i'm francine lacqua in london. tom keene in new york. we just have a comment from the commission that everything is fine, that they will look into them. we are seeing a little bit of a disruption because of pound and inflation holding steady. that definitely bolsters the argument about the boe moving. tom: not only the budget issues in the united states, but is brexit moves forward in september, i wonder where we will become thanksgiving. francine: who knows? let's get straight to the bloomberg first word news. korea may be signaling and wants to diffuse the deepening crisis with the u.s. kim jong un was briefed on the plan to launch missiles near watchbut he said he would the foolish and stupid conduct of the yankees in little more before deciding whether or not to go ahead with the launch. the ceo of intel has quit the

this is "bloomberg surveillance" and i'm francine lacqua in london. there is a lot to get through and we need to bring you be data and stories. the region wealth fund -- the norwegian wealth fund says it has returned from 2.6% in the second quarter. they must have had a big position. if you are looking at the way that the norwegian wealth fund is structured, they have a you look at when stocks, and then they have bonds. the real estate holding returns them 1.2%. they face many challenges. that is something we need to keep an eye on. let's get on to the rescue of your data check in. this is what i am seeing overall. the markets are on a little bit of a rebound, especially for stocks. it is august 22. european stocks are joining the rally across most of asian equities, following three days of losses. trading volumes, once again depressed. even withreating, ray dalio saying he has reduced risk. reporter: the command review u.s. forces are confident in the ability to destroy north korean missiles. pyongyang threatened the united states with merciless reve

i am francine lacqua in london and david gura in new york. y after monday, it is a regular thing it seems like. francine: we are looking at opec and crude oil and all the market inflation. and then the world of politics. it: the white house moving up to western new jersey. continues toe flow. francine: we will go through that. let's get to bloomberg first word news. taylor: north korea is vowing harsh retaliation over the united nations sanctions. kim jong-un plus regime "thousandfold revenge" attacks against the united states. down in venezuela, president nicolas maduro is claiming victory after what a -- he on ad a terrorist attack military base. the military says attackers confessed they were working on opposition -- backed by foreign governments. theresa may's office is dismissing a report that come -- the country will pay to leave the e.u. a government official calls the speculation -- calls it "speculation." new chief ofmp's staff is trying to put an end to the chaos of the white house. john kelly has blocked casual walk-ins to the oval

i am francine lacqua in london with tom keene in london. nspan talked about, we need to get back to that. tom: and particular the yen strength, down to 1.09. francine: we are getting gdp figures. in euro area growing 0.6% the second quarter. that is matching estimates. you are looking at inflation figure out your next move. here is taylor riggs. taylor: the u.s. has taken an unusual move. trump sanctioned the venezuelan president, accusing him and his government of undermining democracy after a vote to rewrite the country's constitution. meanwhile, the wife of a venezuelan opposition leader says he has been taken from his home. the white house is looking for a new communications director. anthony scaramucci was ousted 10 days after he joined the staff. it is said to be an agreement between him and new chief of staff john kelly. street regulators have begun to rewrite the volcker rule, according to people familiar with the matter. five agencies are looking to loosen restrictions. changes would probably give big banks more flexibility. moving

i am francine lacqua in london. david gura in new york.g blow to the car industry and an online interview. this is a live interview where they were taking questions in germany. merkel's main opponent takes to the campaign trail today to try to close a gap in the polls. ond and james bevan with us. let's look at what the chancellor can do. it seems like it is a done deal that she is chancellor. she is so popular. you don't really know what kind of focus there will be. >> if you look at both germany and austria, they have all had the same policies regardless of coalitions or not. in the german-speaking world, they benefit enormously from the current status quote. merkel has defended adroitly the current status quo as well as letting in a million refugees which testifies to her potency and centrality. the interesting thing is that the german election probably won't deliver any surprise. we should always caveat that in these times. do we have a europe that is equal to the problems it faces? macron that came in with almost a european hyperdrive

francine lacqua in london. what a great conversation with mr. kit juckes and mr. donovan. s a big theme for august. francine: he is and that ubs tapering sooner than it and the fed, maybe not. this underlying kind of undertone, politics and the trump administration and brexit. tom: the wednesday morning briefing with first word, here is taylor riggs. prime minister theresa may's was sweeping power to fight terrorism to ensure they have the necessary power to cut off funding for terrorists. back in the u.s., christopher wray to be the new head of the fbi. the former prosecutor has a this -- a big task. office has been criticized by president trump. the white house has confirmed their president trump helped to draft the statement made by his son. that statement says donald trump jr. and a lawyer primarily discussed adoptions of russian children but email indicated it was about the -- about possibly damaging information on hillary clinton. venezuela is supposedly constructing a plan b if they have sanctions against the united states. the u.s. is the single largest buyer of ven

