governor mark carney gives a news briefing.bloomberg customer, you can watch the show using tv as well as a via stream. you can follow all of our desk video stream. you can follow all of our charts and message the team directly. this is bloomberg. ♪ ♪ london, 40s 7:19 in minutes away from the european market open. if we look at how they might open, we could see a lower open going to days of gains in the stoxx 600. we have seen some losses in asia as well. on fridaylosed lower in terms of the s&p 500 and nasdaq. tech stocks providing a big drag. a big week for central banks, 10-year treasury yield traded at 2.96%, higher after a drop friday following the u.s. gdp print. let's get the news business flash. : internet platforms are set to face new content laws in europe. companies, including google, twitter comments race book, could face fines from number if they fail to take down propaganda and hate speech. the board of cbs is set to meet later today to discuss the future les moonves. it is a scheduled meeting just days befor

do not miss stephanie flanders interview with mark carney. it is still earning season, it will be a busy week, second busiest for s&p, more than 500 companies reporting. we had apple on tuesday, tesla is also coming, and then he have workers and ubs and credit well. as tracy, over all, how would you categorize earnings season? tracy: i think it has been fairly good, but it's thunder has been stolen the what is happening with the faang stocks, obviously. we speak about the importance of faang stocks to the rally, and 90 have a result of what can happen when those stocks get knocked. a few people were surprised that we did not have a broader impact on the s&p 500 when we saw the netflix. facebook and goldman sachs said to do that one reason a minute have happened is that we saw a lot of the holders of tech stocks that were getting hit, rotated to other stocks, so they propped up way.ally that but when you think about it, the faang stocks have been responsible for the rally this year, there and responsible for the momentum which is based on conf

guy: mark carney talking about brexit of next.mberg. ♪ matt: 30 minutes into the trading day. here are the top headlines. boj back in the market. rhoda makes it clear he's in charge of -- kuroda makes it clear he's in charge. will they make a shift in policy tomorrow? stress test. mark carney tells bloomberg his preparation for brexit. we analyze what he says for clues. and brazilian hangover. the world's second-largest brewer slumps as the latin american business squeezes heineken's.profits welcome to bloomberg markets the european open. berlint miller in alongside guy johnson and bloomberg's european headquarters in london. guy: heineken certainly suffering as we heard from the cfo. the market is going to read this as a profit warning. but it's based on positive rather than negative views. the market certainly punishing heineken. trading up 2.8%. gvc is trading a little higher. seven bells trading a little lower, sorry trading a little higher by 2.61%. let's show you what the heineken stock looks like, trading sharply to the dow

i'm delighted to welcome to the stage the governor of the bank of england, mark carney.eat message of the economy. the data since may have given me greater confidence that the softness in the uk activity in the first quarter was largely due to the weather, not the climate. a number of indicators of household spending and sentiment have bounced back strongly. governor, given the bounced back in the economy that you have outlined today, it should people be prepared for an interest—rate rise sooner rather than later, and certainly this year? i would say 75% survey evidence of households think that interest rates will rise because of the next year. there are expectations are that interest rates will drop a bit but not that much. he knows that brexit is weighing on economic competence and his audience it, too. if longueuil invest in local firms, many of which export to the eu. —— yvonne gale. to boost the economy, we need more ambition and a willingness to take on risks. but the problem with the whole brexit question and where we will end up is that it suppresses people's upd

i'm delighted to welcome to the stage the governor of the bank of england, mark carney. spirits, a more upbeat message on the economy. the data since may have given me greater confidence that the softness in the uk activity in the first quarter was largely due to the weather, not the climate. a number of indicators of household spending and sentiment have bounced back strongly. governor, given the bounce back in the economy that you have outlined today, should people be preparing for an interest—rate rise sooner rather than later, and certainly this year? i would say 75% survey evidence of households think that interest rates will rise because of the next year. there are expectations are that interest rates will drop a bit but not that much. he knows that brexit is weighing on economic competence and his audience knows it, too. yvonne gale invests in local firms, many of which export to the eu. to boost the economy, we need more ambition and a willingness to take on risks. but the problem with the whole brexit question and where we will end up is that it suppresses peopl

