christine lagarde is set to succeed mario draghi.l be the first person to take the job without being a career banker. joining us now from brussels is maria tadeo who is tracking the twists and turns, the horse trading between the european leaders as they struggle to andnate an ecb president european commission president. what type of central bank will christine lagarde b, what is the consensus? maria: in terms of christine lagarde, this is not a central banker, not an economist. something that has been her business, not your traditional european banker. is difficult to say before you start the job, but if you look at her track record, she has been supportive of mario draghi and praised the action he took during the crisis. she could use fiscal room to create growth. in reference to germany with a huge surplus, she has always the key priority for the european union, they should do more to integrate economies. that we dois reading not get the clean break from mario draghi. it is more of a continuation. the: some people are making point

christine lagarde nominated as the replacement for mario draghi at the ecb.ould be the first woman to run euro area monetary policy. after 20 hours of meetings, the european council agrees on new leaders. the next challenge, parliamentary approval. we have a live update from brussels. stabilizing the crude market has become more elusive for opec as supply cuts failed to stop a price slide. quick check on the markets on this holiday week in north america, the markets not likely to see any real volume. lackluster performance. it should be noted the markets are off the lows of the session, also off the highs. we saw the markets move higher not necessarily in reaction to the word that christine lagarde was appointed, but the s&p tracking back to breakeven. energy, materials both weak spots for that market. we have to take a look at european stocks. they have been doing pretty well. we are talking about them doing their -- posting their best half of the years since 1998. european cyclicals gaining against defenses as well. bond yields continue to drop him and not

the nomination of christine lagarde to leave the european central bank followed a european union selectionrocess but leaders seem to be on board. >> i have known madam lagarde for many years. i'm absolutely sure she will be very independent. >> christine lagarde this somebody we know very well in ireland, heading up the ecb. she will continue the policies of mario draghi, keeping interest rates low. >> we believe she has all the necessary skills to head the central bank. i do believe christine lagarde experience. she knows how to cautiously address issues. she will be very committed and engaged. shery: the markets seem to be on board as well, even if cautiously. if approved, she would arrive at the ecb at a difficult time for the euro zone economy. here to size up the pick and what it means or policy in the markets is financial chief economist chris. great having you with us. i saw in your notes the first thing that stuck out was if i were her, i would not want this job. it is a challenging time for her, isn't it? chris: yes. the ecb, unlike the fed, does not have much power. they have neg

so perhaps that helped christine lagarde getting this position. when you look at other potential names on the table, there were not many other female presidents the ecb. when we look at christine lagarde, it's important to remember she was finance minister of france for a conservative government. so yesterday i asked different leaders here in brussels whether that could risk the independence of the ecb >> i have known madam lagarde for many years, i'm absolutely sure she will be very independent president of the european central bank. >> i know christine lagarde as the boss of the imf, i know her as a tough lady, somebody who knows has she wants, who is very clear on giving directions when you come to her to get a loan, very tough on conditions i would not like to be the european country that goes to the ecb asking for favors >> speaking of that 50/50 jen r gender balance, ursulavonder leyen is selected as european commission president >> we are looking for somebody who is understand our region, who doesn't have any negative view on this region. t

let's talk about christine lagarde.hat type of central banker is she inspected to be -- expected to be? >> she was an unexpected choice. she wasn't even in the short list on monday. it took some people by surprise. there's an idea that she's not a that,l banker by nature -- nature, that she comes from the world of politics. she is well-known in the international finance community. in thewell-known political world. she is not your typical central banker. the market is reading into this appointment. continuation. if you look at everything she has said about mario draghi and his policies, he did what he had to do to prop up the european recovery. what could be in store for christine lagarde? the market has set out her work for her. everyone is expecting some kind of stimulus coming from the european central bank. it is still to be seen. also, what's worth keeping in mind, it means that this didn't go to five min. we do not get that clean break from mario draghi. it's this theme of continuation. nejra: germany didn't get vi

sad to see christine lagarde go. i think there is certainly the sense case kristoff that she has a very strong legacy at the international monetary fund remember of course that she came to the fund out of a very difficult time 2011 we just saw the abrupt departure of dominique scalds kahn amid allegations of rape it was also the often off of the global financial crisis so a very tough economic period leading christine legarde to once famously quipped that had the lehman brothers bank been the lehman's assist is that the global financial crisis might not have happened a toll so certainly a firebrand for more women in positions of economic leadership and power and of course the greek debt crisis is well very much put in the spotlight despite the fact that christine lagarde is not an economist by training but many people say that her management of the international monetary fund such a large multilateral organization of 189 members puts her in a very strong position to lead the european central bank christine legarde mi

