i'm francine lacqua here in london.s closing in on italy for the biggest the sanction of having the biggest of bad loan ratio of the world's biggest economies. this as their biggest bank forecasts worsening debt problems. for the latest, our south asia editor joins us from mumbai. thank you for joining us, will italy's that loan ratio top italy to become the worst in the world? yeah, obviously, they don't want that to be the distinction. but looking at the numbers, 14.4% bad loans, india is at 11.6. they expect that next year, it will be a long 12.2. far a said that, so lovely bad loans have been from the steel industry, and our reporting shows us there is going to be a next wave of bad loans hitting indian banks. that will be from the power banks,according to losses are expected from this particular industry. the worst is yet to come for banks before they can recover. r.b.i.e: what does the -- first of all, does it see the problem and have any tools to temper the issue? arijit: yes. the bank has taken a number of measu

francine lacqua and tom keene from helsinki. meeting, maybe we will call it a summit. francine: we are trying to figure out exactly what the leaders will talk about. our guest a moment ago saying that vladimir putin already wondering because he has the legitimacy of his country no longer isolated. we still need to figure out whether president trump inadvertently is advancing vladimir putin's geopolitics. they will probably talk about syria and the million-dollar question is whether president trump will talk to vladimir putin about the 12 indictments from last week. great guests with us this morning. there are mcdowell can give us mcdowell can give us perspective. fromobert hormats kissinger associates. no one has been a student of the domestic economy and its relationship with russia as much as robert hormats. you have seen other helsinki summits. ambassador hormats, how is this summit different? s: it isor hormat different in a number of ways. in the past, the concerns faced really came from formerly the soviet union and then r

francine lacqua joins us from finland will step in washington, d.c., an expert in russian affairs, will pomeranz. francine, let me go to you first. we don't know what is on the agenda. we have some idea of some of the subjects. i what point will we learn what they discuss? you,ine: good afternoon to good morning in the u.s. we will have to wait until the press conference to know exactly what the two leaders talked about. they came out about 15 minutes ago out of a private meeting. president trump with president putin speaking alone just with translators for two hours. that was meant to last about 90 minutes. they have expanded the bilateral to include some of the aides. the president trump come the team for the u.s. side, include mike pompeo, john bolton, the us abbasid or to russia and the white house chief of staff -- u.s. ambassador to russia, and the white house chief of staff. we it's a pretty bland statements of president trump saying that was a good start. notimir putin deciding to ask each other reporters what they talked about. we did know before the president trump was going i

london,h us, from francine lacqua and tom. mberg. ♪ francine: -- taylor: this is "bloomberg surveillance. " investors put a damper on the debut in years. escalating trade tensions may be one reason plus they are worried billionaomi's $50 valuation. shares of nissan fell today. the japanese automaker admitted that the emissions data was fake. japanese trades last year after the admitted that the process was faulty. denmark authorities are warning smaller banks may be targeted by money launderers. this after a string of allegations that the banks were used to launder millions of dollars from russia. that is your bloomberg business flash. thank you so much. the u.k. brexit secretary david davis and his deputy steve baker have quit over theresa may's plan for a soft split from your. -- in resignation later his resignation letter, davis said the direction of your policy will leave us at best a weaker negotiating position and possibly an inescapable one. theresa may who achieved an overall cabinet backing for her plan on friday said

i am francine lacqua in london. let's focus on heineken.hares are following after expanding in brazil. buys, best 16m buys, 116 holds. set toboard of cbs is meet later today to discuss the future of ceo les moonves. it comes as he is accused of sexual harassment by six women in a new yorker article last week. he admits there are times decades ago that he may have made women uncomfortable due to his advances. bloomberg understands the deal could be worth up to $600 million. it is part of a push into the internet of things. a representative for treasure data did not immediately respond. after union leaders rejected a pay offer, workers at chp in c will reject with the company has said is its final and that is the bloomberg business flash. francine: thank you. time for a bloomberg exclusive. the bank of england governor has told bloomberg he prepares half for brexit. timeys it takes 50% of his and contingency planning, but now it does crowd other things. we are living these stresses. you can read this in the latest edition of bloomberg markets

