francine: the u.s. federal reserve is widely expected to raise rates later today, despite softer inflation. mark cudmore says the fomc has no choice but to hike. he warns investors could come to regret that lack of ability. -- that lack of flexibility. s> we don't know how the data i dependent. we know the fomc can look at any data it wants to end aside if that is important for a policy and change their minds. so, i think it is important to be data dependent, but you need more information about how they will use the data and what data matters. is kime: joining us now schoenholtz. thank you for joining us. what are you expecting from the fed? they have no choice it seems but to hike today? how many for the rest of the year? >> i think the fed it never disappoints market expectations. if you want to recalibrate the june meeting, it had ample opportunity to do so. we are in the 25 basis point rate hike camp. and then next year we are looking at three rate hikes. francine: how does it balance? they hike rat

tom, francine? francine: thank you so much, emma. the u.k.ns democratic unionists, this as she aims to nail down an greement with the northern irish party to ensure her conservative keep, her conservatives keep a grip on power. today, she's also due to give details of her strategy to 3.2 ards the rights of million e.u. nationals living in the u.k. beyond brexit. now we're with simon kennedy, also with us in new york is bill lee of the milken institute. exactly are we going to find snout they're going to page a 15-page we ent saying this is how propose we deal with e.u. nationals living here. simon: the proposal theresa may it didn't go down particularly well with her in the e.u. they suggested it fell short of what they wanted. away uggested it stripped rights that the e.u. living in britain currently enjoy. and over the weekend, it emerged, no surprise, there's going to be a big fight according to david david over, over the role they post-brexit britain. to oversee ed arguments and britain said that's a red line for them. are ine: we also un

francine: u.s.urable good orders fell the most in may, dropping 1.1% versus estimate for a 6% decline, the latest in a string of soft u.s. data points and could give the fed laws. -- fed was. -- pause. janet yellen speaks at 6:00 this evening. in terms of what you can expect from janet yellen, issue going to give any clues or waiting for the data? simon: i would be surprised if she gives us too many more clues. problem,have a expectations surrounding 2018 because the market has a radically different view about what the fed will do next year. , startse starts to lead laying out a little bit more strongly her view but the reality is i suspect the market is probably right, that we actually are going to be talking about far less than three rate hikes next year. ed: it looks outwardly appalling . we have had a massive string of very poor economic outlook -- outcomes that tells you if they were data dependent they would never hike rates. francine: they are concerned they were never -- will not have enough

francine: thank you.to the morgan chase ceo, jamie dimon. that is coming up next. this is bloomberg. ♪ francine: this is "bloomberg surveillance." check on your markets. mark: stocks are down today. a few stocks are closed today for a holiday. leday jobs report -- saudi the lines cutting ties with qatar. attack killedrror seven people. we are down a 10th of 1%. sterling is up by two point 4%. in may, it rose. buffeted by been the polls, which signal a tightening race. to add tog uncertainty 11 days before briggs and negotiations begin. to 2012.y goes back highest since january. we are nowhere near the record levels we were before the brexit referendum. 2014e also circled the scottish referendum. we are nowhere near those levels. qnb index.ar's -- qe index. cutting ties with qatar is a moved to punish the region. that is a massive decline for the qe index today. francine: jamie time and -- jamie dimon talks about staying in the paris accord that trump abandoned last week. i hope it may come back in some fo

francine: brexit battle. round one goes to the eu as the chancellor of the exchequer and bank of and with warned of a tough process ahead. a dovish mark carney says there is no room to tighten, while a hawkish new york fed disagrees. four former executives are charged with conspiracy to commit fraud in 2008 capital raising from qatar. plus, we hear exclusively from sheryl sandberg. you won't want to miss that conversation. good morning. this is "bloomberg surveillance ." i'm francine lacqua in london. we have a lot to get through today. we have quite a lot of news. mark carney and philip hammond, and we will get on to brexit. first, let me show you your markets. a lot of the movement we saw in the last hour reports to what we heard from the chancellor and the boe governor. i would suggest it is really what is happening in the u.k. that many to look at. 675.can see the pound, 1.2 when it says market matrix, it is basically the difference between the two year gilt yield and the 30 year gilt yield. that curve is

