with the eu and the rest of the world.nchor: let's take a look at what all that talk did to the markets. u.k., gains shortly from the figures of the service sector. the index rose to 52.9 in august, which brings it back up to pre-brexit levels. the good news was not felt in the markets. all indices closed in the red today. they later dropped again after it became clear the two largest oil producers didn't actually agree on freezing production at the moment. there is no trading in the u.s. today as it is labor day. a warning about the potential for britain to strike tax deals when it leaves the eu. commissioner, who took on apple last week, spoke to france 24. >> the world is coming closer together on some issues, on trade issues, but also on taxation. when you see the work done in the g20, as a matter of principle for countries to insist that taxes should be paid, i think it will be very difficult for any country who wants to be part of the global community to do something than to say we need businesses to pay their fair s

within the eu.e thing they were definitely unified on was that the eu is in a critical condition come it needs to start finding solutions that thatnting crisis was a common theme. slovakia's prime minister said he hopes today will start what he has going the bratislava process,. bratislava process. echoing angela merkel was francois hollande, putting security very high on the agenda, saying the eu needs to start looking for a common permanent defense system. that is one issue that seems to have more or less a broad sense of agreement. security being used as this united theme. talks focused more on this idea of finding external border security on that issue. we are promised frank and open discussions on all the problems facing the eu. there's of the eu can work, trying to get -- they are listening to people's concerns. you mentioned migration. there is massive division on that topic. will that be addressed? we are expecting talks to focus on what unites rather than divides. there's also some talk tha

mark: great is eu. further comments from francois hollande, he says he will insist on a european defense plan and says the eu needs to focus on growth, security, and youth. julie: coming up, blackstone chairman and ceo stephen schwarzman was a big donor to george w. bush and mitt romney but is uncommitted on the presidential race this year. we will hear from him next. ♪ ♪ julie: you are watching bloomberg. i am julie hyman. mark: this is your global business report. here is what we are watching, deutsche bank hit with a giant $14 billion fine in the u.s. but the lender is saying it has no intention of paying that amount. julie: do not expect to run to your nearest apple store to pick up the iphone seven, apple says there are none left at retail locations unless you pre-ordered. mark: in today's quick take, fires take over monsanto, it is reigniting debate over gm owes in the food chain. -- gmos interchange. -- in the food chain. mohamed el-erian says the government and the private sector's should be doi

it's part of the frontex operation securing the eu external borders.ut the crew has its hands full rescuing refugees. >> if the boats have problems, they can't swim so they'll drown. so it's good to do the rescue and get them on board. it's not our job to judge what will happen later or why they came. reporter: the ship's deck can acaccomodate aroround 1000 refe. the mediteterranean is relativey calm in the summer, and more and more people try to make it to europe by sea. tens of thousands have been rescued ththis year. human traffifickers load people onto tiny boats in libya and send out distress signals hoping that frontex will pick up the refugees. the siem pilot is called into action today. the italian coast guard reports an emergency off the coast of libya. >> there are 8 to 10 rubber boats that are in distress in a ten nautical mile circle. we know for sure that an italian coast guard ship, the dattillo, is going down here also. there's also a civilian ship like this, which works or the oil industry in libya, is also at sea. reporter: a short tim

s vote to leave the eu. today we speak to -- [indiscernible] we are live also at the first eu summit in four decades without the u.k. >> francine, i'm here in bratislava. the meeting is commencing behind me. tokel said they are critical show unity. we have tsipras saying we must stop sleepwalking in the wrong direction. we will bring you all the signs of whether they are singing on the same sheet. is it more integration or less integration in a post-brexit world? francine: thank you so much. we will have prompting more from caroline throughout the program. deutsche bank, this is the share price at the moment, down significantly. opened 7% lower. first let's get to the bloomberg first word news with nejra cehic. nejra: donald trump has dropped a major tax-cut for business organizers from his tax overhaul proposals. the change will make the nominee's plan much less favorable for private equity partners, hedge fund managers, and others who receive income from partnerships and limited liability companies. such e

