francine: that was a killer.signaled he will continue to buy for his political life. >> you are asking about something that is not going to happen. history teaches us that the best way to have a period of stability in government long-term, is to allow people with mandates to get on. francine: or more, we are joined by reporter lizzy burden. is there any way he can actually hang on? lizzy: it's a test of boris johnson's dignity, how far can it stretch? the resignations keep coming. he has lost northern ireland secretary brandon lewis, and the treasury secretary. almost a third of the government, unprecedented in recent political history. it does not just have consequences for his political survival but the business of government. mps are complaining that legislative sessions to discuss upcoming bills are being canceled. the x brexit secretary says he has turned down a job in government. but johnson as you say is going to fight on. he has sacked michael gove, seen as one of the most competent ministers in the gover

francine: it does.aura: bank of america says it is likely to lose its position as the dominant electric vehicle maker in the u.s. as soon as 2025. the annual forecast, they are set to release a barrage of 135 new electric vehicles. tesla's share of the market could fall to 11% by the middle of the decade from over 70% today. planning to expand into india by an agreement with the reliance band -- brand. this is an ambitious global franchise so far. siemens is taking a 2.8 billion euro hit on the declining value of its stake in turbine makers siemens energy. it is hit by rising energy costs and disruption from the supply of metals. the industrial giant owned just over one third of siemens energy. that is the bloomberg business flash. tom: thank you. european stocks are headed down this morning, for the worst selloff since 2008. patrick armstrong, the plurimi wealth cio, is still with us. there is an argument that us across the household now, given that oil prices are down 10% over the past month. do you t

francine: yesterday was quite a volatile day. it was a huge day on the currency markets, oil can't really get about $100. the ftse 100, the oil-rich index gaining 1.2% for the futures. tom: oil and the energy complex was a major drag, yesterday we saw losses of a little over 2%. the volatility in the u.s. session down 2%, then stateside eking out some gains and nasdaq performing more strongly as tech came back. across europe, gains of little over 1%, the spanish ibex up 82 points. politics squarely in focus, the change around the chancellor of the exchequer. when it comes to france, a solid first few seconds, gaining 77 points on the cac 40. let's see how things are playing out across assets. as francine pointed out, pressure across the currency space, the euro falling to a 20 year low and the pound sterling also under pressure as was the russian ruble. futures unchanged when it comes to the u.s., that whipsaw session we saw tuesday on the states side. you are seeing a bit of selling when it comes to the u.s. and sovereign debt i

francine is on the ground in rome. want to get your take on the espresso prices in rome, gelato as well. francine: if you look at some of the luxury searchers, you can predict the next recession in china. as a whole other metrics for your strength or weakness. there's a belief when you speak to parliamentarians that there is moral pressure on mario draghi. they wrote a letter saying please stay on, italy need you at the moment, the prime minister of spain writing the editorial yesterday saying the pressure for him to stay, as long as he has number is too big to ignore. the thinking is if draghi leaves at the moment, because of the ecb fragmentation, the other question is there is a large amount of money the european commission had to disperse to europe and edley. that is a exchange for forms. if mario draghi leaves now, you may not be able to get the reforms needed. tom: all the uncertainty so far, assessing the impacts of the likelihood of him holding onto that coalition. we have to get more clarity from the prime min

this is bloomberg, tom, francine? francine: thank you so much.inavia's largest airline files for bankruptcy to get its debt burden under control. we will discuss the impact with kepler chevreux's head of aviation equity research. this is bloomberg. ♪ tom: welcome back to the open. we are 45 minutes into the european trading day, gains of .4% across european equities. petrus stateside pointing up by .3% and .5%, flatness in the u.s. yield curve. 2.92 and 2.93 between two's, fives and tens. travel is up by .9%. francine: routes, cancellations and higher travel fares, that is what we have seen across the u.s. and europe. the fourth of july with the latest crunch point or a number of airlines tackling staffing shortages . tom: airlines across europe are planning deep cuts to their schedules and many are facing strikes. one of the latest casualties is scandinavia's largest airline, sas, which has filed for bankruptcy to cut its debt load. joining us now is ruxandra haradau-doser, head of airlines and equity research at kepler chevreux. thank you for j

