or michael gove and theresa may.'m sure there will be lots of speculation and, indeed, we may never know the true story of what went on behind the scenes both yesterday and moving forward. >> moving forward, let's look at the labor side very quickly. angela eagle, i think she's holding off on a challenge because the labor parliamentary party are trying to work out who would have the best chance at defeating jeremy corbyn. is there anybody who really stands out? >> well, in terms of public opinion, so when you ask the general public, none of the candidates really stand out particularly strongly. among labor party members, again, the people that select this leader, angela eagles is certainly popular, as is dan jarvis, but neither of them are overwhelmingly popular. there's not one candidate that's a candidate that stands out. angela hinted that she was going to announce her candidacy yesterday. that didn't happen. that may have been due to events at the conservative party. who knows. but it's clear that jeremy corbyn s

michael gove, 46 votes. andrea leadsom, 84 votes. theresa may, 199 votes.refore, michael gove, having the lowest number of votes, has been eliminated from the ballot. reporter: so interior minister theresa may seen here is way out in front. she campaigned for britain to stay in the eu, and will now take on brexit. she and andrea leadsom will face a final vote by the party's wider membership in september. anchor: let's get our correspondent in london. good evening to you. here we are. theresa may is the front runner. she had strong majorities in this vote today. does she have the job in the bag? reporter: no, she does not have it in the bag. she is the clear favorite. with her experience as home secretary for several years. but then again, the tory members are the ones to decide, and they may want somebody else, somebody who campaigned for brexit, which would be andrea leadsom. also, she is socially quite conservative, for example, she does not support the gay marriage bill. this is something that a lot of conservative party members are actually, really quit

and we will hear from the conservative party candidate michael gove.ches campaign at 11:00 and u.k. time. this is bloomberg. ♪ francine: yields take a dive. bonds and stocks rally on central bank, japan and the u.s. betraying boris, the justice secretary says he's the man for the job. brexit banks, the federal reserve joins us this hour, where we get the view of a new regime in st. louis. this is "surveillance." i'm francine lacqua in london. tom keene is in new york. we do have some euro unemployment figure falling, actually the eurozone area is not doing to

instead, justice secretary michael gove put himself forward.previously backed johnson, but said this morning the former mayor of london was not up to the job. >> i realized, boris is not capable of building that team and providing that unity, so i came reluctantly but firmly to the conclusion, that as someone who had argued from the beginning that we should leave the european union, as someone who wanted to ensure that a bold and positive future for our future was implemented, i had to stand for leadership of the conservative party. fallujah a shock for the tories -- reporter: a shock for the tories, and for the public that thought johnson was heading for downing street. >> i am very surprised. if he's not going to stand, what's the point it happened in the first place? with johnson out of the picture the bookies have the odds on home secretary theresa may, who supported the remain campaign but has quietly positioned himself as -- herself as unity candidate. >> we saw a huge rush for theresa may, the favorite. she looks hard to beat. reporter:

he is basically saying -- tom: we will cut off torsten slok now to bring in michael gove. t to give a speech for his case to be the next prime minister. we can go to it live now. gove: this has been a momentous week for our country. expectations have been upended, conventional wisdom overturned. our nation's destiny changed. at a time like this, a hinge in -- we can either try to muddle through and hope for the in, embracecan lean the change that the british people voted for, and shape it in our interests, facing the challenges of the day ahead with cool heads and making the most of the new opportunities open to and -- withlute resolute hearts. i am here to argue for the second pass, the path of change. embarking on a journey to reach a renewed, optimistic, open to the world. a place of hope and healing. of course, as we pause and progress after the events of last week and the british people 's brave and right decision to leave the european union, it is important to remind ourselves of fundamental truths and realities. as the result of the decisions taken by the prime minis