in the case of christine lagarde, that is a different story. there is no question she will place mario draghi, but the question is whether there is a certain level of to much politics at the central bank and the fact that she is not a central banker, she is not an economist, that has raised a few eyebrows. david: thank you for the continued terrific reporting from brussels. now we go to the white house and kevin cirilli. new plans down there that involved tanks and f-15s and troops. kevin: in what is being known as a slew to america president trump is set to convene the largest fourth of july political gathering on the national mall. it will feature flyovers from air force one and f-15s, blue angel flyovers, and two fireworks displays that will also feature a televised address from president trump himself. all saying this is a sign of support from the administration as well as united states to broadcast just how strong and powerful united states military and economy has become. democrats are saying it is a giant waste of taxpayer money. the was

christine lagarde is certainly used to being labeled as the 1st woman to for example she was the 1st woman to become finance minister in france in that position she burnished shows as an international stateswoman during the financial crisis she played a key role in the global response as markets collapsed. valuable experience that certainly helped her get elected as head of the i.m.f. and 2011 also was the 1st woman ever to biggest challenge in that job handling the greek debt crisis. in 2016 a french court convicted of allowing the misuse of public funds as french finance minister she had approved the payout to a businessman but like god didn't have to serve a sentence and the i.m.f. stood by it's the rector. now she's stepping down to become president of the european central bank of course as the 1st woman ever. of course the european parliament needs to approve christine lagarde in her potential new job for a closer look at her career let's cross over to washington and our correspondent helena humphrey how are the people at the i.m.f. sad to see christine lagarde go i think there

s on christine lagarde. international flavors. he italian one and they basically start what lagarde gave toive anca trump and in that you see two confidences and at the same time lagarde and the united states knows each other because she worked there for years as international affairs going and french physically pambingly saying if you look at madam lagarde she's getting a lot of flak and not being an economic economist but similar to a profile of jay powell, another lawyer, joining us now for the hour. kwlobal investor -- global nvestor chief executive. do policies under madam lagarde differ to what we've had under mario draghi. >> a bit early to say. i think mario draghi is doing everything possible with his deral silence he will be maintained under the successor. i think lagarde is a very redible choice and has massive effect and a surprise markets can be surprised today. francine: does europe or the erment c.b. -- e.c.b. need a politician? because you could argue it needs more fiscal pressure and certainly can come from the ban

. >>> christine lagarde has triggered a leadership race at the imf. the bank of england governor mark carney is seen as a f favorite for the role. and former europe greu president are also in contention i have to say one of those names in particular is jumping out to me, karen. that is the central bank governor of the u.k., mark carney i found out over the weekend he also holds an irish passport who would have thought irishman up for the job at imf? >> he does have a number of passports and don't forget britain has never held the role at the imf the question is whether -- it does seem as though with the allocation of recent top jobs that there has been a mismatch you've got a german, french, spanish and also belgium position that's been handed out, but nothing in this region as well put onto your list of potential front runners, the lady from bulgaria having representation from this part of the world also quite sug ca -- significant. basically it's talking about structure reforms. at the time two years ago we spoke about the challenges in maintaining

christine lagarde understands how european politics works. she is a safe pair of hands. a problem, lagarde is one of the best people within european see -- within european circles to be able to handle that. is there a sense of that, the market is pricing in, if italy goes wrong, lagarde will fix it. paul: you can say the same thing about mario draghi -- there were worries he was going to be a hawk. mario draghi cannot contain all the worries until he had to do something. i do not know whether lagarde would be entirely different, but you can see that since the talks started it would be a frenchwoman and everyone jump to the conclusion it would be the pro-european christine lagarde. spreads that were already compressing between italy and nearly 2% today, that is how low they are. everything is compressed further. you see the spanish 10 year at 1% orou see ireland at less. great for those countries. if they cannot get their deficit or debt down, then nothing will help them. guy: may be changing the rules, which could also be a factor and affect issuance and you wonder how it

christine lagarde is the grand dame of french politics. the sixty three year old economist has run the international monetary fund for eight years. monitor rising it without causing a fuss but also not shying away from criticizing uss president donald trump first trade policies. the card is considered a supporter of redistribution within the eurozone at the expense of richer states other opponents of tough austerity policies. well womenen's power drive euroe forward. milan slow for the line has been in brussels last few days courting europe the members of the european parliament how do you do. i love the muscles are the low but i think she is doing a stone suggested she is building a very fosse she has the teamre behind her she needs to be a consensus. two to be confirmed next week. interestingly enough she does have the backing of some of those eastern european leaders we've been talking about us and also of the populist a leader i. italy what does that tell us. she's. more known and more positively known -- politician in central eastern

