kriti gupta, thank you for the latest. 2:30 p.m. u.k.e, the boe's huw pill, the chief economist, will be speaking. there seems to be some consensus formed, may be moving towards a consensus that maybe august is in the cards for the boe in terms of its first rate cut. interesting to hear from huw pill later today. 3:00 p.m., you will get further testimony from the fed chair, of course jay powell. we will see if he does get pushed on that timeframe for rate cuts in a more kind of substantial way. at 6:00 p.m. u.k. time, there is a u.s. 10 year bond auction. that's after an option that came through yesterday. it was well received by the markets. we will see if that holds up later today with that 10 year bond auction in the u.s. coming up, volkswagen hitting the brakes. we take a look at why the german car giant is cutting its margin guidance. that is next. this is bloomberg. ♪ ♪ tom: welcome back to "bloomberg daybreak: europe." a redhead crossing the terminal. this is reporting from the financial times that microsoft has given up its obser

for now, kriti gupta with us in the studio. talk to us about what you know so far. kriti: the new york times report suggesting that he was weighing jumping out of the race. a couple minutes after we got the tweet from andrew bates. he says, the claim is false. that will be the latest we've heard from the white house in terms of pushing back on that report. we know that president biden and kamala harris have been on calls with the democratic national convention committee. paris has met with some of her donors in the past as well which has been interpreted by the media as her being the front runner or simply rallying behind the funding for the biden harris ticket. that is sosa -- so far what we know. president biden has been consulting his inner circle about what is best for the democratic party. you are seeing schisms within the party itself. the one united goal is to make sure this is not a trump 2.0. president biden has actively said that he's considering what the scenario might look like for him to drop out. cnn reporting the scenario would mean polls are plummetin

let's bring in kriti gupta.pening trade markets in terms of how we adjust to this and the expectations around what this means for the democratic party and the election in november. will start their terms of the potential response from the democrats and what it means about a potential vp pick as well for, harris if she does become the nominee. weiss if she becomes the nominee, the clock is ticking. not just for the democratic national convention because of the virtual rollcall that is expected to come in the first week of august but the first reason this is so crucial is because they're coming up against an ohio ballot deadline and that is what the potential vice president that casted now meet and that is why the clock is ticking. just appear is one of the candidates. if you look at some of the polling, this is what -- with the democratic strategy really matters. we are also seeing it in likes of pennsylvania where josh shapiro is the governor. trump has the biggest lead among all the swing states there. the demo

let's get more with bloomberg's kriti gupta. what have you been watching over the weekend? where do we stand right now? kriti: it's all about what comes next. you are seeing a real concern around president biden that this concern is not new. it is just ramped up in the face of that debate but remember, even when he was talking about being reelected, there were already concerned about his age and mental well-being. he said, i am not a young man anymore but i can do this job and that seems to have rally to some support. he immediately went to new york and new jersey for a round of fundraising. first, it was meant to be a kind of victory lap but it ended up being kind of a fundraising squeeze instead. you are starting to see not only bite in reinforced his campaign bid but some of his allies reinforce it as well. they are still rumors and whispers that the likes of kamala harris, gavin newsom, josh shapiro, some of the other prominent democratic governors in the country may actually be a better bid this time around but there's no precedent for it. it's only been two times in hi

let's bring in kriti gupta for more. we've been hearing about trump, what stood out to you? is covered -- it covered everything including his policy. what comes to mind is tariffs and 60% cherubs -- tariffs which would cut china's growth rate in half. it applies to europe. the former president this goes back to centuries like the mckinley tariff. back then they were talking about reducing tariffs on american exports after american independence. he is applying that now to have an equal playing guild between the u.s. and rest of the world, making sure america is competitive and money fuel things like the deficit. there are more pressures from the heritage foundation, pushing for eliminating medicaid or food stamps. these are things the gop is including to save finances. tom: eliminating food stamps but pushing ahead tax cuts for the wealthiest. kriti: trump does not endorse project 2025 but he talked about an extension during his first term. that was a direct thing, it would cover corporate taxation like apple from his first term, repatriating money. he says jay powell is safe

in isolation for a covid-19 infection at his delaware beach house and we can get more now from kriti guptai do wonder if biden can be afford to be out sick this long and the health of the campaign given the state of his health? kriti: the health is, of course, a number one priority for the campaign, for i would save the entire country. on top of that, he's also dealing with calls to step down altogether so this does not help any concerns about his mental acuity. the developments you see in the last 24 hours really is your starring to see more senior officials. the latest report coming out of the washington post is that president obama himself is talking to some top democrats and pushing them to kind of convince president biden to step down, simply because they believe he does not have what it takes. this adds, of course, to the chorus of nancy pelosi, chuck schumer, and hakeem jeffries, and the most senior democrats in the house and senate. now you are also getting more and more people speaking from the senate as well. this is three people in three pieces. we did not actually see that kind

kriti gupta has more. what is the rationale for this?hat does it mean on the back of that disastrous debate for the president? we know that internally they have been talking about possibly replacing him, a lot of voices coming out and behind the scenes as well, but now they are footing -- they are putting out this date. kriti: it seems like they are pulling forward the date but in actuality this has been going along -- going on for a while, particularly because of the ballot decision-making. to get on the ballot in november you have to meet certain qualifications and you have to do them or file for them in certain states in august, so north and south dakota, august 13 and 14, ohio august 7, so the party newly would have to decide on a nominee before the ballot deadline even if it was preemptive to the actual democratic conviction itself -- convention itself. this was not an issue when biden was the presumptive nominee and still remains the present of nominee. the date and time me -- and the timing did not matter. however, now, it seems l

