manus: and i manus cranny, safe in the studio.ou are in for a rough and tumble week in westminster. what can we expect? theresa may has got to go to her party and explain herself. anna: yes, indeed. the first place, the cabinet meeting. we heard from the former counselor george osborne, enjoying his new role at the newspaper, describing her as a dead woman walking. within the cabinet she has been giving some support -- boris johnson denies he is planning a coup, liam fox speaking favorably, but she is sent to promote some political rivals so we will see how it turns out. the key question is how will the talks go? there was chaos over the weekend about whether there would be a deal. no deal has been done yet, so we will continue to talk about this into the rest of the week. from the moment, what else is happening? manus: the reality of what is this makes of this -- what do business makes of this, the potential hung parliament, thi s is how businesses are looking at the situation. they are more pessimistic now as a result of this co

i am manus cranny.t a day it has been in terms of data from japan inching higher in terms of inflation, what is happening with the pick japan's target, what could change. matsui joins us later on. let me bring you to the concept that is becoming very real. volatility is going to take along at the bottom of your screen. along at the bottom of your screen. we closed at 40% on the day. volatility is pounding along on the asian session. you see asian topics volatility rising as well. of technologyh flu, or is it the great rotation? months to theix day since donald trump has inaugurated. what is it achieved apart from a great dissipation in terms of some of the biggest blockbuster trades? blue line, bottom of the screen, bloomberg dollar index down 6.7% so far this year. this time last year, we were down 3.8%. the phoenix offense. -- ascends. i am talking about not just the euro but the mexican peso. undoubtedly, the mexican peso was the return of a carry trade in splendid formation, up 19%. the question for

manus? manus: thank you very much. in addition, he is also been may,g of ditching theresa the prime minister. he wants to be the custom union. getting on with the job and formidably a good time minister. the holy grail for middle torilla says it's david davis who was one of the major pushes behind theresa may, calling this election. how is that going to sit with the democratic union? they don't want a hard border between northern ireland and the sides of ireland. of prot brexit, but they don't necessarily see that situation. we don't know what their position is on brexit or what it will be after tomorrow's meeting with theresa may. let's talk about her. she is going to face serious lawmakers. the core of her party, it's a showdown that could signal the end of her premiership a day after she was forced to promote prominent brexit hardliners. this is her clinging to power. let's get over to anna edwards. very good day to you. for therooted in there long-haul, you might never be back here. talk us through the changes. we

manus: the u.s. investigation into russian election meddling is set to widen, looking into whether the president's limited -- attempted to slow the michael flynn probe. ♪ anna: a very warm welcome to "bloomberg daybreak: europe." our flagship morning show here in the city of london. --us: she finds the story the fed told us what they're going to do incrementally about the balance sheet but what is the dollar more focused on? it's down 6% this year. it's focused on this, the economic surprise index in the united states of america is careering towards zero. we have not seen that since the president of the united states was elected, and there is your dollar index, giving it all back. what is the dollar really focused on? anna: focused in the longer term around this. the dollara boost of around what the fed did but that was only after it sold off inflation earlier in the day. that astalk more about we go through the program. there are stony -- some another stories we want to get to as well. the msci he's

manus: a pretty bad outlook.ective is, where waiting to see what changes are delivered. even a warning shot to capitol hill saying the markets have they did in this big fiscal reform. how worried should we be about the lack of delivery on reform and consequential markets? we should be worried about the lack of delivery in the sense that it shows a dysfunctional relationship between the president and the congress that has its own party and majority in both houses and it shows a disdain for economic facts as voiced by the omb director mulvaney about the cbo scores on the health bill, for example. markets andss both responsible people of both parties are not going to stand up with that. , probably as negative surprise for equities that have been counting on some of these tax issues, but it also thes, to start with international aspect, there is a congress confronting the president and the trump domestic taxn on issues and put some limits on it. but he can break a lot more things and that will upset markets in the co

manus? manus: thank you very much.verage price that they are going to get the market is 50.113, the closing price is 50.47. the bidding will start on that. let's talk about one of our business stories in the business community. donald's decision to ditch the pairs climate accord, while disney ceo bob iger, elon musk, they both quit. they went to twitter. this is the first time that he has expressed a tweet and his disapproval and it read this, today the decision is a setback for the environment, u.s. leadership, and for the position in the world. for more, let's bring in our renewable energy climate change reporter. she's here standing by in beijing. let me turn to you first of all. quite a buildup. ,he question i think for us is is the reason behind trump's decision to pull out, how valid is it? droplks about a 3 million in gdp. 6 million jobs might be lost. he didn't say it was over the next tory five years. -- 25 years. the question is, is it a political decision or economic decision? killing jobs in the u.s. indust