it's part of the frontex operation securing the eu external borders.ut the crew has its hands full rescuing refugees. >> if the boats have problems, they can't swim so they'll drown. so it's good to do the rescue and get them on board. it's not our job to judge what will happen later or why they came. reporter: the ship's deck can accomodate around 1000 refugees. the mediterranean is relatively calm in the summer, and more and more people try to make it to europe by sea. tens of thousands have been rescued this year. human traffickers load people onto tiny boats in libya and send out distress signals hoping that frontex will pick up the refugees. the siem pilot is called into action today. the italian coast guard reports an emergency off the coast of libya. >> there are 8 to 10 rubber boats that are in distress in a ten nautical mile circle. we know for sure that an italian coast guard ship, the dattillo, is going down here also. there's also a civilian ship like this, which works or the oil industry in libya, is also at sea. reporter: a short time lat

before eu commissioner acted -- the former eu commissioner acted in good faith.s more on the ironic revelations. reporter: for a decade, her competition as competition commissioner made her one of europe's most powerful women. two is known for no-nonsense approach. >> those who are playing the game within europe have to follow the rules of europe. reporter: her targeted companies you felt were not transparent enough and handed out record fines to cartels. but documents that service on wednesday revealed she was listed as a director of a shell company that was headquartered in the bahamas. something she never disclosed. >> to have money in the bahamas and not go public about it as the eu commissioner is a violation of the obligations of thoffi. reporter: now, her lawyer has confirmed that she was in fact a director of mint holdings limited. the eu code of conduct for commission -- forbids commissioners from engaging in other activity, but her legal team added she believed the company had been liquidated before she came into office. when she became competition comm

the eu is facing an existential crisis.ne of the powerhouses of germany and france have to take the lead in overcoming. brent: both have political problems to deal with at home. i asked our brussels correspondent weather that has actually weekend of them on the european stage. reporter: it does to some extent. when comes to refugee crisis, a lot of eu member states are convinced that on the low merkel is partially to be blamed. -- angela merkel is to blame. when it comes to the lacking discipline of the budget and the economic stability pact within europe that france is violating. both have their problems but at the same time they are the powerhouse of europe. have a long history. like all european estates, they know very well what they can gain from the european union. the question is can they come together to pull on the same rope to achieve these objectives? brent: as we mentioned, britain will not be at tomorrow's summit because it voted to leave the european union. one of the parties that spearheaded the campaign to le

how far did that go toward patching up divisions in the eu? max: she mentioned he spirit of bratislava, and the two were quite convincing, but when you listen to other leaders leaving the summit, the picture was quite different. for since, the leader of hungary has been known to criticize what merkel is doing very heavily, so no surprise. there is still a division two state led by hungry, but also what came as a surprise that the italian prime minister, renzi, before going out said he was very unsatisfied with results of the summit and did not want to have a press conference with merkel and hollande because he did not just want to sign onto something that was scripted in advance, so you -- he felt like this was sort of a scripted summit, and it shows you there are still big divisions in spite of the franco-german engine being back for the moment. terry: you mentioned germany, france, italy, some of the heavyweights in the european union. britain, however, was conspicuous in its absence. what, if anything, was said at the summit about brexit? m

but since it is now public, we thealso sharing those with eu 27 on top of u.k., which makes 28 eu members. this will engage all of these countries before you can come to a conclusion. francine: another line of thought says that if brexit more to mean that the u.k. loses access to the single market, it would japan and china that would benefit because you could do quicker trade deals. is that something you've been thinking about? mr. tsuruoka: i don't quite see the point how we can benefit of approach.d u.k. will be able to make decision on its own and not being required to consult with the other 27 on trade matters. that may be something that will be beneficial for countries that would like to have a very early , especiallyissues in the form of trade agreements. that is something that will have euwait until u.k. exits because only after that u.k. will be able to officially, with mandate, negotiate those trade agreements with other countries. talk and we talk, or i bloomberg talks about japan, the japanese economy, governor kuroda on a daily basis. what is the question you get the most when

i fully expect and intend i want to be able to get the the status of the eu citizen. the circumstances in which a that would not be possible would be if the status of british citizens living in other eu states was not guaranteed. >> during her bilateral talks with president putin, did my honorable friend gently but firmly dispute him of the notion what around recently by a most others the leader of the opposition that this country is less committed than hitherto to a tomato treaty obligations, particularly article v? and as a country we remain fully committed to the autonomy and sovereignty of our partners, particularly the baltic states and poland? >> i and the government argued about the commitment we have to nato and the can we have two articles like the as indicated earlier that is a central underpinning of nato, the joint security that we provide for each other. as members and it appeared i think many people will have been shocked and deeply concerned by the statement of the leader of the opposition when he suggested that we would not be signing up to the article