i'm francine lacqua in london. do about the north korean missile launch. a ballistic missile flew over japan before landing in the pacific ocean. the prime minister shinzo abe said he talked to president trump and the president agreed increased pressure on north korea. also wants china and russia to take action. tropical storm harvey isn't letting up on houston. it has been inundated by floodwaters. is in themore of rain forecast. harvey has drifted into the gulf of mexico and will crash ashore once again tomorrow on the texas louisiana border. 10 of the 25 oil refineries in texas have been closed. offshore oil and gas production has been hobbled. trump is promising that texas will get emergency disaster aid quickly. he says there will be very rapid reaction from congress. be a political fight over the money. suggestss conservative he wants to cut spending to pay for the response to harvey. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm taylor riggs. this is

i'm francine lacqua in london with david gura in new york.et is directionless and they're waiting for draghi and janet yellen and things going on in brexit with boris johnson coming up. but a lot of the talk will be on the fed. david: and yes, jackson hole getting underway and we hear from the fed chair at 10:00 a.m. and mario draghi speaks at 3:00 p.m. and we'll have updates on bloomberg television and radio. francine: let's get to the news with taylor. taylor: as you were talking, we're starting with samsung, the billionaire heir faces five years in prison. a court in seoul handed down the sentence to jay y. lee after finding him guilty of embezzlement. he says he's innocent and plans to appeal. the ruling casts doubt whether he'll return to the conglomerate his grandfather founded. hurricane harvey strengthened overnight and is taking aim at the gulf coast of texas and the energy industry. if forecasters are right, havey will be the worst storm to hit the states in a decade. offshore oil platforms have been evacuated and commodities being

this is bloomberg. ♪ david: i am david gura in new york with francine lacqua in london. trump's threatnt to shutdown the government causes problems on capitol hill. it also has to raise the dead feeling. leaders may package the two measures together and send them to the president for his signature. prosecutors one to clean up legal behavior on wall street, portfolio manager matthew martone a lost a bid to over 10 -- to overturn his induction. tips to makeal $275 million. a business lobby is urging prime to tackle thepan nation's debt. their run of economic growth revived a now or never opportunity according to some. they have proposed a 10% increase in sales tax. building closer ties to its neighbor, the saudi's are leaving the isolation of qatar over islamic extremist. iran has been providing qatar with air routes and food supplies. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. francine, david? david: venezuelan bonds are under pressure after there are rumors that the u.s. is considering another round of sancti

this is "bloomberg surveillance" and i'm francine lacqua in london. tom keene is in new york. is strengthening, but strengthening in the last 20 minutes as well. francine: let's get straight to the bloomberg first word news with taylor riggs. reporter: starting with geopolitics, president trump told kim jong un's regime it will face a devastating military strike if it keeps threatening the u.s. donald trump: that's not make any more threats to the united states. they will be met with fire and fury like the world has never seen. reporter: north korea now says it is considering a missile attack on the american military base on guam. that is in response to united nations economic sanctions. an anti-terrorism operation participants were injured. this happened in a paris suburb. police are now searching for the car and driver. as you mentioned, in south africa, president jacob zuma will remain in power until the end of the year. he survived a no-confidence vote in the national assembly. that could backfire on his ruling national congress party. they could argue the anc had a chance

francine lacqua in london and tom kean in new york.e a busy day and i need to mention ennation because it's the one thing mario draghi will look out for, three cheers, accelerating inflation, we haven't seen in a while 1.5%. the euro is cheering it on. tom: splitting hairs but the idea of disinflation has been big over the summer and in 60 days the data will be critical to giving mr. draghi and yellen confidence. francine: i don't think it's splitting hairs but is the backbone of what mario draghi needs to see to go through what he wants by the end of the year. let's get to the first review with taylor rigs. taylor: tropical storm harvey knocked out one-fourth of capacity. the fuel making capacity is at a seven-year low and harvey's move to louisiana made it worse. corpus christi, texas are hoping to restart the facilities soon. the authorities blame the storm for 31 deaths. they fear they'll find more victims as floodwaters recede. president trump is warning congress not to blow a chance to overhaul the nation's tax system. the presid

