utos insurance, financials, services, the five day biggest weekly drop since march. the second biggest weekly drop in a row. we are digesting what has been a heavy geopolitical week. this is sterling. an interesting charge given the boe yesterday. nothing happened, except for the split. a right height from the bank of england -- rate hike from the bank of england in may. it will not be the last this year. the bank sees another increase seesvember -- danca bank another increase in november. that is the green line. 15 out of 41 respondents in the bloomberg survey predicting at least two rate increases this

year. strolling on track for the longest winning stretch since january the 26th. we have the median estimate by the end of the year. you can see shartees earlier in 24%.ay follows as much as the company lost a lawsuit over to treatompetition dependence on illegal or prescription opioids. their rifle did not infringe its patents on the product -- rival did not infringe its patents on the product. it is designed to treat opioid the prolonged use of the painkillers below legitimate medical purposes.

shares are down by 6%. let's finish off with another big mover across the european equity space. u.k.'s second against closing retailer is seeing a bigger pricing environment in the coming year after a top 12 month, in which retail failure occurred in the united kingdom. this is up from .7% in 2018. the company expects margins in the fiscal year to fall. results reflect a rare stability amid the retail sector, amid turmoil in the united kingdom. >> let's check on the markets in the united states. we are seeing a little bit of a recovery from the lows of the session. green. is in the

we are seeing selling and the s&p 500 index, and especially in the nasdaq. stock split from positive to negative oafter the interview with the chinese ambassador, in which he talked about exploring the possibility that china would .xplore selling u.s. treasuries things could have been accelerating, as we saw the s&p now going- it is toward its 200 day moving average. let's get another check on drop box. the filesharing company started trading today. it is seeing a big game, up -- gain, up 40%. a lot of demand for dropbox. mark: paul dobson is here.

he leads european markets. much going on beneath the surface. i want to talk about what is going on beneath the surface. given trade and changes at the top, we have not had a lot of time to talk about the big issues. the moves for the yen and the lira, we might for get the lira has fallen to a record low. why is it moving today? angle.e is the trade war turkey has a very large current account deficits. it is more susceptible to emerging-market currencies when it comes to this kind of thing.

of a risk to turkey with the replacement of h.r. mcmaster overnight. around lira gets kicked more than anything else. there is some pushback in the local government. i am not sure if there was action, but certainly a little he shakeup of the markets -- lively shakeup of the markets. mark: the situation in italy is fascinating. they are trying to come up with leaders. this might have some repercussions for the book of the future government. you wouldn't be able to find this on the first few pages of your paper today. week,had a really good outright, because generally in

rea this performed very well. the concern is what makeup we will get in parliament, who will be calling the shots. maybe an elder statesman will be the voice of moderation. the kingmaker and could have an influence on the structure and the way the parliament and the government look. probably auld have clock up, going hours until the south african rating decision. >> the risk of a downgrade in south africa. following funds respond

automatically, rather than added muchch choice -- add too choice. there has been a want of excitement in you for you about the government -- lot of excitement and euphoria about the changes in the government. there.aul dobson, julie: let's go to the first word news. mark: federal officials aren't saying much about how they shows a nebraska -- chose a nebraska started company to build $11 million border while in california. they are not saying whether they knew the companies connections to a firm flagged a government audit to the -- for potential fraud. insecuritynd many want answers from the department of home and security used.

a 15-year-old girl shot earlier this week at the maryland high school is dead. she died last night after being taken off life support. her and the suspected 17-year-old shooter were in a relationship that ended recently. the justice department is iranian widespread data theft -- the justice department is targeting iranian hackers with stealing trade secrets and other data for the revolutionary guard. hundreds of people demonstrated ininst prime minister abe tokyo today. the called on him into foreign minister to step down in the wake of a scandal linked to the prime minister's wife. testimony will be heard on the case next week. global news 24 hours a day, powered by more than 2,700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg.

mark: theresa may is scoring a diplomatic when as european union colleagues back to her condemnation -- back her condemnation of moscow. once in a while, she walks away with the feeling of job done. >> this was the moment when the was due to agreement be backed by leaders in europe. that took about 30 seconds of a two-day meeting. case ofominated by the the alleged poisoning of the -- the spy, and betrayed trade issues that have been arresting around the world between mr. trump and china.

she got backing from the council about a strongly worded communication about russia. it shows the source of benefits of being in the european union. she was able to get that strongly worded message out. and seeing how the european union response to mr. trump. would not be invited to next year's march because britain will be exiting at the end of this month. she did spend all of the dinner last night, reportedly laying out the evidence, blaming russia for this nerve agent attack. i think the greeks wanted some more evidence and the italians, but at the end, they all signed up, and we are waiting for more measures by monday.

withmerkel is coming out strong support, and so is emmanuel macron. julie: in terms of brexit itself, it was a very short part of the discussion. come ything substantial out of that? this has been a more successful meeting for her. avid: there were a few comments from some of the other leaders. he wasl macron, receptive to this idea of this unique free trade agreement between britain and the european union. he used the word "ambitious to ambitious." what is going to happen from

this point on over the next few months is that they are going to be arguing over some of the bits in the exit agreement, crucially, the question of the irish border. there is another european council summit in june. they have to come up with some workable solutions to keep the irish border open, and then things can move ahead. they are targeting october for that. next year, they want to get into the transition. it will be really substantial talks on trade. a long way to go, but we saw an important moment they with that agreement of the transition. ulie: coming up, trade war concerns are rising once again, in the european union and united states and here in china. what this all means for investors and markets. this is bloomberg. ♪