christine lagarde is a lawyer. she comes from the i.m.f.nd-she does not have any central bank experience. leaders hope she can translate some of those political skills needed to gain consensus at the european central bank. but it's a very good question. the two big jobs that the european central bank are now in the hands of two former politicians and the focus will now turn to phillip lane at the european central bank to get technical more experience. scarlet: of course, when you look at how the markets have reacted, we're going to point ou to g-tv go on bloomberg and this shows euro dollar. and you can see it's been coming down over the last year or so but it's now at the lowest level since 2007 on lagarde's nomination to the e.c.b. so markets clearly quiet on the back of this nomination. we want to bring in some perspective and we want to invite paul richards, medley global advisors president to join us to give us his thoughts on this decision. paul, great to speak with you. i guess the question now for investors is what does this mean wh

. >> i believe she has all the necessary skills to head the central bank. >> i don't believe christine lagardeas enormous experience. address issues, she will be very committed and engaged. rishaad: how different would lagarde beta mario draghi? what skill sets does she bring to the table? she has no central bank experience. she has other skills, which she can bring to bear in this role. yes she has been french finance minister. brought thethe imf, imf back from the brink of the dsk affair. she is a former top corporate baker and mckinsey. it seems like central banking is the only thing she has not done. party wise, from what she said and what the imf has advocated, she is very much in the mainstream of monetary policy. i do not see a lot of daylight between her and mario draghi. in some ways, her familiarity it with the fiscal and polarity -- and political players could be a benefit for shaping consensus for how this euro project most forward. much, ournk you so bloomberg opinion columnist. saxol with us, eleanor market strategist. central banks around the world , not coolg cash anymore. it w

more reaction to christine lagarde's new role in a moment.il had its worst reaction to a opec meeting in four years, prices tumbling after the cartel and allies agreed to extend production cuts into 2020. russia and other independent nations backed the saudi arabia plan, although divisions remain over deeper curbs. the decision came with shale surging and the u.s. close to being a net oil exporter. marketw has its lowest share since 1991. >> in order to maintain the current state of the market, and avoid buildup of inventories, we have decided to keep the level and magnitude of cuts intact. much people have died and of india's financial capital has ground to a halt, leading to the city declaring a holiday in mumbai. flights were delayed or canceled after a plane overshot the runway. $.35 meters of rain in 24 hours, the second-heaviest downpour on record. global news, 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: we had breaking news in the fe

let's start with the news that christine lagarde has announced she will be stepping down as managing ctor of the international monetary. lagarde is often referred to as the rock star of international finance, and has led the imf since 2011. she will be best remembered for her role greece's bailout, which actually side—stepped some of the fund's own rules. she also presided over the imf‘s biggest bailout, a $57 billion dealfor argentina last year. lagarde is now expected to lead the european central bank, after being nominated as mario draghi's replacement. speculation is rife who will replace lagarde at the imf, with many predicting current bank of england governor, mark carney, may be the next boss of the international fund. well, let's get more on this now from michelle fleury in new york. as head of the international monetary fund, christine lagarde was pretty unique. the former french finance minister was the first female to lead the global financial institution, which acts as a lender of last resort and provides economic guidance to governments around the world. now, under her le

christine lagarde is stepping down as the head of the international montary fund, after being nominatedhead of the european central bank. lagarde will be remembered for playing a major role in the bailouts of greece and argentina. now investors are asking, who will replace her? michaela bergman from the asian infrastructure investment bankjoins me now. lovely to see you. she always pops in when she‘s in london. christine lagarde, eight years at the helm of the imf. she‘s done a heck of a lot, hasn‘t she? the imf. she‘s done a heck of a lot, hasn't she? she's known as the rockstar of international finance. she‘s brought a different perspective to international finance, promoted inclusive growth and the empowerment of women and she‘s put the empowerment of women very much on the agenda, both at the imf itself and in the work that the imf itself and in the work that the imf does. it's interesting, because when she took over at the imf, known as the lender of last resort, like the world bank, there were lots of questions about its relevance but with the eurozone debt crisis after the global

none of the 2018 leaders opposed the nomination of ursula von der leyen and christine lagarde brings much respect. you have to take the candidates of -- that will get the approval of the other 28 leaders. none were the first choice but with 28 heads of state arguing over these things, you simply have to come up with a conclusion and a compromise. brent: we are talking about the head of the new european central bank and the president of the european commission. why are these jobs so important? teri: the president of the european commission gets to decide which countries will get which posts in the commission. a five-year post is a very powerful commission -- position. they will decide who will take the agriculture job, who will be in charge of the digital agenda, who will be in charge of the economic policy. these are significant posts that will have a lot of impact that the eu takes for the next five years. that is obviously a very visible job. if it is ursula von der leyen she will be the face for the next five years. that carries a lot of weight. the fact that christine lagarde has