that‘s the warning from mark carney, the governor of the bank of england. he is pointing out that there are no winners. the fact we have seen retaliation from a tariff perspective from both europe and china, he‘s proving to be correct, certainly from an agricultural point of view, with your reporter was talking about soya beans. that is a clear indication that the us will suffer in some shape or form. it's confusing, isn‘t it? we were talking about the non—reaction we are seeing on the markets. to what degree to stock market reaction reflect what is going on in the real economy? great question. —— to what degree does the stock market reaction. the markets don‘t particularly reflect necessarily what is going on. but it isa necessarily what is going on. but it is a holding pattern, in some respects, at the moment. thanks very much. that‘s it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. we‘ll see you again tomorrow. the dry, very warm and predominantly sunny weather continue

i am delighted to welcome to the stage, the governor of the bank of england, mark carney.more upbeat message on the economy. the data since may have given me greater confidence that the softness in uk activity in the first quarter was largely due to the weather, not the climate. a number of indicators of household spending and sentiment have bounced back strongly. governor, given the bounce back in the economy that you've outlined today, should people be preparing themselves for an interest rate rise sooner rather than later, and certainly this year? i would say 75% survey evidence of households think that interest rates are going to rise over the course of the next year. their expectations are that interest rates will go up a bit, but not that much. he knows that brexit is weighing on economic confidence and his audience knows it, too. yvonne gayle invests in local firms — many of which export to the eu. if we want a boosted, growing economy, we do actually need a little bit more ambition and a willingness to take on risks. and, the problem with the whole brexit question

just a little color on what we had for mark carney. august deal the meeting, the markets pricing in that rate hike. is there anything that could change that picture the way it did in may? i don't think so because we have had u.k. data in terms of employment. that has been consistent enough with the bank of england doing a hike in august. i am skeptical that these rate hikes are warranted. spoiledsee a range developing in the united kingdom. unlike the u.s., the u.k. health sector is not delivered anywhere as much. i think it has pretty much maxed out on his credit card. i think it will be kind of one and done. tom: you are too modest about your incredible work at fitch for over a decade. global sovereign and financialnal divisions group. you ran the thing for a decade. how did we get into financial instability? what are the things that get us into trouble? david: coming from a ratings agency background, i have to show some humility and say one of the things we learned was the mispricing of some risk. tom: were you too slow? david: when

. >> bank of england governor mark carney says signs of a growing strength in the u.k. support a move toward higher interest rate. creasing confidence for the winter weather and not the economic climate. we do the door open to a hike as early as the banks next meeting on august 2. u.k. prime minister theresa may is fighting cabinet results. close to eu trade rules after brexit. senior figures discussing compromise, and the negotiator is already said to have rejected it. ministers met foreign secretary doris johnson on thursday night and later made their concerns to downing street. china has confirmed that support the iran nuclear deal saying the states involved have an obligation to keep it in place. speaking ahead of resident parties indiana, the minister said they had an international treaty and the collapse what her chances of these in the middle east. and damage the credibility of the world order. the u.s. pulled out of the deal in may. the deal is a multinational treaty. that is why states are obligated to ensure its arrival. if this treaty can't be of help, it doe

mark: joining us now is elsa lignos. thank you for joining us. carneynd seemed a little more hawkish. does that increase the probability of a rate hike in august? elsa: markets have become quite skeptical with mark carney because we have heard him switch around before. i think people are naturally a little bit cautious taking him at his word. economists are expecting a hike in august, but we will have more data before then. mark: does that mean sterling bottomed or there are other factors in play? elsa: this week we had that angela merkel is rejecting theresa may's plan. that really is the focus for the next two days. vonnie: how much impact as this having on the ecb members? obviously, sterling is going its own way but it must have some impact on what the ecb is thinking. elsa: i think ecb members are more concerned about their own internal debate. you reported a story that certain members are not so sure about market pricing, a little concerned that markets are not discounting the first rate hike soon enough. other members would disagree, and i think

possible exit from the european union without a formal divorce deal meanwhile bank of england chief mark carney said the institution expects a systemic shock if the u.k. exits from the e.u. next march without a deal so-called heartbreaks the likelihood of justice has risen in recent weeks as the british government teeters between public expectations at home and e.u. demands. the u.s. has published stellar growth figures last week boss there are fears the u.s. economy may be peaking stock exchanges in tokyo shanghai and so broadly posting declines with european markets following suit analysts are skeptical that the record four point one percent g.d.p. growth in the u.s. is sustainable consumer spending and a surge in soybean exports were behind the surge and for the growth companies in china and the e.u. stockpile the venture is amidst trade war fears now let's shed some light on these developments and talk to cast brush he's the chief economist at g d van joins us now from france of course those u.s. figures don't seem to impress anyone has u.s. growth really peaked you know has been or not rea