>> live from london, i am mark barton. i am julieondon, hyman. this is the european close on bloomberg markets. shares of this technology company are falling today. the company reported a week forecast in third-quarter sales. the are joined by taylor riggs. taylor: it is all about the future earnings forecast. quarter lookthe like they may come in a little bit lower than expected. management came out and said it they would expect third-quarter to reach around 7.3 --

$7 billion. it would be the first quarter be drop in sales going back for two years. they have been growing in revenue every quarter. they have been doing pretty well, especially when it comes to earnings. they look really good. the higher-margin business is expected to see about 20% growth this year. they are the ones dealing with the supply issue. they have been on a tear. julie: they are up, even with the decline of about 33% this year. and then there is takeover talks, is there has been a lot of consolidation within the chip

industry. qualcomm,-broadcom talks they have been crazy. icron technology has been listed as one of their key takeover targets for 2018 at citi. micron could be the next takeover of broadcom. it is a cyclical business. there are technicals that underlie the company. julie: mark: we will see -- julie: we will see if this materializes. we continue to talk about what is going on with china. u.s.-china trade tensions heat up. they ahn spoke with ambassador to china. >> we don't want to have a trade war with anyone. we are still trying to avoid one. we have to fight back.

now bywe're joined michael mckee, bloomberg's and policy correspondent. the already got some announcement -- we already got the announcement of policy tariffs, but it seems like this is the first step. these terrorist china toimposing or a retaliation the $50 billion of tariffs yesterday, not the steel into aluminum tariffs. -- steel and aluminum tariffs. you can imagine what the .omments are going to be they will then make a final selection of what will be subject to tariffs and 20 tariffs will be. at that point, the for china to retaliate. that is a ways off down the road. saying, they are not

going to let you build over, but we will keep a portion within wto rules, so we can take the high road, meaning political pain for some people, especially in the midwest, orchards, fruit growers, are going to be a penalty in the short term. what about the potential pain for the united states balance sheet? inething else he alluded to that interview was china selling some u.s. treasury. tos it make sense for them do that, even as retaliatory measures? hael: $3 trillion worth of u.s. treasuries on their bounce -- balance sheet. they could sell some, because the lower you put into the markets, the lower the price goes and they could lose money.

also, they have pegged to the u. n. to the dollar. they need to buy a certain a mount -- amount to keep them relatively stable. mark: president trump will speak in 10 minutes on the spending bill. michael: the white house website says at 1 p.m. the president will attend a bill signing ceremony. the spendingto bill, the government would in theory shut down at midnight. members of congress have scattered, they have headed across the country because they thought they have finished. even if the president called up the leadership today, they would not be able to vote on it. you would have a temporary shutdown. the president has wide discretion as to what he would shut down. he kept museums open and things like that during the brief

shutdown a few months ago. the americans might not notice it if they come to a quick agreement. they have been fighting about these issues for years. it is unclear where he is going with this. people find out more. michael mckee, thank you. ncaa, up, in honor of the will bring youe our own tournament. this is bloomberg. ♪

>> the battle of the charts. some of theok at most compelling charts of the day and what they mean for investors. the charts on the

bloomberg by running the function feature at the bottom of your screen. >> i would like to indulge in one of the market's favorite pastimes. in this chart shows the probability according to our wirp function of three separate rate hikes this year. the blue line shows the probability of four or more rate hikes. you can see that all throughout the year, the probability of getting four or more rate hikes from the fed this year has been creeping up. s first press' conference as fed chair this year, that line went down. the bottom panel shows that relative likelihood of three versus four. you can see that three had become less likely relative to four or more over the last several months. three hikes is looking roughly twice as likely as for our more at this point.

chart.antastic #6128.at at caroline hyde is here! caroline: what else could you be caring about this week other than tech and trade? my chart really does some of both. both. up i am not talking about the facebook fallout or tech. the $15 talking about billion -- $50 billion of chinese goods trump has been tackling. i am talking about apple's tim flyings well as ibm, to china this weekend because they are concerned about the $44 billion is the revenue we saw last year that

gained from china. billion, that is markets cap of apple eroded over the last six days. mark: find that on the chart. caroline, apple and china by a smidgen! caroline hide is the winner. coming up, we will bring you president trump's conference on the spending bill. this is bloomberg. ♪

david: it is 1:00 in washington. breaking news. president trump is set to hold a news conference moments from

now. there is going to be a daily press briefing, but according to the white house, donald trump says he will find the spending sign the spending bill. i want to go to the former republican governor of new hampshire and chair of the senate. you.me to both of governor, i want to start with you. -- $1.3 trillion, do we have the money? >> no. it represents more deficit over the next 10 years, and $1 trillion in interest costs in the next four or five years. if this bill had been brought forward by a democratic