great president for the ecb. >> i am convinced that certain changes need to be made here, and christine lagarde the board, she doesn't decide this on, along with the board, will set us on the right track here. perfecttine lagarde is ecbontinue in the role the had in previous years with mario draghi. attack --ally in the in the task of easing the economy. >> i don't think she's political. together, with her colleagues at the board, i'm sure she can do an amazing job to take the monetary policy of the euro zone to the next level. europet should get -- should get more incarnation. and christine lagarde sends a very good signal. anna: some thousand and christine lagarde's appointment at the ecb. still with us, peter. your thoughts on the ecb under christine lagarde. which policy tools remain open to be used to stimulate growth? peter: first of all, i would agree with most of the speakers. she has a tremendous amount of experience. she's been deeply involved at a time when ecb conducted bailouts. some people are saying she doesn't have central bank experience, which obviously is true. by the way, if

ims chief christine lagarde -- imf chief christine lagarde has been nominated. they all need to be endorsed by the european parliament. mehdi barber reports from brussels. >> after days of wrangling, it is a close ally of angela merkel who has been on for what -- who has received the nod. a self-proclaimed federalist is the nomination for the post of european commission president. oneven if germany abstains the commission president due to some issues and the government angelaon, personally, merkel supported the whole package. first and foremost, we have chosen two women and two men for the four key positions. a perfect gender balance. i am really happy about it. after all, europe is a woman. >> the belgian prime minister is nominated to be the next head of the council. spain's foreign minister as the policy chief. christine lagarde is nominated to head the european central bank. >> of course, we all had to give a bit. we all had to move. once again, the european council has proved the fact that it is typical of doing so. given the disparate conceptions in europe

christine lagarde to international background and standing current managing director of the international monetary fund be a perfect president of the your bills of about. in addition to the european look of the note of for thoughts on their alliance intentions to nominate for us to madame oath and margaret of the starker of the highest ranking vice president of the commission. we also expect a lot from the lion to ensure an appropriate geographical balance in the team of vice presidents i wish the new leaders of the best thank you. thank you and now open the floor for your questions georgia you have to say. hello president i'm hearing your rebuttal from your octave how about the parliament i mean i know it's it's not you it's the parliament but it was anyway part of the package so. you didn't mention. what are the names. is that were discussed for. the european parliament president obviously dividing them on between 2 to. you you must be aware that. the name of sergei solution for example is circulating he going to elaborate. for various reasons i want to be as the greatest possible we kn

christine lagarde may be the next president of the european central bank.is one of the key pieces in the latest late candidates for the eu top job. various officials have been wrangling of the job since sunday. president trump once tanks on the wall -- on the mall in washington for the fourth of july and it looks like he has them. spottedotographer several armored vehicles in a d.c. railyard. officials said tanks were being transported from fort stewart, georgia. a few hours from now, the u.s. versus england and the u.s. world cup semifinal. the second tomorrow between sweden and the netherlands. the winners will face off on monday. 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 am courtney donohoe. this is bloomberg. guy? guy: thank you very much indeed. time for the stock of the hour. shares in delta are rising after april a married qqq report showing better than expected -- 2fter a better-than-expected q report. taylor riggs is here with more. everything across the bo

for christine lagarde moving to the ecb if her nomination as agreed upon".cb if her nomination as agreed upon... iwas ecb if her nomination as agreed upon... i was not surprised to hear about that. the ft says that the selection of her to replace the current president is not surprising. she has been a fixture in the world of global finance since her time as french finance minister and then the head of the imf. the papers are pointed out that she does not have a central banking experience so far and previous leaders of the european central bank have all been national heads of their central banks before they got the post. the other thing we must remember is that christine lagarde was in the middle of the negotiations with the european central bank and with the european union when it came to the bailout of portugal, greece, ireland, in the middle of the eurozone debt crisis. she had to work through all of that with angela merkel and other leaders sitting which is why mrs merkel has been saying that if you can run the imf you can run the ecb. we shall see. i wou

but he does have a similar profile to christine lagarde, she was a finance minister for france before she took the job and he was the finance minister for the uk. in those terms it fits, but what this report really was about is whether he would be pitting himself against mark carney. we don't know if he is interested in thejob against mark carney. we don't know if he is interested in the job of head of the imf, but he does leave the bank of england next year and there is speculation about what he does next. this article notes the fa ct does next. this article notes the fact that george osborne appointed mark carney. he had to really sort of woo him and lure him over. he was based in canada at the time, and it is interesting, because prior to him taking thejob is interesting, because prior to him taking the job as governor of the bank of england the referendum hadn't happened. brexit, the whole thing, he has had quite a job. you might need a sabbatical before going into the imf after all that! yes, and what his family wants to do comes into it as well. george osborne is currently edito