francine lacqua in switzerland. thanks for joining us. you, more of another bank which has reported this morning, standard charter's profits rose 34% in the first half, topping estimates. confidentaid it was he would meet its 8% target return on equity in the medium-term, a goal viewed as critical. joins us later on this morning around nine: 30 a.m. u.k. time. another one we're looking forward to. i want to talk about another asset manager out of switzerland. shop thatwn really sharply, down 10% area is a bunch -- 10%. a bunch of reasons behind this. warning of redemptions. the stock is taking it on the chin this morning. this is bloomberg. ♪ matt: welcome back. your top headlines off the terminal. after all of that old up, the boj's few tweaks failed to really move the market. corona is still speaking so there is still time. tech tanks and again. it's been a bad month but morgan stanley says the selling is just beginning and the market is heading for a much bigger correction. others are jumping on board including credit is. the bank shin

i am tom keene with francine lacqua. illance." .ehind us the house of looks the whole thing is a construction site. it is amazing. francine: it is like five years of construction. it just makes it easier for people to go for coffee or figure out their next move against theresa may. i have heard in interviews today is that this is an ongoing story. question and big the rumors making the rounds is are we going to have more resignations from the cabinet? there are still a few more pro-brexit cabinet members left. that is in the rumor mill. we don't have any information on that yet. tom: we will continue from london. in new york city, here is taylor riggs. taylor: divers in thailand have resumed the rescue mission at the flooded cave. cnn reports that have already brought out two boys that are trapped, meaning just two boys and their coach remain. british prime minister theresa may appears likely to survive any attempt to oust her of her brexit policy. she is counting on the opposition labor party to get her plans through par

i am francine lacqua in london. here is taylor riggs. r: francine, pushing the sustained growth rates achieved by his predecessor. switzerland's third-largest wealth manager added about $15 billion of net new money in the first six months, in line with the company's growth market at julius baer. >> we will be within 46% this year. 2017 was a nice ordinary year, and the market pointed one way. i am very happy with the five went one and i can come from that i feel comfortable to land within the 4% to 6%. taylor: ryanair posted a drop in first-quarter office and warns that threat of walkouts by unions are starting to make customers hesitate to book flights. the company's cfo told bloomberg he recommends oil prices at the current level but warns that some may feel pain. neil: i think it is good for our industry. it helps lead to consolidation within the sector. carriers areeaker going to see pressure on their cost base and indeed on their cash generation, which will lead to more consolidations and failures within the sector. taylor: and that

in london, francine lacqua., let's not talk about football because you're going to jinx me. when you look at what markets are doing, they are rl -- they are a little bit on it. maybe it's because of uncertainty. trade risk is back on. the pound falling on the back of political risk. big week for global trade with president trump decided on tariffs on friday. of the world calling for the gloom of. , first world -- word news. >> for the first time in decades, mexico has elected a left-wing president. it was a crushing defeat for the business friendly parties who ran the country's by -- for decades. he 153% of the vote. he pledge to respect the central banks autonomy. won 53% of the vote. he pledge to respect the central banks'autonomy. president trump said saudi arabia needs to produce 2000 barrels more day -- 2 million barrels more day but the white house walked it back. beijing has cut tariffs almost in half. later thisset to end week. it's in retaliation for tariffs that president trump has assessed on china. a

live from our swiss headquarters in zurich, francine lacqua. nt bank, a smaller credit suisse than what we saw 12 years ago. added to go with their leader? francine: yeah. it is a smaller bank here in it is in -- bank. it is in better shape than it was three years ago. they basically go through the trials and tribulations of credit suisse. they were at pains to explain is that one of the that thes they get is global markets lag peers because it is a different business model than others are trying to do. they are using it as a unit of wealth management and not on its own. tom: we go to italian gdp, a smaller number. european gdp coming in a little light. topline inflation is the worst since 2012. core inflation contained in europe. here is taylor riggs. taylor: north korea reportedly 's justding new icbm weeks after the summit with president trump according to the washington post, which sites u.s. spy agencies. the trump administration reportedly may bypass congress to give a $100 billion tax cut mainly to the rich. according to the new york time