mark carney is the cover story for the latest bloomberg markets magazine parade let's get into that story because at said he wask carney spending half his time on brexit and said this "let's be clear, it takes 50% of my time. " he spent a fair time in contingency planning, but now it crowds out other things. he mentioned it because the issues are important, there is a responsibility to manage the downside. howdy they continue to do this -- how do they continue to do this when they don't have a plan for part two, let alone part one. stephanie: they have said repeatedly we are hoping to have clarity on what this post situation will be once britain tradeft and has a new relationship that everyone is equally in the dark. i was struck talking to governor carney that he admitted it was taking at least half of his time. i suspect that is a conservative estimate. this was something hardly on the radar when he became governor. even the possibility of a referendum. for that to be absorbing so much time, i was also interested in what he said about the financial system. there has been concerns on bot

the guardian carries a warning from bank of england chairman mark carney to president trump, that furthermage the us the most. this comes as the us and china prepare to fire the opening salvos of a trade war today. meanwhile, france's market watchdog the autorite des marches financiers says the world faces the risk of a "brutal correction" in global stock markets. the organisation warned the world has never been so indebted and the debt has never been so risky. the new york times looks ahead to us secretary of state mike pompeo's latest visit to north korea, where there are fresh doubts about whether pyongyang will follow through on the commitments at the singapore summit. reports from us intelligence say the regime is working to conceal the extent of its nuclear weapons program. and, finally, football won't be coming home to english churches anytime soon. the church of england has warned world cup fans not to check their mobiles during wedding services or they risk being told to leave.

let's talk about mark carney. not the only one who has been saying this. been talk of the fact that this trade war, although it will damage the global economy, it will hit the us hard at first. we had a very good piece from our correspondent in minnesota talking about how soy bean farmers will be hit. wrong, wrong, wrong. it is not a trade war. global trade has not decreased. secondly, it won't affect the world global trade. why does it have to decrease to make it war? it isjust like bear markets. trade war is a journalistic term. as an economic to me does not mean the same thing. it has become politicised. let me say wyee point impact global growth. the trend and momentum continues upwards not lee spick is the largest economy in the world has huge tax cuts. it is flooding these companies with lots of money which they are bringing back to the us. that is why they have so little joblessness in the us as well. so things are quite buoyant. so you are saying to me the governor of the bank of england is wrong. again, as he is about brexit. he is not the only on

back to the interview with mark carney.t the time, the offer talked about trade. >> it is a real risk. the u.k. is reconsidering its trading relationship with the entire world. it is a huge issue for the government. really, only 50% of the time. it is huge, and it has only gotten more interesting since june. now i think he would probably be more concerned. i imagine it is going to come up in the press conference on thursday. francine: we are getting your questions. please keep writing in if you like the program, don't like the program, if you have questions for our guests. where do you think the new our rate should be? >> if we are looking at long-term equilibrium rates, i think the market has underestimated the impact this week. this could blow the market reaction in the immediate aftermath. somewhere in are the region of 2% to 2.5%. moderately above the neutral equilibrium inflation level. >> in nominal terms, 2.5%. after inflation, about 0.5%. slightly higher in america than it would be here. this is a must more art than

have mark carney presenting see financial stability report.g of financial stability report. there is a little bit more about the foreign exchange market. great to have you with us. what is next for the dollar, we know what trumps geopolitics frenzy is at the moment, we are waiting to hear from powell. i am wondering, we are up 7% on the dollar since april. we are going into a powell testimony. ?s the dollar near-term peak are we all priced for a powell gradualist speech? we -- we are not expecting much new of powell. i would the surprised if we get a further boost. he has everything said already. he is very bullish on the economy and there is a risk of a trade war but that is not with the current focus is on and the fed is positive effects on the u.s. dollar going forward for now. anna: you are in a mood to seek havens, are you looking for havens from a trade war, and the dollar or do you seek it elsewhere? everybody waits for some signal how the fed is going to deal with a trade war. so far, the concerns about the trade war are not reflective

britain's biggest airshow monica not flying high on the last one sumi bank of england governor mark carney said that a no deal breaks it would have big economic consequences prompt a review of interest rates and leave many bankers idle britain and the e.u. have of course negotiated a transition deal that would effectively keep britain in the block until the end of twenty twenty but it has not been ratified to get meaning the united kingdom could crash out and have to rely on w t o trading terms conny made those comments speaking to nor makers of the farnborough airshow where breaks it worries take center stage. aircraft makers have been flying high for almost a decade now pushed up by rising demand now they're showcasing the u.s. shyness informed. but a change in political landscape could spell turbulence ahead this. actor depends heavily on cross border trade in plane parts so a break that related disruption in the movement of goods and services would be costly. british prime minister to resign may sought to sue the industry fears that the air show she offered more than four hundred fifty