francine? francine: the strategy backfired.says she will not resign despite her gamble to call an early election leading to a hung parliament. jeremy corbyn has reiterated his calls for exactly that, saying his party is ready to serve. the conservatives are on course to win 318 seats, putting the tories short of the overall majority according to the latest abc projections -- bbc projections. a slump and the pound and a rise in the ftse as a result of the drop in the pound. , robin and wie llem. this was unexpected and it looks like theresa may after falling short of a majority, may continue to stay on as prime minister. robin: she was chosen by the party, not the country, a year ago in order to be the brexit prime minister to negotiate leaving the e.u. from desk for the united kingdom. -- for the united kingdom. she took that mandate in my opinion and tried to turn it into a mandate for britain. with an aggressive political agenda, she fell short and she is trying to go back to the person who focuses on the sensible brexit deal

francine? francine: thank you.er story, shares in totander have fallen 2% raise $7 billion a euro. -- $7 billion in euros. it was likely to fail due to deterioration of liquidity situation. earlier, i spoke to the santander chair, ana botin, and she was talking to us on the phone. listen to what she had to say. intander: i -- ana botin: think that is great news they were able to do it in the way it was done. with great discipline and a professional way. for europe,ood news financial sector and spain and santander shareholders and customers and employees. francine: there were three main things, she refuted the idea and questioning this was politically motivated or she felt pressure from the government. she said they had enough time to and she asco popular not in a rush to sell mistake because this acquisition, she argued, came at a time when the cycle is so much better. to talk about banks is head of , isty and rupert harrison still with us. thank you stephen, for joining us. what did you make of banks in general an

francine? francine: thank you.ecision day for the ecb and central banks are expect to keep interest rates unchanged. offaces the challenge expanding growth and weakening inflation. investors will be listening to mario draghi in estonia later. matt miller is joining us from the capital. great to have you on the program. this has to be a finely tuned messaging. inflation will be lower, but growth is taking on the upside. what will the market interpret? yesterday, we did see the euro react quite abruptly when bloomberg came out with a story that the ecb was planning to lower its inflation target to 1.5% -- not its target, its forecast to 1.5% this year, next from 1.7%n 2019 across that spectrum. the target remains 2% and the problem is they can't get their, especially on a sustainable level and that is one they want to take a more dovish tact with their outlook. as far as the language in the statement, we do expect them to is noe risk to growth longer to the downside but balance. the first time they have used that phr

" and i'm francine lacqua.ber's ceo has quit. travis kalanick's resignation caps the series of controversies. app has faced a series of scandals, including sexual harassment and the use of software to purchase regulators. matt, great to have you here. first of all, who pushed him out? matt: well, as "the new york times" reported, there was a letter from five uber investors led by benchmark capital, a very respected venture firm in california, saying, look, travis, it is time to go. travis kalanick was already taking a leave of absence from his role at uber. this makes official something which a lot of people expected would happen eventually. francine: would it have happened differently if it was a public company? >> that is interesting. uber is the largest venture backed startup, worth something like $70 billion at last count. were it a public company come it would have more scrutiny and these scandals would have had a significant effect on it share price, might have had a different board structure. this could

francine: may's mea culpa. the u.k. prime minister takes full responsibility for the election disaster. she meets with the d.u.p. to prop up heard minority government. and the trillion dollar question. fed'she timing of the great unwinding make or break the bond market? "bloomberg surveillance ." i'm francine lacqua. let's check in on the markets. i put in treasuries for good measure. that is the two year yield. stocks overall are advancing after the global sellout with a yesterday. technological shares showed signs of easing. the pound starts to strengthen a little bit. and then of course, i want to show you crude, one of the stories we have been following on bloomberg, trading about $46 per barrel, following the first back-to-back game in three weeks. fromll have plenty more your markets shortly, but first let's get to the bloomberg first word news. nejra: firms that clear euro denominated derivatives will be forced to relocate after brexit. under the proposals to be rolled out today, firms deemed systemically importa