i'm francine lacqua in london.onald trump has arrived in brussels ahead of nato's annual summit, bringing with him several grievances ranging from defense spending to trade. hour, he hasst lashed out at germany over its pipeline deal with russia. it should have never been allowed to have happened, but germany is controlled by russia, because they get from 60-70% of their energy russia -- from russia. you tell me if that is appropriate, because i think it is not. i think we have to talk to germany about it. francine: for more, let's get to our reporter in brussels. first of all, if you look at the defense budget battle, it could escalate. are we going to see a repeat of g7? that's right, that is what many are worried about. he left g7 hopped and puffed and not get along with his allies. if that willying happen here, and the meeting has not even begun. and we already see president donald trump attacking germany, this time for the pipeline with russia. he wase got to think speaking glowingly about president vladimir p

normal broadcast with us, matt miller with us from frankfurt, francine lacqua in london. marchionne, reported right now, this was expected. he has been grievously ill for a number of days. francine, the reach from genoa to venice, it is northern italy, a manufacturing mecca. means? what fiat francine: if you look at the gave jobs turin, fiat to hundreds of thousands of people. italian pride. we knew where it ended up. only a six years ago, few people would drive it. that he wass broke replaced -- remember that he was always going to leave next year but from january, 2019, he would have been the chairman of ferra ri. you would be at the beach and people would talk about him because he was one of the very few chief executives italians were really proud because he spoke like an american but kept his italian roots. he was a simple man, always wearing sweaters, focused on work. his work ethic, has shown what he has achieved. tom: that directly is the issue. the aesthetic. maybe like mr. jobs at apple. mr. manley has to pick that up. the other heir apparent, the gentleman in eur

tidjane talking to francine lacqua. ms in the final stages of turnaround plan, he was francine:.up the he was pretty upbeat. to expand thet global market that they are executing. it is think orders into a 12th quarter restructuring plan. cost control, everything is fine. we see the expectations. the million-dollar question for investors is is that the business model that two to three years on the line that was to work and the main question, is there a big market downturn, what impact? do outflows can anticipate because people freak out if there is a big market move, something we explored also. nejra: thank you so much, francine lacqua in zurich. let's get some final thoughts. you heard a great shot by francine. ifdering on credit suisse the final stages of the turnaround plan, is he giving investors enough reason to stay with the stock? jullian: as we briefly were discussing, people were quite cynical and when he laid out the plan, quite a lot of skepticism on whether it would work. today's numbers demonstrate in has wor

nejra cehic in for francine lacqua, and tom keene here in london. kevin cirilli was there in the room, our chief bloomberg washington correspondent. you took the boat from copenhagen, right? kevin, afterou, this historic moment. i want to go to sourdough rizzo -- salvador rizzo in "the washington post" today, who do the obligatory fact check. was it that often mark? was it that bizarre -- off the mark? was it that bizarre? the fallout from capitol hill has been as italy critical, not just from democrats, republicans as well. most notably, i was struck by paul ryan. this is the first time using a very aggressive statement against this president since he announced his retirement. tom: 10 times in the last 12 hours, people have said to me, when do they act? went to the cabinet officers act? wednesday the administration officials act? windy were -- when do the cabinet officers act? when do the admin assertion officials act? kevin: i have not seen any evidence as of now. tom: why? kevin: midterm elections. you have to go into the hearts of some of these

not, not with us is francine lacqua. how is prime minister may doing? story as well? >> she managed to get the bill through. the question is in doing what she needed to do she is selling future discord. the implications are that every single vote will come down to the knife edge, and that makes things more challenging. right now with your first word news in new york city, here is taylor riggs. >> google about to set a dubious record here it the european union will find the company five 80 and dollars. -- 5is the most ever billion dollars today. that is the most ever for a telecom operator. president trump has made a rare retreat from something he said. theaid he accepted conclusion by intelligence agencies that russia interfered in the presidential election. that after backlash from republicans over his remarks it at his meeting with vladimir putin. the president said other people could have meddled and just tweeted many in the intelligence community loved his performance in helsinki. there is likely more drama over brands of today. prime minister may f