mark carney, the governor of the bank of england, put his finger on the key dislocation, which has nothingrade, which is to do with financial services. essentially, a large number of european politicians seem not to understand precisely where all of the debt is hedged, where all of the derivative contracts are in london. well, that is their debt. when those contracts no longer work, that is a problem for britain, that is a spectacular problem for the italian government, or for german banks. i'm not advocating that happening, i'm just saying that by accident you could end up with it. where i think this is breaking down is that the european union, and you've got to take your hat off to the eu negotiating tactics, in a sense they are negotiating an approach that has ended up being too successful. why do i say that? what really matters now is that they won on the sequencing, which is that we did withdraw first and then future arrangements. the problem is... because we wanted to do a few things... it is clear the eu does not want to do a detailed future arrangement, it want a vague piece of pap

mark carney, governor of the bank of england, has said he now has more confidence in the uk economy, down earlier in the year was largely due to the bad weather. however, he also warned that a global trade war could dampen economic growth. the uk's biggest carmaker — jaguar land rover — is the latest big company to warn of the dangers of a so—called "bad" brexit deal. it says it could cost it more than £1.2 billion in profit each year, jeopardising future investment in britain. jlr says it needs "free and frictionless trade with the eu "and unrestricted access to the single market." energy giant edf is to increase standard tariff prices by an average of 6% for those customers who take both gas and electricity. it said these dual—fuel customers would on average pay £1.35 a week more from 31 august. it increased electricity charges by 2.7% in april. more now on our top story, the boss of jaguar land rover, the uk's biggest carmaker, has issued grave warnings over what a bad brexit deal could mean for the company. according to ralf speth, it could cost the company £1.2 billion profit ea

today, mark carney said these concerns are starting to show up in the data. >> the tariffs announceds far, if implemented, will probably double the average bilateral rates, and could raise u.s. tariffs to rates not seen in over half a century. earlyere are some tentative signs that this environment may be dampening activity. the chief u.s.me economist for -- >we talk about whether a trade war has come are not come is a trade war inevitable? this chart shows the u.s. and china. came into effect, you can see the sense that china is overtaking the united states. thucydides trap. could we have a trade war? >> we are going down that path. any one of these couldn't break that trend if they wanted to. the question is what causes that. trump mindset that this is the time to push. it goes back to his belief how reagan handled the ussr and departmentefense that wound up bankrupting the ussr. given the instability and weaknesses in china, china's desire to slow down its growth, trump feels this is the last time to push and get anywhere successfully. that is why he's going to do it. it will be i

bank of england governor mark carney says signs of growing strength in the u.k.nomy support a move towards higher interest rates. date i him increasing confidence. the first quarter was largely weather.nter his upbeat remarks leave the door open to a hike as early as the bank's meeting on august 2. global news 24 hours a day on air and @tictoc powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. we are counting down to the major market opens. latest with sophie, u.s. tariffs on chinese goods in a few hours, we saw a relief rally overnight. maybe: it looks like that off in asia as well. we are preparing for a new world order. a couple things possibly could help maintain stamina. optimism.he fed's also the overnight rally in tech shares, that illustrates that investors may be focusing on upcoming earnings. even u.s. chip stocks were the industry has not caught up to u.s. china spats. expectedweaker than earnings in the pulmonary results from samsung, the back cap of the year is expected to be better. while casualties are

mark carney governor of the bank of england has said he now has more confidence in the uk economy, and. the uk's biggest carmaker — jaguar land rover — is the latest big company to warn of the dangers of a so—called "bad" brexit deal. it says it could cost it more than £1.2 billion in profit each year — jeopardising future investment in britain. jlr says it needs "free and frictionless trade with the eu and unrestricted access to the single market." energy giant edf is to increase standard tariff prices by an average of 6% for those customers who take both gas and electricity. it said these dual—fuel customers would on average pay £1.35 a week more from 31 august. it increased electricity charges by 2.7% in april. there's going to be another strike at rya nair? the cabin crew are joining irish ryanair pilots who on tuesday announced a strike forjuly 12, saying europe's largest low—cost carrier had failed to improve conditions sufficiently after recognising unions in december. italian cabin crews are coming on on the 25th and there could be more coming behind. depending on your point of