francine: now on the u.s. senate republican leaders have issued their health care proposal aimed to win support from moderate and conservative wings of the party and was opposed by four gop senators that puts the bill's passage in jeopardy. at the white house, president trump says he does not have recordings of his conversation with jim comey. on may 9, president trump suggested the existence of recordings. in other news, 34 of the largest banks operating in the u.s. have cleared federal reserve stress tests of the ability withstand economic shocks. we heard from jerome powell saying that this year's results show that even during a severe recession our large banks would remain well-capitalized. five ofook at four to these things, what will move the dollar more? is it the fact that president trump could be distracted by a lot of these investigations and not do text form or is it fed related? >> there has been a lot of disappointment thus far because of the lack of pushing forward in terms of the fiscal backdrop

francine. francine: thank you so much. let us focus on the middle east politics.ohammad bin salman's appointment as crown prince mean energy markets need to brace for an even more assertive policy from saudi arabia and could that prove a threat to stability? a man says the changes in saudi are positive. >> i am so happy of the changes, because, since king salman came into the position, there is a lot of of positive -- a lot of positive changes. stability for the saudi people and the neighboring countries. fighting terrorism all over the world. francine: still with us, pau and b valentin. i don't know if this is more of a regional story or whether this will usually impact what saudi arabia will go through in implementing his vision for 2030. >> i guess from the fx point of view is that what is important for the markets is it will reform the economy. he is not someone who wants to leave things as they are. the overreliance on oil exports is something of the past. the bit, however, which is interesting at the moment, is saudi arabia is seen as the key driver of opec'

francine: jobs day usa. the unemployment rate is the figure in focus as investors search for clues about the next fed rate hike. with the u.k. election less than a week away, we speak to iain duncan smith. good morning. this is "bloomberg surveillance ." i'm francine lacqua here in london. there's a lot of news today and that has loads of implications for all the data across the board. let's get straight to it. global stocks are up. the nikkei 225 stock average topped 20,000 points for the 2015.time since this is mainly as private american hiring data bolstered confidence in the economy. we have to wait for that jobs data today coming through. this is what we're seeing for pound, weakening a touch. look out for pound. we are just seven days until that election, june 8. yen, i'm seeing a little movement. 111.56. crude oil, we will be speaking to the opec secretary-general shortly. let's get straight to the bloomberg first word news. nejra: we start in the u.s. the trump administration has asked the u.s. supre

francine? francine: thank you. we were just looking at the pictures from luxembourg of philip hammond, who was meant to give a speech yesterday. that was scrapped, but he is now at luxembourg at the meeting of the euro finance ministers. u.k. will enter brexit talks to find a situation that works for both. he says he will not give blow-by-blow accounts of the talks. now, the mystery of inflation has been in sharp focus this week as the policy decisions have come to light from the world's most crucial central banks. you the united states -- the united states hiked rates for the second time this year. k., there are concerns about rising inflations widening among bank of england policymakers. the biggest decision over rates among british policymakers in six years. finally, with inflation still distant from its target, the bank of japan left its monetary stimulus program. burgess.ng in mark mark, how much do you look at inflation, and how central banks tell you where to put your money? how much do you look at growth fu

francine: they stay with us. etay with "surveillance," th president comes under fire for his tirade against a tv host and it moves markets. we also talked china and we approach the 20 the anniversary of the hong kong handover. this is bloomberg. ♪ francine: this is bloomberg surveillance. let's get to the bloomberg business flash. shares sees one time negative impact from its brazilian crops business. shares rallied after the company delivered a rosy forecast and announced it plans to forge a closer relationship with shoppers. it expects sales to increase by mid to high single digits. nike also unveiled a project to sell shoes for is to graham and starting to offer goods directly via amazon. goldman sachs analysts are trying to figure out how they -- can get back into the commodities market. the bank that knowledge is some factors were unpredictable, including rising oil prices in libya and nigeria in the impact on the weather on the crops. the firm admits this leaves the question of how we did and how did we get