germany, considered to be the eu's economic engine, has 1.7% growth.ngs are dramatically different in the asia-pacific region. their average growth is 3.9%. china is way ahead of that. take a look at this -- just under 7% because it is unsatisfactory. african nations are keen to stimulate growth. sub-saharan africa has an average growth rate of 3%. the front runner is ethiopia with a whopping 9.6%. is the world ready for a complete rethink of how economies should function? reporter: the club of rome wants drastic changes to the way we run our societies. a target of 1% a year global growth. financial rewards for those without children come in higher taxes for fossil fuels. the economic system is destroying our planet. germany's development minister of sin of the numbers. >> since 1960 rate of growth has increased sevenfold. co2 emissions have quadrupled, the number of people almost doubled. reporter: for more than four decades the club has been warning about such developments. it argues because it of pursuing economic growth is fundamentally flawed. to

europe is in a critical situation, so says the german chancellor on: as eu leaders meet for a post brexit summit. sweden assetbacks in they uphold the arrest warrant , accusedeaks founder of sexual assault, a charge he denies. good evening. fresh airstrikes and clashes are threatening the fragile cease-fire in syria. that was a deal struck tween moscow and washington, seen very much as a last chance at ending the five-year war. lateruce is set to expire today, but russia says it is ready to push for a 72 hour extension. the syrian observatory for human rights says two children are monks those killed today following airstrikes. there are reports of rocket fire and shelling in rebel areas east of the capital of damascus. they u.n. is calling for the way to be cleared so that aid can reach aleppo, where 250 thousand civilians are currently under siege. : a convoy of truck's carrying food and medicine. but the delivery of humanitarian aid remains stalled for the moment. for the past three days drivers have been waiting in the bumper zone set up by the syrian authorities. >> we carried corn, s

that the eu negotiator and the scottish government who want to protect scottland's place in europe? [shouting] >> i have to say that only two years ago he didn't want to protect scottland's place in the european union. he wanted scottland to leave the uk. and on all of these questions, whether it's the question of the referendum for leaving european union and the referendum of scottland or questions in this house t right honorable gentleman that if he asks the question every time, he will get a different answer but it won't work for me and the people. >> freedom of speech is a fundamental british value, which is undermined by so call safe spaces in our universities where a sense of righteous it -- entitlement of students shut down debate. as students around the country return to their places of learning at the start of this new academic year, does my right honorable friend agree that university is precisely the place for debate and fear of being offended must not prompt freedom of speech? [shouting] >> i absolutely agree with my honorable friend. we want our universities not to be p

hutchinson to reduce debt before the eu in may blocked.ions and reduce debt before the eu in may block the deal on competition concerns. that is the bloomberg this is flash. >> the g-20 summit. chinese officials clashing with white house staffers on the tarmac shortly after landing. extremely productive talks with .hina's >> i am not surprised. security has been so tight not only for media but for official delegations here. i have heard people call it the north korea with money given how -- everything is. so the president and president obama did meet and produce some results including both leaders climate agreement. today the focus is on the bilateral summit between prime minister she and prime minister of japan will stop their relations have been tense due to territorial disputes in the east china sea. after all this, president xi will give a wrapup statement in about an hour or so concluding the summit as the chair of the draft of the g-20 that bloomberg obtained said financialll mention a volatility, the opponents of fiscal strategy, an

exiting the eu.ve been talking about that need to bring power back to the countries, rather than the eu institution. this is the division between war and peace, like merkel talked about last night. do we need more integration within the eu, or less, as hungry and poland are pushing for? lastly, i will leave you with what the luxenberg leader has said. security and economic focus is where the priorities lie. a petitiono seek coming back into that eu, and indeed, perhaps a movement to a defense policy, something the united kingdom in particular pushed against. guy: what a lovely day out there. it is quite a hike up to that castle. good job caroline, jumping up those steps. great stuff, caroline. let's talk about the emerging markets. .e see further declines our guest.now is the world is that says with the steeper yield curve. just walk me through the transitioning into the emerging markets. >> the first thing is, on the steepening of the yield curve, that effort, initially at least, is part of an effor