governor mark carney cited market. in the labor it's reasons to raise rates. when.ot said money markets are now pricing in tightening atof the bank's next meeting. reports from london say eu nations being told to prepare for a no deal brexit. daily telegraph story appear appears -- senior eu officials meet wednesday. wide ranging and internal document that urges to step upons contingency plans of the u.k. onbal news 24 hours a day hair and tictoc on twitter. 2700ed by more than journalists and analyst. is bloomberg. >> thank you. let's dive deeper into the markets now. stocks as well as the dollar rallied that after fed testimony toell congress really touted strong growth in the country. a record. closed at details.hrough all the >> number one, you have the fed hisr testifying and testimony about staying gradually increases now. it's exactly what the market to hear. ease concerns. you had the big netflix news after the bell. in regularred session. that's what the tech guys wanted to hear. what you saw was the dollar rose. treasury little changed. look the nasd

we will bring you highlights from a recent interview with the boe governor mark carney.is preparing for brexit. mackinnonar from neil , his take on trade tensions between the u.s. and china. this is bloomberg. ♪ . this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. caroline: this is "bloomberg markets." it's time for the bloomberg business flash, a look at some of the business stories in the news. bmw is trying to offset the cost of higher tariffs by china's trade war with the u.s.. the german automaker is raising the prices of some mid-size sport utility vehicles in china. these are built in the bmw factory in south carolina. tesla has raise rice -- prices in china. casino operators in the u.s. are jumping into the business with this up in court clearing the way. they are teaming up with mgm resorts national each putting in a $100 million set up for online betting in the u.s.. caesar's will start taking sports bets at two casinos in new jersey this week. beerorld's second-largest maker heineken is forecasting a drop in profits. they've been expanding more

alexis: mark carney said brexit has been a drag on the economy. the economy is still running strong. the bank of england is ready to raise rates. provided the data continues to upbeat this month more than it was in the first quarter, the bank of england is still said to hike. reporter wrote this morning from ernst & young about dei into the u.k. the u.k. is the number one destination for foreign direct investment. andose 64% in germany doubled in france. fdi in british financial firms dropped 26%. do you think that is just a one-off, or is there something more telling him that data? alexis: it could be a combination of both. foreign direct investment in the u.k. would fall and the u.k. perhaps would not be as attractive a place to operate. there's been a lot of pressure. you've seen rents becoming quite vocal. perhaps part of the reason why may has opted for a more soft version of brexit. the impacts on the economy are starting to become clear. anna: they've acknowledged that this plan would reduce their access. they seem to have dropped mutual re

we have mark carney telling us he is spending more than 50% of his time thinking about brexit.tly different situation, but how much does jerome powell's tiny to go into the thinking of what the administration could do the next years? ethan: i think there is a big worry at all the central banks about an outright trade war. if you listen to fed officials, including powell, when they talk to business executives, there is andlpable fear of trade war that creates tremendous business uncertainty, regardless of which side of the war you were on. up to this point, it has not affected the policy path at all because the collateral damage is much too small. the amount of tariffs we have seen his tiny relative to the economy. equity market is still ok. numbers are still ok. it really is not having an term policy,e near but these guys are paid to worry. i'm sure there are a lot of conversations at the fed right now. vonnie: one of our favorite words at bloomberg is glide path. are we on a glide path to better employment? i do not mean lower unemployment but better participation, which growt

support the view held by mark carney that the slump at the beginning of the year was weather-related.want to finish with tesco, story.orporate the u.k. chief, charlie wilson, seen as a possible successor to the chief executive officer, is stepping down after being diagnosed with throat cancer, and shares are down by almost 2% today. booker,continue to run and he increase their earnings for 12 consecutive years after 2005,n the rains and building online sales to small business, and he was named to u.k. and ireland chief as tesco prepared to complete that booker him a strongaking number two to lewis in the combined company. tesco shares down by 1.9%. that is look at european markets. vonnie: in the u.s., continue dollar strength off the back of a little pound weakness today. euro, as well, of course. lira, we do not pointed out in the european data check is that 4.69, said a little stronger, off the lows, but it had been the worst after that coup attempt two years ago. for crude and we didn't inventories later in the week. the mexican peso is back to 19.02. let's look at g20 movers. a l

