put a little attention on the point that you made, that is not who you support but who you participate -- but that you participate. thank you for spending some time with me here, tom barrett, the cofounder of colony capital. vonnie: thank you. again our thanks to tom barrick. mark: you are watching bloomberg. i'm mark barton. vonnie: i'm vonnie quinn. china is thinking about loosening the rules for mobile phones, but only in one area. mark: more follow from the brexit vote. it has taken its toll on the london real estate market, dragging down prices of homes in

the city. 's legacy is chavez starting to fade after collapsing oil prices and corruption plagued the country. venezuela.ook at houses in london are taking longer to sell than before the brexit vote. homes are staying on the market five days more than they were in may. homeowners have encouraged buyers by cutting the average asking price almost 4% to just about $1 million. william hill has rejected an improved takeover offer. thanid is valued at more $4 billion. the william hill chairman says the offer continues to substantially undervalued the company. authorities in china and lift restrictions on the use of mobile phones on airplanes if legislation is approved.

passengers would be able to shop online and use popular apps. regulators in the u.s. and europe instituted similar changes about three years ago. the world's biggest container shipping company is warning against u.s. protectionism. trade barrier should be reduced as much as possible, but if a trade policy threatens , hillary clinton and donald trump both opposed the tpp. it is time for our bloomberg quick take. subsidized oil and other benefits long ruled venezuela's influence abroad and support at one, but collapsing revenue top of high inflation, corruption allegations, and violent crime has put the late hugo chavez's legacy at risk. the supreme court's justices

were added after nicholas maduro took office and they backed the president against the opposition and blocked any action that would remove the justices or change the constitution. it also overruled the assembly's vote to block maduro from granting himself broad executive powers. recall maduro, who has three years remaining in his term, has faced challenges from the national electoral council. hyperinflation is starting to appear with the imf predicting prices will search nearly 500% this year. economists increasingly questioned whether venezuela will be able to pay the money due this year on its foreign debt. hugo chavez was elected president in 1998 and revolutionized venezuelan politics with fiery anti-u.s. rhetoric. thousands ofzed companies and their assets,

reducing their capacity to produce anything but oil. chavez maintained a connection with supporters, frequently poling above 50%, and winning reelection three times. nicholas maduro has struggled for popularity. so critics argue he has thoroughly bungled business in the country that he is not fit to hold office. nor do the parties have a mandate to unwind the shabbos revolution. you can read more about venezuela and other stories on the bloomberg. for moreomberg.com stories. mark: have a look at the stoxx is little changed. it was up .4%, at the highest since may 30.

eight day of gains for the ftse 100 here in london. we are at the highest since june 2015. germany, the dax is now positive for the first time in 2016. cac 40 little changed. continuing itsnd decline, down by .3% against the dollar. look at the euro against the pound. it is up by .7%. it has been rising for six days, the longest winning run since february. stirling is a little bit lower against japan. how is it looking over their? -- there? we are seeing a little bit of retracement, but the dow is still up about half a percent. the s&p 500 is up .4%.

up .6%.aq composite is all three benchmarks have hit a record today on intraday and a closing basis. 11.65. the vix, volume is lower than usual. about a quarter fewer trades and on a typical day. coming up, we will set you up for a big week of economic data as we await reports on inflation, jobs, retail sales. that will give the clearest picture yet of britain's decision to leave the eu. trade is already making the bearish bets on sterling since records began. this is bloomberg. ♪

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vonnie: it is 11:00 in new york,

4:00 in london, and 11:00 in hong kong. i'm vonnie quinn. mark: i'm mark barton. you are watching the european close on bloomberg markets. we will take you from new york to london, cover stories out of washington and brazil. here is what we are watching today. we are about to get the clearest picture of a post brexit british economy as we ready for key economic reports starting tomorrow. london properties are taking longer to sell despite summer price cuts. shares of entertainment one jumping after a private equity firm kkr emerged as a potential sitter for