kriti gupta is always a question u.s.. say to my face.e come through from, harris. the mood has been electric according to the people on the ground. place that is the fear especially in the face of confidence she is showing. her critters was that she can show the same confidence. that is where the momentum is coming from. it is a couple of kama harris. they saw the last time she ran for president. the swing states are what matters compared to her predecessor, joe biden who was lacking at a two deficit. , harris is now being donald trump to your point. it's physically welcome to arizona and divided. two states very important for the international audience. arizona despite having senator mark kelly and a potential vp contender for, harris's campaign is largely a republican state. they have a lot of energy infrastructure. they've been one that is a red state. that flick in harris's failure and that is a big to. nevada has always been it emphatically state but to your point, this is largely thought of as a honeymoon phase and that is why sept

tom: bloomberg's kriti gupta with the latest indeed on the thinking around biden.ecision has been made. indeed. two other stories making the news. jennifer has a roundup indeed. jennifer: u.s. economy is expected to add 218 thousand jobs for the month of june as unemployment remained at 4%, the labor market is nearing an inflection point ahead of rapid deterioration. bloomberg projects unemployment will reach 4.5% by the end of the year and the fed will cut rates in september followed by a cut in december. christine lagarde says european central bank would require reassurance that inflation is headed to the 2% target before it lowers interest rates. the ecb president urged officials to remain alert saying data on wages and profits should enforce confidence that consumer prices are going down. officials signaled no rush to follow a reduction last month with another. the owner of saks 5th avenue is acquiring neiman marcus group in a deal uniting two of america's largest department chains. amazon and salesforce will facilitate the deal by hudson bay and the companies

let's bring in kriti gupta. what a tough moment for president biden. he just can't catch a break at this point. >> there's a lot going on. the bigger ones are coming out of of the three biggest policymakers from the democratic party. really pushing against president binder take a step down. these are three people who haven't really probably spoken about his health or even some of these calls really rallying around his party. they are reporting that members like nancy pelosi, chuck schumer, hakeem jeffries, the former speaker of the house, the senate majority leader and the senate -- house majority leader are trying to get rid of some of the u.s. politics jargon. three of the biggest players that have not been vocal about his needs to step down. see him winning the election against president trump. they are now rallying around that very case. this is something president biden has turned around in terms of some of his own rhetoric. he said that if a medical condition were to rise, he could see himself being a transitional president and ending the baton o

. >> good morning, i'm in with kriti gupta. market cap affirmance

kriti: good morning from london, i am kriti gupta alongside tom mackenzie.anies on both sides of the atlantic are coupled with the right out of the federal reserve, boe, and boj.

kriti gupta. terms of tesla, it's a challenging story it's hard to describe tesla as an a-plus, student. four straight quarters of disappoint profits what were the key lines if you? kriti: we think of them as a a, b company. you had headlines that tesla had lost a market share. they're dropped down to 50% of. v.'s in the state. so see this as a disappointing numbers is pretty telling but the reason tesla stock keeps rising and hasn't on the long-term is because there are new projects that keep getting introduced. a lot of the focus is when does that introduction show up? they pushed it back to october. more announcement and clarity was expected and they didn't get. that tom: if it comes through in october. we've seen this before from elon musk purke out the time frames. thank you very much indeed. the opening trade now to u.s. politics. kamala harris has launched her presidential campaign with a rally in the swing state of wisconsin. harris out the her economic agenda and attacked donald trump ref

for more, let's bring in bloomberg's kriti gupta, thank you for joining us in the studio.us through what this package means. there's been a flurry of announcement in tears -- an air defense systems. what are the consequences and the implications, how significant is the support? likes in terms of actual machinery deployed to ukraine, put this in the context of the previous things that have come out. $60 billion of ukrainian a relative to 220 5 million specifically from the biden administration using a levy that is only used for executive powers. in the broader context, it's far more symbolic than actually helpful when it comes to that ukrainian a story, but it is crucial when it comes to what volodymyr zelenskyy was asking for, which is the air defense story, pushing for more fighter jets. not to mention, some sort of similar to an iron dome defense system, one that would be able to target and detect any russian missiles coming into key for other parts of ukraine, then target them before they even hit the ground. that's something he has been campaigning for and something th

francine: that was julianne smith speaking to kriti gupta. ross matheson joins us now.1.1 million questions. if all that anyone is talking about is a donald trump presidency, what does that mean for nato? is he trying to renegotiate funding? it will be interesting to see nato in europe cope with a potential second donald trump presidency. >> biden has threatened to for funding from nato. he has also threatened to not support nato countries if he thinks they are not doing enough to pull their weight. does he defendant country collectively but not you? in the end does it destroy nato from the inside out? that's a big western for the collective defense idea of nato in europe. fundamentally, a donald trump presidency could be significant for ukraine directly but also for nato as a whole. francine: there is a big nato summit coming up in the u.s. with all the talk of joe biden needing to step down. what do you make of that timing and if you can stay on and what it tails? >> there's a lot of unknown unknowns with a lot of narratives around the future of joe biden as the democ