are two big central-bank meetings last -- next week. a rate hike at the federal reserve, the seventh one they have undertaken since the end of 2015. european central bank chief economist saying there will be a pivotal decision buying to end the bund program. scandal netted another victim. im lufthansa when costs unchanged twice after raising rates in january -- left borrowing costs unchanged twice after raising rates in january. haidi: we have the director andy economist at -- and economist at zimb. we're been talking about the risk posed to emerging markets at the moment and how their hands are tied. this lead to so much domestic uncertainty? questions are waiting to be answered. oil prices as they are today -- they have effectively abolished services tax. the broader global economy remains relatively stable. the external sector remains stable on that front. ofneed policy clarity sustainable fiscal financing going forward. camps may be preoccupied with the scandal itself, but the macro environment is fairly positive. haidi: you are see

>> i think what we have seen from the central banks, we have three different attitudes. of japan it is steady as she goes in terms of what they are looking to do with the yield curve. they still have concerns around inflation. they had great numbers at the beginning of the year. ecb, draghithe managed to do something that is quite a feat. he announced that he will taper in september and finish off with qe at that end of the year, subject to data coming in. that is his attention -- that is his intention and bunds are lower on the back of that. the third central bank this week was the fed, and they had more of a hawkish stance, be it in the description of the economy, they called it strong. that is a strong word for me. they announced that we were going to have two hikes over the course of the year. you've got this environment playing in the markets at the moment. on the trade tensions side, for me it is more of a sentiment play. the sentiment has been affected this year with what is been happening in the emerging markets, be it turkey, be it argentina, be at the flu we had

ecb and the central bank of japan have been in expansionary monetary mode.ed and the imf that the american economy could become too heart and its debts could become too high. were you surprised by that ecb announcement, considering recently we have seen the eurozone economy start to cool? no, central bank governors across the world, whether japan, europe, britain, america, wa nt to japan, europe, britain, america, want to normalise the monetary situation. no one is really sure what this monetary experiment we have had for a decade is hiding under the sea of money, what rocks are under there. so i think the ecb under the banks want to normalise and push towards normalisation. let's not forget, incredibly dovish times. negative interest rates across europe and the ecb, no seeming ends to that. these were meant to be emergency measures when they will put in place in 2008, 2009, 2010. we are still here and not sure exactly how it is creating bubbles in acid values, that we don't really understand how they will and why. i think all the central banks want to get b

the european central bank doing recently. well i think the european central bank appears to be having a deer in the headlights moment we had expected i think a little bit tougher talk out of the european central bank when it last met but instead we were told that it might not be until the end of next summer that we see the first rate hike come out of the e.c.b. there was an official on the wires in the last twenty four hours who actually through october two thousand and nineteen out there bart my greatest concern for the e.c.b. i've been writing about this recently is that they actually go into recession with interest rates still in negative territory that would put policymakers there and of in a very tough position in a very tight bind you know what do you do when you are already less than zero i mean where would you go you go back to i mean they don't think they call it quantitive easing but you go back to bond buying again danielle i mean horrible church from since we don't want to go there but is that the only real avenue

pointing out earlier that many of these issues have been discussed for decades, but not by full central-bank governments of important economies. thanks to all of you, and thanks for all the questions. [applause] vonnie: the most powerful central bankers in the world speaking on a panel at the ecb forum in portugal. moderated by our stephanie. joining us is matt miller. many takeaways and the u.s. federal reserve chairman was almost least interesting. we heard a lot from kuroda and mario draghi. matt: that is true. the most interesting speaker was the least powerful central banker, philip lowe had the most fascinating comments and made the stho-pvoking statements and has the third mandate of worrying about the commonwealth, the people of australia, how they are doing behind this price stability and full employment. the most important comments come from jay powell. he says the case for gradual rate increases at the fed is strong. saying the fed is 100 basis points below the neutral real rate of inflation, and estimate, an art and not a science. saying that he thinks this economy can still add

president draghi prepares to address the central bank in central portugal.ou his speech live. trade dispute casualties. china vows to retaliate after president targets another $200 billion in tariffs. european stocks fall asia sharply lower. tesla's internal conflict. the electric carmaker says it has been hit with extension -- with extensive and damaging sabotage the hands of an ex-employee. ♪ >> welcome to "surveillance." i'm nejra cehic in london.

