focus on the pound on comments from bank of carney. >> bank of carney. >> bank of england, mark carneye would love to be called bank of carney the bank of england's mark carney says now is not the time to raise interest rates. he warned of weak wage growth and a potential hit to incomes as britain begins talks to leave the eu >> before long we will all begin to find out the extent to which brexit is a gentle stroll along a smooth path towards the land of cake and consumption. but whatever happens, monetary policy will be set to return inflation sustainably to target while supporting as best it can the necessary adjustments in the economy. >> carney says depending on how brexit talks progress, businesses may need to activate contingency plans. >>> speaking of brexit talks, david davis heads to spain today to meet with members of the government the uk brexit secretary began formal negotiations with the eu yesterday in what's being called an early concession the uk agreed to brussels' demands on the sequencing of talks, meaning trade negotiations will have to wait until other key issues a

i have a lot of time and respect for mark carney.ry seriously once the right outcome for the u.k. economy. something, want is the media would like to have this date out in a transparent way. clearly, we won an orderly transition over two or three years. francine: it's not only the media. communicationsa dilemma. theresa may is right to talk on thursday about the 3 million people who were living in this country who have european passports. they want to stay in this country. they are doing jobs in this country. they want to have their lives preserved and protected. there are a number of british living on the continent. the things that affect real people, there are other things involving the customs union that will have to be worked out. i'm not entirely sure what people want area to -- want. i'm not sure what the government wants. the german chancellor is speaking at a business event in berlin. ae said trade isolation is detrimental instrument. she said there should be free, fair, and sustainable trade benefits for everyone. we will co

mark carney signaling he is not ready to raise rates anytime soon. how could the introduction of ultralong bonds shakeup treasury? we get reaction from goldman sachs' chief economist. forurope the next hot spot etf? i will speak to the wisdom treat head of europe. -- wisdom tree head of europe. let's look at where european equities are trading now. just under 13 minutes to the close. here, i'm looking at the guilt yield curve. whatcommentary about the flattening of the curve means. we are looking at the flattening. is it a question of the market mispricing the event of brexit? lt money moving into gi markets? off the comments of mark carney saying he is worried about the impact of brexit on the economy. not be rushing to raise interest rates anytime soon. here, i have a trend channel chart for sterling. we had been seeing sterling extend its losses. it has gone below 127. 126.17 right now. the pound might extend. it has dropped for the long-term support. on the one hand eight dovish boe, on the other hand a hawkish fed. sterling below is more than a

a not see something similar from governor mark carney's speech yesterday? t we heard a couple of weeks ago. is there too much nervousness on the market of getting things wrong? george: the market focused on carney's sentence where he said "now is not the time to raise rates." futureints the limits of guidance if you try to find 10 expectations too much, the ecb and the fed have talked about that if you try to do too much fine-tuning you end up with more volatility because the message could be misinterpreted. francine: is the message misinterpreted or are they looking at different data points? george: it is mostly they are looking at different data points. what happened with the fed is as they are hiking they are .pproaching the rate of 2% as we are approaching the end, the market goes to the next question, is it time for a fed pause? a different phase of the cycle. inflation at of the u.s. remains low. tom: doug tell us in with the scathing review in the telegraph, do we have instabilities? are there instabilities and over leverage within the financial syste

mark carney signaled the time is nearing possibly for a hike. bloomberg speaks to the oven of the bank of england at 11:30 a.m. u.k. time. the u.s. stops short of -- man.g a laptop dan what does it mean for the european airline sector? what is it mean or your next trip to the airport? a break for murdoch. he u.k. governor is expected to give his decision on a bid to sky later today. we will discuss the options. are less than half an hour away from the european open. a pleasure to be back in berlin to watch these markets. such an amazing trade yesterday especially overnight in the u.s. s that we have not seen in months. gaining .5 of 1% apiece. you can see what has been going on while i was delayed overseas bond trade. you can see over the last three days how much these yields have come up from less than a quarter of a percent almost up 2.4 of 1%. real big gain in yields and we will see of that continues. guy: see what happens when you go away? let's talk about what is happening around the gmm. the u.s. bank story driving u.s. equity markets on t

mark carney signaled the time is n

mark carney said the time is not yet there.is comments now, today, suggests that august 3 will be a tricky meeting. i am not sure you will rate hike at that point but close with a trade-off as he says between tolerating higher inflation to supporting growth, which has been faltering, may not be worth it anymore. friday, are looking to a big day for data, the inflation report from the eurozone. , which ishat figure expected to show a diminished level of inflation, how will that play into the ecb narrative? >> if, as it seems, the decline will be driven by energy prices and there is more of that in the future given the oil price and the recent weeks, what mario draghi signaled yesterday is that the ecb is ready to look for that. it is a very delicate balance, and the euro area, deflation is low and the economy is fragile. for this reason, the ecb wants to make sure the new fall in oil prices does not get mixed in with the rest of the economy and consumer confidence becoming ready and expecting lower and lower inflation, which is

