george osborne going on the attack.y the bank of england governor mark carney letter should i. the ble and the treasury working to develop regulation. >> looking for to your regulation, caroline hyde. the world cup begins today, host nation brazil plays croatia and opening match. you are looking at live pictures from the studio in sÃo paulo, where the game will take place. still the middle of the night. organizers have faced has received over preparations for the tournament but investors are viewing the country as an opportunity. ryan chilcote joins us with more. billion,uestion, $11 will it be worth it? >> even that picture tells the story. it looks grocery. dreary.oks 3 billion people are going to watch the world cup. >> half the planet. >> a billion of them have watched negative coverage of brazil's preparation. they have seen the slums. people-up to the cup, have come away with that the country is a dump. the contrarian says this is an opportunity. is very negative on brazil and sent a team in january saying it is n

george osborne is getting tougher on people who abuse markets.ndon today alongside bank of england governor mark carney. billion ore than $11 to host the world cup. the true price might be harder to see. you can call it a city on the hill. the people there hope their voices can be heard. erik schatzker looks at what the world cup has cost them. >> brazil spent $365 million to build this new stadium in san paolo for the world cup. just a little ways ast away there is this. >> so tell me. what is going on here? >> she claims her rent doubled overnight from about $200 a month to $400. too poor to pay and with nowhere else to go, she came here. how many people were here at the beginning and how many people re here now? >> they are all squatting on that land. the tents may be nothing more than plastic shooting but each has a number, like an address. by occupying private land and abandoned buildings, the squatters are trying to shame government into building more affordable housing. city officials estimate that ore than 230,000 san paolo families need

george osborne wants to get bigger and more wholehearted.manipulated foreign lihange or gold, you too able. this is not just the bankers. this is to the people at home. >> when you mention libor to most people, they go what? >> exactly. he tries to put it in common language. he said look. markets here set the interest rates for people's mortgages. this affects your mortgage cost. your everyday outgoing exchange rates for exports and our holidays. he brings it back to your own holiday and commodity prices for the good that you buy. say there is wheat in your bread that you buy at the store. this is what he is trying to get. get people onboard showing that he is tough on the financial markets. >> he is carving his own path as well, isn't he? trying to differentiate the u.k. from the e.u.. >> this is another general election ploy. we have penal vote here of course, a referendum we are being promised on whether the u.k. stays in or out over the e.u.. we are going to make regulation here ourselves. u.k. is going into loan. it is not going adopt e

probe into sanctions violations. >>> uk chancellor george osborne plans criminal sanctions for those rigged the market. >>> and the waiting's over as the soccer world cup kicks off in brazil. authorities are nervous as intelligence suggests protests could disrupt the opening match. >>> let's take a look at the european markets this morning. as you can see, a bit of a cautious session the french market's making the strongest gain, up .2%. we were split early in the session between gainers and losers right now. and as you can see, following on the negative sentiment in particular overnight. quick check on bond markets this morning, too, we can see the u.s. treasury there inching higher, 2.65, the level, 2.64 where the lackluster ten-year auction traded yesterday. we've got trading at 1.40. 2.73 as we look toward the speech tonight from mark carney and george osborne. dollar under a slight amount of pressure today. euro/dollar relatively unchanged. the level right now. we're not showing you the level, but five-year highs for rates right now. there you go. you can see, 1.3% now. >>> indu

well says cherice yellow which is the result of trickle down economics just as george osborne with us to get together so the other reason why market watch is saying that the dow doesn't deserve to be at seventeen thousand is a lack of alternatives ultimately today's bull market seems to be driven by a lack of alternatives what it lacks in enthusiasm it is making up for in gains as shorts market valuation analysis shows it's not a bad thing that this confidence on the flip side markets cannot sustain such overvaluation without a significant change in the economy and economic growth rates g.d.p. contracted at a one percent annual rate in the first quarter don't support the buying so the government and the too big to fail banks have removed all alternatives to you but to go into the market because at least their looks. like it's there are some gains that you might possibly have in order to compensate for the collapse in your income and the coming water cannon burst at your face right the alternatives being some vehicle where and by getting a savings rate that's at least equal to inflatio

everybody else is now the widest it's of any country in the world boris johnson david cameron george osborne have managed to create the most unequal society of the past fifty to sixty years in the post world war two era people are understanding they're waking up to the fact that austerity is nonsense it's just a way to confiscate wealth quantitative easing as a way to confiscate wealth negative interest rates a way to confiscate wealth now the people have their own water cannons their own water weaponry and we need a we need a vigilantes now water vigilantes to surround boris where every goes in public he's in the office he's at home he's over on one of his boris bikes make sure he gets down to the water look people you're all wet because the water cannons will not stand they will not abide we not about this go down this would award for the summer twenty fourteen. now of course you were talking about all the confiscation of wealth that's been happening and one of the things that i've noticed that's been happening as we keep on hitting all new time highs we've hit nine or ten all time new hig