it's not been someone like boris johnson or michael gove as seen adds being opportunistic.always been euro skeptic so she has not diluted her intention there whatsoever. it's going to be fascinating to see as this develops how enough is the past the uk tries to take out the eu. >> i think it's going be interesting. the pound has stabilized. the ftse 100 has recouped all of its post-brexit result losses so all of these warnings they need to deal with the uncertainty and deal with everything, it's not being backed up by the market in the sense of urgency. >> yes, i think it's also going to be smoothed over we expect by some kind of easing on the monetary front. whether that comes today or august. that helps as well. there's nuances in terms of what ftse stocks have recovered or not. what is certainly true on the ground here, now, sara, compared to when we were here a few weeks ago. people are more relaxed. not quite that sense of nervousness and unease. that gives a little bit more wiggle room for the government to work with. >> see what happens. when we come back, a u.s. fut

michael gove, could she that's could he be considered damaged -- could he be considered damaged?orse johnson, lacking professionalism as some people have said. -- boris johnson, lacking professionalism as some people have said. led to believe that somebody from the brexit camp will be preferred for that kind of position. watch out for david davis as well. george osborne has said that he wants to play a role in the brexit talks. we will see what is future has. we should watch out for some women to step up to the top table or to increase their level of standing. francine? francine: the other big appointment is going to be chancellor. how much do we know about who she may pick? anna: that of course will be a crucial appointment. we should -- appointment which should come fairly soon. -- he has held a big office of state. chief bankersbig association just yesterday. he was going to be the chief secretary to the treasury in 2010 but things are not workout. -- she is energy manager, but she has been mentioned as a home secretary. george osborne is in the role right now. people consider

treasury secretary michael gove.his was after his surprise announcement yesterday saying he was not going to run to fill david cameron's spot as prime minister. this leaves no doubt about how they see johnson's political future. >> a huge picture of a forlorn boris under the headline "brexicuted." we are seeing some papers draw a comparison between what we are seeing in terms of the political fallout and that of a popular and bloody tv show. >> absolutely. thrones."game of mocked up in the style of the high drama series. took more than a couple of shots at worst johnson yesterday when she launched her campaign to become prime minister. she implied he was out of touch with ordinary people and treated the business of government i as nothing more than a game. midnight is referring to what? >> the simple and astonishing fact michael gove came out with this statement force was unfit for the job and he was going to run instead hours before boris was due to announce he would be running. mostscribes it as the spectacular pol

brent: it is interesting, because michael gove actually looks weaker after this first round of votingdoesn't he? reporter: i think the lesser conservative party mp's are unhappy about the way that he conducted himself, and some people were saying that he will go to war with different countries, because he really withdrew absolutely last-minute his support for boris johnson, who everybody thought would be the contender. and was going to -- was not in the best position to be the prime minister, but michael gove was such a close ally for his, and in a surprising move with through his support. this at a time where the party is looking for stability, to have this kind of infighting, that is not what people want. so that is why theresa may looks like the better choice at the moment. brent: ok, thank you. in london, as always, think you very much. -- thank you very much. the decision by the british people to leave the european union continues to create waves in europe, the european parliament debating the future of the eu post brexit. there were harsh words in the chamber for them. reporter:

until we have the certainty as to whether it will be michael gove, testimoheresa may, what h next with article 50. you have to build in risk re premium to sterling based assets. >> thank you very much. we need to take a quick break. check out world markets live. it's our blog. we have loads more to come in just a couple of minutes to just stay tuned. >>> welcome back to "street signs." your head license this morning, bank of france governor says brexit ss an opportunity for the economy. speaking exclusively to cnbc he vows will help to soothe post referendum market volatility. >> we help to absorb the financial shock. there have been several drop of the sterling. still turbulences on the market, but there has been no freeze so this was our first priority. >>> the ftse outperforms once again in early trade despite sterling plunging and property stocks selling off. >>> aviva trying to assure investors saying its balance sheet looks strong after joining other asset managers in holding their funds. >>> rallying to the top of stock 600 after banning short selling in the stock. >>> let's bri

and michael gove is now a man with blood on his hands politically.e desert ed david cameron and george osborne to fight the leave campaign. he's now deserted boris johnson, who was his chosen figurehead for the leave campaign. >> reporter: still, this political ruthlessness isn't put something off from supporting him. >> no one thought that they'd been bosom buddies for years. what we did have was a man with great talents and energy in boris johnson. what we were looking to do is anchor the team around that focus effectively. when support ee ebbed away desp our effort, it became clear that michael should put himself forward. >> michael! >> reporter: for some, this is a trael of political treachery. for others, this is another fiery day in british politics. the necessary steps to being a prime minister. isa suarez, cnn, london. >>> this is "cnn newsroom." ahead, breaking news coverage continues of the terror attack in bangladesh. you won't see these folks at the post office. they have businesses to run. they have passions to pursue. how do they avoid