francine: the u.k. foreign secretary, boris johnson, claims only theresa may can get the brexit right. this comes just two days before the general election. labour's switching the focus to welfare support for retirees, saying tory plans are the biggest attack on pensioners in generations. anna has been braving westminster for us. theresa may is putting boris into action today and he is focusing on brexit. anna: absolutely. good morning to you. boris johnson has moved back to the northeast of england. anybody watching as the brexit results rolled in one year ago will remember the role played by the northeast of england, and the early warning signals it gave to investors as to just how strong that vote for brexit was going to be. he went to the brexit heartland, to the labour heartland traditionally, to campaign for the ruling conservative party. he says this is a moment to believe in the huge potential for brexit britain and the only theresa may can get it right. in the meantime, the labour party will ta

francine: thank you.eral reserve will increase interest rates in 2017 and begin taking it balance sheet. that is according to 43 economists surveyed by bloomberg. they expect the rate hike at the end of the fed meeting and another in september. chanceket sees a 95.6% of a rise this week. us, an adviser to the german finance of ministry, plus, peter. thank you for sticking around. what do you think the fed is looking at? we talk about inflation and wage growth, but you also look at something else. we are looking at where interest rates are going to be in the long run. janet yellen has been giving several speeches where she thinks it has declines. in herpoint is lower view. the evidence is uncertain, possibly biased. i am perplexed of the and -- say one thing does not believe them. are we getting used to -- by central banks? from wherey are away they usually are. in the past, we had a strategy to follow. now, uncertainty is higher. they have a hard time communicating how they would normalize. they should ke

francine: thank you. voted to leave the european union, brexit talks finally get underway in brussels. david davis sits down with the opposite chief eu negotiator, there is confusion over exactly what the british government wants from his divorce. now speaking exclusively to bloomberg, the central bank manager wade in on brexit. -- bank manager weighed in on brexit. >> i think it is very unfortunate. the outcome cannot be something very good, neither for the u.k., nor for the euro area. it seems that the impact is much more important a thing for the u.k. francine: let's get more on all of this with bloomberg's john hoeven in brussels. what is each side hoping to get out of today's talks? >> this is the first day of talks. i think both sides now, almost one year after the referendum, they are happy to be sitting down finally. finally, the talks are getting started. unfortunately because of everything happening in london, the u.k. position is still up in the air. they will have preliminary talks and put a g

francine? francine: thank you.rime minister theresa smay seeking a deal to prop up her norlte government. mark carney's prank of eng -- -- pressure nd hammond to philip deliver a softer brexit. that focuses on protecting jobs. let's kick it off with you. we have a lot of politics to talk about. when you look at currency. how much does it -- whether we get a soft brexit, a hard brecksette, the reversal. the pound drops, inflation goes up. wage doesn't go anywhere. that is what will determine how much of an appetite there is for a hard brecksette. >> the current situation which is a little bit of in limbo. the next quarters. i find it very difficult to believe that the sterling can stay at the current level. in my view, we are poised to see a little bit more deterioration of the sterling given all of this boom we have of optimism coming out of the announcement of fresh elections and now we have the outcome and know the situation is a lot worse than anybody expected. we have got -- later on we're going to talk about p

francine: the global head of fx research.sation with bank of england governor mark carney. it was on climate change, not on policy. still, an important subject. that is 6:30 a.m. new york time, 11:30 in london. this is bloomberg. ♪ tom: let's get to washington. i will try to be health care free. the courts especially, chief justice roberts and kennedy did not want the course decision to be read as a partisan rejection .f the trump legislation the justices would really like to avoid ruling on the travel ban altogether. kevin cirilli joins us. what are we going to see? when do we implement whatever we are supposed to implement within all of this confusion? marty: the travel ban goes into effect at 8:00 tonight. the court legal battle has not moved fast enough for the critics and opponents of the travelban. ar the white house this is policy victory. this is something they campaigned on that they have to deliver. this is something that faces opposition from the left. i think that you will be seeing more across the country today f