manus: perhaps a shift in gears in trend. the s&p 500, buybacks in the stoxx 600. you made the point correctly. what extent will we see a cultural shift? less in theueur, u.s. historicallys. with no share buybacks with -- have been an important tool in terms of the capital allocations toolkit. in europe there is more focus on dividends. share buybacks are getting used more as a tool and for activist investors it is part of the argument. european balance sheet is indecent shape. manus: your -- you were in the by we talked about phillips news. to a certain extent, they're going to be forced into using capital and share buybacks .ather than is it trying to we a pod i use the cash in my balance sheet? seeard: we want to companies using capital in the most efficient way. it can be m&a, buybacks, internal investment. since phillips announced the m&a deal and that is their focus, the country has changed its spots quite a lot. from electronics to a health tech company. manus: a couple of other lines coming you -- coming through from

manus: stephen gallo stays with us.nna: we'll bring you that exclusive interview with david lipton at 8:30 a.m. u.k. time. what will be said about china in that conversation? that will be interesting to watch. were contending to monitor the far that's engulfed a tower block in west london. eyewitnesses are claiming people are trapped in their homes. around 200 firefighters and 40 fire engines have been tackling the blaze on the lancaster west estate near notting hill in west london. emergency services arrived at the blaze at about 1:15 a.m. u.k. time. this is bloomberg. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. bui

manus: welcome to "bloomberg daybreak: europe." been a reset in the rulers of the rate world, sending clear messages. our thinking is changing and our agenda may change. the ramifications have been quite significant in the bond market and in the fx market. is mark carney back to being an unreliable boyfriend? all those clichÉs were being used yesterday. or is he saying, i'm still waiting for the data, i voted not to change things, and i ofyed put in the middle june. i want to see more data. but of course he did change the nuance and the tone. line, someller removal of monetary stimulus is likely to become necessary if the trade-off continues to lessen. the risk, the report. the reward is if you were long , sterling has risen for seven straight days. we've not seen a winning streaks like this since april 2015. the rate rulers are rewriting the expectations in the pound and canadian dollar. repricing, august as a live event. that saying by the end of 2017, the probability of a rate hike coming through from the mvc by the individual o

manus: i am manus cranny here in the city of london.outside the houses of parliament, where as of yet, the debate will rage as to who will head the next government. theresa may has blown it. this was an election that she did not need to call. that is the question with markets. over theon, we are all election. in a is at westminster, guy johnson is on the markets, and matt miller is on the trading floor. anna, let's bring it straight to you in westminster. a hung parliament. we have spoken to a number of people who are saying, we could be facing another election. my question is, do you think at this stage, there is any way theresa may can last? it is a question of how long she lasts, that is for sure. we don't know the exact specifics of the selection. looks like the outcome is the conservatives are being supported by the duc. that is the working assumption that people go on here. does that bring up the coalition, is this some sort of confidence or supply arrangement? we will see how this works out. who will lead the conservative party?

i'm manus cranny. we have a great show for you today. we have a couple very interesting conversations and these gentlemen will join us. at 6:30, we speak to the ceo of allied irish bank about the company's ipo, which seems to have gone so far, so well. and then we will be speaking to colum eastwood, getting his reaction to the deal done between the tories and the d.u.p. welcome to daybreak and the markets. it comes to talking about bullishness, have a look at this. chart number 461, just closing in the green. but there is an uneasiness in the market. the citigroup sentiment indicator. when it is in the bearishness, it is in the red. this indicator shows the growing divorce between bearishness and where the s&p is. that gap is widening. being in the s&p is not the most crowded trade in the world. the net long valuations are pretty close to neutral. they raised their cash allocation. those are the uses of the terms bullishness and bearishness, and look at the gap. mind the gap, the message from the markets. you have this nice move in some

manus: anna, join in.nna: kit, i noticed you said the possibility of a labour led coalition that could trigger a much softer brexit is not being considered yet. on the one hand, the narrowing of the polls increases uncertainty. on the other hand, the narrowing in the polls perhaps suggests we get a different brexit outcome. out of the market deal with those conflicting messages -- how does the market deal with those conflicting messages? kit: i think uncertainty will rule. there is not much to make anybody enthusiastic about the gilt market in the very short term. the currency market started from the position where the pound has gone down a lot. you probably saw some of the shorts rebuild in the second half of last week. we don't have much data. and the real problem is, what we know is those are the parties that say, we are going to revisit this. the labour's position is, not quite brexit means brexit, but we are still going ahead with this. if you are not prepared to go back, trying to be part of the sing