bank of england governor mark carney was spotted sporting a three lions lapel pin at a business event in new castle i didn't think i would have -- i had this for a few years i didn't think i would have a lot of opportunity to wear it. i'm wearing it proudly the work ethic, the sense of -- i read a good article today about the team talk about background, where you're from, humility and the innovation of the team this is a pleasure to watch right now. so we're behind them >> yeah. in gareth we trust >> exactly >> james, thank you very much for joining me this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. >>> welcome. we begin with breaking news. the united states officially imposing new tariffs on $34 billion worth of chinese imports. president trump also threatening to extend those tariffs to all 500 billion

that is the word of mark carney, the governor of the bank of england.ould be havoc and this is not dealt with, yes? >> yes, it is a strong warning for the european union that they need to put their house in order about this derivatives issue. mark: what was the general tone via the financial stability review report? what was the overall tone today? >> i think there is recently saying, that without exit, things are pretty silent. that is where most of the risk comes from, the biggest domestic risk. vonnie: the u.s. supreme court as upholding president trump's travel been in a 5-4 vote, giving trump legal victory on an issue that helped define his presidency. >> the supreme court did allow the administration to continue to enforce the travel ban, which currently prohibits entry from seven countries. it is important to know that the supreme court did not accept the trump administration's suggestion that they should ignore the president's comments, which suggested that the ban had been adopted for anti-muslim purposes. instead, the court says that when you

z,e austrian chancellor, kur briefs people on his european union presidency and mark carney will speakwcastle in the north of england. what has he to say for himself today? particularly important thing, geographically, when you going to the rest of the country. nejra. perspective is >> thank you. you see the equities are lower shares are doing ok, but there is risk with investors looking ahead of the deadline to impose the tariffs on china and we heard from the commerce ministry today and did not get a lot of detail, other first in theseng trade tensions. in terms of timings, that is all up in the air. we see the onshore and the offshore flow and we take a look and have this, despite the daily october and we are this underperforming on trade tensions. this is a high for asian pbocncies and there is the and a little bit of context we are looking at the japanese bond market and we are seeing andyields at the lowest japanese investors look at what they favored with the european ands that are coming back the bond yield has broken a key level on the downside with the basis and you are seein

. >> talked about the government position, we heard from mark carney he said in the event of in deald be big economic consequences. he says he is concerned that the european union has not indicated its solution to post-brexit continuity when it comes to derivative contracts in the city of london. he's supposedly neutral in all of this. do you think voters in this country have taken that fact on board? >> i think they have in the sense that they're now hearing things they never heard before it's not about threats about what could happen to our economy, it's about things that are happening now. we were told we would get 350 million a week back. we're doing a 40 billion exit bill we were told we would have complete autonomy over our rules. under the checkers deal we are regulatory aligned to the european union we have to accept their rules and regulations with no say. we will not be part of the single market in services, which is 80% of our economy. the bit you were talking about with the bank of england, the city will be outside people don't want that in light of that it's not surprisi

francine: will mark carney be able to raise rates in august even the political turmoil?revor: give me a the 24 hours and all have an answer on that. in the background, what is interesting is the very latest u.k. data has gotten a bit stronger again. right now, it looks like a reasonably strong field in my view. we will see what next month thanks. francine: let's talk trade and tariffs. china merkel has praised for opening up foreign investments. cars have been some of the early victims of a u.s./china trade or. daimler facing higher cost is a import luxury models from china. trump is showing up in europe and nato. germany has been asking for more defense spending. trevor: i cannot see that. have no idea. people who follow trump in great detail don't see a pattern in the things that happen. francine: do you own german carmakers? a strong business there and has a value. the trade tensions are another wildcard to try to digest. i view it a bit like a central bank raising interest rates. effectnot have a straight away but will have an effect. the usual things like general ec

in's start with mark carney his address.>> they are putting some numbers on these threats, talking about a huge amount of investment that is under threat if we have a bad brexit deal with lots of trade barriers between britain and the european union. what mrs. may is proposing and mr. davis seems to have rejected is inching towards the softer end of the brexit curve. some of this rhetoric might strengthen mrs. may's hand in negotiating with her cabinet. toa: they are used dismissing this as fear, aren't they? >> they are. strength of the feeling in the cabinet. there is a lot of anger provoke .y this brinksmanship they accuse these companies of performing that. it is important to remember what the europeans will think about this has britain continues to argue amongst itself. mrs. may is off to germany this afternoon. regardless of what mr. davis thinks, if she can get angela merkel to say this is a starting point, she will come back to that meeting with a strengthened hand. tom: thank you so much for those comments as govern