george osborne really giving legal requirements. he's passing the buck over to the bank of england saying to deal with housing demand. i will deal with housing supply. the government saying they will pump money into the contaminate sites. half a billion pounds going toward that. they will speed up housing but you,o he promises, the bank of england, and you the financial policy committee, have to deal with demand. how? they now have direct the limits. they used to have recommendations on how much people could borrow in relation loaneir saulary and have to value ratios. perhaps the bank has already jumped the gun here. if you're going to borrow more than half a million pounds, it can only be within four times your current salary. they might use other tools at their disposal. they could tighten affordability test and limit the risky loans banks currently have on the balance sheets. they could go about this in a multitude of ways and it's likely the bank of england will start rolling out these ways to bring back demand and have all eyes

. >> we are expecting to hear a major announcement from george osborn, uk finance minister. he's announcing a crack down on abuses in the foreign exchange market for which the city of london is the main stage. those trios found guilty of manipulation could now be facing jail time. >>> it's midday in london, 7:00 a.m. in washington, 2:00 p.m. in tikrit, once the strong hold of saddam hussein in iraq, now the latest target of islamic militants of isis who say they control it already. they have seized the city of mosul and they have baghdad in their sights as they pursue their ambition of an islamic state spreading across the eastern mediterranean. >>> the government of noal mala needs help. first let's get the update for you on the situation. >> reporter: some of the huge numbers of ordinary iraqis who have fled the fighting in what's feared is a fracturing country. they were jamming the crossing point into the safer kurdish region of iraq fearing what the baghdad government might now do to regain the ground it suddenly lost to the militants. to complicate the picture further,

george osborne told the audience financial stability could be at risk going forward. >> if london prices were to continue growing at these rates, that would be too fast for comfort. and the rates of price rises is now beginning to spread beyond london. across the country, the ratio of house prices to incomes is high by historical standards. and while average loan to value ratios fought, new lending well below normal. average earning to income ratios have risen to new highs. let me spell it out, does the housing market pose an immediate threat to financial stability today? no, it doesn't. could it in the future? yes, it could. especially if we don't learn the lessons of the past. >> shares in britain's home builders slipping into the red following the chancellor's comments on curbing mortgage lending. two of the biggest decliners in europe. this is osborne and london mayor boris johnson reportedly set to unveil new measures to ease housing pressure in london including addressing supply. now joining us to tell us the details. whoever said carney was a dove, the ultimate pragmatist, isn't h

most of all, it is coming from mark carney and george osborne, driving the pound higher.k at that jump up. mark carney said we could have an interest rate increase sooner than you think. .il also we are going to go back to the oil because we have brent trading at an eight-month high. up .9% today. the instability in iraq, will it disrupt supply? that is the concern. we will be back in just a moment. >> just a reminder. you can follow me on twitter. be sure to stay tuned to "the pulse." we will be back in two minutes with more. ♪ >> welcome back to "the pulse." live from bloomberg's european headquarters in london. underent obama is pressure to launch airstrikes to support iraq off on a -- iraq's army. there's growing concern iraq will descend into civil war. rate hikes could come sooner than you expect. mark carney says rising u.k. mortgage debt could threaten the country's recovery. surging property prices have been raising concerns about a potential bubble. maintainingjapan is its unprecedented stimulus. the central bank will continue to expand monetary basis. its gover

london that they can sell the same bond an infinite number of times to float this ponzi scheme george osborne's debt ponzi scheme and of course the u.k. is now the most indebted of the industrialized countries in the world ten times g.d.p. to debt. so the chinese are using the same cation fraud but not with a paper asset like a bomb they're using a warehouse full of aluminum that doesn't exist except for a couple of crickets bonking in the corner there is no limit of in the warehouse and it's all ticky and no surety yeah it is like a counterfeit re hypothecation they're famous for counterfeiting you know american goods or french luxury goods or italian luxury goods and this is like counterfeiting their fraud and hundreds actually get real assets over here which is i think pretty remarkable right so the buildings here in london that are being bought by chinese are being paid for by money that's been collateralized by a warehouse full of cricket droppings yet well and that is and of course now the real estate market is imploding in china so they're going to get a massive margin call people's bank

bastardy george osborne and david cameron could not be more egregious but that's very controversial but i think that's real is the austerity the impact on people the money they're taking from the very poorest disabled the pensioners you're seeing money taken from them and now the mayor has ordered three water cannons because the police chief asked him in the event of an austerity riots i was out with his full story royal so they're anticipating that we have a royal and they think the free will commons is going to be enough that's right they get any small town and they're going to need a big accounting for it so that's what we're doing over there over there buying cannons to. make us really really pull to make sure is that we've. already practicing in towns across the u.k. they set up dummy towns of they've got the water cannons and they're preparing for the riot preparing for us to riot like the boys are chiefs to find cold was the chase and i tried to write a riot that's right yes that's true you're predicting a riot they ought they're anticipating when they're causing one there i'm go