the endorsement is a blow for michael gove who has been accused of scabbing johnson in the last minute decision to enter the race. >> the uk chancellor will be meeting with the country's major financials today. he said the sector is not facing a banking crisis despite quote significant adjustments in markets. brexit is a promotional crispot not a financial one. >> i can remember putting the television on and being very surprised by the results, but the point was we were prepared for volatility. we had spent a good deal of time putting together teams globally that could deal with any result emerging from the brexit vote. we were able to see that was working. yes, that friday was a volatile day. i just said to emily, things have picked up a great deal since then and what we have though now look for is the stability which our financial position gives us. >> now, how is the bank preparing for what testimony analysts are talking about, the economic slow down. how is the bank repairing to mitigate further losses. >> we have to keep on with our strategy, the strategy we announced and referred

boris johnson was stabbed in the back by michael gove yesterday. now not even a candidate to be the next prime minster. that was the big surprise yesterday. also going to hold up the daily mail which was of course a leave paper. it is also a big conservative party paerp and despite being a leave paper, they are baking theresa may. who was ton ont remain side. interesting this paper which has got a big conservative party reader backing tvm. who is the overwhelmingly favorite, i might add. >>> tina, very good morning to you. thank you for joining us. extraordinary day in politics. >> since the day before at least. >> exactly. how much turmoil is british politics in right now. >> the opposition has imemployed. labor has gone done in flames without a leader with much credibility. the conservative party is reeling from the sort of the internal things that have been exposed by this. that's why theresa may as a candidate is an interesting choice. may be a bit counter- intuitive because she would be a remain prime minster following a leave vote. >> how imp

all along, michael gove has said i'm not equipped to be prime minister.want to be prime minister. yet yesterday, the major shock to everyone, including us, he said he did want to be prime minister and he wanted to put his hat in the ring. i'm going to tell you why. he says events since last thursday have weighed heavily with me but i've come reluctantly to the conclusion th that boris cannot lead the leadership. his friend pretty much betraying him. many people came out expecting him to put the hat in the ring and said that he will not be putting -- really going for the role of prime minister. he didn't give a reason for it. he basically said he didn't want to go for it given the circumstances. so you start to get an idea of how deeply divided this country will be and how bitter it has been. hence why we're getting headlines like that and that of midnight treachery. this is how one paper called it. this other one calls it brex cuted. you'll see it here. brexicuted. a bloodbath from the conservative party. and finally this one, a tory day of treachery. one

this is the metro that goes around in london, the real game borisones, michael gove, johnson, a fascinatingtory. gove he does not expect article 50 to be triggered this year. sounded aswho never if he would be in a hurry even though he was a lead leave campaigner, he wrote a piece before the results were known suggesting that he would be in no hurry, all the cards were in the u.k. court and it would be up to us to decide when to trigger article 50, more to be learned on that come after this act of betrayal, michael gove talk, what would his bid before the leadership of the country and tory party, today was less about talks with the eu, more about what his agenda would be as prime minister, he says we already hinge in history, we muscle through orlean in -- or we lean in. few clues about his priorities if he were prime minister. >> to take back control of our borders, i will in free mutiny, introduce an australian type points bae systems for immigration and bring numbers down. -- points based system or immigration and brings numbers much about the single market, the eu says if you want acces

and the justice secretary, michael gove, has outlined today why he thinks he is the right man for the firm, saying he is firmly committed to a brexit though he said if he does become prime minister he won't treg -- trigger exit talks this year, angering some leaders who wouldn't -- want a swift protest -- process. >> we need a leader who with believe in this new path and can build a team to guide us through the challenges ahead. i think boris johnson could lead that team. i still wanted to -- that plan to work and i worked night and day for it but i came to ealize this week that, for all boris' formidable talents, he was not the right person for that task. i had to stand up for my convictions and for the right course for the country and i will stand for the leadership of this party. >> now, 11 foreign nationals have been detained in turkey today following a series of dawn raids after tuesday's bombing at the main airport in istanbul. those arrested today are expected to belong to a cell with linkses to an islamic state group and turk -- turkish the news agency is saying leader may hav