christine lagarde has temporary stepdown from her role in the imf with a deputy standing in as actingrendra modi was a pro did for his flagship start—up initiative but as the economy slows, entrepreneurs are hoping forfurther economy slows, entrepreneurs are hoping for further funds. a blossoming business, kettering to evolving indian tastebuds, started ina garage evolving indian tastebuds, started in a garagejust evolving indian tastebuds, started in a garage just a few years ago, it has cashed in on a new generation of health—conscious and affluent consumers. a brainchild of this serial entrepreneur who is having to raise more money to support the rapid expansion of the company. almost 150 plus people, footing cities across the country and we pop a lot of popcorn. it is great way to raise capital it would be great. a lot of popcorn. it is great way to raise capital it would be greatm is lining up for low interest loans from the government likely to be funded in this budget. approximately 100 new businesses are formed in the country each day and they are expecting new delhi to ease t

let's get your take on christine lagarde. normal central banker, because her cv looks different, not an economist, she does not have goldman sachs on her cv, either, though, she comes with a different skill sets... she is a lawyer. different background. a lot of skills built up at the imf, where she took her role they are by surprise, really, because she came in when there was a scandal with the previous person, and she has proven herself, she has prove n and she has proven herself, she has proven with political skills, very adept at negotiating, that may be something that the ecb needs to have in its armoury. also, so keenly aware of the weaknesses and the strengths in the eurozone, because with the european central bank and the european union, the imf was part of the so—called troika at the time which decided whether to bail out portugal, ireland, greece, etc. yes, the european sovereign debt crisis, she was central to that, and we may see some of those strains come back again. for the ecb see some of those strains come bac

especially if christine lagarde gets in. we need to move on, we will gets in. off. later in the show... taking a punt on gambling — we'll speak to the boss of one of the industry's biggest specialist websites. you're with business live from bbc news. talktalk, something we are good at, we do it for a living. talktalk has issued an update on its first quarter trading, saying it "is in line with our plan". revenue is up 1.3% to £387 million and cost savings are on track. the telecommunications group are still trying to shake off a reputation for poor customer service and lax cybersecurity. matthew howett is principal analyst at assembly research, and joins us now. in line with our plan, what does it mean? a to loss the year before last, reduced it to 5 million in the last, reduced it to 5 million in the last year, and these results show they are continuing with the transformation of the business. they have been ripping out costs, they have been ripping out costs, they have moved headquarters out of london, and all of it is feeding through into the results we have

brussels, finance ministers approved christine lagarde's nomination to replace mario draghi as presidentropean central bank. our correspondent set down in france. he said despite the lack of a banking background, francine lagarde is a fine choice to lead the ecb. ofshe has the experience finance. she has the experience of manning -- managing a big institution. europe, it is important because europe is not completed yet. we need to continue in the construction of the banking union. important. dialogue.d have a expect economists do not more stimulus in july. they expect it in september. are they being realistic regarding charge from november? are we going to see more of this stimulus? >> it depends on the situation. it depends on the bed because -- fed because of the fed starts losing strongly, the euro is appreciating the dollar. that is not what you want at this time. we have to wait and see how these factors will evolve in particular. world largest suppliers consumer goods became the latest to sound an alarm on the damage between trade wars to global supply chains. for the likes of walm

the big news in a essential terms is the imf head christine lagarde is being nominated to secede mario draghi as the head of the ecb. let's take a quick look at what she has said in the past about central banking and monetary policy. lagarde: we strongly support the decisions that have been made, notably by the ecb in relation to the euro zone. concentrating on the positive, focusing on key issues for the people of europe, is in our view an immediate and urgent response that needs to bring together spacery policy, fiscal wherever it is available, and things that will deliver value for people. it is always better for political leaders to let the central bank governors do the job that they have to do to preserve and secure the independence. central banks have to operate on the basis of data. they have a mandate. lagarde moving from the imf to the ecb. bloomberg's maria tadeo is in brussels covering the story for us. is it a surprise that lagarde is going to be replacing draghi? maria: some will tell you it is a surprise, but it is not entirely unexpected. the french were pushing to get a

