i'm francine lacqua here in london.et's get straight to the bloomberg business flash in new york city. reporter: the biggest ever half-year profit for glencore. came in at 8.27 billion dollars up 23% from a year ago though that is slightly below analyst estimates. the world's biggest commodity trader said it will continue to focus on returning money to shareholders but it did not increase interim dividend or expand an existing buy-back at a time when buyers are paying out more to investors. disney's c.e.o. has given an upbeat view of his plans for a video streaming service and the $71 billion buyout of fox entertainment assets even after earnings missed estimates due to film writeoffs. bob iger said how he sees the deal. >> fox also has a significant stake in sky. the most successful pay television company in europe. the addition of these assets will enhance our position as a global entertainment company with excellent production businesses in markets around the world. >> they completed the largest public offering in tw

i am francine lacqua.cutives are suing for at least $2 billion and claimed the owners of a dating app are trying to cheat them out of a stock option. finger atpointing the the eu over the bridge disaster that killed 35 and the deputy prime year hinted eu spending limits lies at risk. has added tohaway its stake in banking and airline industry and china has said licenses among an agency shakeup and turkey has slapped an additional tax on imports for u.s. goods. just getting breaking news coming in from the u.k., this is what we look at, u.k. inflation data, significant and accelerating to 2.5%. not seeing how the move a lot. -- pound move a lot. let's get to the first word news. >> the turkish lira is trading higher this morning after rebounding 8% against the u.s. dollar yesterday as investors digest measures announced i the central bank aimed at stemming currency. they currency's official gazette has published goods in which additional duties can be imposed. it does not include mobile phones despite the p

i am francine lacqua in london.duct has returned to growth this year. -- prada has returned to growth this year. their shirts feature mash-up's. bloomberg.com. british billionaire peter hargrave was one of the financial backers of brexit, now he is fuming over how the eu divorce is being handled. the gulf between north korea and secretary of state mike pompeo over denuclearization seems to be widening. rick gates testified that he helped paul manafort rake the law. breakhelped paul manafort the law. let's get to president trump's former campaign manager. yesterday, manafort's right-hand man gates said he helped him break the law. the appearance by gates who pleaded guilty and is cooperating with special counsel robert mueller. we are joined by our editor who joins us on set. what have we learned so far? judge ise learned the running a tight ship. -- the prosecution is not through its case, it is obviously in the middle of questioning it star witness, rick gates. what we know is paul manafort, what we learned is he e

we bring you more about interview from francine lacqua. bloomberg. ♪ guy: 22 minutes into the markets. banks trading strongly in the u.k. and on the continent. mark carney says it brings it does not mean interest rates will be cut. speaking to francine lacqua for a second time since 2008. he played down concerns that brexit may be distorting. >> not if the situation changes. the important thing is that this is the right decision for the economy given the track it is on. there are obviously a wide range of outcomes that are possible. we all hope that, by the end of the year, we will all be much better informed on which fact that u.k. is taking. outcomes,ty of those they would be consistent with rates at their current level, if not higher. could be circumstances where it would make sense to adjust policy. but i think we all know what those circumstances are. and we will take them into account. say it isld you not sorely brexit would not automatically mean a rate cut? >> it does not follow. of circumstances like what happened post-referendum,

i am francine lacqua in london. forecasts were cut by analysts.ou cable tumble out of the european union without a deal are the concerns. sterling still has its challenges. at $1.40 is forecasted by the fourth quarter. -- optimismis nicholas: what we have learned with these negotiations is they go to the wire and beyond. october is not the real deadline. there will be a later deadline. before march. in europe, everything goes to the wire. you look at sterling fundamentals, the reality is the currency shall be stronger from where we are now. francine: my concern is we say 24th hour in europe, the concern is i do not know what the tory party wants. sidesls like it is both having times that are difficult and tumultuous. you could end up with any form of brexit. nicholas: the form of brexit you are likely to get is the soft brexit, which means on a 12 month view there a case to be bullish on sterling. the process of getting there has to involve stress in u.k. politics, particularly in the conservative party. it is not obvious the to getentary majority