manus: absolutely.ty little secret about the economy -- today, we had a conversation with the jpmorgan ceo. the says america is falling behind its competitors when it comes to construction. speaking exclusively to bloomberg's stephen engle, he says he wants to see more development in the u.s. >> we haven't built a major airport in 20 years. i am told it takes 10 years to get the average city to build one bridge. we haven't built a bridge in new york city -- more than 50 years. i just came from hong kong, it's embarrassing. america should get back to holding, -- to building, permitting, requirements. that can do attitude about infrastructure. it's our country and we are getting behind and we shouldn't. anna: jamie dimon talking about u.s. infrastructure. our guest is still with us in the studio. lena, it's embarrassing, apparently, the state of u.s. infrastructure. this sounds like a big win, potentially, for the trump administration, if we could improve infrastructure. >> well, this is the build a presi

manus: you're talking about the trichet missteps.rch, money is flowing into the euro, this is the story that we look at this morning. this was written up by deutsche bank. a flow showing but and analysts are getting worried. why are they getting worried? anna: going back to a model that deutsche bank has in this case, the correlation model so it in lutes interest-rate differential and relative performance of equity market, all these things that should link to the trade. the euro seems to have taken on a life of its own ignoring some of those more fundamental moves. michael: the euro is kind of two ourng at the moment in france we run a neutral position, if you put a pistol to my head i would say there is the probability we get a bit of correction. i think mario draghi will make those changes, that you imply before and they will take out the market has been well prepared for that. without preparation the market might shoot up but the market is very prepared. you will speak about the low core inflation as well. those things that are ha

manus: u.s.sident donald trump will outline his infrastructure plan which and additional funding for projects, according to a preview of the speech provided by the white house. the aim is to deliver a trillion dollars in infrastructure to fix america's crumbling roads, bridges and other assets. the trump to save train, a trillion dollars, i can hear the rhetoric. any, for usin, does to believe and reconnect with the trump train. it is looking a bit stale. i say that because yes, he can get through his infrastructure's bending ultimately and maybe in the autumn he can get through tax reform, but the part that markets are turning their back on is the dark cloud of protectionism. he said nothing to suggest he's reversing his plans to step on tariffs and trade rigid -- trade restrictions. it's one reason why the fed cannot go as hard as markets expect and not close to the 3% heat rate they had. anna: you mentioned protectionism and what he has not said since the election. some voices would suggest th

manus: i'm manus cranny in london. the question is of course, today is a critically important moment for the union. i am talking about the democratic union party from northern ireland meeting theresa may today. this is the linchpin of forming good government. anna: yes, indeed. can theresa may get those 10 mp's on site? she will need them if she wants to get her more controversial policies through parliament. northern be seen in ireland as a once-in-a-lifetime opportunity for northern ireland to influence the policy agenda, perhaps taxation and investment, and also influence the brexit conversation because they also wanted something that could be seen as a slightly softer brexit in terms of keeping open trade relations and keeping open the border between the north and the republic. we will talk all about that. we have a great guest to talk to us about that. theresa may, focusing in on this d.u.p. meeting, after that mea culpa yesterday, where she took responsibility for the mess that was created around the election. ma

manus: relative to the european story, you can see 40% at ven eto.say, it is nearing the end of the issue for italian banks. stephen macklow-smith stays with us. line in terms of money to keep the european banks and business. this is bloomberg. ♪ >> the dollar is. and there is a little bit of an update for you. ande is the dollar-yen small games for the dollar. let's put the markets into context. good morning to you. and weis is interesting are looking at how this will develop through the day. up andtish pound is there are interesting lines talking about what is happening. up righthe ftse 100, now and the pound is up and that tells you that some european markets might do good. dragound has acted as a and the trend lines are interesting. you see the index here and the trend line still remains in place. we have not broken that. there are some interesting trends happening to keep an eye on. as pointed out this morning, will this be a lead indicator or an anomaly? if this was going to break above, would it act as a catalyst? we will keep an i on this and

angie: manus. manus: let's see what shape this takes.h you both, david and angie in asia. i am manus cranny in london. ♪ manus: the election gamble backfires. teresa's made future as you k's u.k.'s prime minister. a hung parliament. >> this country needs a period of stability. if, as the

the centre of manus island is set to close in october.deal by donald trump, with america, to potentially resettle some, if they get through the extreme batting position —— vetting procedure. but for those who do want to go home, this money will be key for some of them, because some are still being detained on manus island. thank you for that, hywel griffith. there have been further demonstrations in the venezuelan capital caracas, as the country's economic crisis deepens. an unprecedented number of people are thought to be facing hunger. the country should be one of the richest with one of the largest oil reserves in the world. the international media is rarely given permission to enter the country, but the bbc‘s vladimir hernandez has been there. his report contains some images you may find distressing. this is angelie, she's eight years old and weighs barely three stone. which is 60% of what she should. this is an oil—rich nation, now unable to feed its own people. this is a problem that the government is trying to keep out of sight. th