i am a david gura in for tom keene and francine lacqua in europe. resident trump sent a message to congress, spend the money for border wall or else. me, went trump: believe have to close down our government, we are building that wall. let me be clear to democrats oppose a border wall and stand --the way of border security you are putting all of america's safety at risk. until: congress have september 30 to pass a spending bill. the president has asked for $1.6 billion to begin the wall. president trump is suggesting that the country may be moving closer to kim jong-un on. is president said that kim starting to respect america. rex tillerson said north america have not carried out provocative -- since thethe u you in pass resolutions. d- since the un passe resolutions. it isals have argued unrealistic that thing pakistan has control over the group. over in germany, angela merkel is rejecting the christian democratic union party as being obsessed with -- she said public debt is a burden on future generations. merkel's challenger wants to send -- wants

i am tom keene and francine lacqua in a london. here is taylor riggs.iscussing a compromise with overhauling the tax system, according to people familiar. lawmakers are talking about mixing permanent with temporary revisions to change the tax code without adding to the federal deficit. the draft of a new government report finds climate changes had a dramatic impact on the u.s. according to "the new york times," the average temperature 1980.sen drastically by the report will not be released until the trump administration gives the ok. an ominous milestone for the american consumer. just before the financial crisis, outstanding car loans went over $1 trillion in june. , iters have been competing is a lucrative business in a time of low interest rates. citigroup has agreed to settle a case saying the bank rigged libor. citi will pay $130 million and barclays settled a similar case two years ago. other banks including bank of america and jpmorgan remain in the case. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than

i am francine lacqua in london.ouraging news from bmw this morning as it eat estimates of slight increases in 2017 pretax profit. the result come one day after an unprecedented summit in berlin, where government and auto industry officials agreed to recall millions of diesel cars. the bureau chief joins us now. i know you are updating us on the summit yesterday. what came out of the summit? if you look at the earnings from bmw, is diesel in a better place than it was two days ago or not? the automakers did dodge a bullet yesterday because there was a lot of discussion that they would have to do much more expensive hardware fixes. they did not in the end have to do that, however, what we do not know is whether they dodged a bullet yesterday or really the longer term. we have been hearing from sources in the environment industry that barbara hendricks is very unhappy with that agreement from yesterday and she is still going to continue pushing behind the scenes for hardware fixes. we also have the ongoing discussions

mark: adidas executive kasper speaking with francine lacqua a little bit earlier.e: time now for the latest bloomberg business flash. a look at the biggest business stories in the news. avon ceo is yielding to pressure from activist investors and will step down next year. partners have called for the appointment of a new ceo following disappointing first-quarter results. avoin shares have fallen -- avon shares have fallen since she took over. at that has advised investors -- aetna was boosted from a strong last quarter. aetna has largely gotten out of the affordable care act individual exchanges after suffering losses in the program. hedge fund manager dan says he is betting against stocks. he sounded skeptical on the number of companies. have a listen. with think some companies might be playing accounting games to achieve their results. vonnie: he says he is betting against retailers, consumer brands, and energy related companies. that is your latest bloomberg business flash. we have heard that before, right? mark: we certainly have. taken a look at where european

london, francine lacqua. uld suggest has become global, but nevertheless, brexit except. what is the new on brexit in london? francine: actually, you are right. it's all anyone is talking about in london and you see a lot of political pressure on theresa may to say something stronger than what she said on your president. that is something we need to keep an eye on. on brexit, you hear there may be an new kind of visa system if you want to visit from the e.u. and there are rumors negotiations may be delayed. for the moment, it's quite a lot of noise. tom: let's get started from washington with first word news -- in new york city, rather. taylor: in south korea, president moon jae-in is trying to ease concerns over a potential war. moon says the president trump would ask for consensus before launching an attack on north korea. kim jong-un's regime is approaching what he calls south korea's redline. more backlash from president trump's remarks on charlottesville. he is disbanding his counsel. ceos were dropping o

francine lacqua in london. korea front and center. of impetus to the market to sell off. i am looking at havens, oil, gold, and yen. tom: a lot of dynamics. we will go to kevin cirilli in a moment. first, a briefing. trump is notdent backing off his threat of retaliation if north korea strikes the u.s. or its allies. he warned them not to carry out a missile test and said the north koreans should be very nervous "because things will happen to them like they never thought possible." president trump escalated his war of wards with mitch mcconnell, saying he is disappointed with congress' failure to eliminate obamacare and urged mcconnell to get back to work. angela merkel's election to lose, she will be favored to win her fourth term as chancellor. she has strong personal approval. tomorrow she will start a 50 stop campaign tour across the country. agency cutal energy its estimates for the amount of oil needed from opec this year and next. they say emerging nations like china and india will not consume as much crude and there are growin