francine lacqua in london, i am tom keene in new york.s sanctions yesterday from the trump administration moving the market, but it was a market that was already moving. what this this mean for the people of turkey? forget about the elites, madame lagarde, mr. erdogan. what does it mean for the people of turkey? >> if you want to find out what it means for the people of turkey, we should be looking no further than what is happening in turkish financial markets. the lira is extending its losses today. why it has done so is not only what happened yesterday when the u.s. imposed sanctions, it is because investors and traders are betting what happened yesterday in the risean end in tensions, but my signaled the beginning of further problems between the countries whose relationship is under strain. can the international monetary fund assist turkey? can they assist mr. erdogan? i suppose any potential assistance in the future would depend on a request from the turkish government. as far as we know, there is no such a request and no pressing nee

i am francine lacqua in london. check in on what is trending across bloomberg. with more airline passengers looking for low-cost carriers, rail operators could face a similar shakeup. old companies like these could soon face no cost rivals. on bloomberg.com, maersk spinoff of the drilling business, part of a move to focus on their core transport business. and our most read stories, in third place: draghi's at toolbox keeps the ecb call as turkey and italy's crisis raise on. second place, nvidia's gold rush is over, and on top, the u.s. says turkey could face more sanctions. find out more by logging on to your bloomberg terminal. but get straight to first word news in bloomberg city -- new york city. >> donald trump has prodded china to offer more at the negotiations table. that is as the world's two biggest economies step up efforts to head off a trade war. >> we are talking to china, they want to talk. they are not able to give us a deal that is acceptable, so we are not going to do any deals until we get one that

boe in her mark carney -- boe governor mark carney spoke with francine lacqua. right position for the economy given the track it is on. obviously there is a wide range of exit outcomes -- brexit outcomes that are possible. we all hope that by the end of the year we will all be more informed on what path the u.k. and eu are taking. in a variety of those potential outcomes, they would be consistent with rates at their current level, if not higher. certainly there could be circumstances where it would make sense to adjust policy. but i think we all know what those circumstances are, and at that point we will take them into account. francine: what would that actually meet with the rate cut? carney: it is a set of circumstances that what happened post-referendum, where the balance of what happened to the future supply of the economy demand, which was more of a business hit than a consumer hit at the time, and the exchange rate, the combination of those things make sense for us to extend the horizon over which we brought inflation back to target . it does look like th

i am francine lacqua here in london. you can see stoxx 600 gaining some 0.7%. there is a little buoyancy on the markets. first of all, i think out there on the markets, very our hopes hope that theis tree sanctions will ease. jackson hole gives us a little bit of a clue for the outlook of the markets. this is what the yuan is doing over in china, $6.8524. let's also check in on mulberry after shares to the lowest level since october 2010. you can see this all has to do with the troubles over at house of fraser. it is actually at the lowest since we saw back in 2010. coming up on "bloomberg surveillance," we speak with pierre moscovici, the eu commissioner. we will talk to him about italy's populists. that conversation at 11:30 a.m. london time. with get to first word news. markus karlsson. a path turkey maybe on for a 300 interest point rate increase. -- 17.5% i percent retail rate. it is trying to counter the lira slump without formally hiking. the rate was cut further to junk . venezuela has taken drastic measures to shore up its economy, and evaluating its c

today on "leaders with lacqua," we meet andrea illy, the chairman of illy.hank you very much for joining us. italian coffee has always been a thing. when did this coffee craze infect other parts of the world? andrea: as a matter of fact, espresso started to become global in the 1980's and 1990's. it started maybe with us, maybe, i don't know, because we started exporting italian espresso to the u.s. in the mid-1980's, and after that, there has been a big boom. i don't pretend we have been the trigger, but for some reason, we were there at that time. francine: do you know why? has the taste of people's changed? even london 25 years ago it was quite a tough -- it was quite tough to find a good cup of coffee and now every street corner has something good to offer. andrea: i would say the overall experience besides the taste. before that time in the u.s. it was not possible to get decent coffee out of home. even in restaurants, coffee was served, drip coffee for free. they didn't charge you. you can imagine the quality that it was. other than that, you could go