that manu just talked about. the motion to proceed. the senate vote allowing them to debate the actual bill. it's very much an open question if they have support for that. five republican senators came out against it. rime told the president, the white house, the legislative staff here, is reaching out to those conservative senators. urging them to stay onboard with this. reminding then it's a republican priority. a priority this republican party has talked about and worked for, for almost a decade, actually, wolf. and something this president, of course, ran on. i'm told they are not pressing for a hard and fast deadline. while the president has had many conversations with senator mcconnell, obviously, they would like to see a vote this week but are not urging a hard and fast deadline because they're not simply sure if they can get that actually to happen, but the president's schedule, wolf, is pretty much wide open the rest of the afternoon, for most of the afternoon. that is by design, i am told, to reach out by phone, in-person mee

also, manu, what more are you learning? >> reporter: that's right, senator richard burr, chair of the committee, said he did have a conversation with robert mueller, the special counsel, about the special counsel's investigation in an effort to make sure that their investigation can move forward in the senate. counsel can also move forward, burr saying earlier to our colleague jeremy that he's confident that actually they can get access to those memos written by fired fbi director james comey about his interactions with president trump. now, this comes as a committee is still looking into the issue of collusion. if any collusion existed between russian officials and trump officials, there is a question that is still outstanding as they try to interview some trump associates and dig through records that are being provided to the committee. richard burr addressed this just earlier today. >> do you believe you are any closer to the question about collusion at this point? >> i would only say that there have been comments, publi

it back to manus. all the breaking news as it comes through and the charting functionality as well. if you want to ask the guess the question, tell us your thoughts, send us some cool charts, press the button down there. it is a multifunction button, but it allows you to get in touch. we have the draghi peach coming up later -- speech coming up later. there is more functionality as well. up next, a secret recording leads to the president of brazil being charged with corruption. michelle temer, and what he is accused of. this is bloomberg. ♪ guy: 13 minutes into the cash session for equities. let us take a look at where we are for the markets. pretty much as anticipated, softer, but not by much. ftse 100 outperforming only by a tiny bit. jack's, cac down .4%. doing reasonably well. that's used to be a china story. morning,inors this that will be of interest to anybody invested in brazil. brazil's president, michel temer, has been charged with corruption in the latest of a scandals. this sounds remarkabl

let's begin with manu raju. new questions to face the director of national intelligen intelligence. >> reporter: no question, john. in fact, dan coats was already expected to get a lot of questions in light of revelations from last month that he was asked by the president to publically rebut these reports about collusion that may have occurred between the trump officials and russian officials and remember when he testified last month he did not reveal anything before a separate committee. but today at today's hearing democrats believe that they may actually reveal more about those interactions. this also changed since last night's revelation from the washington post that actually the president asked dan coats to intervene with james comey and asked him to back off the investigation into his ex-national security advisor michael flynn. now, those questions are bound to come up at the beginning of the hearing today when mark warner, who is the top democrat asks questions after richard burr, the chairman of the comm

we begin with new information about flynn's russian connections with manu raju. manu is at capitol hill. a very big letter here from the democrat on the oversight committee. why are these trips that they are saying that they failed to disclose or disclosed details about so important? >> reporter: well, there are two trips that are taken to the middle east by mr. flynn, including one trip in which it involved the building of nuclear power plants in exchange for $100 billion in arms that we purchased from some of these middle east countries, arms purchased from russia. this is something that russia apparently was involved with, according to this report from newsweek that these two members of congress are particularly interested in. there's elijah cummings of maryland and elliott engle of new york asking the attorneys of michael flynn to provide more documents. this comes after enormous scrutiny for michael flynn for not disclosing not just these middle east trips but other trips he's taken over the years, including trips paid for by russian-backed entities, includi

all right, man mew raj. >> you manu. joining us are chief political correspondent dana bash, chief political analyst gloria borger. legal analyst michael zell din and former cia intelligence officer david priess. dana, the frustration level was intense >> and understandably so. i don't remember ever seeing anything quite like this. not that we haven't seen hearing after hearing where witnesses didn't want to or didn't feel that it was their responsibility or appropriate to give a response. but nothing at had level when it was very well-known that this is where the panel was going to be going with these two witnesses because of the reporting about the fact that the president allegedly the president of the united states asked hem to see what they could do to intervene in or stop or however it was that he apparently phrase the conversations, the russia investigation. and the fact that they were so -- there's no other way to say that. >> how do you spell that. >> they didn't have a real answer except for it wasn't appropriat