the central bank now sees the consumer price index in a range of 0.5%-1%. en behind if the global peers in what has become a very busy week percent of banks. china home prices have risen. no home prices in the 70 cities gained 0.8% from one month earlier. that compared with a 0.57% increase in april. the imf has warned that u.s. tax cuts and spending hikes are increasing reason -- risk to the global economy. thedirector conceded that trump administration has not always agreed with its view of the american economy. >> it was clear that he regards our medium-term outlook as to pessimistic. -- too pessimistic. frankly, i hope he is right, and we are wrong. it would be good news for the u.s. and global economy as well. juliette: argentina's a central bank is getting a new chief after the monetary authority failed to stop the plunge. the previous finance minister will take over the position following the surprise recognition -- resignation. they need him to curb volatility in the currency. senior eu officials have informally discussed whether the u.k. might need

come of the meeting between trump and came, and as we mentioned, three of the world's biggest central bankseeting next week, the fed, the ecb and the fed bank of japan. let us get to features, nasdaq futures are suggesting a weakness here. as you say, we focus on the g-7 story as well. something coming up and programming in europe that we need to tell you about, we will be jen but a ceo, for the european markets open, 7:30 a.m. london time. let us go to juliette saly in singapore. >> u.s. president donald trump will leave the g-7 summit in quebec early and head straight here to singapore to meet with jong.korean leader kim leaders are meeting today and tomorrow and what is shaping up to be the most divisive gathering in th years. america's closest allies frustrated with president trump's decision to instill terror's last week, as well as the decision to withdraw from the i run a nuclear accords and the paris climate agreement. administration's powerful fiscal stimulus could fade causing a rally community moment, according to a former federal reserve chairman,. then bernanke. he says the $1.

european central bank has jurisdiction over door to bank or u.b.s. the swiss bank and so forth so all of the biggest banks yes have colluded with the central banks by the central banks have also colluded with each other to keep the overall level of money available to these larger banks or larger corporations that they select in their various countries motivated by extra cash basically as opposed to using that money in any other purpose or simply not giving it to them right let's talk about the role of the central banks basically in terms of an overall relationship i mean really when we talk about the g. seven meeting sure the presidents will show up and kiss and shake hands but give the day this does seem to be a very tremendous financial implication and sort of motivation to a lot of the deals being made there from these major companies countries but. what strikes me is that we're talking now about trade war school going on and basically a lot of we've seen that already with major sanctions on massive countries like russia that's ongoing iran obviou

european central bank has jurisdiction over door to bank or u.b.s. the swiss bank and so forth so all of the biggest banks yes have colluded with the central banks but the central banks have also polluted with each other to keep the overall level of money available to these larger banks or larger corporations that they select in their various countries motivated by extra cash basically as opposed to using that money in any other purpose or simply not giving it to them right let's talk about the role of the central banks basically in terms of the overall relationship i mean really when we talk about the g. seven meeting sure the presidents will show up and kiss and shake hands but they're the day that does seem to be a very tremendous financial implication and sort of motivation to a lot of the deals being made there from these major companies countries but. what strikes me is that we're talking now about trade war school going on and basically a lot of we've seen that already with major sanctions on massive countries like russia that's ongoing iran o

over the next week, a trio of central bank decisions by the fed, ecb, and bank of japan out with announcements economic data as well, including u.s. cpi and retail sales. plus, the trump-kim summit in singapore. the president set to publish a final list of targets on chinese imports. with me around the table, andy chorlton, kathy jones, and jay berry. is international diplomacy a risk for the global bond market? is that something you even have to think about over the next week? kathy: we have had a few surprises recently when it comes to the international diplomacy. obviously, the big thing we worry about is the trade outlook. that has the potential to impact global growth and fed policy and central-bank policy and inflation, etc. at this stage of the game, we tend to shrug these off quickly. jonathan: because they take so long to burn through, jay. i guess the markets looking at the situation thinking, breakdown of diplomacy and is -- is a breakdown of diplomacy a risk and does it delay growth? jay: from our perspective, we do not think it does what has been announced on trade, it takes a lit

alix: the turkish central bank hiked rates.y raised the one-week repo lira125 basis points, the jumping almost 2%. is the us from boston ubs head of global markets equity strategy. he has been underway turkish equities, but has upgraded other emerging markets where he is still a bull. let's start on turkey. hike in may,oints now 125 basis points, is it enough to stem the slide of the lira? >> a lot of this depends on the dollar. we think in the short-term it will help stem the tide on the falling lira. it looks like the central bank is trying to regain control of monetary policy or reassure the markets it is in control of monetary policy, but it continues to be a weak story fundamentally. they have a large current account deficit. you have the election coming up. i think it is a temporary respite, but a lot depends on where the dollar goes. alix: if you look at some of the other asset class, bond yields are at record highs. at what point is there an attractive enough yield to be compensated for the risk? >> it is a fair point.