let's go back to mark carney talking about banks and indebted households of u.k. gov. ative to the amount of assets to the bank. at present, the banking system has 5.25% leverage ratio. we are reapportionment capital within the system. i'm not suggesting that doesn't have an impact. i'm not suggesting bank small ad capital to add a, but there is considerable lending capacity. which finish with this, is to go back to your viewers or people who are watching, but last year the u.k. economy net lending was about 65 billion pounds. 4% difference between that and the 5.25%, even after they built up the buffer, is equivalent to about 250 billion pounds of lending capacity. y is there and o banks will release it for good ideas and viable mortgages. >> tim wallace of "the daily telegraph." are banks gaming the system? francine: that was mark carney giving a comment on some of the indebted households. when you look at fixed income, i want to concentrate on the yield curve and a great chart showing the treasury market volatility index is at the lowest since may 2013. what do bond

the pound rose after mark carney hinted at a potential interest rate hike.tightening money policy. and michelle fleury has the details about what's ahead on wall street today. a few weeks ago donald trump said some very good numbers were coming soon on us growth. but which numbers was he talking about? the latest reading on gdp for the first three months of the year is due out this thursday. the first reading showed a lacklustre growth rate of 0.7%. this finalfigure is expected to show the economy growing at a 1.2% annual rate. this doesn't mean the president is wrong, though. many economists are forecasting a stronger growth in the second quarter. despite this anticipated acceleration, that didn't stop the international monetary fund this week from cutting its growth forecast for the us, casting doubt on the trump administration's ability to deliver tax cuts and spending on infrastructure that will boost the economy. in corporate news, us meal kit company blue apron is expected to make its debut on the new york stock exchange. and nike, the apparel maker, i

knows and we all know that it mark carney knows and we all know thatitis mark carney knows and we allat he's right to look through the inflation figures and focus on the fragility of the economy. thank you very much for your time this afternoon. let's look at how markets are faring in the us. we've got the ftse back up in the us. we've got the ftse back up again, but markets in the us are down. qoet is down just like. up again, but markets in the us are down. qoet is downjust like. it up again, but markets in the us are down. qoet is down just like. it has been pulled down by petroleum linked shares hit by the fall in the oil price. we have got the oil price there. it is down again. down at $45, 82 cents a barrel. that's it from me. you can get more business news on our website. bbc.co.uk/business we have been hearing through the course of the afternoon according to a senior source from the dup that there was concern that they might be taken for granted. that's what we we re taken for granted. that's what we were hearing just a short while ago. we're hearing from a source that there i

what mark carney captured in that speech is a much broader truth. which is that the united states did not have important protection against other countries manufacturing goods 35 , beforeo before nafta any of the trade agreements. so the idea that somehow, we are doing something dangerous by entering into trade agreements that is going to threaten american workers is really nonsense. the truth is that our trade agreements are very disproportionate with other tradeies producing their barriers much more than the united states reduces its trade barriers. goldendoes this opportunity for progress with china? the trump administration is negotiating a series of agreements with china. they want to focus on services, particularly financial services. is there an opportunity there on financial services? sure it willi am be valuable to continue the discussions of opening. frankly, i think the prism through which we view trade agreements should be u.s. jobs in u.s. incomes. my sense is that much of what people talk about when they talk about financial services t

mark carney, the governor of the bank of england is still talking! lots to get through.id you know that?” bankers. did you know that? i did that. but maybe george clooney moves a bit quicker. in a moment we'll take a look through the business pages but first here's a quick reminder of how to get in touch with us. the business live page is where you can stay ahead of all the day's breaking business news. we'll keep you up—to—date with all the latest details, with insight and analysis from the bbc‘s team of editors right around the world. and we want to hear from you, too. get involved on the bbc business live web page: bbc.com/business. on twitter: @bbcbusiness and you can find us on facebook at bbc business news. business live on tv and online, whenever you need to know. we have touched on a subject that gets you talking. that's the cruise holiday. it's like marmite, you love it or you hate it. james is back. where are you? just declare... well, i have been a non participant, but i don't have much ofa participant, but i don't have much of a view either way. come on, jame

mark carney might not do anything.hleen: they would not hold anyway, but this creates so much uncertainty over the economy, financial markets. they will sit back and watch and see what happens because it is not just the economy. it is what theresa may -- betty: setback. kathleen: tumble from power. she has been called the walking dead, many say she will be done by the end of the year. 19.it talks on june she said we will go ahead, i will have a minority government. that is what people want me to do. she said she will move ahead, but the u.k. economy is already pretty tepid. let's look at a bar chart that defects this very well. you can see how growth tumbled in the first quarter. the estimate before theresa may's election failure was looking also pretty tepid, but after this they could get more so. we don't know. hard brexit, theresa may pushing hard for it. she does not have the power to push that through. said inn at citibank substance, the worst risks cap diminished now, because you can't do hard brexit. maybe they