guy: manus, thank you. manus mentioning what is happening with the financials. can see what is going on here on bloomberg. he is also hours numbers this morning. the market finds these favorable. up 4%. strongly.g glencore, rio, anglo-american, all trading strongly this morning on the back of this pickup in commodities. intoe seeing it reporting the european space. european markets on the front foot. the aware of that. why is that significant? a bunch of the stocks are london-based. stocks tend to go ex-dividend on the third day. s rolen to the downside. next group, ex-dividend. a bunch of these names all the way down here are going ex-dividend. ignore those. the real story is on the upside. the dividend story out of london is something to pay attention to. matt: absolutely. i want to pay attention to central banks after a little bit of chronic confusion. i week after signaling near zero interest rates, the bank of england governor suggested yesterday that the time is nearing for a rate hike, sending the pound higher as we have seen in a few charts. comments fro

cnn's manu raju has the latest and joins us once again from capitol hill. manu, the democratic members of the house oversight committee, what are they saying about the former national security adviser and the president son-in-law? >> they're saying, why did they maintain these security clearances when there are clear regulations that say if someone has some serious allegations raised, let's say they may not be fit to receive classified intelligence, that their security clearance should be at least suspended, while an investigation takes shape. and that did not happen when mike flynn, when sally yates, the acting attorney general raised serious concerns to the white house council of don mcgahn, on multiple occasions, saying that michael flynn could be susceptible to russian blackmail. he still maintained a security clearance for 18 days, attended classified briefings. and also jared kushner, they're pointing to his number of meetings he had with foreign officials, as well as at least four meetings he had with russian officials during the campaign and during

new to cnn now to cnn's manu raju on the russia investigation. democrats are demanding documents be turned over regarding jared kushner and michael flynn. what are you learning? >> reporter: well, don, what they're pointing to are regulations that actually govern how people with access classified intelligence, specifically when there are concerns, credible concerns raised about someone's fitness to obtain classified intelligence that says they should actually have their security clearances suspended while those credible allegations are investigated. now, as we do know, michael flynn, the former national security adviser, was -- there were warnings from sally yates, a former acting attorney general to white house counsel on multiple occasions that michael flynn may have been susceptible to russian blackmail and appears to have misled the president of the united states about his relationship with sergei kislyak. they're saying jared kushner had multiple conversations with russian officials that he left off to get his security clearance. we know his

manu raju up on capitol hill. let's talk about all this with congressman gregory meeks, a democrat on the foreign affairs committee. congressman, thanks for joining you. >> good being with you, would have. >> lots to get through. let's start with the co-anchors of morning joe on msnbc. they say the white house tried to influence them with threat of negative press and national inquirer. you're a former prosecutor. is that potentially from a legal perspective abusive power? >> it surely seems to me, to threaten individuals who are in the media to say, look, this is a quid pro quo. and it just shows the sad state that we're in. here is the president of the united states of america, with all of the issues that, wolf, you've been talking about, whether it's north korea, whether it's -- whether you're talking about dealing with our european allies or russia or china. with all the issues we have all over the world, we now have to deal with these tweets that the president is putting out about mika and joe scarborough on t

manus mentioned what is happening with nestle.ening price on l'oreal, opening at a 2.53% price. some paulo is the lead gainer, the markets likes the underwriting detailed from the time government. we are looking at the rest of the italian taking section looking good. a whole bunch of them. they are all trading high. this is a positive for the italian banking center, so clearly not worried about what is happening with the political story, but what is happening the individual taking names and how they are being rescued. fascinating to watch how that is breaking down. on the downside, there is not much movement. this is a swedish company that makes handkerchiefs and wet wipes and that kind of thing. it's trading down this morning. i cannot find any particular reason for that. as the is also trading down. .ut the upside is dominated state rescue, italy will commit 17 billion euros to clean up these banks. it's the country's biggest rescue on record. joining us is dan liefgreen. likes it. why does the market like this this morning do y

here is manus cranny.the question you have got to ask yourselves is was janet itlen's comment about ?exuberant she said it was not . -- about exuberant? she said it was not. it was not an irrational exuberance moment. if you want to understand the real propensity to shift the dynamic of markets, it came from mario draghi. that trumps kuroda, and yellen. ability to be accommodative, but hinting stance, toifferent adjust quantitative easing earlier than anticipated, or isbe in line with what anticipated. financials should reset the tenor on financials. industrials down .4%. ? how should you look at a june move? we have put it together for you. g #btv 521. we will break our winning streak. we are going to come in on the downside. that breaks the longest winning streak on the stoxx 600 since 2013. is the political victory of macron priced in? our people as concerned about italy as they were at the start of the year? maybe not. stocks are getting a little bit of rally here. we had a rally in may. this is someth