very difficult for central banks.t your thoughts on the yield curve and its implications with this chart. 10, you see two and that over the longer end of the curve. are you looking at the shorter and? does it prelude recession? david: there is this risk about inversion coming. i am not sure whether we will have that. let curve getting flatter. yes, they hike two times the rest of this year, short rates go up a half point, i am not sure long rates go up. they go up less. a lot of the influence on the long and intermediate yield curve and u.s. dollar is being driven by foreign investor choices because they are looking at their options. if you are sitting in singapore or dubai, do you want to own the u.s. treasury 10 year near three as a yield, or do you want to points?bund at 40 basis that is a gap driving investment decisions worldwide. we will have flickr for a while. -- flat urves curves for a while. haidi: we are going to let you go. thank you. let's get you more on this very exciting tech ipo we have been talking a

now, they are having ahead change of the central bank -- they are having a head change at the centralomeone who had suffered a little on the popularity front and in terms of credibility from investors, as well. >> former trump campaign chairman paul manafort sent to jail by a judge. mr. manafort has been accused of many things, including money laundering, but he is going to jail today because of something else. >> yes. within the last several weeks, paul manafort was accused of witness-tampering, and that is why he is going behind bars today. that court order coming in the last hour. this is the most monumental development so far, and the most notable fate of someone close to president trump's political orbit. now going to be sitting in a jail cell. we can't understate that enough. ♪ ♪ rishaad: you are watching "bloomberg best." i'm rishaad salamat. david rubenstein is coexecutive chairman of the carlyle group. which won't its fourth student this week with tim cook as special guest. he is uneasy about the rising level of government debt. >> we are running a $900 billion deficit this y

president draghi prepares to address the central bank in central portugal.e will bring you his speech live. trade dispute casualties. china vows to retaliate after president targets another $200 billion in tariffs. european stocks fall asia sharply lower. tesla's internal conflict. the electric carmaker says it has been hit with extension -- with extensive and damaging sabotage the hands of an ex-employee. ♪ >> welcome to "surveillance." i'm nejra cehic in london. there is a risk off tone in the markets, perhaps driven around the increasing trade tensions between the u.s. and china. europe lowerer, for a third day. we are seeing a little bit of selling in the euro against the dollar. this could be to do with risk off, but we are closely watching this as we hear from mario draghi in portugal. trading, where we are the yen outperforming against the dollar. safe havens generally have been quite bid, gold higher, but the 10 year treasury yield is down, 2.87% is where we are trading, at a three-week low. coming up on "surveillance," we talk trade with the indones

another central bank to talk about.al bank governor has resigned as prime minister continues to investigate alleged embezzlement and money laundering. let's take a look at what is behind the resignation. do we know what role he had? said he was stepping aside to protect the angst reputation. the backdrop is all about the among thevestigation allegations of corruption. there are allegations of impropriety. i think it is a signal that he is deadly serious about the investigation of 1mdb. the latest to be embroiled in this is the central bank. yvonne: we have seen the ringgit holdup strong. sensitive time. oil prices are pushing higher and policy uncertainty in malaysia. we do not know what projects will go ahead and what impact they will have on the growth going forward. investors are sitting it out to see where it ends up. they are not too concerned about the near-term impact. ramy: investors really do not like that kind of uncertainty. ,n terms of the response today you said they had been sitting on the sidelines. how l

rishaad: central banks and central bankers were another focus of attention this week, with policy decisionsnd the bank of japan. here's some of what distinguished guests on bloomberg television had to say about developments in monetary policy. ♪ >> i want to get your initial reaction, not so much to the 25 basis point hike, because that was expected, but the hawkish tilts from the fomc and the expectation that there might be four hikes total through the end of the year. >> right. well, when you read the statement, the language, especially in the first paragraph where they describe the economic outlook for the next three years or so, lots more hawkish wording. -- wordish in that language. but what was striking to me was when you go to the numbers, the projections that the various fomc participants provided, really not much changed at all from the last time they did a dot plot back in march. it's just not much change. it's true that the sequence of dots for the current year, 2018, now suggests that there are four rather than three, but that is -- was just the movement of one dot. when you loo