specifically what they are yielding, what it is essentially showing as part of the reason why we are seeing lacqua- lackluster pickup at the long it is because the blue line is close to the 10 year. even as inflation fears wane, we are not seeing a big pickup. the u.s. and mexico are close to the nafta deal on the auto's part of it. the deals won't be that far behind. i talked to the ambassador to the year -- to the u.s. early today and asked him if he's feeling optimistic. >> a think so. stopse had a number of and starts to the negotiation, the most recent being the end of we camed early may when reasonably close to getting an agreement. then the mexichem election is after that.agreed i thinke been talking we are pretty aligned with the americans on the approach to it. from what i heard, i spoke with them, they have been able to iron out a lot of the differences and still are some things and are still close. sense it was set aside until that was resolved. we are will resume the phone negotiations? if they can come to ground, after all, when you look at what president trump said about nafta and ha

francine lacqua in london. this is what we are seeing across the board. drifting a little bit of impact on euro dollar and getting earnings.d apple was a beat and what else looking at is japanese bonds anding sovereign debt lower markets trying to assess the china trade if there is escalation of tariffs. euro area data july manufacturing at 55.1 as expected and brex emember looking at brexit. we will look at shares surging beat estimates. we will talk to the acting chief exclusive or an conversation and air france gaining 6.6%. comi coming up we speak to the air talk chief executive and about banking landscape and markets markets. then we have another exclusive .onversation with the chief you can get questions for all tv go at ng the bloomberg terminal and hit the guest questions. we will go to bloomberg and new with taylor. >> the trump administration double planned tariffs on chinese imports with $200 billion of goods with levies of 10% ccording to the bloomberg source that could be raise to 25%. tariffs on a

lloyds has in short everything from space shuttles. , we looks with lacqua at executives in london.rancine: you became chief executive in 2014. was it easier or harder than expected? comment was easier to because people knew me from the past. for 36d in insurance years and i underestimated the impact it would have on people accepting me into the role. i had that respect and they said she knows industry so i had that respect and that made it easier. what makes it tough is the stakeholders. i had not anticipated because if you are running a market that so many people would be interested in what is going on and pulled in so many directions and it always reminded me of going into an old fairgrounds mirror experience we look into this weird mirror and it would pull you in directions, like this. that is how it felt. what are all these people? why have the interested in lloyds. lloyds is an amazing institution. it is global. it operates in over 200 countries. you have governments interested in it. you have businesses. you have scientists. everybody seems to be interested. that is what i an

nejra cehic in for francine lacqua. i am talking in new york.st interesting interview of the day in international relations. he is minister of trade and industry in johannesburg, south africa. rob davies understands capitalism emerging markets. he was exiled from south africa for 11 years. he is a member of the south african communist party. he joins us in representation of the south african government. is president trump threatening global capitalism? you have an interesting view on this with the decline of multilateralism, does the president of the u.s. threaten the capitalist architecture of the world? think he is doing that, but i think he is trying to rebalance the global trading system more in favor of the u.s. and industries in the united states. this is taking us along way away from what we in the developing world considered to be the agenda of the multilateral trading system, which is to introduce reforms that are going inclusive growth. he enables many of the poorer parts of the world to support the industrial revolution. i think that

i am francine lacqua in london.'s check in on what is trending across bloomberg. the oscars will at a new category for next year's awards, best popular movie. the ceremony will also be shortened in an effort to win back viewers. the announcement of new sanctions against russia for the nerve agent attack in the u.k.. and our most read stories, and -- new york has approved a one-year cap for licenses, and efforts to reduce congestion. in second place, the buzz is growing about the new film of singapore millionaires. and the mystery surrounding elon musk's plan for tesla enters a third day. read up on that using the bloomberg terminal. let's get to first word news. russian currency remains weaker after the u.s. says they will sanction russia for a nerve agent attack. expects the measures to take effect on the 22nd of this month and could be followed by a round of sweeping counties later this year. spy and his daughter fell seriously ill after coming into contact with what authorities say it was a powerful russian made