live from new york i'm tom keene in london, francine lacqua. w i guess they aren't innocent. do you have any tone on this at all? i was a little confused by the barclays news. francine: i don't think they were ever called innocent. what they said was they couldn't take the investigation any further. what we found out today is that the u.k. serious fraud office is now looking to reinstate the front charges against the bank, stemming from the 12 billion pound fundraising with qatar during the 2008 financial crisis. tom: let's get our first word news in new york city with taylor riggs. would agree trump to an interview with special counsel robert mueller's investigators, but there's a catch. lawyer rudy giuliani says he would only take questions on whether his campaign colluded with russia. giuliani says the president does not want to be asked about the obstruction of justice in the russia probe, because he is concerned about a possible perjury charge if prosecutors believe other witnesses. and as you were mentioning, barclays have said british pro

francine lacqua in london and tom keene in york. s the president travels to europe. i will join francine from our london desk for complete coverage of the present trip -- the president's trip. here's taylor riggs. taylor: china is accusing the u.s. of launching the largest trade war and economic history and is striking back. president trump began imposing sanctions on $34 billion of chinese products just after midnight in washington. beijing responded by imposing levies on american products such as soybeans and poultry. the president says that the move that could lead the u.s. to hit china with more tariffs. secretary of state mike pompeo is now in north korea where he has a tough job. that kim make sure jong-un's nuclear commitments lineup with president trump's promises. met with president cam, he says that north korea is nuclear threat, but there are reports that kim cap ramping up his production before the summit. a former lobbyist will be the acting administrator at the environmental protection agency. theew wheeler moved into j

nejra cehic in for francine lacqua it was on a beach. heat of the united kingdom. heat has gone from bad to worse. nejra: can you see the steam coming off me? onset.a fan i'm holding it up and i don't know if you can see it. it's from tom keene being in london. this is the gift he left for me. theresa may even -- under even more heat because the eu has rejected her customs plan. right now, let's go to cool, kong, and collect it first world news. taylor: in the first tangible outcome of the korean summit, north korea has released some of the remains of americans killed in the korean war. it does signal progress in broader talks on nuclear weapons. as you were mentioning, the options on brexit are shrinking her british prime minister theresa may. the european union has rejected a key part of her proposal for a trade deal. she has just 12 weeks to go before the divorce bill is supposed to be signed. negotiatorief suggest they stay inside the customs union but that would enrage part of mays conservative party. for the second time this week,

guy johnson in london in for francine lacqua. let's wrap up the script right now.to take them out? want?es fox do they want disney, comcast? do they not care? guy: if i was a sky shareholder, i want the person that will pay me the most money. leave it at that. in which theyriod thought they would get a bidding war. that would be fantastic. that seems to be fading into the background. money talks. tom: money talks. this is going to be good. have bob profusek coming with us later in the hour to talk about this idea of private equity piling in. we will talk about the president and his language tone to your. your first word news in new york. taylor riggs. taylor: shares of glencore are taking a dive today. it has been subpoenaed by the u.s. justice department to hand over documents related to money laundering and corruption. it has to do with their business in nigeria, the democratic republic of congo, and venezuela. the former prime minister of malaysia not cheap razak has been arrested. it is looking at the troubled state fund 1mdb. in germany, chancellor angela merk

francine lacqua off for the day. governor carney speaking in newcastle right now.uggish u.k. economy, isn't it? >> it is, apart from the services and gdp data of late. they were revised down. he is making these points. governor carney making a speech at a business summit, saying tighter policy will be needed. tom: it will be interesting to say the least. lots to talk about. right now, first word news. british police say to people in critical condition were exposed to the same nerve agent used to poison a former russians five. it took place in southern england. if theties are not sure couple was targeted or the poisoning was accidental. less than a day before a trade conflict between the u.s. and china is expected to get worse. the trump administration will impose tariffs on $34 billion of chinese products tomorrow. beijing is vowing to retaliate immediately. president trump is turning up the heat on opec. the cartelnt tweeted is doing little to reduce gasoline costs. he said, if anything, opec is driving prices higher, while the u.s. defends many of its members. in