manu raju on the hill. let's get more now on the russia investigation from meddling to obstruction of justice, our senior diplomatic correspondent michel michelle kosinski joins us. what have you heard? >> in no uncertain terms how aggressive the russian hacking was. it was just yesterday the white house left it open-ended as to whether the president believes that. also today there were some tough questions for president obama's head of homeland security. special investigator robert mueller on capitol hill today, meeting with senators on the judiciary committee tackling potential obstruction of justice by the president. >> everything is on the table. >> reporter: and in both the house and senate intelligence committees today, russian cyber meddling front and center. >> in 2016 the russian government at the direction of vladimir putin himself orchestrated cyberattacks on our nation for the purpose of influencing our election. that is a fact, plain and simple. >> well planned, well coordinated, multifaceted a

. >> in terms of rod rosenstein and manu said this is the first time he publicly expresses this and who told him to write the memo, the white house completely changed their narrative within 24 hours and first using the memo for justification for firing comey and now he's going to say what it is. >> he's probably want thrilled with the way the white house used his memo. i think he's clearly going to stand by what he said. i think he wrote a memo that said that he thought comey had behaved inappropriately during the whole hillary clinton e-mail scandal. there is a lot in there, of course, the democrats would agree with and that's probably why the president was surprised when democrats didn't applaud, you know, the firing of comey. it will be interesting to see if they get to the question of whether he thought he was used inappropriately by the president and by this white house. i mean, after all, he is new to his job and there's clearly got to be an awful lot of friction there and we'll see if they -- if they get that, if they get him to discuss that. i doubt he wants to discuss that publ

cnn's manu raju joins us with more. manu, the democratic members, what are they saying about former national security adviser michael flynn, first? >> reporter: they're saying both therein and kushner should not have been given security clearances, at least suspended as allegations over whether or not they were fit to get classified intelligence were investigated. they're pointing specifically to regulations that they say show that someone needs to be fit and in order to get these classified intelligence, particularly with these credible concerns are raised. as we know with michael flynn, after the sworn testimony of sally yates, the former acting attorney general, she warned that michael flynn could be susceptible to russian blackmail, john. after that warning, on multiple occasions, the white house officials, including don mcgahn, the white house counsel, michael flynn continued to serve in that capacity for 18 days, going to classified briefings, had the classified security clearance. democrats want to know exactly w

manu raju begins it this this morning on capitol hill. >> reporter: he will take the senate intelligence committee after weeks of anticipation. this coming after he released his testimony he's going to deliver in his opening statement, laying out in vivid detail his interactions with the president trump, some interactions which he said, frankly, caused him some alarm, made him uneasy as the president asked for loyalty from the fbi director, an agency that of course is supposed to act independently and one of which is investigating the trump campaign connections, any that may have existed during last year's elections. president trump also according to james comey's testimony asked him to drop the investigation into michael flynn, his former national security advisor. we expect a number of centers, especially democratic centers to push comey into saying whether or not there was anything illegal or improper in trying to interfere in any way with an ongoing fbi investigation. now, this comes a day after the testimony before the same committee before current intelligence officials testified b

manus: always good to have a five-year plan. i will come back to you as my mentor on that.k about nonperforming loans. we have been talking about italian banks all week and the huge velocity and nonperforming loan markets. what are your plans in terms of bringing on more nonperforming loans? can you give us on what you ambitions will be so i can benchmark where the nonperforming loan story goes with the? you? bernard: if you go back to 2012 or 2013, we have $30 billion of nonperforming loans in the bank. below 9nced that we got billion and that's a massive reduction. that's about three to 4 billion so that's the sort of trajectory beer on in another five to 6 billion to come out over the next two to three years coul. we will work through restructurings. we also carry our portfolio sales. we reached the end of restructuring the customers on some of those portfolios and it will be disposed. we disposed of one in april. we can do both and we will continue to do both and we have absolute commitment to that norm within the two to three-year time. mark: getting some breaking news