this is "bloomberg surveillance" and i'm francine lacqua in london and tom keene is in new york. the president will position that tax speech later on. of course, we are keeping an eye on hurricane harvey and any euro-dollar moves. tom: i really also note, francine, september is starting early this year. the news flow for late august is extraordinary. francine: people say that all the time. tom: but this year it is real. francine: 43 years it has been busy in august. for -- for three years it has been busy in august. reporter: floodwaters keep rising in southeast texas, and so does the death toll. at least 18 people are dead from the storm that has been pounding the houston area since last week. more than 50 inches of rain have fallen. long forstmann says more than 13,000 people have been rescued. one analyst estimates damages could hit $30,000. the storm is expected to come ashore again today near the texas-louisiana border. harvey has unleashed plenty of devastation on texas, and that includes power outages. -- 335,000rs in the customers in the state have lost power. the storm i

francine lacqua is in london. a little bit of brexit news. bout brexit? i thought everybody was on holiday? francine: we have european data. the hawkish comments that confused everyone, you want to first of all, see what that means in terms of the strength of the economy and there is a twitter fight among the chief of staffs to various members of cabinet. konstam, we will get to him in a moment, but on korea, here's taylor riggs. taylor: japan and -- japan is noting north korea about launching missiles toward guam. japan said it would be legal for them to intercept the mess all. in kenya, fraud claims are -- may spark a crisis. initial results were released showing the president was a big lead over his rival, but said the vote count was not official. back in the u.s., president upsetused twitter to senator mitch mcconnell, saying that mitch mcconnell was a novice. the president asked why congress could not replace obamacare after years of trying? saying more excuses. sheryl sandberg says mistakes are inevitable and facebook. the team says the

this is "bloomberg surveillance i am tom keene, with francine lacqua. nue, over to the whole foods store, they had an angrier tone than the usual protesting. francine: that is significant, because this has impacted the markets. donald trump not having a great week, but i would also point to figures in the u.k. inflation is not as strong as expected. brexit heating up again within the discourse of this august. right now to give you your update this morning, here is taylor riggs. , francine, north korea may be signaling it wants deepening divide with the u.s.. he said he will consider the bullish actions of the yankees a little more before going ahead with the launch. put -- briander to krzanich says he is quitting dividesious harm that on issues. he resigns from the president's panel. the u.k. wants a terror free light trade union after breakfast. -- after brexit. the proposal is being cheered by business leaders, but is likely to find a position with the e.u. bill gates donated microsoft shares valued at 4.6 billion dollars, about 5% of his fortune. no w

i'm francine lacqua in london. tom keene is in new york.the 15th of july. -- august. we have a little bit of data and those papers published for brexit negotiations. tom: hopefully, it will be a little bit more relaxed than what we witnessed in the united states of america over the weekend. that will be one of our teams across "bloomberg surveillance" this morning. francine: that will depend on whether donald trump will have enough political capital to push through reform or not. let's get straight to the first word news. president trump faces criticism for failing to personally denounce white nationalist after the deadly rally in virginia. that led the white house to release a statement that the president condemns all forms of violence and hatred and that includes white supremacists and neo-nazis. one person died as a crowd was hit by a car. camping down fears of an imminent nuclear war with korea. -- camping down fears of an imminent nuclear war with north korea. generals meet with south korea's president today. administration will go ahe

up next, you can catch surveillance with francine lacqua. e digital radio or on radio go on your bloomberg terminal. this is bloomberg. ♪ francine: time to unwind. fed officials press a case for reducing the balance sheet, despite the low inflation that is challenging to central bank's credibility. >> it does not matter if the investors believe the fed can achieve its goals. francine: south africa's parliament holds a secret no-confidence vote. where are the workers? they are finding it harder and

francine lacqua in london.g across houston as harvey continues to drench america's fourth-largest city with unprecedented rainfall. asoline prices have surged the water impact of the storm becomes more evident. we are joined by reed morrison. great to have you with us. let me ask you about how crippled this network of refineries and pipelines is at this point. what do we know now? >> most of the refineries took preventive actions to shut down. a lot of production has been paused. the pipelines are still moving. i think we are ok for now, but the flooding is a big question. david: when you look at the country and its refining capacity, how nimble is the energy sector? how able is it to shift? >> right now we are in a fortunate time in terms of the calendar. most refineries build their inventories during august and september. we are ok if we've got a pause, but if we get beyond that, that starts to get compromise. you have the logistics of getting the crude oil in and the refined product out. francine: we underst