mark carney's there is no rush to raise rates.a saying china will drive the global economy for decades, urging america not to miss the boat. more reaction to the msci decision throughout the morning. it is a question of locally traded a-shares comprising as of global emerging markets gauge. that's right. about howen talking these china large-cap companies have been outperforming the small cap. #123 on your bloomberg. you can see these are the big airlines,c, take among those that will be added for a-share and collusion. capquestion is this premium gap between- a-shares and h-shares. as this move gets underway, we will see the valuations in shanghai come down to match the global level. let's get a look at the markets ahead of the china and hong kong open. these twin the stories, capital maycerns rotate out of other emerging markets. saying goldman sachs korea, taiwan, and india may see their benchmark waiting reduced. there could be limited impacts onlyrean stocks given that takes place next year. when we look at the reaction in as

what is most annoying to mark carney is exactly what andrew haldane will say.onomist says, we need to raise rates, 24 hours after mark carney said we did not. it is a big deal, inflation is at a long—term high. it has gone up because the pound has gone down. for our readers, this is pretty coarse stuff. notjust for your readers, for everyone, indeed. thank you very much forjoining us. you can see all the front pages of all the newspapers online, the bbc news website, therefore you, seven days a week. if you miss the programme in the evening, watch it on my player. from all of us, thank you for watching and goodbye. good evening. no doubt about it, the heatwave has reached its peak. what a peak it was, hottestjune day since 1976, it came on the summer solstice, the longest day of the year, temperatures got up to 34.5 degrees, at heathrow, very close to 35, the heat was widespread across many southern and central areas, even northern part of the country saw hot weather through the day. some showers and storms across parts of wales and more across western areas. t

i thought the weirdest one was from mark carney. >> that's right.f you look at the inflation dynamics, it was a miss on the inflation print, yet mark carney coming out and signaling a rate hike, and that is a message we are getting across the board, ,he ecb obviously, so it inflation is still below target, but that shows the change. about 300 billion dollars a month and asset purchases, and at some point this will have to in. we don't need that extreme monetary policy we needed 5-6 isrs ago, so the question how quickly and how much volatility will it create. of your investment themes has been an upside surprise in inflation. i want to bring up this chart #9012, the top segment is weighted annual global cpi, almost wondered 100%. inflation linked bonds rolling over as well. you see what the bond market is doing, second guessing what the fed will do. where does that surprise come from? is it transitory, china, trump coming through? all, it is the role of expectations, so market expectations for inflation is so depressed now that it does not take much

you have mark carney telling us that they are not that hawkish. youthe inflation have the europeans and they have issues with the challenge for all of them. the loaded inflation expectations have to do with oil and it has drifted away. is this a challenge or are we becoming overly-myopic? i have talked about what drives inflation inside of the inflation is the moving at a fast pace and what is not moving fast is the importers and we have this real conundrum of what will happen in the north asian economy. that are developed markets produce goods and services that they could not otherwise afford and they are able to export with and we didc prices see the end of last year and a china andricing to the big question is where it goes from here. if it is correct that there is more of a profit motive coming that is forced on them by the sector, we can look at the atlation and when they look the volume, there is more inflation. >> this is a risk and we caught up with the chairman. >> i get the point that you are making and i'm trying to make a tangential ju

we hear from mario draghi, mark carney, and the fed chair janet yellen speaks here today right here inondon. this is bloomberg. ♪ vonnie: live from bloomberg world headquarters in new york, i am vonnie quinn. mark: live from london, i mark barton counting you down to the european close. let's turn to monetary policy. loads of news today to digest draghi, mark carney, and federal reserve chairman janet yellen. mario draghi's comments about inflation sending the euro higher today. >> we can be confident that our policy is working and its full effect on inflation will gradually materialized. for that come our policy needs to be persistent and we need to be prudent and how we adjust its parameters to improving economic conditions. isk: joining us now bloomberg u.k. economy reporter jill ward and michael mckee. jill, let's start with you. announcede by stealth tightening of conditions today, policy today? there has been a big split on the monetary policy committee recently and connie is focused on the mpc and fec, which looks at financial stability and took the decisions today. by raising t

sterling rallying today, after comments from mark carney. y to get over to sintra in portugal, where that panel is continuing. this is bloomberg. ♪ . mark: 11:00 a.m. in new york on 4:00 p.m. in london and 11:00 p.m. in hong kong. 11 minutes left in the trading day in europe. i am mark barton. vonnie: i am vonnie quinn. this is the european close on bloomberg markets. ♪ top stories from the bloomberg, a wild ride or the , spikes backgames after the ecb suggests mario misread the words by mario not be sounding a more hawkish tone. prime minister theresa may in the u.k. facing her first major vote under her government formed with the help of the dep. the french president pushes for major changes to reform the france labor market. in banking, u.s. banks in focus as a result of round two of the stress test, how much will banks be hiking dividends?