international monetary fund chief christine lagarde has been nominated to become the new president ofnk. if appointed she will become the first woman to head the eurozone's monetary policy maker. ms lagarde has temporarily stepped down from her role at the imf, with her deputy david lipton standing in as acting managing director. shares of tesla soared 7.5% in after hours trade, after the electric car maker blew away wall street's expectations for deliveries. tesla delivered 95,200 vehicles in the second quarter, an all time record number and a 51% increase on the first quarter. a giant of the us car industry has left us. lee iacocca, the charismatic executive who gave america the ford mustang and was celebrated for saving chryslerfrom going out of business, has died at the age of 94. he also led the campaign to restore the statue of liberty and ellis island. at the start of his first term in office, prime minister narendra modi was applauded by entrepreneurs for his flagship sta rt—up india initiative. but with the country's economy slowing, entrepreneurs are hoping for fresh funds f

we will look at the challenges facing christine lagarde if she is head of the european central bank. a rare cosmic spectacle over latin america. hundreds of thousands witness a total solar eclipse. we will look at what they saw later in the program. stay with us. ♪ >> an airstrike has hit a detention center in the libyan capital this morning. 44 have been killed and as many as 130 wounded. the governmement in tripololi hs blamed an army. the generals are battling to take the capital from local forces. the united nations has used strong language today to condemn the attacks, saying it amounts to the level of a war crime. much is unknown today. with what we know, here is peter o'brien. arer: dozens of bodies hauled out of a a migrant detention center in the suburbs of tripoli. sincethe most casualties an offensive was launched on the capital three month ago. on monday, the libyan national beginarned it would heavy airstrikes. destroy --force will through multiplple airstrtrikesy and night. we warned citizens to take care of attention. peter: the government in tripoli theblamed the gene

as head of these national monetary fund, christine lagarde was pretty unique.r french finance minister was the first female to lead the globalfinancial was the first female to lead the global financial institution, which a cts global financial institution, which acts as a lender of last resort and provides economic guidance to governments around the world. under her leadership, the fund successfully helped its members navigate a complex set of challenges. from the global financial crisis to its after—shocks. now it appears she is headed to the european central bank, whose responsibilities include setting the eurozone interest rate and ensuring the stability of the banking system, no easy task, given the divisions tween member states and the need to boost growth in europe. if confirmed, both the ecb and america's federal reserve, the us central bank, will both lead by people who have no academic monetary policy background. her resignation also comes the day before g7 finance ministers meet in sean kuraly in france. it will no doubt be the starting gun to find he

will that apply in the christine lagarde era?a: we see christine lagarde is continuity relative to mario draghi. she is a qualified candidate in that she has political experience, she has dealt with eurozone sovereign crisis. she has made comments that are dovish. era ofl continue the mario draghi. yields, ines to bund the belly of the current there is still volume despite the absolute level of yields. i do not think the ecb has a lot of [indiscernible] when it comes to us measures. with qe coming and with inflation expectations not rising anytime soon, then i think bund yields are accurate. vonnie: as mario draghi done a good job? nicola: i think he has. he has handled the european crisis very well. he has shown how he could find political consensus. you need to be still politically to manage the european central bank. to stem thecreative crisis at difficult times and is technically confident as well as politically confident. i would definitely give him a thumbs up. vonnie: what happens to the euro over the coming year? given th

outlook after a fall in first half earnings >>> and former ecb president throws his weight behind christine lagarde's nomination telling cnbc that she is a born leader >> i'm sure that she will do it well not only because she has knowledge and experience, but also because she's a good team leader she's always been a good team leader and don't forget, central banks are key. >>> well, a very warm welcome to "street signs" this morning. let's get right into the top corporate story of the day which is driving a lot of the moves in equities more broadly and that is basf. shares are sharply lower after the company issued a profit warning for this year. the german firm expects earnings to fall by up to 30% sales are also set to fall instead of growing basf had early planned to slash 6,000 jobs as part of its cost cutting strategy and taking a look at basf shares this morning, down more than 6%. in terms of theismi ichis ichiis analysts were expecting -- were already expecting downgrades, already expecting a weak quarter, but this profit warning was massive relative to expectations jpmorgan down graded the s

six years later christine lagarde became trade minister of agriculture and fishing minister. for nicolas sarkozy me. finance minister in. two thousand seven the first woman to hold that job in any of the g. eight countries. after france the world. in twenty eleven christitina g d took over the home of the imf replacacing domominique straussn embroiled in sex scandals. lelet god is regularly ranked as one of the world's ten most powerful women by forbes executive board -- only known misstep was during her ministerial years she was convicted of negligence in failing to contest a state pay out of four hundred million euros to businessmen. donna the p.. a ticket on the day's trading action now wall street fairly modest for most of the session at the s. and p. five hundred rallied in the last h hour of trading. to notch up its second consecutive record close there investors focusing on the hope of progresss in the us c china trade talks. that rather r than the threat of more american tarariffs on european products will prices dropped sharply despite opec's agreement to extend itst