francine: is july and alive -- is july a live meeting? is usually low volatility in the markets. july.: we do work in nice around, but we do work in july. the discussion was about taking stock of the progress and the taking stock of an improved path for inflation. one lesson of what we decided last week was we have to it keep in line with -- we have to keep in line with reality. executive board member benoit coeure with francine lacqua. more breaking news, vonnie. vonnie: attorney general jeff sessions will testify in public before the senate intelligence committee tomorrow. in a statement, the committee says it will take place at tomorrow. said that he wants americans to hear the truth directly from him in a doj statement. general,ions, attorney will testify in an open hearing tomorrow at 2:30 p.m. eastern. this is bloomberg. ♪ ♪ mark: time for the bloomberg business flash. a look at some of the biggest this is stories in the news. there will be a new chief executive for general election -- general electric. jeffrey immelt stepping down.

benoit couere spoke exclusively with francine lacqua.e are still not seeing inflation where we would like it to be. we are still not seeing the criteria that we set for inflation to be sustainable being met francine:. . francine: how much of a nightmare is stronger qb on gdp? benoit: it is unqualified good news. it is why we changed our communication to adapt to the changing reality. it also shows that monetary policy measures have been working. all the jobs created in the eurozone over the last three or four years or so, a lot of them and it's created working very well. we have inflation mandate. ,hen it comes to the next steps we will have to focus on inflation. francine: why was tapering not discussed last week? benoit: it was not discussed at all. we discussed a lot of the economic situation and discussed the prospect of core inflation. there was a sense of progress when it comes to core inflation that despite inflation being pressed downwards, if you look carefully at the start forecast coming see inflation is less monetary on our p

francine joins us from frankfurt.uess it's hard to reconcile an executive board member of the ecb saying they made progress on inflation when a couple of days a differentd forecast. how was he doing that? francine: he's saying that it improved a little bit compared to the forecast they had to cut. this is a conundrum for the ecb. gdp is actually better than expected, inflation is not as strong as they expected so what do you do with all the qe? because it on to it would be terrible to take it out too quickly? the point is, if you don't do anything in june, why would you do anything in july? jonathan: as we approach the end of the year, people will ask when will you give us the communication as to what will happen with qe. it runs until the end of the year and they will have to give some guidance eventually. has he given you any idea what the guidance will be based on? francine: he said the guidance will be based on data. he used the word tapering which was significant which would be by the end of the year. it depends

i'm francine lacqua in london.

bank of england governor mark carney met with francine lacqua.y discussed public in private sector work on climate change. mr. carney: i think the important thing is a voluntary private sector right now. them to address issues around climate change. we focused on enclosure and asked the private sector to decide how to address it, so mike bloomberg, the head of panel, 30 are people from the private sector him up with recommendations, and 100 plus from india to u.k., europe, and the u.s. and beyond have signed up to control financial assets of more than 20 billion. saying this is the right step to include so the market can function. so the g-20 started this protest, the private sector has taking the ball and run with it, and created some good products, and demonstrated, as i say, 100 plus of the bill posey leading companies adopting this. but -- : mr. carney: the g-20 leaders will be made aware of the progress made and the momentum behind it. as a member of the g-20, i will be there, but as chair of the ssc, i complement the effort of both mike blo

francine: how do you rate political concerns?nger that because france is out of the way and it was an outcome that the markets like, we underestimate political risk? benoit: well, political risk is there. it is not for us to decide on political risk. we are not a political institution and we do not decide based on political outcomes. not in our way when we have to decide on policies. it is true that political uncertainties have helped with conventions in investment to some extent in the euro zone. i very much hope that in france this will not be the case anymore. it would certainly support the strength of the french economy. i also very much hope that the outcome of the french election can support momentum of reform starting in france, obviously, but also in europe that would support the monetary policy. we want a stronger euro zone for the monetary policy to be effective, and france has a key role to play here. draghi has been asking for fiscal policies as far as i can remember. why would it be different this time? it is not tha