>> well, the new central bank governor has reportedly been saying the central bank will be proactive. anyt might happen in markets. to some extent, that has provided comfort for investors. we can see that in the movement of the rupiah, which has been stable in recent weeks. haidi: we will leave it there. watching indonesia's returned trade. this is bloomberg. ♪ ♪ two, down, back up! our phones are more than just phones. they're pocket-sized personal trainers. last minute gift finders. [phone voice] destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet which could save you $400 or more a year. it's a new kind of network designed to save you money. click, call, or visit a store today. rishaad: equity markets very a drop ine fore, tuesday's trade induced selloff, at a strongern level than expected. now, with kim jong-un act in beijing, a look at his role in the disputes with the united states, plus there is a noble group,for who reached an agreement with dissident investor goldilocks. i am a shot

a surprise move by india's central bank. raised its interest rates for the first time since 2014. it was increased by 25 basis .oints to 6.25% emerging markets have been rattled by the prospect of further tightening by the federal reserve. new central bank is moving quickly to raise interest rates and stabilize the country's currency. he told bloomberg that may not be finished. >> [indiscernible] met -- do not miss our exclusive interview with bank indonesia's governor. global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm taylor riggs. this is bloomberg. francine: thank you so much. italian bonds have dropped for the day. this is just a simple chart of the spread between italian 10 year yields and spanish 10 year yields. it follows that the italian prime minister's populist budget in his latest speech. he promised increased spending for the poor. let's get back to andreas u termann. investors were spooked. i do not know whether that is justifi

within your years of research, can any central bank do that? think what's -- it's difficult to look back to the past and to find a clear model of this. i think that they are taking the opportunity to normalize interest rates, and i have to say personally, that is something i welcome a lot. we have missed a few chances to do that. my concern is that when we do next enter a downturn, the central banks don't have a great deal of ammunition. the more headroom they have to respond if we do have a more serious market situation developing, the better. i rather welcome what the fed is doing. it is clearly a little bit risky, but as they point out, monetary policy is still quite accommodative at the moment. i'm i in favor of what the fed s doing. >> emerging markets benefited, really, from this decision and this press conference today by the ecb, and almost from the fomc decision yesterday. how does the divergent story play out now in the next three to six months? >> one of the things we are seeing is one of the ramifications is dollar tightening. when

. >>> the european central bank meeting now. their rate decision considered by many to be more important to you than your own federal reserve. >>> secretary of state mike pompeo saying tough sanction also remain in place against north korea. >>> elon musk putting more skin in the game. we'll tell you what he did with tesla stock. >>> and bitcoin trying to recover many a recover, but many are asking what's behind the big slide. it's thursday, june 14th, 2018, "worldwide exchange" begins right now. ♪ >>> good morning welcome from wherever in the world you may be watching. i'm brian sullivan here's how your global markets are setting up thursday. once again, not much help. futures are flat, maybe slightly down 9 points it is early. remember, that ecb decision in just under three hours certainly could be a market mover. it's so important that steve liesman will be here with what you need to know from the european central bank in a bit we begin with a huge proposed d deal in media. our parent company, comcast, bidding $65 billion for

coming up, the fed is not the only central bank making a rate announcement this week. we also have the ecb and the bank of japan. next, we dig into what to expect him those announcements. this is bloomberg. ♪ jon ehrlichman.oomberg maets. shery: i'm shery ahn. a busy week for central bankers kicking off in 15 minutes, that is one federal reserve policy makers announce what they had decided after two days of meetings. we also have the ecb tomorrow and the boj on friday. for more on what we can expect, we are joined by sasson gura monday, president and ceo of sdh macro advisors. how well positioned our markets right now? are generallys position for a fairly benign outcome from all three central banks. a little bit of nervousness out there but the interesting thing is that tt will be hiking, the ecb is talking about signaling an end to their quantitative ease program. the markets expect the delivery of both of those messages and importantly what is in store beyond 2019, to be relatively benign. it is a little different than where the markets we positioned in march, which i