francine: what would that look like?hat request or advice or whatever you want to call it would you want the next prime minister and chancellor to have? can london be the best financial capital in europe, and what should it focus on? julia: i think london still is the european financial capital. if you look at capital raising, it is the largest venue outside of greater china and the u.s. that is where we should be. u.k. has great potential. we have top-flight universities, a unicorn we create every 26 days, and a great capability to start companies. what we need to enhance is to create an environment were great companies should start here, grow here, and stay here. we have not always had a system that runs through the tape, therefore one of the reasons we are creating this is to focus on the dynamism of the private market ecosystem in the u.k., the crossover ecosystem and the public ecosystem. and not just ask the government for this or that tweak, but take proper ownership. tom: on the question of equality, the vast maj

francine lacqua from rome. get back to her throughout later programming. 50 basis point still on the table ahead of another painful u.k. inflation reading. the bank of england is not ruling out a jumbo rate hike. we are on that next. this is berg. >> the 50 basis point increase. it will be among the choices on the table when we next meet. but it is not locked in. dani: the bank of england governor making clear a jumbo hike is still on the table next month. we also have inflation data due and it could see rice hikes gain . daily hit back against attacks from conservative politicians, saying the central bank upon sin dependence is more important than ever. let's get more from lizzy burden. we got the data soon. what is that all going to mean for the boe? >> the bank of england will be watching how much inflation spread not just in food and fuel, but into services as well. if it is broad and strong, it will buttress the case for the 50 basis point rate hike. you heard andrew bailey say that 50 is on the table. it

francine: and air-conditioning. tom: yes. for draghi, what is next?rancine: we don't know what's next but we -- he will probably be looking at italian politics from afar. there is no real legitimacy 10 taking charge of the government, he has been in charge for many months but that is something a lot of italians supported. it is something the market supported, investor supported and the eu supported because he brought reforms needed to access bu funds. we don't know whether this is self-inflicted. or political markings that ended his government. one sign is we are going to go into elections eight or nine months anyway. the fact that they are in october, three or four months, is a huge deal. i won't rule out the fact that he goes on a cruise ship with florence johnson -- boris who's also out of a job, but anything happens. jonathan: i'm sure you would like to join them, tom. but italian democracy. francine: i think the commission fears they will not continue with progress. there's a question whether it remains investable if they don't have access. democ

let's head over to francine. is draghi out? francine: it looks like resigning was the only option. we will have elections in the fall. yesterday, he had a compromise. there was a lot of bickering between the partners. they wanted the money, and the confidence with the investors and partners. that did not work. you have the three main leaders not supporting him. the coalition is a bit of a mess. what does that mean for the disbursement of the money also >> -- also? we will see what happens. i don't see a situation where he cannot resign unless the president does not accept it again. it will be turbulent here in rome. dani: i guess italy is used to turbulence. what has to reaction been? francine: there is so much concern about the money that i feel like this time it is different. they are never dull. after say, they are going after some of the coalition partners. although they said they would support draghi, they did not. i have to cover some of this because they swear on the cover page in italy. they called it the suicide of draghi. he thought that people would fall in line. this pa

we can do that with francine lacqua london.reaction to what you've heard in the last 10 minutes? franson: well, good morning to you both. i think this is a very strong speech. this is a prime minister that was focused. he talks about regret but he does not apologize. people really and you can sense the atmosphere, it is tense, it is palpable at westminster. outside downing street, they wanted to know the timetable of when the prime minister would actually step down. he has said he will stay on until a new leader is found. this could take weeks, this could, of course, take months. the initial plan was to get it done by october. speaking to mp's, they want him gone now. this is different from theresa may, when she stayed on as caretaker. this goes to his character. tom: francine, more than anyone i know, you have interviewed the players involved in this drama. which individual are you most focused on for this thursday and into the weekend? first of all -- francine: first of all, we need to look at a contenders list. there are abo

francine: he could. a lot has happened in the last eight hours.raghi said these are my conditions, i stay, we move forward, then the party -- parties in his coalition's start saying, i only do this if you give me this, and frankly this is mario draghi as we know him, when he was in charge of the ecb. this is an uncompromising mario draghi. he said you either back me, my government with all of the coalition partners, which means we agree to the reforms, or i'm out. we are expecting about in the next couple of hours. for the moment the session is still ongoing. we understand the heads of all the parties are meeting to try and figure out what their next move is. anna: we have come along way, haven't we? and still we don't know the answer. meanwhile, italian assets whipsawed by the news flow. what does this mean for the italian economy and europe? francine: the italian economy needs someone who will go through with the reforms. first of all, we need to have in their eyes the ecb that supports italy. if you look at this anti-fragmentation tool or whate