"on leaders with lacqua," we look at executives in london. today we meet the chief executive of lloyd's of london. you became chief executive of lloyd's of london in 2014. was it easier or harder than expected? inga: two things. a, it was easier than i expected because people knew me from the past. i worked in insurance more 36 years and i think i underestimated the impact that would have on people accepting me into the role. i had that respect and they said she knows industry so i had that respect and that made it easier. what makes it tough is the numerous stakeholders. i had not anticipated, because if you are running a market that so many people would be interested in what is going on, and pulled in so many directions, and it always reminded me of going into an old fairgrounds mirror experience where look into this weird mirror and it would pull you in directions, like this. that is how it felt. like, what are all these people? why have they interested in lloyds? it's because lloyds is an amazing institution. it is global. it operates in

today on "leaders with lacqua," we meet the chief executive of lloyd's of london, inga beale.ou became chief executive in 2014. was it easier or harder than expected? inga: two things. it was easier to come in than i expected because people knew me. i worked in insurance for 36 years. i think i underestimate the impact that would have on people accepting me into the role. i already had that respect. they said she knows industry, so i had that respect. that made it easier. but what makes it so tough is the numerous stakeholders. -- you arenticipated running a market that so many people would be interested in what is going on and pulled in so many directions, it always reminded me of going into an old fairground mirror experience, where you look into this weird mirror and it would do all sorts of things, pull you in directions like this. that is how it felt when i started. i thought, what are all these people and why are they so interested in lloyd's? lloyd's is an amazing 330-year-old institution. operates in 200 countries and territories in the world. you have governments inte

today on "leaders with lacqua," we meet the chief executive of lloyd's of london, inga beale.chief executive

"on leaders with lacqua," we look at executives in london.

francine lacqua in london and i'm tom keene in your. new york.ing must reads as well. here's "the new york times." pleading guilty, cut wood implicates the president. let's go to "the washington post." that maybe is the story for the president. finally from england, on the paper, don'sondon cons with a little bit of lightness this morning. let's go to the news. >> let's keep it with trump. he is shrugging off the conviction of his former campaign chair. rudy giuliani says a guilty plea by the president's personal attorney has nothing to do with it. it was a double-barreled blast the bad news for trump, . michael cohen pleading guilty to a crime. the case had to do with hush money paid to a foreign actress .nd former playboy model coul that's a big victory for special counsel robert mueller. duncan hunter is also accused of filing false campaign records. the justice department says the hunters used money for family vacations, tuition, and dental work. a spokesman called the charges politically motivated. the u.s. and mexico are moving closer to an

guy johnson, in for francine lacqua. give me an update on brexit.ing close to this critical september. is it really just about the irish border? guy: i think it is about that and a whole bunch of other things, tom. the irish border is a significant factor in it. i think it is a black box right now. we are getting into the final stages. at this stage, it is difficult to handicap what will happen. tom: we have a lot of news to talk about, but we want to get to jackson hole. on equities, bonds, currencies, commodities, range bound yesterday. curve flattening. that continues. it is not front and center at jackson hole, but a backdrop. of range bound activity going on and on the second screen, the idea of a vix at 12.6. confoundsnd at -- inflation. my id is japanese yen has had a weaker day, three days in a row with a 111 handle. your data, please? australia's got another prime minister. i am shocked. i think they have had seven in 11 years. in itslmost italian ability to generate new prime minister's. the aussie is rising this morning. italy's 10 year l

bloombergs francine lacqua spoke with iain duncan smith about brexit, boris johnson's controversial remarksch. >>with iain duncan smith about i think what business needs is to arrive at a conclusion as quickly as possible and then they can bank that. with respect to the markets, they have been forecasting incorrectly for a long time. if we were to go on with what the markets think the future looks like we have made a lot of mistakes already. i just noticed the second quarter data, growth of one point 4%, this was not forecast even seven months ago. that the u.k. was going to have declining growth -- even the governor of england got it wrong when he said the u.k. was at the bottom. my point is the more you talk about these things as though they are negative, the answer is the u.k. economy is more robust than the people give it credit for and these constant forecasts about the downgrade with the u.k. economy, when they keep getting beaten by the fact that the u.k. economy grows, today's sales were better than they were forecast to be. have toets themselves be more responsible about constantly