andrea ledson, she appears to be overtaking michael gove. anchor: canadian prime minister justin trudeau has become the first prime minister to march in the gay pride parade. he was met with cheers from the crowd as he waved a flag with a rainbow border. with the orlando massacre on people's minds, the crowd observed a minute's silence with marchers carrying signs bearing the names and ages of each person killed. when we come back, the countdown is on. in j just a few houours, a a naa probe will comee c closer to jupipiter thann ever before. wewe will speak with a scientist from nasa's mission. and shareholders from london approve a merger with deutsche boerse but can it move ahead if britain leaves the e.u.? sarah: welcome back, a quick reminder of our top story. saudi arabia has been hit by multiple suicide bombings including one in the city of medina, islamam's seconond h hot site. three people, including the bomber, are reported to have died. earlier in the day, there was an explosion near the u.s. consulate and another attack in the shi

michael gove was also in the running. he was eliminated from the vote. he supported the leave campaign. may and leadsom will now take to the campaign trail. the result of the contest is expected in early september. queen elizabeth will then appoint one of them as the new leader. britain's first woman prime minister, margaret thatcher, was in office for 11 years until 1990. >>> security officials in bangladesh are investigating terrorism links after a second deadly attack in less than a week. this one targeted a checkpoint near a mosque where hundreds of thousands had gathered for prayers. three people were killed. the attack happened east of dhaka. officials suspect islamists threw homemade bombs and fired guns. two officers and a woman were killed. at least 12 others were wounded. the government has been on high alert since the deadly hostage taking last friday. an armed group stormed an upscale cafe at dhaka. 23 people were killed. >>> brazil's interim president michel temer has issued a statement seeking to dispel concerns about the upcoming rio de ja

she's also got rid of someone who has been described as her archenemy, michael gove. do you think she has made enough of a break? quentin: she's made a pretty drastic break. there's only a couple ministers who have survived in their jobs. what's interesting is, having made a presentation yesterday, setting herself very much in the andle ground of politics rather on the left of the conservative party, her cabinet now, her government is much more right-wing than the cameron government was. so, there is quite a big shakeup. whether she can hold that together, whether she can really practice the unity that she --aches is going to be huge a few huge challenge which we will see in the coming months. laura: jeremy hunt is a minister who has been in the press for all the wrong reasons. are we surprised to see him hold onto his ministry? was, along with the defense minister. maybe theresa may felt he must finish the job and he started. i think the other thing that we have seen about the government is she has gotten rid of most of the old public school delete from the governmen

they include justice secretary michael gove, a supporter of the effort to leave, and home secretary theresa may, who supported the remain side. hitchens suggested that in british politics the winner will be the person who can heal divisions and achieve a consensus. >>> a taiwanese naval vessel has fired an anti-ship missile that hit a fishing boat. one person was killed and three others injured. the defense ministry says it was an accident. the ministry says the vessel was at a naval base in the southern city of kaohsiung. on friday morning, personnel were inspecting the ship for an upcoming drill. the domestically developed supersonic missile fell into waters off the remote island of penghu in the taiwan strait. the ministry initially reported no injuries, but later in the day they held a news conference to announce the missile hit a taiwanese fishing boat killing the captain and injuring three others. ministry officials suspect the naval personnel failed to follow proper inspection procedures. >>> hong kong's top leader has called for stronger ties with mainland china. he spoke at a cerem

