thank you much, david merritt. great conversation.t how much of trouble will boris johnson be on the back benches? what does it mean for the markets? let's bring in john wraith, the head of u.k. macro rates and strategy at ubs limited. you talked about david davis resigning and in the meantime, boris johnson is gone. transition to the two-year -- for the two-year. .- for the two-year period what does boris johnson's departure mean for the risk factor in the u.k.? john: i think we would say that the most likely outcome over the next 6-9 months is still that the u.k. makes it to the transition period, that parliament approves the withdrawal deal, as is the u.k. and eu -- as does the u.k. and eu negotiating teams. getting there has become more complicated. the numbers are not there yet to challenge theresa may, but every time the government moves and what is obviously the necessary direction towards what is the softer brexit, so they create more headwind within their own party. that is not clear how far the government will have to go in

vonnie: david merritt, thank you so much.'t forget to check out g tv on the bloomberg where you'll find all the exciting charts you can see on bloomberg tv. you can clicked on them to catch up on key analysis and save charts for future reference. this is bloomberg. ♪ vonnie: live from new york, i vonnie quinn. nejra: live from london, i am cehic with the european equity market close minutes away. deutsche shares are trading at all-time lows and banks are looking to frankfurt as brexit leaves london state and out. -- in doubt. let's bring in nicolas. great to see you. we did see deutsche bank shares jump as much a 6.3% when we first heard of the report. they come back from the highs since with a denial from jpmorgan. what would've been the rationale according to these reports for jpmorgan and also i cbc to potentially take stakes? nicholas: they are very thinly sourced. it is speculation amongst investment bankers and frankfurt. it is very nonspecific and they denied it already. the rationale that they put in it is that t

mark: see it tomorrow, david merritt.nnie: check out gtv the bloomberg, or you will find all of our exciting charts, the ones you have just seen, and throughout the day. you can click on them and even save them for future reference. this is bloomberg. ♪ live from new york, i am vonnie quinn. mark: live from london, i am mark barton with the european shareseuropean auto soared today, with washington pushing talks to import auto tariffs on both sides of the atlantic. how realistic is this, this idea of 0% tariffs on both sides of the atlantic? it seems like wishful thinking at this moment but at least it is a start. a week away from trump's tweet that so we might be headed to something more like 20% in tariffs, so for the u.s. to come out via the u.s. ambassador, with his officer behind me on the same square, he now is saying, why do we agree on something that is close to 0%? andas german carmakers yesterday from bmw, daimler, and they clearly liked what they were hearing and investors liked what they were hearing. sto

foley and now is jane david merritt. still with us, our guest. d, how significant is the someone bop. ?s it just one of many david: we have been here before. we had people threatening to resign, though he walked back. we have had many members of theresa may's cabinet threatening various things. what is important to remember is none of them have actually resigned. if you think about her progress throughout this torturous process, we have been inching along, step-by-step, and compromise have been reached. and she is still in position. we have some people outside the cabinet threatening a leadership contest, it has not happened yet. we have to see what the proposals are and what happens tomorrow. but don't rule out mrs. may. her, she has managed to keep her ministers and cabinets on her side throughout the rest of us, and we will have see the outcome of the meeting. bear in mind, all of these details needs to get some sort of reaction from the european side. it is really not clear whether any of this will be acceptable to the commission or not. so re

joining us on the phone is david merritt in london. saying theresa may taking control of the negotiating team, it begs the question, how removed was issue from the process prior to this move? david: i think we have seen -- the big issue has been, not so much that she was removed from the process, but the amount of infighting in her cabinet, she had some real -- like mr. johnson, and the previous secretary, and they fundamentally disagree with her views of what brexit should look like. in the last few weeks, of course, she has really clamped down on that and in the checkers meeting we heard her saying, collecting the responsibility of the cabinet, there is the door. mr. davis quit, mr. johnson quit, now she has people willing to go with the proposal on this, which is a softer brexit than those earlier ministers would have liked. it is about her taking more control, about there being less dissent within the cabinet, and pressing ahead with the agreement that she got them all to sign up to, which is for a pretty close relationship going fo