francine lacqua will bring you an exclusive interview with the ceo of credential, mike wells. g. ♪ ♪ francine: crumbling credibility, james bullard became the latest number to admit inflation is hurting the fed and will we get the july meeting tomorrow? pimco joins the course of asset managers say it is time to dial it down. and the man google with his views on women and diversity. his opinion in an exclusive bloomberg interview. >> the point of my memo was to improve google and google culture and they just punished mend

this is surveillance, i am francine lacqua in london. like a lot of news

francine lacqua will be joined by tom keene.ing to bloomberg radio "daybreak," joined vietjet he -- joined by dabffrey yu on london b digital radio. this is the number. ♪ got you outnumbered. the dinosaurs' extinction... don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here. find your awesome with the xfinity stream app. included with xfinity tv. more to stream to every screen. francine: abandoned by business. donald trump's advisory councils are scrapped as ceo's jump ship over charlottesville. a battle between data and theories. the latest fomc minutes show fed officials wondering whether their model still works. and, theresa may's government is said to be considering visa free travel to the u.k. for europeans after brexit. this is "bloomberg surveillance ." happy thursday. this is your data. i w

on bloomberg television, it is francine lacqua, bloomberg surveillance up next. to the radio studios where we will join the daybreak team for the next hour. you can catch us live on london at dab digital and get us on the bloomberg itself. go to tv , click on the radio feed and you can find what we are doing. lovely day in london, closed for business, though. it had a meaningful impact on liquidity here in europe. this is bloomberg. ♪ francine: counting the cost of harvey. one expert puts the figure at $24 billion. gasoline spikes as rain hits refining centers across texas. the boj boss warns japan's current growth rate can't continue and says he won't the following the fed or the ecb anytime soon. uber's new driver. the giant is said to pick expedia's ceo to steer it out of crisis. good morning and happy bank holiday monday. this is bloomberg surveillance.

this is "bloomberg surveillance" and i'm francine lacqua in london. we have eurozone pmi

this is "bloomberg surveillance" and i'm francine lacqua in london.to get through and we need to bring you be data and stories. the region wealth

i am francine lacqua in london. to check up ony the barcelona updates.uropean stocks are dropping. impact on some of the travel and leisure stocks. this after a terrorist struck a crowded street in barcelona exacerbating unease in the the mountingred by concerns over a dysfunction in white house. this is the dollar -- this is the bloomberg dollar index. 1.3.two-year yields, bob corker's says president trump has not yet demonstrated the characteristics needed to serve in his job. al gore went further saying that donald trump should step down. u.s. stocks suffered their worst day yesterday. , rex.s. secretary of state tillerson and jim mattis says the reaction to north korea remains an option. option has been endorsed by the president. this contradicts the comments from steve bannon who said earlier this week there was no such option. the u.k. is prepared to give further details regarding its approach to brexit. according to three people familiar with the plans. the institute for economic affairs says a trade deal with the eu after brexit is desirable but

guy johnson in for francine lacqua. infested dump.rump would take umbrage with that. invested dent in new hampshire. he says he never said that. i don't know if you have been at -- white house, guy: they are about to kick everybody out of the white house. they have the plumbers coming in, because they are going to be renovating the air conditioning units. they're going to be renovating the heating system. i take you back to watergate. they were trying to fix the leak. i wonder if they will be successful this time. folks areresident's migrating to new jersey for the next two weeks. with the first word news, here is taylor riggs. taylor: special counsel robert mueller is using a grand jury to collective remission in the rush investigation. that is according to people familiar with the matter. he is looking into russia's meddling in the presidential election and possible collusion by trump campaign associates. is trump administration unified in asking congress for an increase. the small notsays ask for spending cuts. congress needs to ra

i'm tom keene in new york and guy johnson in for francine lacqua.taylor riggs without first word news in a moment. tell me about the european gdp data. we see it there at 0.6%, the advantage of the bloomberg data screen. when you look at that, guy, is it a recovering europe? guy: it is, 2.2% is the number on the european basis. this is a reasonably broad-based recovery, spurting out from core to periphery in italy. so, a reasonably broad based recovery coming through. and the data is supporting that. will a strengthening euro start to eat into that story going forward? the firstee, this is day where we seriously consider jackson hole. right now to the president. in our first word news, here's taylor riggs. reporter: president trump has backtracked to his original position. saidw york, the president there was blame on both sides, blaming violent liberal counterprotesters who confronted the white supremacists. the white house asked republican lawmakers to defend the president's remarks. in alabama there will be a runoff for the republican candidate in