800m, olympic champion caster semenya enjoyed another dominating win as the south african overtook francinetime of one minute 57.59 seconds. but perhaps the strangest thing to happen on the night was when nigerian long jumper blessing okagbare's hairpiece came off when she landed after a jump. the mark was legal, she continued and the hairpiece is being questioned at present for running away from its owner. now to rugby union where owen farrell faces an anxious wait to see if he'll be fit for the british and irish lions‘ first test against new zealand on saturday week. the england fly half is out of this weekend's match against the maori all blacks in rotorua due to a quad strain. flanker peter o'mahony captains the side. matt wilkinson defeated connor o'leary to win the world surf league fiji pro and move to the top of the 2017 season rankings. in a back and fourth final, wilkinson started strong with an opening score of 8.57. the 28—year—old moves to the top of the wsl tables with the win, edging ahead of hawaii's jothohn florence. the australian also remains top of the wsl rookie of the

he spoke exclusively to francine to an exiting slowly from the bond buying program. >> the discussionabout the rise in the economy, the stock of the progress that will , and that is a discussion that will happen again and again. that is going to continue. anna: speaking to francine chris miley still with with manus.udio what is your timeline for the ecb and how it exits its stimulus. chris: probably next year sometime we are going to start to see some action. it is quite interesting to see that report. it sounds to me as if the ecb is flying a bit of a kite. on the one hand they are saying the academy is less dependent on the ecb buying bonds, but on the other we are saying it is too early to discuss. i think that means they are flying a kite to they want to see how markets respond. bestme point in the civil 6-12 months, the ecb will have to get off events and start to frame something in terms of policy and the markets are awaiting to hear. when we going to get that tapering? you stabilize interest rates and you start to address qe and and then and only then you start to take about ra

up next, is bloomberg surveillance with francine lacqua.rry on the conversation this is bloomberg.. this is bloomberg.this is bloomberg. ♪ ♪ francine: italy deploys up to 17 billion euros. prime minister may delivers clarity, hoping to close a deal with the dup this week. loeb targets nestlÉ.

francine lacqua is up next with "surveillance." she will be joined later by tom keene.omberg radio. we will carry on the conversation surrounding what's happening in the markets. we will be looking ahead to thursday, what a big day thursday is. the ecb, the u.k. election, and the testimony of mr. comey. london not exactly looking radiant today, but the weather, i'm told, will change by the end of the week. always an interesting aspect to the polling story. this is bloomberg. ♪ francine: qatar's crisis. president trump once 2-d escalate the situation. escalate thede situation. switches thebour focus, claiming tory plans are the biggest attack on pensioners in the generation. the investigations into the london bridge killings continues. timko tells us his company has h

francine lacqua will be joined by tom keene. we will be tough you about radio as well.s and i will be taking to the airwaves on bloomberg radio. matt in brussels will have a busy day. what are they going to be talking about over dinner tonight? theresa may is going to have an interesting dinner, i think. the question is, at the end of all of this, who pays the bill? this is bloomberg. ♪ francine: today, prime minister theresa may travels to brussels, where she could face her first brexit row with the leaders. she will outline how she plans -- salman'shammad bin anointment. he answers questions about the country's direction. too much oil. crude holds it slide. good

francine lacqua. you can watch the show, all of our shows, what we are putting out on tv . you can use the video stream and it is amazing. you also get is the functionality that goes with it. you can break out the charts come a you can see the data that we are talking about, you can talk about the programming, what is coming up, what is the breaking headlines, what's functionality we are using, what charts we're talking about, and you can use these on your bloomberg screens and you can it involved, the little button hidden down here. you can get in touch with the team. interactive television. the i.b. function available by that button down there. fully and confidence. what will be -- we be talking about next? considering cuts to the $34 billion enter -- infrastructure plan. we will cross to paris next to get an update to talk about what it means for the french economy and the euro. that is next. this is bloomberg. ♪ matt: welcome back to the european open. 15 minutes until we see the start of cash trade across the you -- u.k. and the continent. let's get the bloomberg busin