were to ask in the eu were to concede.pation in the markets cap except for free movement of workers, which is down at the moment very liked by the u.k.. ok, one could say, but i'm sure after such an agreement, france will say, wait a moment, i, too, want to participate in the single market but, please, result in the freedom of the market for corporate control. and i don't want others to buy the control of french countries. mario monti, thank you for joining us, former prime minister of italy and senator for life. vonnie: coming up, the european close. this is "bloomberg." ♪ new york, i'm vonnie quinn. mark: from london, i am mark barton. we are going to take you from san francisco to moscow in cover stories out of washington and london, and here's what we're watching today. an exclusiveging interview, bloomberg sits down with russian president vladimir putin. we asked him if russia central banks move to boost the country's currency reserve. president putin's answer just a moment. vonnie: the u.s. added 151,000 jobs. stocks

eu little higher than growth in the 1.2% in the united states. cases, it is a misery, not sufficient, and of course the u.s. is doing much better in job creation and employment, but it means that all advanced economies have a period of relatively modest growth, and we have to work on that, and structural reforms in the case of europe are of the essence. francine: where do you stand on helicopter money? i know it is a theory at the moment, but there are people for it and against it. i think it was said very clearly by the president of the ecb that it was not at all in the cards. i don't think that it would be in my understanding of what has been done already, which is remarkable, i don't think it would be appropriate at all, personally. francine: mr. trichet, thank you so much as always. jean-claude trichet, the chairman of the group of 30 and former president of the european central bank. next, more from our exclusive interview with president vladimir putin. don't miss our special report on bloomberg. ♪ francine: russian president putin sat down

now that might be because the uk hasn't actually left the eu yet.n britain are worried about what will happen long term when the uk eventually does leave. so far, the pound is weaker than before the vote, which already is having an impact on ordinary people, including where they decide to go holiday. ♪ >> wells-next-the sea is fuller than ever. is britain in crisis? not here! the seaside resort in north norfolk, on england's east coast, is bursting at the seams because more britons are spending their holidays in britain. steve franklin usually goes camping in france. this year, he's here with his five children, fishing for crabs. >> i don't think we're seeing too bad effects yet of brexit, but we'rere really uncertain of what the future holds. we're a little bit scared of spending too much money. terrorism, i think, is a big thing for a lot of people, as well, especially with the attacks on airports and so on. >> but in wells-next-the-sea they feel safe. tourism officials boast that the police are rarely needed. foreigners are also few and far betwe

lacks, eu ethics rules would you say? >> eu rules are already very high, perhaps then -- perhaps higher than in many number states because the rules have been created and there are specific rules in particular for lobbyists. they do not exist in other states. but president juncker s says he -- that heck again will work again on it to reinforce and see how the commission can be totallyly irreproachable regarding ethics. genie: thank you for coming in to see us. next, the truce in syria has held for a full day, but there are concerns about security that are keeping aid convoys on hold. more on that story coming up throughout the hour for you. a new inquiry from the u.k. blames former british prime minister david cameron for the political collapse in libya. former israeli president shimon peres is in critical but stable condition after suffering a massive stroke. genie: stephen it is time now fr business news. -- sorryut the mixup about the mix of moments ago. stephen carroll has news about the agricultural industry. bayer h

and the eu manager says this is based on at from -- information apple provided to the eu and pointedwould be great to have more transparency. that 0.005% number is being questioned. tax experts are saying there is no way to know if that is indeed exact. that is, however, the number eu is insisting. vonnie: we will stand by for more. emily chang, thanks for that. you can see more on the story and top headlines on "bloomberg west." coming up, we take a closer look at tomorrow's jobs report and why it may give us an important clue as the fed's next move. david: and the big event, a rare and exclusive interview with vladimir putin speaking with john mikel with. tune in to watch that. on monday, don't miss the hour-long session report that we get the interview with vladimir putin on monday at 12: yum eastern. ♪ david: it is 3:00 in new york, 12:00 in san francisco, 8:00 in london. vonnie: welcome to bloomberg markets. vonnie: we are live from bloomberg world headquarters for the next hour, covering stories of detroit, washington and the united kingdom. an hour left in the u.s. trading ses