manus cranny.: there is the exporters of the world -- delivering on mliv blog, a superstorm delivery. imports rising as well. that is the bedrock of the economy in terms of how china is doing. oil took a battering. dollar-yen.on the european -- onsantander story trading the most read story briefs this morning. really reflecting in terms of taking a big hit on that real estate. thecapital rate will be balancer. as you get into the china numbers, iron ore imports into china rose by 7.9% or 67% in terms of value. that is what is reflected. these are the numbers. you talked about them more as you go through programming. you are seeing the imports rise and the exports in the white line rising by a .7%. 8.7% puree back -- by that is the backdrop. the ecb and politics at play around the globe. this is the challenge. this is the inflation, your area cpi in the white -- euro area cpi in the white. you are looking at a challenge. they have got to move on two of the most watched words ever written by a centra

island in p0p processing centre on manus island in pop and new guinea.l was due to begin. the supreme court in melbourne approved what may be the largest human rights on that in australian history. here in the uk, talks between northern ireland's democratic unionist party and the british prime minister theresa may will recommence on wednesday as they try to finalise their support for her minority government. the head of the uber ride—sharing company says he will take indefinite leave of absence from his post. the announcement by travis kalanick came ahead of the publication of an investigation into the company's ethics. the review was sparked by a former employee's claims the company ignored her complaints about sexual harassment. at least 100 people have died in landslides in bangladesh, triggered by monsoon rains. young children are among the dead, including three from one family. many were killed while they slept. the authorities in the remote villages in the chittagong hills have warned the death toll will rise, as many affected areas remain cut off

manu raju is joining us from up on capitol hill. manu, you had the chance to speak with senator burr. >> yes. he has spoken with director comey several times over last few days and he has given the indication that director comey will be able to discuss openly about his conversations with president trump. saying that director bob mueller, former fbi director, now leading special counsel investigation, has not walled off comey in any way about this subjects that comey wants to talk about. and those seem to include his discussions with president trump and allegations that president trump tried to squash that investigation into michael flynn, former national security adviser. richard burr addressed those topics earlier today. >> anything that's classified, i haven't gotten any indication that there -- [ inaudible ] >> even if this conversation with president trump to discuss those matters? >> i feel certain that he can. >> you talked to him on friday. how did that conversation go? >> we add very good conversation. it was actually saturd

. >>> now turn to cnn's manu raju with our breaking news on the return investigation. you talked to democrats turning over documents relating to senior advisers jared kushner and former security adviser michael flynn. what are you learning? >> well, don, regulations governor how people access classified intelligence specifically when there are credible concerned raced about someone's fitness to obtain classified intelligence who say they should have the clearances suspended while the investigations are investigated. we do know michael flynn, the former national security visaer, there were warnings from sally yates, the former acting attorney general to white house counsel on multiple occasions that michael flynn may have been discuss acceptable to russian blackmail and misled the president over his conversation with the russian ambassador sergey kiss lack. when they're uponing to kushner they saw he had mumble contacts with foreign officials and left off on his security clearance. jared kushner's contact with the russian officials have become of interest to inverse on

jason carroll, laura, manu, guys, thanks very much. in the appropriations hearing with the deputy attorney general rod rosenstein, some senators expressed frustration with his boss for canceling his appearance so that he could testify in front of the senate intelligence committee. listen. >> why isn't jeff sessions here today? >> the attorney general i believe has chosen to skip this hearing today in order to avoid difficult questions. >> the height of arrogance for the attorney general not to come before the committee. >> i want to talk a little bit more about the sessions testimony that's upcoming and we'll of course have live coverage of that. laura coats is with us. she's a cnn legal analyst, a former federal prosecutor. our legal analyst -- our political contributor david gregory is with us as well. mark preston is a cnn senior political analyst and margaret t talla is the white house correspondent. david, what is your title? >> why did you think i can be -- i'm very close to lawyers. >> all right. so you're not our legal analyst.

cnn's manu raju is up on capitol hill.'s a lot of other activity going on. >> no question, jeh johnson is actually in the room right now, john, as this hearing is about to take place. he's already met behind closed doors with the senate and house intelligence committees as part of the investigation into the russia meddling issue and any possible collusion that occurred between trump associates and russian officials. also right now the senate intelligence committee having its own hearing focusing on the issue of election security. all part of their efforts now to refocus their investigation on the issue of russia meddling after they had some high-profile hearings with james comey testifying before them, as well as other senior intelligence officials as they looked into the possibility that president trump may have in any way sought to interfere with those investigations that were ongoing into russia and russia campaign. now this comes as special counsel bob mueller is also making rounds on capitol hill today planning to mee

so let's get to all of it now, cnn's athena jones and manu raju will join us and cnn's senior legal analyst mr. jeffrey toobin is here as well. good evening to all of you. athena, let's take a look at the president's tweet. the president said "with all the recently or theed electronic surveillance intercepts, unmasking, illegal leaking of information, i have no idea whether there are tapes or recordings of my conversations with james comey that i did not make, but i did not make and do not have any such recordings." so it took the president, what, 41 days to answer a very simple question. he, himself, first raised. are there tapes of his conversations with james comey or not? why and why now, athena? >> reporter: hi, don. well, exactly. this should have been a yes or no answer, yet there's been weeks and weeks of dodging. a senior administration official told cnn that it became clear that the president would have to answer this question today before tomorrow's deadline set by the house intelligence committee to turn over any tapes if they exist. so, that's why we're finally seeing an answer