francine: pierre, thanks for your time. pierre bose, head of european strategy at credit suisse. the trading floor. interesting commentary coming through. talking about the idea that this soft brexit story is a red herring for the simple reason that any soft brexit ultimately means single market access, which means free movement of people, and even a minority conservative government is unlikely to go down that road. so, don't go down that. jon: that is the debate this morning and that is the reason we have some support on cable at 1.2711. i put the of us is because the big conversation coming into hung was, if you get a parliament, that is the toxic outcome and that means they moved down to 1.20. that is not the result at all. right, that means sterling will slowly grind lower as the months progressed. guy: you asked, do i hold sterling into the weekend? my question is, do i buy or sell it? if there is a rally, do i sell into that? i guess that is the question the market has got to figure out. jon has got a really busy morning and has plenty more to do. we have plenty coverage co

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francine: is there a chance there is no risk. ?,that if you do not know exactly what the risk is, what is something is impacted but you cannot actually measure it? a company today could decide on how to disclose it. mr. carney: part of that goes to thinking about a scenario where -- you can think of various degrees scenarios from a carbon price perspective. that is almost as similar as what you are doing now. sophisticatedmore ways of thinking about the energy mix and aspects. if i can play that through my business and look through scopes 1, 2, 3 and look at my exposure and how competitive i will be, what can i adjust? what is easy? what could i do today versus what should i put off? what is the optimal timing? on,hat extent should i rely you know, technological changes? again,. that is where this goes. the risk is that people are not thinking about this sufficiently, and there is a bigger adjustment that comes. you have a moment where there is much tougher regimes put in place, and you do get things such as we have seen in german

bring you a special report live from london hosted by our own ed schultz larry king and lindsey francine i want to miss it that's tomorrow from four to six pm eastern time . the long awaited secret senate health care bill was finally released this morning it was a clandestine drafting that left most senators in the dark until it was publicly released today the g.o.p.'s one hundred forty two page proposal would repeal and replace the ca better known as obamacare and is being pitched as the better care reconciliation act of twenty seventeen senate majority leader mitch mcconnell made its introduction to the senate and the world in a republican mad dash to repeal obamacare he called for a vote on this bill as early as next week ahead of the fourth of july holiday where congress will be in a recess for one week it was a bomb scare isn't working but nearly any measure it has failed and no amount of eleventh hour reality denying or but democrats is going to change the that more americans are going to get hurt. alas we do something. i regret that our democratic friends made clear early on that

reporter: the siemens ceo spoke exclusively to francine lacqua.ou can watch the entire interview next month on bloomberg television, and at bloomberg.com. that is your bloomberg business flash. manus: there are potentially three republican senators that said they would vote to block the current version of the party 's health care bill, endangering mitch mcconnell's plans to repeal obamacare. bill estimate found the would leave an additional 22 million americans without health insurance for a decade. in other news out of the u.s., the supreme court cleared part of donald trump's travel ban, suspending entry into the u.s. by people from six muslim majority nations were over 90 days. it takes effect in 72 hours. james bevan is still with the "daybreak" team. two pieces of political theater, one of which is the travel ban. the second and more important for markets, is the potential that they repeal of obamacare could falter. million americans could be without insurance for a decade. how would markets interpret this bill if it was dropped on the floor?

. ♪ francine: markets continue to react. volatility roars black. -- roars back. trump travails.an faces another court challenge as he comes under fire for a twitter tirade against a tv host. theresa may gets parliamentary approval for her program. gdp data inu.k.

. ♪ francine: o the pressure mounts drawingith her handling criticism.inister just days before the breadth and negotiations begin. recalibrating inflation expectations. some of the world's biggest central banks. the bailout deal reached for greece, but it is not enough to get the img lending to them for now. good morning, everyone.