francine lacqua spoke to the german defense minister and she said it was immature to link these two and another analyst said it is like linking apples and oranges but it is likely trump will link them as they -- he arrives at the nato headquarters. manus: thank you. summit,st on the nato and the prospect is this, that anybody gets on board and spends up to 2% of their gdp which has gone from a handshake to a gentleman's agreement. that would be $110 billion. would you even countenance extending your reach into some of the european defense itpanies, error or not companies based on an escalation of a nato commitment? guest: you have to look at the european countries and where they stand, it is going to be hard for them to commit to such an end -- an increase in spending. the fiscal situation is not that great apart from germany and i do not think you will get a consensus that all those countries are going to want to spend more in the next three years. it is too much money now and it is not the priority. maybe some companies would bounce on the back of it but on the european market it rema

watch francine lacqua's complete interview with leaders with lacqua.ndonesia is expected to end a year of wrangling with the copper and gold mines. according to the indonesian finance ministry, a ceremony will be held in jakarta at 10:00 a.m. u.k. time. elements of the agreement were not included. the ceo of the venture partner rio tinto has told bloomberg he's keeping his options open. jean-sebastien: we have been very clear, and depending on the we may go as soon as there is something tangible. music streaming service pandora is teaming up to win over a new generation of listeners. you can share songs with friends to listen specifically on pandora. roger lynch said the move will help the company focus on ad revenue, and like rivals spotify and apple music that make money from subscriptions. music likel consume they do on terrestrial radio, which is a $16 ilion marketplace -- $16 billion marketplace. andorra is well-positioned for that. we think about spotify and apple for our subversion business to read 70% of our revenue is advertising, and that is

francine lacqua is off today. i will be joining the surveillance team a little bit later.l join london radio team to carry on the conversation with david sneddon. i want to make you aware of this move in glencore. it is quite substantial after that department of justice subpoena. i will see you on the radio later on. this is bloomberg. ♪ >> pboc ways then. china's central bank says it will keep the currency stable. crisis averted. merkel has a deal on migration in germany. now she turns back to trade. the u.s. moves to block china mobile from entering its market on national security grounds, launching another salvo in the trade war. good morning everyone. i'm they wer

i am francine lacqua in london.ou are looking at live pictures of protesters in front of parliament square in front of the house in britain, flying a trump baby balloon. he arrived in britain yesterday and is scheduled to hold more talks with the prime minister and then take tea with the queen a little later. we have been to speak to protesters on the ground. the giant balloon had been designed to speak to trump in a language he understands, which is personal insults. this is according to those who make the balloon. of course, a lot of people are against the flying of the blue, say even if we disagree, we should show more respect to the leader of the free world. apart from criticizing the prime minister, the prime minister also hit out at london's mayor, saying he was doing a terrible job at preventing terrorism and crime. spoke withedwards the mayor a few moments ago. president trump explained the things he does and the tweets he does. clear, we love americans and america, they contribute quite a bit to us. i have

i'm francine lacqua with tom keene, we are still on speaking terms. ckets are doing well. francine: we are doing all right. tom: all of the united kingdom stopped yesterday for the soccer game. it was fabulous. look at the headline. nato, full briefings, across all "bloomberg surveillance," the president threatened withdrawal from nato. important headline. francine: this is the german press agency, this is not the first time we heard that. it depends on the rhetoric. whether he is actually thinking about doing it? tom: nicholas burns, former ambassador to nato from the u.s. writing a heated essay in the new york times today, making clear there is a difference from the rhetoric and the action of the administration. francine: let's get to the first world news. taylor: sticking with nato, president trump has resumed his twitter attack on nato while attending the summit in brussels he tweeted "the u.s. pays tens of billions of dollars to much to subsidize europe." he demands members meet their pledges on defense spending. london,day he flies to protesters