bastardy george osborne and david cameron could not be more egregious but that's very controversial i know but i know it's real is the austerity the impact on people the money they're taking from the very poorest that disabled the pensioners you're seeing money taken from them and now the mayor has ordered three water cannons because the police chief asked him in the event of an austerity riot is that what his full story were it so they're anticipating that we have a royal and they think the free will commons is going to be enough that's right they get any more kind and they're going to need a big account in florida so that's what we're doing over there over there buying commons to. make us really really pull to make sure is that we've. already practicing in towns across the u.k. they set up dummy towns of the go to water cannons and they're preparing for the riot they're preparing for us to riot right because they're chiefs there's a bind called it was a chase and i tried to write a riot that's right yes that's true i am predicting a riot they ought they're anticipating when they're

ats is why george osborne the same event was really saying, i realized the concern.hey are not immediate but it might destabilize in the long term. >> does the housing market pose an immediate threat to financial stability today? no, it does not. in the future, yes it could. especially if we don't learn the lessons of the past. we act now to ensure ourselves against future problems before they can materialize, because economic security comes first. >> we act now. we, he means the bank of england and the government. says, you are in charge of demand. you are allowed to suppress mortgage lending. he is giving them legal right to have direct limits to mortgages. perhaps they could limit them as a portion of your salary. we have already seen lloyds and rbs start to impose that. impose loans and value caps on as well. maybe you can only borrow 60% of the value of the house. bank of england is able to suppress demand. the government is going to tackle supply. they say they're going to funnel more money into getting sites cleaned up, able to build in more areas of the u.k.

merkel has recently supported a new wage increase as has brittain's chancellor, conservative george osbornees president obama proposed boosting the federal minimum wage to $10.10 in the beginning of the year. that's a 39% increase over the current minimum wage of $7.25. republicans have, of course, made it clear that they will never pass this in congress. this week the international monetary fund weighed in and urged the u.s. to raise the wage floor saying it is low by both historical and international standards. the federal minimum wage in america was about 38% of the median wage in 2011, which is one of the lowest percentages among the rich countries of the world. a group of more than 600 economists signed a letter imploring the president and congress to pass a wage hike which they contend would, quote, have a small stimulative effect on the economy, end quote. truth be told, small is the operative word. it's not clear what kind of effect raising the wage would have on the u.s. economy. the billionaire investor warren buffet has made very clear his positions on most economic issues but no

. >> george osborne says there is a big difference about what people are saying in public and what they'reing and pirate -- in private. >> i think he has a great deal of backing now. mr. cameron, unfortunately, fell out not just to the germans and fell out badly with many of the smaller nations. cameron has responded by being very aggressive. he has moved out of middle ground consensus forming into threatening to stopping albania from coming in. he really is isolated. it will be interesting to see if the fear of the u.k. coming out is sufficient for europe to bend over the other way. >> let's assume that he will get the job. david cameron has done a lot of damage. europe has this built-in mechanism for not letting anybody stray too far. do you think we are in a situation where the rest of europe will try to rectify it? >> they are bound to try something as a friendly gesture towards the u.k. we have new commissioners coming out. trade. something like to try to pacify the relationship with the u.k. i am sure it will make a lot of difference, but cameron is really boxed in now. he will have

. >> it seems to be a great vindication of george osborne's austerity package.ay the labor market appears to be relatively strong. it sounded to me like carney didn't approve that much. he started talking about pockets of weakness because there is no wage growth. >> wage growth has been worse but if you look at what surveys are saying, they are saying employers are finding it harder to get the skills they want. that is often a leading indicator that wage growth is about to grow. if they want to have this gradual rise in interest rates, they do need to make the first moves when wage growth is subdued. if they wait until inflation is a danger, they will have to move rates more sharply. >> when did you start calling for a rate hike? in 2010.arguing for it when the euro crisis kicked in, it was clear that we needed to get through that. when we got towards 2013, i thought that was when the bank of england should have started debating a gradual rise in interest rates. >> where his inflation 18 months out? >> i think inflation is going to stay around the target. the ri