boris johnson, michael gove, cameron, and merkel has been a voice of stability in the last two weeks.pinion,y, who divides at least she has come out and remained calm, and ms. sturgeon up in edinburghgh. maybe the time is, you boys have had your day. obviously you don't want to be anti-man, but i have seen a lot of nonsense being spoken by men, and a lot of common sense being spoken by women in the last two weeks, and that would tilt me at the next election. i have decided to wear a g gray suitododay. [laughghter] juncker,an-claude younger i'm not a fan of these people, and i don't think many people are, but i live in a country that for 11 years has had a chancellor who is not a born leleader, not good att rhetoric, cannot explain things too well, but she governed the country quite well. so i'm used to the fact you can have uninspiring leaders who make good popolicy. sometimes people stay around too long./ i think the fatigue has set in with juncker and schultz. they can say the most sensible things in the world, i just don't think anyone would listen to them. ofking at the pictures t

is just ther secretary michael gove. and is the energy minister defense secretary liam fox.lawmakers will the lowest ranked candidate will be eliminated after the first round with another vote on thursday. we will not know who takes over downing street until september. on tuesday, we hear from mark release ae boe set to financial stability report. investors will pay attention to the question-and-answer period which will be dominated by the brexit. mark carney pulled one many are calling a --, and the market by saying the bank will do whatever it takes. that interest rates could be cut with months. some questions regarding the banking industry. on friday, bloomberg news learned that the doe may use capital requirements. on the other side of the atlantic, watch out for the june jobs number. the median shows that the u.s. , i jump from jobs the last number which was the smallest since 2010. this number will be key to the timing of the next rate hike. officials stress should be washed closely. sectorm remains weak job . --estors troubled 1mbd fund fields questions about billions

ian: not michael gove.l and political ambitions, as well as his strident ideological views on brexit, will make him much more challenging on the european side. between leadsom and may, it is much of a muchness. you want strong u.k. leadership. that is not going to happen. the u.k. will be more marginalized, more irrelevant as a global player. it is clear that is what economists are bracing -- are embracing. i think both may and leadsom will be capable. one was pro-brexit, the other one was pro-remain. does that make a difference? ian: not really, in the sense that may was nominally pro-remain, but she was quite strong in her anti-immigration sentiments. most of the u.k., at least public right now, even those leaning against leave, are now quite confused about where they are heading. so the fact that your prime minister reflects that tension, on balance you could say that would make it easy for her to reach out, but the conservative party is in disarray. there are enormous cleavages inside of it. the fact th

michael gove in the cabinet has a similar view.ne of his key advisers said triggering article 50 immediately would be like putting a gun in your mouth and pulling the trigger. so they are in the slowdown wing. fox representam the wing of the party is nervous that brexit may not actually happen. they are pushing the let's do this now. we pimm fox said -- liam fox said that he thought it would be triggered by the end of the year. he will probably get knocked out in the first round of voting. but andrea leadsom has a possibility of getting through. may runoff beld a like? rob: really interesting. [laughter] -- she isay argument the woman in the cabinet. she could be the next prime minister. she has held that rolled -- held that role for 6 years. things have gone wrong in the home office, but she has held on. is the new kid on the block. she was only elected six years ago. in thisseeing a little campaign that this is the first time she is doing these big interviews and set pieces, where everyone is asking questions. so far, she is all

. -- michael gove pushing the case that it needs to be someone from the "leave" s ide of the campaignis the front runner in the campaign, though she was on the "remain" side. she was raising the point that you want a prime minister for more than just the brexit negotiations. the first of the votes taking place tomorrow. these are votes that take place within the parliamentary party, the conservative parliamentary mps, looking to narrow the field down from five to two. it could be as long as september 9 that we have to wait to get the results. meanwhile, there is a lot of talk about what the chancellor can do to try and stave off the worst economic effects of a brexit. now, we have george osborne talking about the possibility of getting the corporation tax down to 50%. he has a plan to get it down t by 2020.20 -- 17% itie: speaking of --yousef: seems that a gathering of business leaders and politicians in france has also been overshadowed by brexit? anna: yes. a lot european businesses and politicians trying to work out what on earth brexit means for them. getting over the shock of it