bank of england governor mark carney met with francine lacqua. discussed public in private sector work on climate change. mr. carney: i think the important thing is a voluntary private sector right now. them to address issues around climate change. we focused on enclosure and asked the private sector to decide how to address it, so mike bloomberg, the head of panel, 30 are people from the private sector him up with recommendations, and 100 plus from india to u.k., europe, and the u.s. and beyond have signed up to control financial assets of more than 20 billion. saying this is the right step to include so the market can function. so the g-20 started this protest, the private sector has taking the ball and run with it, and created some good products, and demonstrated, as i say, 100 plus of the bill posey leading companies adopting this. but -- : mr. carney: the g-20 leaders will be made aware of the progress made and the momentum behind it. as a member of the g-20, i will be there, but as chair of the ssc, i complement the effort of both mike bloo

do mark carney and company go? nowhere, seems to be the consensus.y don't really have anywhere they can go. they're very cap doubt, interest rates, rock-bottom. the hard data of a recession to bring any further stimulus back onto the table. they will look over downing street and say they will -- that done senate -- something about it was a budget. one is talking about a hike because you have the consumers under pressure from the ratings being squeezed. savings rate at an all-time low. somewhat.h has slowed on top of that you have a hit in the business confidence we saw from the elections. england isbank of perhaps in the worst of all carney we knowse has intimated he's not a fan of negative rates. reengage qe?ly what does it do to the gilt story? it will don't think react badly to bore fiscal spending in the short term because the u.k. is credible and does borrow as a safe haven asset. in the event of a recession you'd see lower gilt yields because of weaker growth and inflation. u.k. does have the fiscal space to respond to that. that's the opposite

mark carney will leave the bank of england in june of 2019. and of course we have got mario draghi leaving the ecb in october of 2019. he will be looking for further qe and cutting rates in the eurozone. we can't really afford that to be a major cliff. it is not in anyone's interest, where the entire eu goes into a recession. they want the growth story to continue, which means a transitional phase, the relatively soft brexit. anna: do you predict any political chaos this week, david? we have the queen's speech. that is this week. there will be a focus on space travel, apparently, which will be interesting. nice distraction from what we normally talk about. david: right. with the sticking more brexit conversation, what are you going to be looking for? clues for how hard and soft it will be? david: i think it will be pretty general. i don't know if there will be a formalized arrangement with the indp, whether the tests will be whether there is a vote of confidence initially after the queen's speech. i very much doubt we will get that happening a

we hear from mark carney. yields on the u.k. are falling lower, u.s.oint. 2.18 is where we trade on the 10 year benchmark. erie crude oil, down 2.8% it is really pulling down most of the stock market. the dow jones industrial average could hit new highs today. this is bloomberg. ♪ >> this is bloomberg daybreak. i am emma chandra. here's the fuel enterprise greenroom. jeff terry of goldman sachs. say with us. -- stay with us. david: this is bloomberg daybreak. i am david westin in new york and my partner and friend caroline hyde is in london. airline? caroline: the partner in crime for today, and we have another exclusive interview for you on bloomberg daybreak. facebook coo sheryl sandberg spoke about the opportunities in technology and what it means to jobs or businesses. here's what she had to say to me earlier. >> what we are seeing is more adoption of the mobile platforms. there are 70 million small businesses that are using facebook on a monthly basis. that is our free product, 5 million advertisers. in facebook we have 8 million instagram profile

when mark carney speaks it will be the first time since anyone from the boe has spoken since the electionesult. in addition, inflation. let's jump into the bloomberg and look at u.k. inflation, going from bad to worse, #6974, core inflation the white line from headline inflation the turquoise line. theably closer to 3% as pound continues to weaken and import prices get that much higher. in the u.k.,rking you are not only worried about your job, look at your paycheck. #92 79, we are seeing that even has inflation moves up, that turquoise line, what is happening to wage growth? it is flat and starting to fall again. this is not a good indicator for where gdp is growing with we gdp , not just for consumers. , butmay hurt theresa may the fact the economy is not quite as good as it was. who do you blame? blame the person sitting at 10 downing. >> thank you. the potential market implications even more with our guest for this hour, the managing director of equity , steve, isrm -- so this going to be a turning point for the market? pretty think we will look at this months later and say we survive

brexit negotiations kick off with london agreeing to brusse brussels' demands on sequences of talks mark carney says the central bank will be ready to respond whatever the outcome of the talks. >> whatever happens, monetary p policy will be set to return inflation to target while supporting as best it can the adjustments in the economy >> the head of the european stability mechanism says britain will suffer the brunt of economic pain at the end of the negotiations >> i regret brexit, politically also it weakens the eu, but economically there's no comparison when you look at the trade flows and what happened to london i think the economic cost is mainly on the uk. >>> orange turning sour on bt announcing it could more than halve its stake in the british rival and raise over $1 billion through the sale >>> and the uk serious fraud office charges barclays over emergency fund-raising from qatari fund raisers in 2008 after a five-year investigation into the bank's dealings with the country at the height of the financial crisis >>> as i said, these markets go from strength to strength. it's not just