theresa may has said she will fight or hurt survival -- for survival.val -- her we were talking to david merrittas making the point that other names could step into the fray as well. not just boris johnson, but others. the foreign secretary is seen as quite popular with the grassroots section of the party. if they do decision decide to trigger that kind of leadership vote and leadership attack, because they know that on the downside if they do not, theresa may is in the hot seat into the post-brexit process. guy: great stuff. thank you very much indeed. anna edwards joining us from outside parliament. let's talk about what this means for investors. with us now is the director of research for bloomberg intelligence. the line is pretty clear to drop. >> -- draw. >> it is. you see all the happenings yesterday and think this is bad. stocks rally immediately and it is here and simple a pound reaction -- pure and simple a pound reaction. we saw the same thing on the back of the brexit referendum. guy: it does for the ftse 100. what about the 250? >> if you look at the average international exposure of

david merritt joining us. take a look at this chart. this is volatility. when you look at sterling, barely pricing any price action. this is an indication of how the market sees the brexit story via the prism of the cable rate. the long-term average on this over the charts we've got here, 7.77. it's currently trading 7.35, so below average. the market isn't pricing any fireworks. is the market misreading this story? the cio of investment management joins us on set. your thoughts? guest: my perspective is we take an insular focus with these developments. with regards to brexit. we can say what we want but with the eu agree? will it be possible to strike a deal that's acceptable? the eu might consider it unacceptable. that might be the problem davis is struggling with and is appetite is enough is enough reflects the fact he had a bad set of cars to deal and he has taken the only way feel -- only way forward reasonable. the other side of the pound is the dollar. the dollar has a lot to worry that with mr. trump and china. guy: eurosterling has not moved much.

let's bring in david merritt, who joins us by phone from london. ou are in london. this is not where the president will be heading because there is a very active decision to keep him out of london and keep him in the countryside of the u.k.. talk us through what is going on here in terms of the tension etween theresa may and does -- president trump, especially as it relates to brexit. she has just unveiled this white paper, which is very different than the progressives had envisioned for the country. it is something the president had made reference to it the nato press conference. david: that is right. a big day for theresa may, with this very detailed brexit plan and the white paper. they published that, 90 eight pages long, and we have been pouring through the details all day. and then, donald trump throws a wrench into the process by making comments on it as he is leaving the nato summit, saying it looks like it is not the brexit the british people voted for. what he means by that is it is a softer version of brexit, meaning they will stay bound

david merritt and jim mullen. "bloomberg surveillance" continues in the next hour. keene joins me out of new york. we will be talking to david herro. he owns a big chunk of some of the biggest banks in europe. we will be asking about glencore and deutsche bank. ask him questions by clicking on the terminal tv . this is bloomberg. ♪ francine: the trade war becomes a reality. you have tariffs on $34 billion worth of chinese goods come into effect. beijing takes countermeasures. cbcrts that jpmorgan and i are weighing a state in the lender. officials plan to keep hiking gradually despite the escalating traderom the conflict. we did jobs data. tom keene in new york, showing up in london for all of our benefit as the president shows up for nato and that all-important meeting in helsinki 10 days from now. is all about trade. in corporate news, we have deutsche bank. tom: extraordinary news now. we have the trade with chinese response coming across the bloomberg at about 4:21 new york times this morning. the deutsche bank news, are we fortunate or what? on "bloomberg su

we'll be joined by jim o'neill and david merritt let's get to your city with first world news.as talked toel china about opening up to four investments. she spoke after holding talks with chinese premier in berlin. the pair will go on to meet other european leaders at the business summit in bond brussels. -- in brussels. donald trump has nominated judge brett kavanaugh to serve on the supreme court in a choice that could create the most conservative bench in generations. if confirmed, he will replace anthony kennedy who sometimes sided with liberal judges in key cases. cavanaugh's 53, a law professor, and a judge of the court of appeals for the district of columbia circuit. independent that an to this year is the crown jewel of our constitutional republic. senate, ied by the will keep an open mind to every case. to i will always strive preserve the constitution of the united states and the american rule of law. turkey's president has issued a decree empowering him to head of the central bank. it also trends the terms of governors and deputy governors at four. the latest change