francine lacqua asks whether it would be risky to reverse course.es. the important thing is this is the right decision for the economy given the track that it is on. obviously, there is a wide range of brexit outcomes that are possible. endwe all hope that by the of the year, we will be much better informed on which path areu.k. and the e.u. taking. in a variety of those potential would be they consistent with rates at the current level, if not higher. certainly, there could be circumstances where it would make sense to adjust policy, but i think we will all know what those circumstances are. the mpc at that point will take them into account. would it automatically mean a rate cut? does not automatically follow. it is a set of circumstances like what happened post-referendum, where the balance of what happened to the future supply of the economy demand, which was more of a business hit than a consumer hit, if you recall at the time, and the exchange rate -- the culmination of those things made sense for us to extend the horizon where we brought infl

tune in later today for francine lacqua is interview with mark carney at 11:00 eastern. we will go over to nejra cehic with live outside the bank of england because we are two minutes away from mark carney's news conference. we have seen the statement. what are we looking for him to say? for thee looking forward guidance as always. what was surprising about today's decision was not the rate rise. that was fully priced in by margins -- all nine policymakers voted for that rate rise. we did see a little bit of a lift in the market. i think that affects stages a little bit. investors are really not convinced the boe will be able to stay hawkish and have more rates further down the line. one of the big questions mark carney is likely to face is the kind of had to raise today given the expectations. but what is the right decision? and we are going into the huge uncertainty of brexit and a potential downturn. that is a question that would come up. a question as well is this one and done? markets will be looking for guidance as to whether this is one and done and what the forwa

francine lacqua asked about his outlook for the second half of the year. >> we're going to see more volatilityect to see some pullback, but to finish the year up. >> but you are not predicting a recession, that would be the end of the cycle coupled with the central bank or anything like that? >> at this point in time, absolutely not. >> what do your clients ask of you? >> i think it's the difference between an economy and a background that is very buoyant, and markets which are a lot more volatile, and how do you navigate that? specifically in europe and in the u.k., events that are keeping this block behind the u.s. in the emerging markets. >> if you look at m&a in europe, how is that going? >> it is going quite well. people can extract synergies reposition their portfolio, improve their prospects, become more efficient by merging and taking out cost or refocusing the way they do business. that has been quite good, and actually, we are said to have a -- we are set to have a record year this year. europe in particular is driving that trend. so i do think the fundamentals are quite good. it's j

francine lacqua has the day off.tion this company will not be going private, we are down about 4% premarket this morning. we will see if the market firms when we get more volume in. it looks like the story that we seemst going to be seeing to be taken initially poorly by the market. thatems it was the market swung elon musk to keep this company in public company. for for bayerback and johnson & johnson blood clotting drug xarelto. a study found the drug did not prevent clotting in high risk patients after they were released from the hospital. bayer reported $3.7 billion in sales and called it a key growth product. johnson & johnson sells xarelto in the u.s. bayer has the rights to the rest of the world. uber ceo says the ride-hailing service will keep investing in new ventures. timesls the financial there is a $6 trillion mobility market and no one product is going to be serving a. he discussed uber's potential ipo. he says the trade-off is between profitability and growth. the world's biggest oil refiner posted reco

francine lacqua is off today.hat is different today is further waiting from president erdogan to just do something. what do you see this morning? nejra: it is extraordinary because we saw some moves from the central bank around liquidity. the lira trade is whatever. we have continued to see if we can. -- it weaken. the euro continuing its declines from the end of last week. tom: a lot this hour through television and radio on bloomberg surveillance. not just lira, but going beyond that story to the other ramifications for turkey, europe, and the global economy. right now, your turkey briefing with kailey: kailey leinz. more on that top story for you. to central bank is trying lower the amount commercial banks must hold with the regulator. it is also easing concerns for how banks hold their liquidity. the letter resumed falling today. russia is looking to protect its economy from new u.s. sanctions. the first deputy prime minister says moscow will cut u.s. security holdings and reduce its reliance on the dollar. th