the extent the brexiters have it out for mark carney, the chief economist of the bank of england gand h against his governor, so mario draghi is the one who faced down his opponents and stands supreme. >> and may have the toughest job of all because he has to please politicians in multiple countries. thank you. >> my pleasure >> a lot to talk about in the central banking world. >>> when we come back, we're live in washington with more on the senate's delayed healthcare vote and a deeper dive into the performance of the healthcare stocks and a top market strategist weighs in on what the uncertaintabt shgty ouwainon means for your money "worldwide exchange" will be right back (upbeat dance music) (dance music abruptly stopping) (dance music starting then stopping) (b♪by crying) minutes old. ♪ a baby's skin is never more delicate. ♪ what do hospitals use to wash and protect it? ♪ johnson's® the number 1 choices in hospitals. >>> coming off the worst day for stocks since may 17th, futures are looking up the nasdaq still under pressure. futures do 2wn3. up next, a round up of the top stori

i think mark carney wants to be proactive.additional capital a year ago, but he held off because of the brexit issue. and i think he wants to make sure the banks also are reminded they have to be more cautious in their consumer lending, given the speed at which their loan books have grown over the last few years. what are we borrowing for? to buy new cars with personalfinance deals, loans for holidays and home improvements, and with spending on our credit cards in the shops and online. i think this is an amber warning, for consumers and for banks. not the flashing red lights of the financial crisis — when interest rates were higher and banks, frankly, couldn't withstand any type of financial shock — but a warning nevertheless. what if interest rates were to rise? what of prices keep going up? could millions of people with billions of pounds' worth of loans keep making those repayments? there are uncertainties ahead. whether it's that continuing income squeeze or those tricky brexit negotiations which could damage the economy.

mark carney the governor has raised an amber warning today.t back in the time of the financial crisis where a huge high level of consumer debt were a real problem, interest rates were far higher and people were at risk from the recession, losing theirjobs. it's not like that. he is saying we have become very used to ultralow interest rates and to very high levels of employment and so that has led to this increased borrowing. he has given an amber warning, saying, make sure you lend strictly, to banks, and you don't lend to people who can't repay. that's why he has increased the safety net. and also to the consumers, i asked him in a press c0 nfe re nce , to the consumers, i asked him in a press conference, are you to the consumers, i asked him in a press conference, are you warning consumers? the answer very carefully, no, people should go around their business, being careful, but nevertheless, if interest rates go up and brexit affects the economy negatively as people think it might do, then be aware that you might struggle to make those repa

mark carney never far from trying to influence our thinking in the marketplace. about monetary policy and financial stability. >> the view we have taken, and i think it is proven effective, is that monetary policy is the last line of defense to address financial stability issues. we have a fairly wide range of tools and we have an even wider range of influence that we can take to become a -- policy committee in order to build the resilience and promote financial stability. manus: mark carney talking about the last line of defense. saying they need to do something. it was good news for sterling and it has shifted the thinking about rates and it's a great debate in terms of when they might move. what is your consensus? you were at a big conference with a lot of different people. what was shifting the gears there? michael: obviously the minutes started nd thewe've had quite a wide range of comments from the chief economist. we know thatne is inflation has come back in the u.k., growth did not collapse. it's about normalization of expectations. the one thing we are w

we have janet yellen and mark carney speaking tomorrow.are traders or investors saying they are holding off on doing because they are waiting for central banks to set the tone? >> it's an interesting in because -- different it's an interesting environment. there is a new element now where they are looking at specific economic data. i have a chart i want to dive into. case, theis is the type of numbers we want to hear from the fed. the top panel is looking at ppi finished goods. that's in the white. , that's what not wages look like, too. in blue is flat. if it catches up to output and wage growth, that could potentially have a negative effect on corporate margins. there is not a lot more room to stretch. if things start to get more expensive and wages take up, there could be adverse things to deal with. or maybe they will have to invest in productivity enhancing investments. >> you would think. upyou think rates are going -- and i know you have to deal tech situation and that's a big part of your interest -- infrastructure, you would think

i think mark carney wants to be proactive.cautious in their consumer lending, given the speed at which their loan books have grown over the last few years. what are we borrowing for? to buy new cars with personal finance deals, loans for holidays and home improvements, and we‘re spending on our credit cards in the shops and online. i think this is an amber warning, for consumers and for banks. not the flashing red lights of the financial crisis — when interest rates were higher and banks, frankly, couldn‘t withstand any type of financial shock — but a warning nevertheless. what if interest rates were to rise? what if prices keep going up? could millions of people with billions of pounds‘ worth of loans keep making those repayments? there are uncertainties ahead. whether it‘s that continuing income squeeze or those tricky brexit negotiations which could damage the economy. the governor struck a fairly relaxed note for the moment, but banks and consumers beware — the economy can turn. kamal ahmed, bbc news. story now on how so—c