not the one to take over for christine lagarde at the imf, so who is?ome say it should be a european. this is bloomberg. ♪ we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. manus: it is "bloomberg daybreak: europe." i am manus cranny in dubai. nejra: on nejra cehic in london. let's get a check of markets around the world. great to have you with us. additional tax charge liability on foreign portfolio investors. what is the setup today? carriedems to have forward into today's trade. the sentiment remains weak on the benchmark index which trades below a hundred day moving average. some downward pressure. across the board, massive amounts of selloff for banks and

we have christine lagarde coming in.pect with her at the head of the ecb, if we get a new bonds could round, be included? danae: it is an interesting question. isther new qe is needed something there are legal issues around and we have the german constitutional court case this month. it is something grace should be included if it is repeated. could you did say that we see a continuation of a crop lower in bond yields across europe. one of the things in focus in yesterday's session is the 10-year bund yield wrapping below the deposit rate, -40. we close that -39. with where the bund yield is at, does that increase pressure on germany to loosen the fiscal pursestrings? danae: definitely. that is one of the factors that increases this pressure. christine lagarde in her role at the imf has been actively encouraging germany through her rhetoric to increase spending in those countries that have the germany is aand primary candidate in the euro area. another factor is germany is flirting with recession this year. the economy ha

christine lagarde could become the first woman to run the ecb.historic shift coming as the no signseconomy shows of weakening. joining us, from the national bureau of economic research and a former boe policymaker. has she got the right expertise, the right experience? >> she probably has. i think it is probably a good appointment. she is a lawyer, so is jay powell. a french finance minister, been at the imf for eight years, seems to understand how the world economy is going. ishink one of the big things this is probably a fairly seamless handover, understanding that the global economy is flowing and will probably follow on from what draghi said. the fact that she is not an economist, i don't think that is a big deal at all. -- anothered away good thing, obviously, it is a woman. i think it is a pretty good appointment and it could have been a lot worse. the markets i think will read it that way. this woman is very capable and will have to handle the politics very well. that is not something that economists have been able to do very well. joe: wh

your thoughts on an ecb under christine lagarde.ef economist has a bigger role to play when you work with someone who has great political strength. patrick: she is a -- she is surrounded by great economists. she may have to pivot before demanding more fiscal stimulus to promote growth in the eu which is below potential. has current account surpluses and an unemployment rate that is too high. those things are screening out for something that is not there. richard jones making the point that he thinks christine lagarde will be positive for the euro. focus that she might get more fiscal stimulus. patrick: i think her role will be all-encompassing, trying to create stability to central bank policy. she will communicate effectively. the begging union is important. engineering some fiscal stimulus and getting germany to allow countries to spend more and slack on their budgets. and getting germany to spend. it does not look like that will be an easy task. given that they are running a surplus, fiscal stimulus out of germany would be a big

the christine lagarde candidacy is interesting.ing over the break, she is really a political figure much more than an economist. much of europe's problems extend from the politics and the political economy. what does that mean to have different fiscal policies when you have one monetary policy and how that plays out politically? at first i was skeptical, but as i think about it, it may be that this is more of a finesse job, and is very political. bestld assume she has the economists that can help her with this. it is a little puzzling because she's not known as one of the leading economic minds out there. she's a political person. david: it is fascinating. is there a parallel here with jay powell? he's been on the fed for a while, but not a trained economist. absolutely. i think alicia makes a great point, the ecb is in a tough session. investors are going to be looking for someone that can continuous draghi's strategy of ultra accommodation. i think markets need that. they will continue to be in a tough place if inflation is nowhe

do we think that christine lagarde changes anything?she going to push for fiscal spending and if she does, will government actually hear her out? >> she does not change anything from our perception, however if you are starting to price a more hawkish ecb because of [inaudible] being selected, then clearly it is against that. ♪ >> you are watching bloomberg best. this week, investors tuned into jerome powell's testimony on capitol hill. he was not the only fed official offering perspective. michael mckee. >> watching very carefully what is happening and we are looking very much on upside risk and downside risk. there a little more tilted to the downside. >> the market has priced in a 100% chance of a rate cut. can you go against the markets? >> we will have a lot of data with cpi and pce inflation retail sales, consumer spending , and markets are smart, so if the data is up with a different outcome, the markets will adjust. >> markets are basically priced to reaction of a recession almost? >> i feel pretty good about the economy. on the