business i'm get out of the turkish central bank has raised interest rates to seventeen point seven five percent that provoked the shaab jump in the value of the turkish currency and comes less than three weeks ahead of the country's presidential and parliamentary elections the interest rate hike of over one percentage point has been widely expected inflation has hit a six month high last month president reza tired at a one announced his intention to exert more control over economic policy if he wins the elections that driven that's driven losses in the lira and put pressure on the turkish central bank to raise rates well today's meeting of the turkish central bank comes only two weeks after an emergency interest rate hike a clear indication that these are difficult economic times every number of foreign investors are pulling their capital out of the countries since the beginning of the year the lira has shed twenty percent of its value against the u.s. dollar some major foreign companies have increasing reservations against investing in turkey turkish firms have foreign currency debts o

conversation.ing decision fromy turkey central bank today.are divided on today's policy decision. last month 300 basis point rate increase hasn't stopped the market route. some investors say more are needed to restore confidence. us. to have you with talk to me first about the real yields we are seeing in the turkish market. when you look at turkish policy rates adjusted for inflation, the real yields don't look so bad. why are investors so negative on the lira? i guess politics have something to do with it. >> politics is part of the problem for many investors. distaste forogan's high interest rates is no secret. and there is a lingering concern about the central bank's independence. that said, the emergency rate hike last month, 300 basis-point move, has health to -- has rebalance the market. many investors want the central bank to prove that it is getting ahead of the curve in terms of managing inflation and anchoring inflation expectations. the currency has depreciated 20% so far this year. that strength filters through to import prices,

india, the central bank governor complained. the classic phenomenon where monetary conditions tighten because the dollar is unique, conditions tighten elsewhere in the world. lower making are the dollar debt more attractive. they tighten elsewhere in the world. that is where the fed is thought of as the world's central bank. the question becomes should the fed-- how much of the taking part of the rest of the world given gps is accelerating? we are not yet at the point where the fed needs to look at the rest of the world and how their actions are rebounding. there is an analog where you had emerging-market crises starting in 97. we may be in the spring of 97. the 30 yearhat yield could end the quarter with a low yield. it happened in the first half of 2015. what does that tell us? havenetary conditions tightened but we can hardly call them tight. economists think in terms of the mediums how much extra risk you need to put on to longer dated bonds to count for the uncertainty and that has been abnormally low in the crisis. possibl

investors are pulling out of turkey amid a weak lira and rising inflation can the turkish central bank prevent a potential recession or does turkey need aid from outside we asked a professor of international economics also on the show europe's power engine is losing steam in germany factory orders dropping for the fourth consecutive months after. the long wait is over german chemicals giant bio completes its takeover of u.s. seeds john on some toe emerging as the world's biggest player in the agro chemical sector. welcome to do business and we start with breaking news the turkish central bank has raised interest rates to seventeen point seven five percent the move is set to cause more uncertainty for investors less than three weeks ahead of the country's presidential and parliamentary elections the interest rate hike of over one percentage point had been widely expected as data showed this week turkish inflation hit a six month high last month president of the one announced his intention to exert more control over economic policy if he wins the election and that's triggered losses in t

not to be discarded, major central bank eating, a deluge of eco-data. s to growth and inflation in the top three economies. bank of america calling this the global economies' most important week of the year. charts.cencio has we are not short for headlines and events risk everywhere we look. ramy: there will be a deluge of eco-data. behind me, these are some of the highlights. june 11, local time, machinery orders coming out. we are expecting a surprise to the upside. june 12, the u.s. cpi, also a little higher. june 14, china's industrial production. this could be a mixed or murky picture. let's flip up the board. here is my first chart. you can look at these on the gtv low -- gtv library. japanese machine orders right now negative. we have not been positive the last year or so, but we are getting this to flip positive year on year and month on month. month on month expected at 3.8% and year on year at 2.4%. this is lending some credit to what analysts are saying in terms of a possible better growth in the fourth -- second quarter for japan. cpi,ew