michael gove came last in a vote against -- among mps. boris johnson did not stand. still ahead, the world's cheapest smartphone. how much does it cost and is it too good to beach or? coming up -- to be true? this is bloomberg. yvonne: the latest first word headlines. australia's coalition government power days after the election. with 76 seats needed for a majority, his coalition has 73 and the support of at least two independence. the labor position is refusing to concede defeat. department has announced resumption of its inquiry into hillary clinton's use of the e-mail issue a secretary of state. andnews comes after the fbi the attorney general said she would not face any charges. the associated press says it is opening an investigation that will not get the way of other inquiries. at least one person is known to have died in attacks across taiwan. sustained wind at 200 kilometers an hour gusting to 250. railroad services are suspended until late afternoon. yvonne: senior officials have wound up their latest round of trott -- round of talks in tokyo. we were waiti

michael gove tallied 48 votes for third, with stephen crabb with 34, and liam fox at 13. fox has been illuminated for the cigarette -- eliminated for the second round. oscar pistorius may return to jail tomorrow. rescued is want him to be handed at least a 15-year sentence. global news 24 hours a day powered by more than 2600 journalists in more than 120 countries. vonnie: bond yields touching historic lows and gold keeps on rising. do?tos an investor to brexit markets, we bring in michael holland, chairman of the holland company. now, michael, whenever we see events of this nature -- although i am not sure you can compare this to anything in the past -- you say wait it out for the long-term, ride this out, but this is potentially 10-year horizon event. do you really not want to make some changes to your portfolio based on what just happened? mr. holland: funny you should ask. i have more cash than i have had in years, and i have been building it up over the last several months. not to say we are headed into a worldwide recession, a 10-year bear market -- i have lived thr

michael gove, he is the one on the "leave" side with a lot of experience.s running with boris johnson "leave" vote, but since then, he has had a fallout with johnson. the wonder how that will affect him. we will see how voting between various elements in the "leave" side affect the results here. and we have got theresa may. she was the favorite in the first round of voting. she is the one with a lot of experience around the political table and she is seen by many as somebody who could bring the party together because she campaigned halfheartedly for the "remain" side. this is always what you get when you are trying to elect a leader for the conservative party in the u.k. angie: politics are heading home figuratively and literally here, because we are seeing the brexit impact hit the property sector as well. anna: we have been covering the way how property funds have been effective. aberdeen, marking down the value of their u.k. property fund by 17%. we are looking for what this is all -- the underlying assets here of course, that is something we will be foc

justice secretary michael gove is the latest looking to replace david cameron. be one of these contenders. >> the campaign was fought to the vote was held. turnout was high. and the public gave their verdict. there must be no attempts to remain inside the eu, no attempts to rejoin it through the back door, and no second referendum. >> and are candidates and leaders who change their education system. i'm the candidate who is changing our prison system. i am that candidate and leader who led the things for change in this referendum campaign. and the country voted for change. >> i love my country. i love my party. that'senerally believe genuinely believed, that what i stand for, the values that i represent, the strife that i bring are exactly those required. >> if we are to heal the divisions, we must fully implement the instruction given to us by the british people. so let me be clear. i do not believe there is room for membership of the single >> i think people want someone to lead the country who believes in britain's future outside the eu and i felt that should

michael gove he said he kept boris johnson off the ticket. if he makes the final two, this is one of the biggest shoe ins in political history with theresa may perhaps getting 80% of the conservative party membership vote at large. if leadsom makes the final two, you might see a closer race. weave po we've polled conservative voters. they've got strong confidence on theresa may on nhs, negotiation, negotiating a deal with europe, immigration, they have strong confidence and trust in theresa may. andrea leadsom is unknown. we did a little experiment yesterday. we started calling conservative party counselors you can see a proxy for members. amongst those, we did analysis of early numbers. here are some examples, but so far we worked over what happened. we ran the various scenarios through with these conservative party local counselors and if leadsom made the final two, theresa may would win by 67%. >> we're going to have to leave it there. it's very clear what your message is. the bet lg market rts pointing to the correct winner which is there