of this latest inflation data in the last few moments and based on that, based on the fact that mark carneyly about the consequences of no-deal brexit, what does this mean for bank of england policymaking and assets like gilts? >> yeah. so i think we have to differentiate between the short-term and when we talk about short-term we are talking august bank meeting and then the medium term. in the short-term i would be surprised if the bank holds off with a rate hike it did so in may i think it's unlikely everything we have said so far, all the data that has come out, the data may be weaker now than the consensus estimate, on plans all the data supports their expectations going into this meeting. so hence if they do not hike rates as we forecast, i would be extremely surprised. over the more medium term, that's a completely different story, because the path that the bank has mapped out for two to three hikes over as many years is crucially contingent not only on economic circumstances but on a smooth implementation of brexit if that doesn't happen the path is in jeopardy. >> peter, thank you v

mark carney, speaking -- the treasury select committee had a scheduling issue.ture them on the show later on. the investment director of fidelity international joins us. theg by the ftse, do i buy ftse or the pound? they are both antagonistic. >> with all the brexit uncertainty, we will be watching the pound quite closely. when the data comes out around the employment figures,, wage figures, wage growth, i don't expect people see a big difference. let's start with british investors. what do british investors do right now in order to preserve capital, or even find some return? >> it is a good question. the return of capital is as important as the return on capital. we have actually seen value stocks outperform in the last year. >> bond proxies in outperformed because of uncertainty. due to the nature of consumer staples, value stocks have really outperformed. the msci, 25% of the benchmark is dedicated to technology stocks. in the u.k., only 1% of can beogy stocks disrupted. u.k. market is fundamentally different to the rest of the world. the stock market and the

manus: let's just see how reliable mark carney is and whether he will step back from the prospect ofe hike in august. 80% probability at the moment. rafaella tenconi, chief economist, ada economics. anna: this is bloomberg. ♪ guy: good morning welcome to "bloomberg markets." we're live in our headquarters in london. the cash trade is less than 30 minutes away. guy: stocks stabilize, chinese markets are up. we will talk about why in a moment. turkish assets tumbling. president erdogan goes on tv. should investors

it's going to be difficult to replace sergio mark carney.mike manley, sharing with sergio a workaholic style. mike manley is good in public. very, interrelate his very respected. we should give mike the time to start his job. he starts essentially today. why we are speaking -- while we are speaking, investors are meeting. this was scheduled before. sergio, it'sry -- a much more important and crucial aspect for the future of the group. matt: i want to bring you a little soundbite of another italian ceo, with whom i spoke -- i guess sergio is canadian and manley is from britain, the fiat is a huge italian company. ducati is also one of my favorites, as you know. i had the chance to catch up with the ceo over the weekend and ask him about trade. listen to what he said. >> like 75% u.s. and 25% international. and so, we are less than 10% in our own country. of course we would be affected if this trade war starts introducing a problem of european programs imported to the u.s. but we are diversified. matt: i think the interesting point that he's m

federal reserve and on thursday the bank of england announces its latest policy decision and governor mark carney briefing. now joining us is the fixed income portfolio manager at jpmorgan asset management. great to have you with us. it seems the markets have taken this as a dovish decision from the boj at least for today. 10 year yields on the jgb dropping but will we see curve steepening further down the line? diana: the market has been expecting to see a more explicit guidance on where the tenure target was or perhaps a bit more information around how much was willing to tiger -- tolerate. we have not got back in the statement, we will see what the governor comes out with at the conference. but i think ultimately, this is positive for yields, we think it should be supportive for bond markets because the boj has committed to keep rates low. nejra: what do you want to hear from kuroda when he speaks? diane: we would want to hear with that range is, what they are looking at. they will keep 10 year yields and allow some flex ability around that. markets will want to understand what that flex abili

mark carney and the bank of england say they will still have whenh data to move forward they have tot decision in august -- rate decision in august. londonmike pompeo is in -- brussels. he is a secretary of state and left pyongyang without any clear achievements. it is going to be a fascinating political second half of the year, with vladimir putin meeting trump, and what will happen with north korea. anna?-- anna: later today we get a rate decision out of argentina. we will watch that one. let's stick with the emerging markets, shall we? manus: will go out to turkey -- we will go out to turkey and is mambo -- istanbul. erdogan has named his son-in-law .s the economies are -- czar what does that mean for markets? the lira plunge the most since the 16 -- 2016. the market really took a hard yesterday that his son-in-law will be in charge. what is really a powerful ministry -- in what is -- in charge and what is a really powerful ministry. the market reacted very be relatively yesterday -- there virulentely yesterday. what is your take? >> the markets do not know what to expect right no