up next, francine lacqua joints you for surveillance. we are watching westminster very closely.e. there is not yet a blimp. we will bring it to you and there is. join myanmar barton. that's live on london dab. you can get on your iphone, your android phone, on the web, or your bloomberg terminal. this is bloomberg. ♪ francine: the u.s. president slams the prime minister's brexit plan. what does it mean for the trade deal? protests are expected across the u.k. is the president meets this afternoon. target with the frequent of cap tax sadiq khan. china's monthly surplus with the u.s. hits a record. welcome to "bloomberg

francine lacqua and tom king will be continuing the coverage.oined the bloomberg radio team and we will carry on the coverage there, as well. london dab digital radio. this is bloomberg. ♪ what's a gig of data? well, it's a whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way. that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. the brink. she holds coalition talks. bmw's trade warning. the carmaker joins gm to lobby against u.s. auto tariffs. would signal weaker exports? mexico turns left. the presidency won in a landslide, giving it its first left-wing leader in modern times. it

we welcome now from westminster the anchor of "bloomberg surveillance" francine lacqua. i was fascinated by some of the discussions you had because i woke up thinking this is really bad theresa may, but maybe not. francine: maybe not. that is the point the market is looking at so we are not seeing that kind of movement. a lot of people saw this is trouble for theresa may. -- brexite oceans negotiations are pretty chaotic. even if they do a confidence and she comes out triumphant, it would mean that she can then have no leadership challenge for at least 12 months. david: in the united states, there is a saying that you can't beat anybody with nobody. boris johnson is probably the known member of parliament in the united states. but perhaps he is not as well-known as we thought. francine: we were trying to figure out who would replace theresa may, whether boris johnson would still have this kind of appeal and the public at large. his image -- >> boris is quite popular with the party, but nothing like he once was, and he was never that ability itself that's in the populace i

spoke withhs francine lacqua about the global impact of president trump's policies. >> we don't reallyming out of this because he's making conflicts and crises that didn't exist before. rhetoric, the trade and the first steps in raising tariffs are both bizarre and they are dangerous. right now, it looks like a skirmish, a game, but it's not a game at all. the president is using authority recklessly. all of his steps are under the claim of national security. it's incredible that this is not scrutinized more that one person basically can make decisions like this on a vacuous claim of national security to break up the trading system and to create crises. the problem is we are putting out fires that an arsonist has looking ate are not the real problems and the real investments we need to make for the future. it is rather bizarre, but that's what he has is talking about every day. our system is not working because it is letting one person do this rather than the rule of law. >> he is still the president of the united states. many give him the benefit of the doubt. will this get us a better

nejra cehic in for francine lacqua in london. putin goes to mr. washington.inister may goes to belfast. markets have been relatively stabilized. theresa may is quickly focused on the irish border in belfast. cable not reacting, moving sideways. tom: we have a lot for you all through washington on "bloomberg surveillance." president trump has doubled down on his controversial summit with vladimir putin. he has invited the russian leader to come to washington for a second meeting. news of the meeting came as a shock to his intelligence chief, dan coats there are rumors that members of the president's team don't know what the two leaders discussed on monday. exactly what he doesn't want, higher interest rates. the president told cnbc he is not thrilled with rate hikes. that is a burst of presidential pressure not seen for decades. minister theresa may will reaffirm her brexit ment to a so-called soft irish border. she has urged for a proposal on free trade of goods and open border between northern ireland and ireland. prieto isief giovanni seen as a guarantor th

nejra in fore, francine lacqua.ll in the heat wave of brexit, or is there for the momentum into the end of july? nejra: we are in the summer lull . there is a story talking about the plan and discussions for having some sort of deal -- b etween the northern island in the rest of the u.k. that would be troublesome for the -- that theresa may relies on. so whether there is any sort of solution is the question and to the irish border question remains a big one in how we go forward. tom: we will touch on that through all of surveillance today. this is your first word news. taylor: shares of european carmakers surging after president trump backed off of his threat to impose tariffs on imported cars. shares of bmw, daimler and bolt wagon -- and vw among those arising. jean-claude uecker agreed to put -- jean-paul uecker agreed to put off the trade war. president trump says they will work toward having zero trade barriers. and shares of facebook have taken a dive. the social network lost $151 billion in market value at one