i am francine lacqua in london. and check in on what is trending.t is tricky, but we have put together a pick your own brexit game. pick to see if you can get a good deal, pretty fun, actually. it is a hard game. saudi aramco is said to have put their ipo on hold. sources told bloomberg the oil giant is focusing on buying a strategic stake in a chemical company. in third place, the fed signals they are ready to hike if the economy stays on track. in second place, president trump --ies claims as scrutiny as on his campaign intensifies. on top, jp morgan dismisses hundreds of workers in their asset management division. let's get straight to first word news. donald trump has denied using campaign funds as hush money. the comments came a day after federal prosecutors claim some officials were aware. as statement contradicts guilty plea by his longtime personal attorney who says the president directed him to make the payments. >> later on, i knew. but you have to understand, what he did, they were not taken out of campaign-finance. they did not come out

francine lacqua has the dale spirit. the u.k.heir october deadline of reaching a brexit deal. both sides aim to finalize divorce terms by mid-november. it is an indication negotiators are struggling to make progress assurance it.k.'s has agreed to speed up talks. us, our politics reporter. what are the reasons this deadline is being pushed back? >> the main reason they are not able to agree to the divorce deal, northern ireland. they have a commitment to not have a hard border between southern ireland and northern ireland and they cannot make it work. toy were supposed to agree something at the june counsel and it looks like they cannot agree to something at the october counsel. they have to have a summit in september to make that work. kept: this is the worst secret, that the deadline is pushed back. has: this is the way the eu always worked on negotiations. things tend to go down to the wire. both sides are working hard and want to make the deal work. no deal is not in the interest of either side. the difference this time is th

also an interview with francine lacqua with the government of the bank of or of the bankern of england.m. u.k. time. this is bloomberg. ♪ g. ♪ guy: welcome back to the european open. 11 minutes left in the trading day. here are the stocks we are focused on this morning. rolls-royce is up 1.5%. estimates. beat earnings are at the upper end of the forecast after the ceo eliminated thousands of jobs in reorganized the business. jim w is down 1.9 tenths of a percent -- bmw is down 1.90%. still struggling even though it beat estimates. chinese buyers is what is this -- what this is about. china also put higher duties on suvs, the cars that are made in south carolina. barclays is up 3/10 of a percent. 11%.trading revenue was up i spoke to the ceo who said that -- who talked about the company. of the firste quarters where we are clear of legacy issues. there are no more restructuring or cost to achieve or legacy issues hanging over the bank. the bank is running free. point 4 billion pounds after-tax earnings. a strong double-digit return. there.eff daly a rare bright spot in july for u.s. aut

london, francine lacqua. fabulousrview was about getting through august.hinks will happen september 4? francine: i know what he wants to happen. he wants a brexit. says it would be under wto rules. september and to more news from theresa may. the other story is the bridge collapse. this is a market story. in the first hours after the italyy, the leaders of linking the collapse to eu spending, then a fight between the italian government and the company that has a highway license. we heard the procedure could be suspended. will not pay too into the contract, but could stop suspending them if it makes a commitment to rebuilding the bridge. terrible.mages are with your briefing, here is first word news. u.s. and china will resume negotiations in their trade dispute at a low level. chinese delegation will meet with the treasury undersecretary. appeared toons reach an agreement, but president trump backed away from the deal. it is an unprecedented act of retribution. the president revoked the security clearance of john brennan. he true a direct connection betwee

manus: one of the things that who carney focused on, spoke with francine lacqua and other agencies fridaye on fire in the u.k.. would you agree that it is not and that it is stymied because of the prevarication over brexit? jennifer: yes. i think that is almost certainly true. -- there is more uncertainty than anything else. it is hard to know what would have happened without brexit. but it's probably fair to say that it is having an impact. investment intentions are relatively buoyant. we are not too concerned about the outlook for the economy. anna: would a new deal -- would no deal resulted in a recession in the u.k.? jennifer: following the vote, there was an assumption the u.k. and thatp sure it away did not happened at all, in fact, continued to grow christ rally for a while. considerably for a while. systemly, the financial would be relatively well shielded, have enough capital to deal with the situation. but there may be other elements, for example, business investment, that will suffer a lot. i love what the telegraph road about mark carney. he is neither high priest of project f