activities to the eu before the negotiations are complete.e generally, we think the complexity of quickly unwinding the status quo and the desire to minimize the initial impacts on european domicile banks as well as banks for either from the u.k. or by the u.k., kind of means there is an incentive to preserve most of the cross-border rights, kind of allow banks to undertake the business. but even if that does not come off, we do believe that the impact on most rated banks would actually be manageable from a credit perspective because whilst it would add cost and complexity to their operations, it would not actually move the dial in terms of their overall rating. mark: on a separate matter, to what extent do you think britain will be able to retain the ability to clear euro derivatives in london? literallyrket worth $930 billion. is the city going to lose that ability or not post-brexit? >> i suppose it speaks to the 2012 attempt by the european central bank to introduce a location policy that required a clearing of euro-denominated transactio

we are likely's to see divisions in the eu -- we are likely to see divisions within the eu.ependent, poland, hungary, those countries are effortsfor stronger within the countries themselves. the president of the european council saying new powers is not the desired recipe. is it more integration or less integration, the key question. anna: something that jean-claude juncker was talking about earlier this week. he sees a path for more integration. these sort of political risks risks. into the economic it could slow down the european economy if we see no ambition coming from the eu and a lack ofxit world, confidence means lack of business and a slower economy in the eu. have run a fund managers survey. the number one risk is not donald trump, chinese evaluation. the number one risk is a disintegration of the eu, southern countries such as spain, italy, greece calling for more spending. on the other side, germany wanting to see austerity. there are key divisions within the eu. saying little shared vision could spell concern for the u.k. in their negotiations. anna: thank you ve

eu.lso in france, summer is over, and it is strike season once again. trade unions are leading a new protest against the government's controversial labe labor law reform. they are planned in other cities across france. the government pushed the reforms through two months ago without putting it into a parliamentary vote, but unions are not giving up the fight yet. the protests are happening today primarily in paris at the best bastille. is going on since march. always expecting another big turnout today? >> there have been 14 protests in all, including the traditional protest on the first of may. for the whole of the beginning of the year in france, these protests have been one of the main social headlines. today is a very big test for the seven trade unions were organizing these protests. they argue they still consider this law as unacceptable as they also consider it is abnormal that it was not voted on in parliament. the government has used the constitutionof the to push it through. it

rejecting the eu's borders.ay,l news 24 hours a powered by over 2600 journalists and analysts in over 20 countries, i'm mark crumpton. this is bloomberg. matt: would you miss? ready.hammond is ins comes after they met bratislava. security, andbeen the economy. isning us from washington senior fellow jacob. thank you so much for joining us. let me first ask you about days breaking news. a very interesting story. keep access.ry and it has to be done politically. >> i think this reflects philip reality andng up to a majority want control over borders. the eu has been very general on that. that has been clarifying and unavoidable. were talking earlier about access and membership. norway is not a member but does have access. they have set free movement is a redline. eu -- youwhat, the the u.k. is not going to get access if they restrict movement. that is what they are saying. even if they are not saying it, there are a lot of you members that are saying it. if angela merkel is serious i don't think this is an area wh

had given a clear instruction to leave the eu.me minister has made clear that there will be no attempt to stay in the eu i a back door. -- by a backdoor. no attempt to engineer a second referendum. because some people did not like the first answer. airways. nippon following its cancellation of more than a dozen --. that is according to people familiar with the plan. the form of compensation has not been decided that it could be for discounts on future purchases or for free parts rather than in cash. global news 24 hours a day powered by our 2600 journalists in more than 120 countries. you can find more stories on the bloomberg. i am christine harvey. this is bloomberg. check on youret a markets. david has it all for us. david: at the same time, the currency is getting bid up as well. industrial yet, you are seeing a backlash at the moment. it is worse -- it is not as bad as it looks. closing up shop. there is a good bond story out there which is playing out when it comes to financials. this is another decent day in asia. volumes a