this includes european central bank, so eager. t, doing research with the european to invest in technology. our project is called project fair. we already issued to reports -- two reports. we tried to apply new on the wholesale payment. david: the ledger. hiromi: the latest technology to business payment and halter payment. david: it seems when you talk about these technologies, a lot has to do with cost savings. is there a revenue generating part? hiromi: at this juncture [indiscernible] major technology and many airport are in the process of experiment. a bunch ofs potential. the japanese banking industry and finance as a whole are based localized technology. they have a huge computer center. by applying new technology, they can use a bunch of pc's instead of huge computer center. at the same time they need to modify their business strategy and the structure in order to maximize the new technology. david: is china more advanced than japan in terms of either a cashless society or payments dispense? you have big players there. hiro

we are a long way out from a rate rise from the european central bank.f the process of weaning their way off the stimulus package which has been successful. the gap between winding down the stimulus package at the back end of this year and hiking rates are quite considerable. between those two points. thanks. we will keep an eye on that. as soon as we get any news of what the ecb is up we get any news of what the ecb is up to, we shall update you on the bbc. plenty of business stories on our web page. look on our business live page, plenty more on the rolls—royce story. the share price on the london market is up around 3%. some news in terms of the housing market. for the first time in 27 months, the overall balance of surveyors has seen months, the overall balance of surveyors has seen the supply of new homes growing rather than shrinking, that has turned positive. and t about other stories. the owner of jacamo says they are closing 20 high—street stores ahead of their lease expiry date. another retailer on the high street having to close stores. so man

a trio of central bank decisions by the fed, ecb, and bank of japan out with announcements, a ton ofconomic data including u.s. cpi and retail sales. yet the trump-kim summit in singapore. also targets on chinese imports. with me around the table, and the touring, kathy jones, and ay berry -- andy chorlton, kathy jones, and jay berry. what we have to think about over the next week? obviously, the big thing we worry about is the trade outlook. that has the potential to implant -- impact global growth and fed policy and central-bank policy and inflation. at this stage of the game, we tend to shrug these off quickly. jonathan: because they take so long to burn through, jay. diplomacyeakdown of and is that a risk and does it delay growth? jay: from our perspective, we do not think it does what has been announced on trade, it takes a little off growth from u.s.. it doesn't change the view on trade and the fed. jonathan: andrew, is that your view? andrew: people like to focus on these things and they like a reason to justify a market move. trade shouldn't matter, but you never know what th

how important is it for a central bank?e see mario draghi give more information to markets than i .ave been covering him we see the fed starting to ramp up. what is your view? >> it is essential. the new paradigm we are dealing with, if markets understand how central banks think that is part of the job of getting expectations under control. the technical term is reaction function. you are businesses and households to say if inflation's does that the central bank will do that. if the data does a, they will do b. if participants believe that and can predict that, transparency is essential from that point of view. mark: thank you. back to you. vonnie: matt miller at the ecb forum. he will be back later on. coming up later reo draghi speaks alongside his counterparts with the fed and doj. that panel is moderated by stephanie flanders. that is live on bloomberg tv. theresa may is trying to make sure the brexit negotiation powers stay in downing street. ensuring parliament gets a meaningful vote on that final .eal or lack of deal

finally, not all central banks are turning to more restrictive policies. mber are on my diverging path. back in japan, and the pboc has yet to address the latest move from the federal reserve. zoe: that's right. the bank of japan is one that stands out. we see no change to their interest rate, and that is actually a negative rate of - 0.1%. that is through the third quarter of 2020. pboc, we seeth the them holding at 4.35%. generally, if you look at how -- it just shows the overall diversions with central banks, and that is something we will be financial markets. anna: thank you. map we just showed shows that there is a lot of red, and those are banks tightening in the near future or are already tightening. given where we started these conversations, we wonder how much that tightening bias is important. if you look at that map, it is quite a binary picture, red rising, white not rising, but there are nuances within that, because clearly the fed is on a tightening bias. i think much of the rest of the world is on a much slower trajectory than the u.s. is. i

constraint upon him he's appointed numerous central bank governors now he's in charge of the army he's . done a lot of changes to the judiciary but it's the central bank which i think is concerned people the most because turkey relies on foreign capital to fund its current account deficit it always runs a big trade deficit so it needs foreign capital so to say we don't want to pay the interest rates required to attract back capital has frightened the markets and one of our concerns over the last few weeks is if you go back to malaysia or in one thousand nine hundred eight in the asian crisis malaysia said you know what welcome site foreign capital we're going to introduce capital controls we're going to not allow foreign portfolio investors to leave and that did let them cut interest rates and it did help malaysia's economy recover perhaps quicker than other asian countries that have gone to the i.m.f. and done orthodox things like the interest rate hike which eventually turkey did choose to do a few days ago yeah and staying on this issue the interest rates the did deliver did rally f