george osborne has given them the green light to take it up on equity ratios.o at the end of the day, we'll see something coming out of that and the we have three new members of the mpc. >> so three new members, the bank of england demand and given what we've heard from carney, perhaps acknowledging that perhaps the rates needs to be higher as far as the market is concerned, is there anything as far as the markets are concerned? >> well, we even heard suggestions thinking there can be a three-six split. we don't see a thing in the scenario. obviously, it could mark and move to vote for ratewise. there's another uncertainty. >> david owen, thank you so much. let's take a quick look at how the european equity markets are trading. losses between 0.3% across the board yesterday. in particular, in the italian and the german markets right now, it's going to be key. we've got the new survey data out for 10:00 a.m. london time. foreign exchange rates, too, this morning. obviously we've got the geopolitical risk, we've got the fed foam. that's a key risk from the market

is billing over the question of couldn't see because after all it's not the point of view of george osborneor the treasury or anyone at westminster as to what scotland chooses to use what will be debated what will be negotiated as whether or not there should be a union and i think it's inconceivable that there wouldn't be a continued to have to see that i don't want to have anything to do with the city of london or with establishment in london we want to see an independent council we want to see a scottish town that can actually start to break the train of increasing poverty and inequality that can start to produce something much different as to who or economy should work not just in the interest of g.d.p. and the interests of the people of the country as a whole and that's when we do want to move it and we have to be in with the people well to who clearly think that the way things are going is. ok let's move to the political front because it's part of the u.k. scotland has a say in the un the nato if you were to go it alone when you lose a lot of influence. well what influence has the u.k.

george osborne has been told to reign in his scheme by the european commission. >>> and the french governmentghs into the bnp paribas probe. a potential $10 billion u.s. fine would be unreasonable, some say. >>> we have data out of the uk, construction activity cooling a little bit in may. this is the pmi number, down to a seven-month low of 60. it was 60.8 in april. it is worth pointing out, though, 60 is still a very strong expansionary number. you can't keep expanding in an ever faster rate. yes, it has cooled. 60 is still a fairly strong number. sterling against the dollar at 1.760, slightly weak. we peaked just as that number came out. >>> as far as european equities are concerned we're an hour and a half into the trading day. somewhat mixed performance for europe. down about a third of a percent for the ftse. a quarter percent for the xetra dax. tenth for the cac current. the ftse mib off a quarter. 11-month low last thursday on the ten-year. treasury yields are now yielding 2.54%. italian yields are back to being sub-3%. interesting comments out from brian singer earlier from william b

to see earlier this month, in the case of the uk the christine lagarde actually apologized for george osborneor criticizing the uk austerity cuts saying the imf had gone too far. what lessons should we take from this? is the uk going to emerge as a model for austerity cuts? i'd love your thoughts on europe as well. >> i actually on balance, the austerity management, given that the world has changed over the last seven, eight years if you look at fiscal numbers, europe, the rich countries look much worse than emerging economies. data being so, fiscal austerity is something they would have to go for. european countries in particular. the country is the design of austerity and i think most has to be on the design -- britain did right. it took harsh moves which did have a slow down effect but this year we're expecting uk to grow at something like 3% which for a rich country is pretty good figure. and i think that the costs that were taken in austerity are beginning to pay dividends over the. on europe as a whole the euro eurozone had negative growth last you last year the world bank, only two reg

striking to see earlier this month in the case of the uk that christine lagarde apologized to george osborne for criticizing the uk's austerity cuts saying the imf had gone too far. what lesson should we take from this? is the uk going to emerge as a model for austerity cuts? i would love your thoughts about europe, as well. >> i, on balance, feel uk actions were right. austerity management. begin that the world had changed over the last seven, eight years, if you look at fiscal numbers, europe, the rich countries look much worse than emerging economies. the world was never like that. that being so, fiscal austerity is something that they would have to go for. european countries in particular. the question is that design of this austerity. i think most of the debate ought to be on the design of austerity rather than austerity. britain did right. they took harsh moves, which did have a slowing down effect. we expect the uk to grow at 3% which for a rich country is pretty good figure. the costs taken through austerity are beginning to pay some dividends over there the euro zone had negative gr

osborne tweeted. may god bless george bush senior. he makes me proud to be a american. happy birthday. looks like 90 is the new 60. diane, i think you are right. >> and got to love papa bush has the great can do attitude. god bless president bush. you have to give him credit. jumping out of a helicopter, right. jumping out. >> i would be scared to do that. >> on my birthday, i went to dinner. no jumping. that's right. >> he's having a big celebration tonight and big dinner party with 200 closest friends. >> he deserves it. it is absolutely fabulous. >> look at this boat, it went up in flames and passengers were left with few options. and it started 20 years ago today. horrible murders of nicole brown simpson and ron goldman. remember the bronco chase and trial? after twep years, we'll look back at the trial and legacy of o.j. simpson s o.j. simpson. >> everyone forced to abandon a ship off of an island on vancouver, canada. two people and their dog escaped. no word if there were jurisdiction or how the fire started. >> it was 20 years ago today when o.j. simpson's ex-wife and her frien