anna: francine: when francine:, what forces of energy do you anticipate to take the greatest degree oft share? there is such a debate going on a particular of her clients talking about it's not the answer. would you disagree, what can we look forward to over the next decade? >> wind and solar could not be the ultimate ender. nuclear could be a solution. if you look at the nuclear, russia is again a winner. if you look at the market share of russian of china, when it comes to nuclear technology, and also all the stages of transforming the iranian sub-to converting it to fuel, russia has a significant role. france and the u.s. have some in terms of technology, what comes to fuel and also technology, russia has a higher hand. when it comes to mining, china has an important role. many countries like namibia, one of the largest hosting the largest uranium mine in china is controlling. and also russia. now the european union is considering nuclear as a green energy. it is important for countries to be more active in geopolitics of this transition, but also for importance of those regulations

francine has to translated. -- has to translate it. >> he says he is willing to. the coalition rebuilt. a lot going on in italy today. a lot of events to watch as well, including in the u.s. with economic data. home sales, we are coming off of two weeks home related data points in the u.s.. the weakest levels since may, on monday. both missing expectations. this data also seeks -- in the housing market in the face of higher mortgage rates. at 11:00 eastern time we will head over to the u.k. where it will be announced, the final two contenders to replace orest johnson as the prime minister. it looks like liz trust may be the second candidate. that citigroup note earlier this week, dangerous economic recession for the u.k.. cut taxes and disrupt some business operation. finally focus on tech earning. 30% year-to-date. not just dealing with a gross company. a shut down and try not weighing on the factory in shanghai. look for the outlook on that in the second half to see the picture a little bit better. tom: they always pick the prime minister this way? jon: they pic

all right ellen, thank you very much for that update and fee share live francine key hello stimulated say they've handed over the bullet. they killed out. is there a general issue in abilene outlet to us forensic experts and american investigate. it will run ballistic tests on the bullet to see if it matches ammunition used by israeli soldiers. the u. s. has reportedly agreed not to give the bullet to israeli officials, sharon wise that palestinian american and was killed by israeli forces on may 11th on covering is rally right from the occupied west bank for more on this story. let's bring in stephanie decker, who's in west jerusalem. hello there, steph, what's the significance of the bullet being handed over to the americans? protesting will have been a lot of calls for this to happen, particularly from the americans for the palestinians to hand over the bullet of the palestinians had been refusing to do so. i think what's changed is a phone call from the u. s. t at secretary of state, anthony blink in a couple of days ago to the policy and present mahmoud abbas where again pressure

take a closer look at what's in store for them for present johnny in francine. i said this so called workshop was a transfer team representatives to raise any concerns they had about the events organization and to check out the stadiums, hotels and training facilities. what you build for as an international things being the world cup is the, is the greatest tournament. so we had like a lot of teams the challenging month to do, but we needed to have a lot of different players. and i think crap players especially having up to the front of the years before that a very on the season. so we have to learn from that. and we've got now 2 matches we germinated to be to have before we come here. obviously we've qualified later than the majority of the team, so it's still quite exciting for us, the relaxation that we're, we're going to take part in the world cup. so i'm looking forward to it and just being out in an experience and seeing that in the classroom level, towers and seeing the standards and facilities that we've got. and we're going to be coming into is really e

francine will catch up with him later in the month.think the narrative job cuts, restructuring, is the narrative going to build that thomas gottstein's time is limited? >> investors must be losing patience. the company said this is a year of transition but with the stock down 39%, touching a record low last week, time must be running out. the call for changes must be increasing. dani: thank you very much, russell ward in tokyo. a quick look on the markets. i think is a story that dominates equities, unable to rally as forcefully as earlier on that potential china relief on tariffs coming from the u.s. manus: you have nasdaq up 0.5%. what needs to happen? is the tariff rollback enough in itself to embolden risk assets? if you look at the rates market, short end where the twos have moved. that is where the real risk is, according to aberdeen. you have to be more surgical and check on the short end. dani: more bloomberg to come. this is bloomberg. ♪ anna: good morning, welcome to "bloomberg daybreak: middle east." "bloomberg markets: euro