brazil's central bank, under pressure to shore up the currency hesitates the lowest in two years. nounce a rate decision. many investor eyes on emerging markets. welcome to the european open. alongside guy johnson at our european headquarters in london. gu we still don't havey: an auction cash guy: we still don't have an auction price underway for the ftse 100. there are no stocks that stand out. bper trading higher. peripheral banks are doing better today. you can see that out of italy. let's show you what is going on at the bottom end of the market. there is a decent set of numbers coming out of the talkback producer -- cognac pro ducer. --din lower this morning trading lower this morning, despite decent numbers. let's go to the bloomberg first word news. juliette: donald trump is set to meet shinzo all the today today ahead of the historic north korean summit. north korea has publicly bristled at officials insistence it might really question nuclear weapons before receiving anything in return. we will bring you this news conference live at 7 p.m. u.k. time. the top economic advi

central banks to react. you have futures, go to nasdaq.ond day on record for the nasdaq are seeing the trades in technology stocks. up again, .3% for nasdaq. that is certainly what features suggest. it is fascinating to see how this concept from the trump administration around divide and to fix on nafta, trying the trading relationships. we will talk about defense spending more of a little bit longer. for men nato secretary-general, will be joining us at 7:30 a.m. in united kingdom time. and we will haore from your exclusive interview, manus, with a key saudi arabian voice. manus: yes, this is the man that i set down with in zurich yesterday, in a beautiful location. he is the manager of saudi's, -- he is an advisor to mohammad bin salman. we will talk women, privatization and maybe even a little bit of qatar. let us go to juliette saly, with the first word news. >> manus, thank you. the u.s. would like north korea to commit to a timetable on denuclearization before he meets with the president next week. u.s. officials say the president ha

named a new central bank governor. is deputy governor investigating the scandal plagued fund. >> definitely not corrupt. example, when they were bought by this is a bank for 2 billion ringgit, this is a bank doesn't need the land desk the central bank for 2 billion ringgit, the central bank doesn't need the land. debra: global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . anna: let's get to sydney. a check on the markets. haidi: we are looking better than we were earlier this morning but this malice that plagues is continuing into the end of the week. we are a quarter of a 1% when it comes to the msci asia pacific index. we are on track for seven day low. 4% lower. we've got the likes of everyone from goldman sachs to morgan stanley slashing the expectations. let's take you through some of the market we are watching. the nikkei 325 is up. the yen holding pretty steady with inflation's desk inflation numbers coming in pre

we talked to him about central-bank policy and banks.n't know if consolidation is in the cards, but he will have something to say. in the meantime, emerging markets and investors coming to terms with the prospect of faster than expected u.s. interest rate hikes. disappointing data out of china. all about the ecb, and matt miller is on the ground. of course, also world cup day. this is bloomberg. ♪ ♪ francine: hawkish fed, jay powell striking optimistic tones while raising rates for the second time this year. the signals two more are on the way. the ecb next. howral bank and announcing, specific mario draghi will be. ring,t gets back in the operates $65 billion for 21st century fox's entertainment assets. we wait for disney to respond. good morning, this is "bloomberg surveillance," i'm francine lacqua in london and tom keene is in new york. we talk world cup and comcast and world bank. haley, i gotd for my world cup cut out so i can keep up with you and jonathan ferro. the first thing -- francine: did you do your bracket? tom: not yet. w

if he lets the turkish central bank do its job without interfering then we will have confidence by investors to get that money back into turkey if he starts meddling with the activities of the central bank we will continue to see these exact same problems after the election ok so not a lot of trust there this is basically what it boils down to our get us breaking down the numbers for us giving us the economic situation within turkey thank you so much. authorities in guatemala have today suspended search and rescue efforts in the wake of sunday's all chemical reaction they say that rainy weather and the hot volcanic material blanketing the area are making it impossible to keep up the search for survivors at least one hundred people are dead with close to two hundred still missing despite the efforts of emergency workers up until now. clearing the rubble after disaster struck for days crews worked tirelessly to find and remove bodies buried under volcanic ash it's been a grim task and dangerous too dangerous the official search has now been suspended . inside for parts of a squint