the eu knows that the consumers have to pay up. but in material services and cross-border transactions, they are more open to avoidance. the commission says this gap was almost $37 billion in 2014. $23 billion obedient germany. -- eluded germany. are vast differences in rates from one country to the next. the eu commission now wants to standardized rates in collections throughout the block. that is an ambitious goal to put it mildly. the commission says by reducing their gap, some states would be able to cut taxes. >> we're going to stay in europe now. the palace of versailles is one of the most decadent residences in the world. they have one of the time -- one-of-a-kind furniture. the origin of some chairs were clouded in mystery until now. they may not be antique after all. >> has one of the homes to europe's most precious art fallen victim to a scam? louis the 14th. >> look at this one. we can see it is much more detail, it is heavier. these three schools may look the same but two are forgeries. he ordered the artist and to make

commenting in general on the eu and what they are doing, saying that eu leaders agreed that they needenda, the discussions on the eu's future without the u.k. so far off to a great start. pretty much what you expect her to say. matt: this could prove problematic for people from britain living and working elsewhere in europe. people from elsewhere in europe living and working in britain. scarlet: a lot of questions there. matt: people have to start looking at moving back. we look at the currency effectiveness in the second with vince cignarella. scarlet: let's go to mark crumpton with more the bloomberg first word headlines. market: hillary clinton says donald trump does president obama an apology for his role in the so-called birther movement that questioned the parent -- the presidents american citizenship. clinton said trump's campaign was founded on this outrageous lie. there is no erasing it. she says trump is feeding into the worst impulses of bigotry and bias that lurk in the nation. trump acknowledged he does know the president was born in the u.s., however, he did say the clin

hearing, kind of agreement would be ideal at this time for the eu? i have been more preoccupied with issues related to finland and finland's economic recovery. francine: that is a difficult matter. olli: for a minister of this government is the sentiment first and foremost the priority. more seriously, we are now waiting for the u.k. government to decide what it wants from the future relationship so that beicle 50 application could launched and the negotiations on the future relationship should be started. in my view, it is important that relationship-u.k. would mean that britain would be a close partner for the european union also in the future, and i believe that it is important the trade policy framework should likewise be made mutually beneficial. francine: i want to go back to finland and then we will get back to the brexit debate. finland's gdp was flat and you are trying to spur consumption by providing tax breaks. how long can you do that? olli: we have decided on tax cuts for next year, both for in the context of the competitive factor. the

brent: european parliament president said the eu cannot go on the way it has in the past.ur very own brussels bureau chief called up and asked him whether change is imminent. >> is this the week when the european union reinvents itself? >> that would be a nice event. thed kingdomt the europe union. a dramatic situation for both united kingdom and for us. to reinvent the european union is unnecessary. if we explore the potential of the lisbon treaty, a consult a lot of problem spirit -- it c ould solve a lot of problems. >> do you think the politicians, has what it takes to give them the signal that they need? >> not all of them. i am fed up, also, with a lot of developments, their strategy to fight against populists by read nationalization. d of them concessions is wrong. what we need -- to give them concessions is wrong. tax evasion, tax fraud, trade relations, security corporation. these are international questions where you need more cooperation, not less. >> are those the topics to win the hearts and minds of the people of the eu? >> i want to regain trust of the citiz

and the eu becomes a convenient vocal point. they are scapegoating for the ills of the eu economy.not really about that eu. you forpan, thank giving us your thoughts this morning. that is it for "countdown." "on the move" is up next. a quick look at the futures will tell you we are looking to open up a little bit stronger across the european equity market. you can see we are looking to ia,k up in france and in as we will be a little stronger at the start of the european equity trading day. the asian session without the japanese market. the australian market had technical problems as well, but it was up by .8% by the close. this is bloomberg. ♪ guy: welcome to on the move. 8:30 a.m. in berlin. we are counting you down to the european open. imo alongside caroline hyde over in berlin. this is what we are watching. central banks take central stage. big week as both the fed and the bank of japan announced decisions on wednesday. how are you positioned? place your bets.