i think mark carney wants to be proactive.eld off because of the brexit issue. ijust think he wants to make sure the banks also are reminded that they have to be more cautious in their consumer lending, given the speed at which their loan boonks have grown over the last few years. what are we borrowing for? to buy new cars with personal finance deals, loans for holidays and home improvements and we're spending on our credit cards in the shops and online. i think this is an amber warning for consumers and banks. not the flashing red lights of the financial crisis, when interest rates were higher and banks, frankly, couldn't with stand any type of financial shock, but a warning nevertheless. what if interest rates were to rise? what if prices keep going up? could millions of people, with billions of pounds worth of loans, keep making those repayments? there are uncertainties ahead, whether it's that continuing income squeeze or those tricky brexit negotiations, which could damage the economy. the governor struck a fairly relaxed

the le pen and, mark carney pressing the case for leaving in euro clearing base london.lidify its position as a regulator. the amendment will allow the euro system to monitor and address risks associated with centro -- euro clearing. 8:09 in brussels and theresa may told eu leaders at a summit that all 3 million eu citizens in u.k. will be able to continue living there after brexit. it was met with good reception from eu leaders who stressed many issues remain uninstall -- unresolved. talked about the state of negotiations on the u.k.'s departure. place andp has taken theresa may curley said the eu citizens who have been in the u.k. for five years will retain full rights. this is a good start, but there are still many questions. anna: matt miller, joins us now. we come to what we heard from theresa may in a moment. havef the response we heard, angela merkel giving us some of that. let's get back to the ecb story. ecb prevented -- proposing a statute change for euro clearing. a political flashpoint around brexit, isn't it? matt: right, and not something everyone agrees on

the governor of the bank of england, mark carney, said the time was not right for an interest rate risewage growth is falling and the impact of brexit on the economy is unclear. our economics correspondent, andrew verity, reports. the chancellor's brexit agenda was supposed to be delivered over a sumptuous banquet at the city's mansion house, but it was cancelled following the grenfell tower tragedy. today, he turned up at the same venue for a glass of water, no bow—tie, and not a single mention of austerity, only sober warnings about what brexit should and shouldn't mean. when the british people voted lastjune they did not vote to become poorer, or less secure. they did vote to leave the eu, and we will leave the eu. but it must be done in a way that works for britain. in a way that prioritises british jobs and underpins britain's prosperity. today, one of the uk's successful export industries gave its own warning that unfavourable divorce arrangements with the eu would be worse than any threat or challenge they have faced in modern times. car industry executives think a favourable div

we will hear from their governor tonight, mark carney.et's talk about robert mueller and his investigation into resident donald trump. , it isow official reported that robert mueller is looking into the possibility that the president has obstructed justice. he will interview a couple of senior intelligence officials. want to get the exact details. we switched places a little bit. let me ask what we know so far. what has been reported? jim: what has been reported is that the investigation has now a new front has opened in the investigation by the special counsel who was named by the deputy attorney general after james comey was fired. previously, we knew they were looking at links between the trump campaign and russian influence and it has broadened into an examination of whether the white house has obstructed justice. sources who spoke to us and the washington post have told us. the interesting thing about that is that the president in his own words had made no secret about the motivations for white he fired james comey and james comey in

mark carney and philip hammond's speak shortly. plenty to come from that event.n september, live from the fed. dudley says they are hoping the tightening wouldn't imperil the economy. now that terms of the discourse before -- divorce before any future trade deal. can london regain the initiative? and four individuals from fraud.s charged with matt: very interesting story there, considering individuals have been charged as well as barclays. interesting also to look at the march, the equities march the continues around the globe. andu.s. is at record highs now you see futures up in europe, even nasdaq futures up. gains as far as equities are concerned. take a look at the bund trade sold off. yields being pushed up a little here. because we only two significant digits there. i go a little further. 0.795. i always go four. guy: always the extra mile. let's talk about what else we could see on the gmm. kiwi is bid, krone bid, dollar -- bloomberg dollar index is about .1% up. look at what is happening around euro-dollar. what is happening around this queue surrounding

mark carney a change in words and action. >> that's right.et's look at what is happening first with mario draghi. there are two words that stuck out, one was persistence, the other prudence, persistence in the current policy, but prudence in terms of the ability to change it. >> we can be confident that our policy is working and it's all effects on inflation will rationally materialize. for that, our policy needs to be persistent, and we need to be prudent in how we adjust its parameters to improve economic conditions. >> that prudence and possible movement is found in the possible balance, possible unwind of the balance sheet, #8489. take a look at the white line. the balance sheet of the ecb, 4.1 trillion euros, but unicredit says mario draghi may have shown his hand and made the first step towards less accommodation. unicredit saying a tapering announcement might come as soon as september 7, the euro rising the most on mario draghi's remarks. switching to the bank of england, some change of action. says he wants to raise the capital requir