governor mark carney spoke with our francine lacqua after the decision.bankers is never a great idea. i will not read too much into that. i think the important things from the decision today is we made the decision. appropriate to take rates and the mpc unified on that. secondly, that we do see requirement for a few more rate increases over the next few if the economy remains on this track, to be consistent with that. certainly, -- and we had an exchange at the press conference on this, but i think it bears repeating, which is that i think many in the market recognize that the equilibrium interest rates is lower than it was previously. in the view the mpc. there is a wedge between that overall level and where the equilibrium rate is in the u.k.. a lot of that has caused -- is caused by the uncertainty around brexit. what isu look at happening to business investment in this country right now. it should be on fire. it is just moving very tentatively. away that uncertainty, one would expect using business as an example, that they will adjust quickly to the n

guy johnson, francine lacqua is off today. dies in the u.k., and they do the half-staff, right? period whenas a this was a huge controversy over whether the queen would fly the flag's over buckingham palace or at some -- windsor half-staff. tom: interesting. justin trudeau agreed to continue what were called productive conversations entree. the two spoke after the president announced a new trade deal with mexico that would replace nafta. the president called on canada to join the deal soon or risk being left out. north korea has warned the u.s. that denuclearization talks are at stake again and may fall apart. mike pompeo abruptly canceled his trip to north korea. theresa may is signaling that a no deal brexit is not the end of the world. she told reporters on a plane heading to africa that the u.k. can still make a success of brexit it leaves the european union without a deal. lastly, the chancellor of the exchequer said a no deal brexit would add to government borrowing. house reversed itself and lowered its flag to half-sta

francine lacqua and tom keene have the day off. i'm nejra cehic.10-year yield. sayingimon saying 5% and the bull market will go on another three to five years. >> i thought i missed that. for 4% ande prepared 5%, and the bull market can go on for two or three years. nejra: people keep calling out this bear market. it does not come. it does not mean it is not going to come. what is going to trigger it? that 3% level is where we have failed to go beyond three times this year. that is where the market sees the feds neutral rate. let's get the bloomberg first word news. president trump claims he has the upper hand in the trade dispute with china. beijing does not think so. an editorial in the nationalist global times newspaper says china is prepared for a protracted trade war with the u.s. and ready to endure the economic fallout. president trump tweeted over the weekend that u.s. tariffs are working big-time. there has been a dispute between saudi arabia and canada, the saudi's suspending diplomatic ties. last week, the canadian ambassador criticized

. ♪ ♪ i am in london, francine lacqua has the day off. they have had enough after months of jabs from president trump. the german and french leaders called for greater autonomy from the u.s., taking on global responsibility for defense and creating a separate financial system. still with us, martin lueck of blackrock, looking at europe, is this an interesting proposition given the weakness we have seen, equities for example? martin: this is still one of the better environments for european assets because mostly global investors tend to be more willing to invest in european equities when we are risk on. if we are risk off, they prefer u.s. generally speaking. having said that, in the equity environment, the growth in earnings is so much stronger in the u.s. partly thanks to the tax reform that we are currently overweight u.s. equities and a bit more cautious of the european backdrop. because there is a shift in the contribution to global growth compared to last year when the u.s. was closer to 3% whereas europe would probably coming nearer

i am francine lacqua in london.here is one of the story in town, and all to do with the turkish lira. after we saw a record low, the lira is still falling. turkey is trying to grapple with its market route. -- rout. we heard from president erdogan earlier today that they should not panic. he said not to forget that we have got our people, our right, our a la -- allah. and the back to markets bloomberg business flash. teslas aboard is forging ahead with its review of elon musk's bold and ambiguous give it to take the carmaker private. directors plan to meet and tell the founder to recuse himself. that is according to cnbc. was of interview, the ceo of softbank's of reports that his company had held talks about helping with the plan. in deutsche bank, christian sewing is going back into growth mode and one specific business in which there are pretty much no hiring limits. the private bank in asia is still recruiting after brady on board 100 relationship managers and support staff. they told bloomberg quote i do not th