no more in the eu, but european.to do for defense, we need to have that cooperation. >> commissioner, would you be open to a transactional deal, for the banks between the u.k. and eu to bridge that gap between when they leave and when a trade deal is put in place? >> we have so many agreements of all kinds that create that union, to get out of it will be very complex. it will be very difficult. and for us, it makes a package. >> how easy will you try to make this for the u.k.? i speak to ceo's on a daily basis in london who have to make daily choices. >> this negotiation will go on for, i don't know how long. maybe two years. >> and not longer? >> it should last two years at most, which is quite a long time already, but which is also necessary because of the complexity of the challenges. what must be clear is as long as these negotiations have not ended, great britain is a member of the european union with full rights and duties. ramy: next week, the federal open market committee holds its september meeting. there is

to counter that, the eu imposes import tariffs on chinese deal. at the end of the summit, countries agreed to promote further free trade to enhance growth. >> there was a determination around the room to better identify the benefits of trade. what the positives are, in order to respond to the easy populist backlash against "globalization." >> not everyone is as enthusiastic about that. once the free trade agreement is in place, it becomes impossible for countries to protect them selves from dumping practices. something barack obama broached during his meet. >> it includes our agreement to address the market distorting policies in the global still sector that hurt workers and businesses. >> there is very little public enthusiasm left in the u.s. and eu for any further expansion of free trade. >> the summit was a first for britain's new prime minister. she used the meeting as a chance to reassure key trading partners. her government still needs business even after brexit. japan is especially concerned. >> the prime minister is only getting started.

in this case, leaving the eu.nk a lot will depend on what she can do in conjunction with the eu to making this process work, keeping sovereignty while maintaining growth and coordination with the eu, so i think we will see more spasms with this. i really do not think that le pen has enough support to win in france, but again, it it is the uncertainties that the markets are going to have to deal with, and i think they are pricing some in. talk about have to what is happening in the u.s., and one of those is about using the peso as a proxy. what you make of this idea? you want to see how donald trump is doing, just look at the case so. bob: yes. i am not convinced. if you look at oil prices and changes in expectations about u.s. interest rates and u.s. fed policy, i think that explains the bulk of the movement in the mexican peso. i do not think there is a lot to be explained by the political agenda. matt: what you think about neel kashkari's comments this morning, that politics plays no role, and he was also foreca

he said written needs to sort out what kind of relationship that wants with the eu and the eu needs tod what life s like without u.k. thank you for joining us. i know you have been in london for about five days and talking to all sorts of ministers, former prime minister. it is unclear to me who is in charge of brexit. is it only what theresa may says that we should believe? alexander: it is three different ministries dealing with it so it is a little bit messy. it is the prime minister that will call the shots at the end of the day and she has said many times that brexit means brexit. forve been roaming around five days and i certainly do not know what brexit actually means and i do not think anyone does. it looks increasingly likely that it is a hard brexit and that will mean losing passporting writes and the u.k. losing access to the single market. theander: you have hard-core brexiteers who want the brexit and those who did not want it calling for a soft one. i think this is a lose lose prosecution in general, the u.k. leaving the eu and we should make it as soft as possible. it sh

one of the issues being the eu is not normally reform for this.they do this is completely understandable. why they are doing this, we still don't see any proper progress which really as an the main problem. francine: thank you for your insight. -- coming up next, as a warning indicator for banking stress climbs to record levels, we ask if the world's debt?about china's we talk about government intervention in china. we also talk about the possibility of the next financial crisis in china. this is something we talked about two months ago when there was water being thrown a writ. is that back? francine: welcome to "the pulse." live from bloomberg's european headquarters right here in london. let's get to bloomberg first word news with more on those devices in new york. nejra: francine, a suspicious device found in a been near a new jersey transition has exploded as a bomb squad was attempting to disarm it. that is according to ap. the fbi was working to disarm one of five devices. the discovery of the package after an explosion in manhattan on satur

it's charities, not the eu, that's feeding them. for one woman and her family, it is demoralizing, degrading. it is not what they expected in europe. >> we escaped death, war. how can they reject us? where is their humanity? we are in europe. europe is always talking about human rights. they must protect us. reporter: the refugees have made their own shanty, and islanders believe the eu is deliberately slowing the asylum process to deter more arrivals. >> the eu wants to minimize the flows, so leaves this procedure to take months for the refugees. reporter: the eu's policies have to an extent secured europe's borders for now. but they have left greeceand and the refugees already here in limbo, unclear when or two where they will ever move on. katty: the war in syria felt on the shores of greece. their appearances were back to back but that did not stop the u.s. presidential candidates from going head-to-head in new york last night. on national security they laid out their different visions while taking shots at each other. the debat

