tom: let's go to james athey at aberdeen asset management. are you exposed to this? lantes like you exposed to this or does it come in september after your a week vacation? james: i wish i had an eight week vacation. is that just for you, tom? only tom keene at bloomberg. it does tend to drag in terms of kerry. we have been short since february because we saw the future as to full, and election with -- to full, election -- no good, election with outcomes. the market will not accept lower price of italian risk than that 90 beid. ecb that for political reasons is having to stop purchases. why would you take on that tie in risk at this level? francine: let's remind yourselves, the coalition is not exactly stable. they disagree on what they don't like, but they don't really agree on what they want to do together. kallum pickering of berenberg, james athey of aberdeen asset management will stay with us. this is bloomberg. ♪ ♪ tom: good morning. "bloomberg surveilllance." thrilled you are with us this morning. we need to chat on brexit. francine, bring us up to speed. franc

andl with us is james athey christian keller.e had stars in their eyes at jackson hole as jerome powell spoke. james, you want to focus on what bloomberg is calling the financial stability star. a different picture to the neutral rate? james: yes. i read that article a few days ago and it was a bit of a hallelujah moment. to me it is a philosophical question. this is not about the academics ,nderlined, the economic theory this is about the notion of making decisions under uncertainty. what you can and cannot know. what we have seen in the build up to 2008 is that inflation is not a sufficient measurement of the potential for instability to build up in the system, potentially -- particularly in financial markets. i find it difficult to separate the notion of monetary policy and financial stability. they are two sides of the same going. you cannot achieve your monetary policy goals if your financial stability is uncertain. jerome powell is a shift away from a very academic approach from one that is more pragmatic and holistic. nejr