the next time mark carney speaks, we will be waiting to see what he says. ramy: and of course what happens in the next few days with theresa may and any brexit talks there. kathleen hays. we have got an exclusive interview on bloomberg later today. we will talk trade and tariffs 1:00 sydneyw at time. that's 11:00 a.m. if you are watching from hong kong. make sure not to miss that. yvonne: moore on brexit -- more on brexit. markets welcome the political turmoil in the u.k. ramy: later this hour, michael hirson will join us. he thinks china's reaction to u.s. tariffs will be relatively restrained for now. this is bloomberg. ♪ yvonne: this is "daybreak asia." i am yvonne man in hong kong. ramy: i am remy innocence you in new york. back to our top story, and prices for theresa may brexit plans along with herself. joining us to dig in is fixed income senior vice president and senior portfolio manager, bryce. good to speak with you here. we are trying to make heads or tails of how this might impact growth as well as possibly any hike path for the bank of england

mark carney has said it strengthens the labor market -- he has not said when the rates will rise.rengthened on the news. there is a big chance of tightening at the next meeting. from london said eu nations are being told to prepare for a no deal exit. the daily telegraph story appears. this is brussels, for the first time in his new role. there officials meet in on wednesday. they'll discuss an internal document that makes them step up contingency plans. global news, 24 hours a day on air and on tictoc at twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers, this is bloomberg. ahead, top grade iron ore could spike. first, here y tribeca investments -- hear why tribeca investments say that asia looks like it has good trade value. this is bloomberg. ♪ ramy: welcome back, this is daybreak asia. i am remy innocence you in new york. , in sydney.haidi is our guest. investmentsa portfolio manager. there are more stocks related to the china and economic growth. showing good value at this point. haidi: how do you get more exposure to

governor mark carney has cited strength in the labor market and limited spare capacity as reasons toes, although he has not said when. money markets are pricing in an 80% chance of tight ring at the banks next meeting. it is getting more crowded around jupiter. astronomers say they found 12 new moons, taking the total number two 79. telescopes identified the new moons, some of which show in oppositeng directions. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am tom mackenzie. this is bloomberg. rishaad: coming up, finding out about how they grow their business. this is bloomberg. ♪ i am rishaad salamat.o the hang seng up .7%. the nikkei moving more than that. let's find out who is driving things. >> let's have a look under the hood. morning, slashing the recommendation to neutral here. great wall motor, some earnings, guidance, very good in fact, 52% for the first half is what they are penciling in for first half income. let's look at the other movers. one stock, sunny optical, 4% up. it is

mark carney said the people most if this will be the american people.ome office is reviewing the use of medicinal cannabis, and looking at individual cases. radio 1 newsbeat‘sjim connolly has been to meet one man who says he'd benefit from the drug being available on prescription. alex was diagnosed with crohn's disease at age 19 and over the past eight years, he has tried a range of medication to control his condition. alex knows he's breaking the law but says taking cannabis in a variety of ways helps him. i've recently had surgery to remove most of my large bowel which has left me with a colostomy. cannabis helps with my pain, and my nausea, and helps me sleep with minimal side—effects. alex wants to arrange a meeting with the expert panel. thank you for calling the home office. but he's worried he doesn't qualify. so there isn't the number at all to speak to the expert panel? the process they set up is complicated and convoluted for chronically ill patients like myself to get through and i just want to sit down in front of the panel to explain why i

danny: they have said so but i will listen to mark carney this week.ht may was not lying because of the data. -- they have made some suggestion. carney suggested a rate rise will come but the data doesn't support it. the u.k. economy, maybe we will see a point forward for the second quarter. how can you raise rates? no raising inflation, there are weaknesses in manufacturing and construction. all the stuff we talked about, brexit represents a major downside risk to the economy and a trade war does as well. everybody in their right mind would not be voting -- if i was on the community i would be against it. i don't think it is live given what we have talked about. chaos from the government is not a situation where you want to raise rates when you said the biggest risk for the economy is brexit and those risks have become great in the last hour. ramy: we will have to leave it there, dartmouth college economics professor. you have said chaos the number of times and that is ringing in my ears and the u.k. to recap the lines, the u.k. brexit secretary david