we have to call francine. she's on the beat [speaking non-english language] in italy at the moment. italy is in a state of crisis. that could be punched out in the spreads to boones. dani: makes the conversation much more difficult for the ecb. i was ready to show you futures. they don't open until 7:00. we have an hour to go into like and show you that. let me walk you through the rest of the equity market. hong kong tech is open and falling. down more than 1%. this after we had alibaba facing more fines over a potential data breach. that sending the sector lower. china data in just a moment. down 2%. equity futures in europe are higher than more than 1%. italy, not baked into this picture. stocks have fallen 3.5% yesterday with drama unfolding. s&p futures are also up about 3/10 of 1%. a warning from bank of america saying that we could see the s&p fall to 3000. that would be a 20% drop from the current level. also downgrading her year-end target. nasdaq futures outperforming. it comes back to this idea that we are talking about. perhaps the market got ahead of itself. manus: when

francine can jet down. kailey: as long as there is gelato. tom: i will be there overlooking.athan: you are selling it to management. featured down .2% on the s&p 500. 8:15 eastern time, your ecb rate decision. it is about 20 minutes away. so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now, there's golo. golo helps with insulin resistance, getting rid of sugar cravings, helps control stress and emotional eating, and losing weight. go to golo.com and see how golo can change your life. that's g-o-l-o.com. >> the fed will have no choice but to stay aggressive. >> we should be prepared for if that needs to hike more than the markets are dissipating. >> in the eurozone's case, we

the one problem with that trade is christine lagarde made clear last night in conversation with francine lacqua that they are very focused on inflation and they need to keep on hiking rates. also, because of the fragmentation risk in europe, the ecb might be selling goons to buy peripheral bonds like btp's. even though bonds are rallying as we trade this energy story, it is complicated in the second half. european equities, bridgewater have doubled their massive short bet against european equities that does seem logical. they are unlikely to fall in isolation and are already in more discount to u.s., but volatility might make that difficult. when we look at the euro, i think on a volatility adjusted basis we could see europe continue to grind lower. is the euro index, a trade-weighted version of the euro, it has been going lower all the past year but it really accelerated when the war started around here. we had another like lower recently and i expect it to break significantly lower. even though the dollar euro is a significantly liquid traded pair, we could be heading much much lower t

tom: francine lacqua made global headlines with that panel.s is about going to all of the countries. annmarie hordern did this before she was relocated to washington. it is not just one story. you have to visit them all. to be the focus is the baltic states and scandinavia and maybe that is just to get away from all the other agonies. jonathan: i am jealous they get such great gigs because back in my day i had to go to frankfurt and zurich. lisa: not exactly the same incentive. tom: lisa is going to whole foods foods on the upper west side. lisa: let's not get too ambitious. we will see how it goes. jonathan: with lisa abramowicz and tom keene, i'm jonathan ferro. negative one third of 1%. bonds down eight basis points on the 10 year to 2.9354. almost to 3.50 a couple of weeks ago and since then we have backed away. the data is starting to come in weaker. stateside from new york, this is bloomberg. ♪ jonathan: kicking off the second half of q3 with your equity market lower. on the s&p down one third of 1%. on the nasdaq down one third of 1%. t

eloquent fear for what the, zekiel does that, that can mc via accession knobby and not his g slit while francine is accusing going when bad the shower this could have in the cane that book in is offline, is if you have with a ah, meteorites as a small piece of rock from another planet would survives entering the atmosphere and lands on the surface. meteorites are extremely rare, but they can be found almost anywhere on earth. however, more samples have been found in morocco than most other countries. partly because the shiny black rocks can be seen more easily on dry mountain landscapes. so the scientific explanation for the 2 moroccan lakes is got around 40000 years ago, a 100 meter wide asteroid was hurling towards earth. it broke up into several large pieces which landed in the high atlas mountains, causing these massive craters. ah, the nomads in this remote part of morocco have learned to live with and recognized meteorites remains. these ancient ra carvings show that they witnessed their impact thousands of years ago. ah, but far from fearing meteorites, the moroccan nomad, see them as gif