. ♪ francine: brexit vote anniversary. an unclear brexit plant. is uncertainty the new normal?an stay in the u.k. a detailed plan emerges monday. jumping the first hurdle. 34 of the largest banks operating in the u.s. clear the fed's stress test. this is bloomberg "surveillance ." sincexactly one year on voters in the u.k. w

francine sat down with joe kaiser and we will hear more of that later. short-term aspect of activist investing. an important is acknowledgment. more often than not when we see shares gowe see the up. from an investor perspective you need to question the intentions of the activist area from our perspective it is long-term shareholders. we want to ensure the activist is aligned long-term with what we want to see from the company. the comments yesterday were quite prescient in terms of what is going on. you need to look after long-term interests, not necessarily for short-term fixes. manus: perhaps a shift in gears in trend. this is buybacks in the s&p 500, buybacks in the stoxx 600. you made the point correctly. what extent will we see a cultural shift? less in theueur, u.s. historicallys. with no share buybacks with -- have been an important tool in terms of the capital allocations toolkit. in europe there is more focus on dividends. share buybacks are getting used more as a tool and for activist investors it is part of the argument. european balance shee

. ♪ francine: strong pressure for a soft brexit.alls to switch of her stance on leaving the eu. the european leaders they does not too late for the u.k. to change his mind. we look ahead to this evening's rate decision. growth raises its estimate for china for the second time this year, but says deep reforms are still needed. a london fire chief confirms a number of fatalities. we have the latest.

. ♪ francine: santander shares are mixed. long-termweigh the impact. santander chair ana botin shortly. to possiblys is set resign. the election that will determine future on the global stage. will the prime minister received the mandate to do brexit her way. this is "bloomberg surveillance ."

francine: janet yellen said labor market strength overcoming inflation weakness.ncellor prepares to set up an alternative to theresa may's vision following her disastrous election results. robert muller said to be looking into whether donald trump out of bounds instructed justice.

mark carney joining francine lacqua at 11:30 a.m. u.k. time. that is it for the daybreak team. is next johnson. a gray day in the city of london. ♪ i: good morning, welcome. you're watching lumber markets. -- bloomberg markets. we will bring you the first trade of the day. a number of important pieces of news. i guy johnson in london. matt miller is akin berlin after his odyssey across the atlantic. is preparing to unwind stimulus. mark carney signaled the time is n

. ♪ francine: pressure mounts for may. a disastrous weekend for the u.k. prime minister. cards? macron's mandate. voters put his party on track for a sweeping majority in the national assembly. and as the fed prepares for its next meeting, economists prep for two more rate hikes before the year ends, despite slow inflation. good

. ♪ francine: may's mea culpa. the u.k.full responsibility for the election disaster. she meets with the d.u.p. to prop up heard minority government. and the trillion dollar question. fed'she timing of the great unwinding make or break the bond market? "bloomberg surveillance ."

joe: that was ecb executive board member benoit coeure with bloomberg's francine lacqua.bloomberg business flash. j.crew will announce a debt exchange that will allow the retailer to push out is near-term debt maturity. offer -- say they it comes as the longtime ceo announced he will step down and service chairman going forward. general electric has secured u.s. antitrust approval for its deal with baker hughes. the agreement will create one of the biggest oilfield services companies. ge won approval last month from regulators. video gives ge a 62.5% stake in the new company. and it could close as early as next month. shareholders of honeywell are resisting calls to spend on its aerospace unit, according to ceo david cody, who tells bloomberg investors are worried about losing potential paydays on recent investment. that is your blis business flash update. julia: we have more news on the new ge ceo john flannery that was announced this morning. they are said to have sent his salary at $2 million. he has a target bonus at 150% of his annual2017, an target bonus will be $3

francine: talk to us about the ongoing -- caroline: talk about this on coming direct -- this oncoming diversity. how much will the key negotiator be listening this time? >> it is probably not leadership by philip hammond but a display of strength. it is hard to explain why because as hammond would say, he is only saying what is in the manifesto. everyone has always said they want brexit to be good for the economy, but there is an internal shift, so in theresa may was running the show on her own, it was about immigration and hammond was locked in the cupboard. he is found the key, and saying, you have got to think about jobs, thinking, investment -- banking, investments, and that brexit is because they are worried that if you get brexit wrong and it costs -- and that is because they are worried that if you get brexit wrong, that will hurt the party. simon, explain who was in charge of the brexit negotiations. i listen to what mr. hammond had to say, and i did not hear him refer to theresa may or the government. they sounded like he was in charge. simon: this is what you hear as a compl