governor week for boe mark carney.bank of england financial policy committee semiannual review is released. it is fascinating because we have, and long way in the year, a year on most to the brexit referendum, and the bank had almost unlimited. liquidity. , pumping liquidity into the system how things have changed isa year because now carney deciding whether he should take back rather than giving. consumer lending, which is this chart, vonnie, growing at an annual 10% pace, on petition among. lenders. to the question is -- will he take back some of that? liquidity will be -- among lenders. so the question is -- will he take back some of that liquidity? vonnie: mark, you had a running start because you are up all less we can we miss you are the winner today. you are the person who has to suffer, i'm afraid, i am sorry. ♪ [ noises inside can ] [ laughing ] it's driving me crazy come on. [ spitting from tongue ] time for my secret weapon. sports, movies, tv, ah, show me music to distract a minion. [ voice remote click ] o

mark carney saying it was not yet time for hiking rates. matt boesler joins us now with more.the bottom of what you think carney was trying to say to the market. mark carney is taking advantage of what a lot of other global central banks we have heard are turning toward tightening and taking advantage of this global upswing we are seeing in britain as well as many other places. we are seeing a strengthening and the data, giving optionality. his colleagues at the bank of england are talking about potentially tightening. it is interesting to hear them say that some removal of monetary stimulus is likely to be necessary if the data continues to improve. he did not give us strong as indication as he did in previous summers, like the summer of 2014. he said we may need to tie consumer -- sooner than the markets expect. strong anas indication. but still, taking part in this over the past few weeks. betty: we heard from jim bullard at the st. louis fed, look, we might see the balance sheet reduction happening sometime in the fall, september. what is the latest on this? interesting, i

you have yellen, mark carney, the bank of canada, all signaling rate hikes are coming.ake a look at market moves on my bloomberg terminal. doing damage control after the many taper tantrum tuesday. markets not buying it. on the move, but not recovering the strike in yields. the euro taking a dip. we have the pound and the loony surging. betty: global tightening is just around the corner. not more than three months ago we were talking about, what about the reflation trade? it seems it is losing momentum. here we are, all sparked by these comments from the central banks. when will theis, markets be convinced and how long will that last? yvonne: we have to talk about the fed stress tests, seems all the banks are passing, broadly speaking, with flying colors. we will delve deep into those results later on. in asian pacific, a positive vibe set to carry into asia. the asx 50 up. a weaker dollar story, kiwi at 8, against the dollar at the moment. a key focus on oil, we did see a rebound overnight from the dip after u.s. gasoline stock piles dropped, offsetting the rise in cru

. >> mark carney send the pound lower this morning after saying -- seeing -- saying it is time for aate hike. is of financial services will result in poor e quality, higher-priced product, for everyone concerned. >> the pound sliding for a second today. walk us through the various factors causing this selloff in sterling, pushing the gilt yield. >> mark carney was a big factor today. he pushed back devilishly against expert -- dovishly. in the long-term, there is brexit. are unknown at this point. investors do not like uncertainty, spending on out not -- -- unknown outcomes. >> oil is the big market mover today. it went below $43 a barrel at one point, with the drop today. if you look at where oil has come back on february 23, it looks like we are now in a bear market for oil. it is down by nearly 21%. >> i do not understand the move today. >> none of us do. [laughter] it started early this morning in london. i would argue it is more technically driven. broaderit represents a movement in the price, in the sense that the sentiment is relatively negative right now. we look at prices it

it says mark carney and mario draghi struggled to communicate how they would exit out of economic stimulus the new york times writes about the rise in populism around the world, but how canada has bucked the trend. the article says an inclusive political culture has helped to stop immigration being a polarising issue. ever thought about where your plastic drink bottle ends up? the guardian's looking at what it calls an environmental crisis — one million plastic bottles are bought around the world every minute! and one presumes that1 million are thrown away as well. what a great talking when. we have with us a deputy chief, lawrence. shall we start with the president xi jinping visit. we have seen protests of, my goodness, they are not taking any chances, are they? it is extraordinary and there was a big rally planned for the first ofjuly. the protesters it is the whole issue of about how they believe they were promised some form of universal suffrage and that was when the uk handed hong kong back to china. they feel it is never, never will come. how important do you think hong kong is to c

mark carney give quite a strong impression this week that he would be minded under certain circumstancesnking about raising interest rates, which we have not done for ages. only ten days beforehand he was saying that specifically that now was not the time to do it. there is not so much clear blue water between the state m e nts clear blue water between the statements as may one appear, but there is a shift in mood globally, both that the bank of england and the european central bank and elsewhere to say, we might be starting to edge towards getting interest rates back to normal but eve ryo ne interest rates back to normal but everyone is saying but we need to do this very carefully because we have not been in this situation before, we have been sold for so long, we need to tread carefully. we can stay with the ft that moved to the story, the picture story on the front page. pride of place, germany legalises 93v pride of place, germany legalises gay marriage despite of angela merkel‘s vote. she gave everyone the option of voting. she voted against the reforms. the first thing that shocked