what is key here is that christine lagarde's name is gained momentum over the last hour. there seems to be some support within those big european leaders behind the scene. guy: is there any concern that she doesn't have central banking experience? is there any concern that she's a lawyer? good: that's also a very question because if you look at the european central bank, if she does become the next mario draghi, that would be seen perhaps as someone who does not have experience in a central bank, who does not have experience in monetary policy. we frankly don't know if she would qualify as a hawk or a dove. but where the market is reading in hubert would not be hawk.- not be an uber about athis question is central bank becoming increasingly politicized. guy: in terms of all of those pieces falling into place, is it likely? what do we know about the resistance to this plan becoming a reality? who is resisting? just give us a sense of the competing ideas that are out there to this plan. maria: two things to keep in mind. the list that we now have on the table, at this point

christine lagarde ecb nomination is expected to be ratified today.wednesday, we get fomc minutes from the fed's june meeting. jerome powell will be delivering his monetary policy report to a house panel, taking on greater importance after that jobs number. manus. manus: absolutely. get eco-data. inflation manufacturing from the european countries on wednesday and thursday. it includes the u.k., france, germany, switzerland, denmark, and norway. account ofes as an their june meeting on thursday. friday, we get the inflation data for june out of the u.s. this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." i am nejra cehic in london. cranny inm manus dubai. let's turn our attention to bond etf's. 2019, global assets up $1 trillion after coming onto the market 17 years ago. the next five years, blackrock expects pace of adoption to accelerate and global bond etf assets doubled to $2 trillion. a big call for a big business. ishares at blackrock joins us. it is like a bullet train, isn't it? 17 years to one trillion, but we will rocket to 2 t

chief christine lagarde has been put forward as president of the european central bank should be taking over from mario draghi they now need to be endorsed by the european parliament. they barbara has more from brussels. after days of wrangling it's a close ally of german chancellor angela merkel who's got the nod for what many see as the most important to you joe. germany's defense minister and a self-proclaimed federalist is the leader's nomination for the post of european commission president even if germany up staying on the commission president. their government coalition. support the whole package 1st and foremost we have chosen to wean and for the 4 key positions a perfect. i am really happy about it after all europe as a woman child michelle the belgian prime minister is nominated to be the next head of the european council with spain's foreign minister josep burrell as the e.u.'s foreign policy chief while the international monetary fund boss christine lagarde is nominated to head the european central bank you know had 6 in the tide of course we all had to give a bit we all had

do you think christine lagarde changes anything?s she going to push for a different kind of monetary policy, issue going to push for fiscal spending, and if she does, will government actually hear her out? >> she does not change anything, from our perception, vis-a-vis the draghi era. however, if you are starting to price in a potentially more hawkish ecb, in the case of someone else being selected, if that was your baseline, then clearly it is a dovish pivot against that. ♪ rosalind: you're watching "blumberg best." i am rosalind chin. this week, investors closely monitored federal chair jerome powell's testimony on capitol hill. but powell was not the only fed official offering perspective on monetary policy. in his first television interview since joining the bank, richmond's fed president spoke exclusively with michael mckee. >> we are watching very carefully what is happening in that data. and we are looking very much at upside risk and downtime -- downside risk. at this point, they are a little more tilted to the downside. mic

so i guess christine lagarde being a politician would stand for more easing to come here in the eurozone back to you. >> annette is a weissbach, thank you very much for that. >>> still on deck, another china/u.s. trade war casualty. the stars not aligning for one stock set to open down more than 20% today. we will reveal that name coming up next. and don't forget to rate the trip how uber is dealing with the fallout after losing two keyboard members in one day. "worldwide exchange" is back after this here you go little guy. a cockroach can survive submerged underwater for 30 minutes. wow. yeah, wow. not getting in today. not on my watch. pests never stop trying to get in. we never stop working to keep them out. terminix. defenders of home. >>> welcome back to the show some stocks to watch this morning, ford earnings missing forecasts. results were hit by charges to restructure divisions in europe and south america. nearly all of the countries profit came from north america where pickup trucks drove margins there. ford issuing weaker than expected earnings guidance for the year >>> shares

what we know about christine lagarde as the head of the ecb? maria: two things. she is the head of the imap but she is not a central banker. if you look at the european central bank, another former haveician, benny voices quite -- many poisons have questioned whether you are looking at a central bank that have become increasingly politicized. if you look at the market reaction, it is a different story because of lagarde gets this -- it means the overhaul is out of the competition, someone hot is out the uber of the competition -- the uber -- maria tadeo reporting from brussels. now we will go to kevin cirilli at the white house. president trump and the rnc had a whopping second quarter. .evin: they made big bucks a record-breaking second quarter for not just the president's reelection campaign but the republican national committee. $54 million in the second quarter raised by president trump's reelection committee. rnc, moren by the than $100 million war chest the president has at his disposal heading into the 2020 cycle. we are still getting the numbers from the