>> i wish manus was here to argue, but we see a softer >> it. t.ter brexi we have those terrorist events this morning. they reaffirm the security coordination between europe and the u.k. there are connection points where this exists and it is hard for me to say that there will be a complete separation, even if they negotiations get contentious. there will be a point where they do this is this and that will slow down the extreme -- this business and that will slow down the extreme brexit. ofa: theresa may faced a lot concerns over her handling of the tower disaster. rometeromberg brexit ba is a proprietary index that measures u.k. wealth, economic activity, the employment situation, uncertainty. it clearly shows a downward thatctory and we suggest the u.k. is in stagflation. the charts screen that. -- scream that. >> it is hard, when you see the u.k. economy with spending, consumer income, investment growth drying up. and you aret, softer and kinder, you see the drops and the handling of that and expectations of decline the growth scenario. in our v

manu raju is standing by with someone. manu, who do you have? >> reporter: well, i just caught up with a number of different senators about the release of this testimony. grappling with this, you mentioned earlier, john mccain who i spoke with, said that he's disturbed by these remarks by james comey saying that the president tried to pressure him, tried to urge him to drop that probe. i asked mccain, do you think this is obstruction of justice, he would not go there. he did not know. he said we should trust james comey's words as the white house goes after the credibility of james comey. i also caught up with the senate judiciary committee chairman chuck grassley. his committee is not going to be hearing from james comey but wants to hear from james comey and he even is threatening the idea of actually issuing subpoenas if he does not agree to come before the intelligence committee. this is what he said. >> comey said that this would be his only testimony tomorrow. are you prepared to either issue a subpoena or try to get him before the senate

manus, what do you think about my color idea?: you just send these subliminal messages to guy johnson that his spaghetti market opening chart is not up to snuff. you are right. i'm holding it together. it is friday. my gosh have these markets got a friday feeling. adp, set for a strong jobs report. does anybody care about the unemployment rate in the united states of america? global equities have added 10%. there a real backdrop story to italy and italian banks. are they putting their house really in order? industrials up 0.2%. rate hikes are coming in the united states. that seems to be the consensus mood in the market. i talked about global equities. this is the msci all world index, up 10% this year. the adp number, 253,000, that has added. topping 20,000 for the first time since 2015. that is adding to the momentum in equities. i caught up with my guest, and been sharing. he said, i don't want to buy volatility. i don't want to buy protection. i want to stay long equities. as for the impact of the united states withdrawing fr

manus cranny? manus: volatility is at a four-year low in the bond market.nment formation for theresa may and the democratic unionists, what price is that going to be in terms of money and in terms of politics? trump the dove? the dovish complexion a mario draghi last week. that is the debate. coming in, a on central-bank policy, financials dropping .2%. macron holding out the all of france. they may have beaten england in football, but they are friendly in terms of coming back. this is sterling. this is the 50% retracement line with the tough part to the pound last year. when we tried to get above the 134 level. now it looks as if the benchmark level is 38.2% on the downside. 38.2% feek at this fibonacci level. the wagers are as long as they can be. he said he was updating his 12 month view on the euro to around 117. you may see near-term tips because of the time and risk. that could take us back a little bit and also because a clearer may openifferentials up with the federal reserve and european central bank in the medium-term. let's get rid of my conversa

cnn's manu raju further reports that professor richmond has actually been in touch with that committee as of tonight, but we can report that whether or not he's been in touch with them, he has not handed over the memo. imagine this is a stressful position for your average law professor to find himself in, right? but, hey, it's turning out these are stressful times. now there's obviously a lot going on in the news writ large right now. first and foremost, the uk election which is fascinating and a total shocker and has implications huge for the uk and for europe. also interesting implications for us. there's the president's offer today that he would love to testify under oath. he'd love to be deposed by the special counsel investigating the trump/russia matter. teams unlikely that he really wants to do that but he said today he'd love to. also the matter of this ticking time bomb that is now potentially set to go off in the u.s. senate when it comes to health care. the senate may be moving toward a vote that will kick over 20 million americans off health insurance. so there is a lot goi