member.e most pro-eu we have a large share of the cabinet who are brexit tears.nds has come around to the idea that because they are insisting on having full control of immigration that single market membership is just not want to happen. will not give in on the idea of freedom of movement. once hoping to get is a shadow single market. is it realistic? the bank is probably aghast at the idea of hammond giving up the single market. 10 britain's global firms retain levels of access to europe? the treasury certainly are counting on the idea that london losing status as a financial center would be as damaging to europe as it would be to the u.k.. however that's not quite what you are hearing from european capitals. paris hoping from to get in as the next financial center. you've got dublin and frankfurt. this golden status may not be into it with what you are hearing from the rest of the eu. mark: we are hearing britain can't cherry pick. create dateshear; for the triggering of article 50 in recent days. next yearing of looking more likely to trigger article 50. >> i

do leaders meeting in athens not want to divide the eu.nzi is speaking after this eu summit that has taken place among the five southern counterparts in athens today. a major scandal unfolding at wells fargo. employees at the bank are accused of opening more than 2 million bank and credit card accounts without customer approval. fired 5300 has employees over the illegal practice. for more on this, let's bring in our u.s. banking regulator reporter. this is absolutely mind-boggling. how is this happening? reporter: it is certainly a crazy situation. they had thousands of employees. they were under such pressure over a five-year period that they opened fake deposit and credit card accounts to make their sales goals. and clearly this was improper and going to catch up with them. sse, if i could -- was there any involvement from management here question mark 5300 employees is a remarkably high number two have been acting independently here, no? is hard to say what management's knowledge was here. the bank, in this very large neither admitted n

the eu telling them they better do it. >> does the u.s.ch companies to be lured back to home? >> that is part of it. on the one hand the u.s. like apple tim cook says it is over reach by the eu to go after this money. on the other hand part of what's going on here is clear the u.s. is saying wait a minute. there's almost $2 trillion in money offshore from u.s. companies, that have done it deliberately to keep their profits from being taxed at u.s. rates. now they're thinking, hm. if the eu collects some of that money, there may not be so much for us to go around. it is really putting up the pressure for the u.s. to address its corporate tax system. part of that might be what people have talked about as a repatriation holiday where companies are allowed to bring some of that money back to the u.s. at a very low tax rate. >> we have clearly, clearly articulated our concerns and i think that the way forward with this is we continue to make clear the concerns we have. it is also important to emphasize along a parallel track we've been engaged

will they get the best deal with the eu? richard: you're are right.d gloom crowd has not been proven right. you had the brexit vote, now there is a delay, and then we will see how this plays out. i think the markets will react after article 50 is triggered, and we see how the details of the negotiation -- how they go between brussels and london. francine: what is the worst-case scenario for the u.k.? the person is us, oh, we want to become like norway, or like switzerland, maybe greenland. is it absolutely essential that they give up the right to curb immigration so that they have access? answer is --short that would be the best outcome where the eu essentially said, will create a special case for you, but there has to be consequences. the one thing the eu will never agree to us that the british get a special situation and there is no consequence for it. what the eu is struggling with a relationshipor with them that is not set a precedent that heard see with everybody else? tom: i like this a lot. ambassador, you dealt with trust in northern ireland a

secretary lew making headlines on eu taxes and more. don't go away. at b >>> good morning, everyone. i'm sue herera. mike pence holding a news conference after meeting with house speaker paul ryan. calling david duke a bad man but again refused to call him deplorable. >> donald trump and i have denounced david tubing repeatedly. we have said that we do not want his support and we do not want the support of people who think like him. >> german authorities say three syrian men believed to have been sent to germany last year by isis were arrested in raids today. the three travelled to germany via turkey and greece, the route frequently used by most migrants to europe. >>> attorney general eric schneiderman announcing a settlement, resulting in probes of the children's online privacy protection act. tracking technology that illegally enabled third-party ventureders to track children's online activity. let's get back to "squawk alley." carl, back to you. >> thank you. seema mody. >> european stock extending their losing stock to four. after the internation