that makes the situation for mark carney difficult.tainty in the current environment is too high to draw strong conclusion, particularly against the background of the political environment. why the next time the bank meets, the third of august, when they have to issue a quarterly inflation report, i can imagine the bank of england will have turned more cautious. ubs,would be in line with we expect the u.k. economy to slow down and that will have an impact on monetary policy. optimal levelhe for governor carney of pound sterling? does he need a weaker or stable pound? reinhard: we need less uncertainty. that a weaker currency might be good for , good for creating exports, but in the carney environment, where inflation shows up a lot and investors are uncertain and perhaps the households and corporations are uncertain, if we see further declines in sterling, that might not be good for confidence. tom: thank you. we will continue. in our next hour, this will be fantastic. inflation, what we have seen in the last way for hours at the fed.

mark: mark carney there speaking exclusively with bloomberg.et's check in on the first word news with john. -- chandra. x president trump's traveled animal take effect tonight, according to a person familiar with the motto -- matter. that will give companies enough time -- countries of time to figure out how it works. existing visas will be honored but new applicants must prove they have a relationship to the u.s.. chancellorany, angela merkel has given a competent preview of next month g-20 summit and what it may look like in a speech to german lawmakers. she dismissed brexit and said assets like i'm a change our irreversible. she took a swipe at president trump's america's first rhetoric, saying countries are turning to protectionism and making a serious mistake. five men have been found guilty russianurder of the opposition leader who was killed while walking your the kremlin in 2015 -- near the kremlin in 2015. wascurity offer -- officer convicted as being the actual trigger member. global news, 24 hours a day, powered by more than 2700 jou

let's talk about sterling in the wake of mark carney's hawkish comments yesterday.ven day -- seven today, the best stretch since april 2015. he said the monetary policy may need to raise rates despite the weakening economy. sterling has raised the postelection rosses -- losses. a week ago, carney suggested he was in the low rate in the currency could move toward 135 according to lee hartman, he is an fx strategist. 130.30 six, that was the may 19 eight-month high. we are close to that level. theresa may faces a key legislative vote later. her vote on her agenda later this evening. watch out for that. that could have an impact on the level of the pound. just finishing off euro, this is euro nominal effective extreme -- exchange rate now at the strongest level since december 2014 against its major trading -- the ecb unveiled the qe program. a further increase in the meer could put inflation lower according to -- unless oil prices rebound and the euro falls, any announcement on bond tapering would have to be postponed until october or later so says an economist at the

mark carney will also be making an announcement.and we meet sudan, the last surviving male northern white rhino. but can he help save his species? in sport, andy murray gets his defence of his queen's club title under way later. there was a shock on day one, with british number two, kyle edmund, beaten by a canadian qualifier, denis shapovalov. and sticking with tennis, carol is at queen's with the weather. good morning. good morning. here in london, a mild start to the day. a hot day in many southern areas. if you are going to queen's club, take your hat, use lots of sunscreen, and drink plenty of water. it will be largely dry. some showers developing later. i will have more details in 15 minutes. good morning. first, our main story. the family of a man arrested after a terror attack near a london mosque say they are "shocked" and "devastated." father—of—four, darren 0sborne, was held on suspicion of attempted murder and terror offences after a van hit muslim worshippers in finsbury park. last night, a vigil took place near the sce

for the bank of england's financial stability report, followed by mark carney's speech that's it for today's show i'm willem marx. "worldwide exchange" is coming up right now >>> good morning the draghi pop big moves in the euro as the ecb president talks up the economy >>> 22 million unshired. the congressional budget office releasing i score of the senate's healthcare bill we're live in washington with the latest. >>> and marc benioff sits down exclusively with cnbc. it's tuesday, june 27, 2017, "worldwide exchange" begins right now. ♪ >>> good mornings.

. >> the bank of england governor mark carney sent the pound lower after saying that it is now the time a rate hike. >> fragmentation of financial services will result in poorer quality, higher price products for everyone concerned. >> the pound sliding for a second today. 126.21. you can see it on cable. walk us through the various factors causing this selloff in sterling, but also pushing the gilt yield lower. >> mark carney was a big factor today. he pushed back quite dovish against rate hike expectations. that's a big factor for its sterling in short-term. in the long-term, there is brexit. really, the outcomes of those are really quite unknown at this point. as we all know investors do not , like uncertainty don't like , betting on unknown outcomes. that is something that will hang over investors heads for the next two years at least. >> oil is really the big market mover today. it went below $43 a barrel at one point with the drop today. if you look at where oil has come from its highs on the year that on february 23, it looks like we are now in a bear market for oil. it is down b