the other candidates are andrea leadsom and michael gove. about 1:00 p.m. eastern time we should know who the final two are. >> is it looking like it's going to be the final two candidates. >> it is looking like the two ladies. theresa may for a definite and between gove and leadsom. >>> today's corporate news. tesla is ramping up words. fundamentally incorrect. the electric car maker said it did no wrong by waiting to disclose a fatal accident involving one of its cars with self driving technology. this of course after fortune accomplished a story that was critical of tesla's decision to sit on the news for eight weeks. elon sold off $2 billion of company shares in the interim. tesla blog post last night denying that it withheld information from shareholders regarding the crash. >> former wall street andrew kas person pled guilty in massive fraud. prosecutors allege he cheated a dozen investors by claiming he would use their money to make loans. instead he used it in his own accounts. he blames it on a gambling addiction he could not control. >> when we co

her leadership bid on a platform of uniting a splintered party, but it was the shock entry by michael gove that put the cap among the pigeons. put his hat in the ring after expressing concern over boris johnson. he withdrew his name from the contest. andrea and steven crab making up the rest of the lineup as well. now it comes down to negotiations after a leadership is decided and how the potential -- how the future is going to look. what do you think is the best case scenario from where you sit. from a financial market economic perspective in terms of keeping the wheels rolling on the uk economy. >> well, more information fundamentally. markets dislike uncertainty. markets will take a view of political outcome time to tie, but often they do so by buying options. any investor, we would include ourselves in this, can't bet on singling outcomes of single vechbts events. what we're looking for is certainty. the longer the uncertainty both in leadership and also in terms of the opposition goes on, the more jittery markets will be. >> john, you're staying with us. so do sit tight and by all mea

the second vote eliminated michael gove who came in last. gove tallied 46.eader will be declared by september 9. an anti-terror law signed by vladimir putin is joining criticism for eroding civil liberties. the law compels russia's phone companies to keep recordings of users calls and internet andvity for six months, among the critics, edward snowden. global news 24 hours a day, powered by our 2400 journalists and analysts in more than 120 countries around the world. i am ramy inocencio. this is bloomberg. joe? joe: markets close in under 30 minutes. let's go live to the nasdaq with abigail doolittle. abigail: it is turning out to be a down to the wire day for the nasdaq's. will the nasdaq follow the dow and the s&p 500 lower, or can it hang on to the games. we will knows. let's look at a couple of the winners that might help the nasdaq out. we start with shares of the biotech company surging all day on a report earlier saying european drugmaker roche could be interested in a multibillion-dollar acquisition. sources close to the matter say a potential deal c

michael gove came last in the second round of voting by tory mp's and was eliminated from the race. hasdirector james comey defended his recommendation against criminal charges for hillary clinton. his comments came through five hours of tough questionings as republicans vowed to investigate whether she lied to congress. a househallenged by panel about details uncovered by the fbi that appear to contradict clinton's earlier statements about her use of private e-mail as secretary of state. global news 20 for hours a day powered by more than 2600 journalists and analysts in 120 countries. this is bloomberg. francine: let's introduce our next guest. he's with us for the hour. thet to have you on program. we are trying to understand the follow-up between the markets, the pound and the turmoil here. we talked about this last year. -- last week. does it make a difference if it is andrea leadsom or theresa may? >> you have a real gulf of experience. what is come to light over the last 48 hours is some questions over andrea leadsom's career in the city. that, in itself, what kind of role sh

michael gove came in last in the prior round of votes. minnesota's governor is asking the department justice to investigate the shooting of a black man by police during a traffic stop, which sparked immediate outrage and protest. the victim's girlfriend posted the aftermath of the shooting life on facebook. police pulled him over for a broken tail light. the couple's daughter was in the back of the car. heat in june was a record for the united states, the hottest june since record-keeping started in 1895. the first six months of the year were the third warmest on record, and every single state in the country was warmer than average during that time. global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. i am ramy inocencio. this is bloomberg. julie: every jobs report seems to be the most important piece of data, but maybe tomorrow's really is this time. want tos and economists know if the big miss in may was a blip or a confirmation of a loss of momentum, but a drop in jobs may not result in a rat

the pm candidates have turned their fire on theresa may the u.k.ng on the bbc, justice secretary michael goveeone who supported brexit. i am in this contest because i want to advance the argument in principle. we need to have the next prime minister someone who believes that britain should be outside the european union and argued for it. i have always taken difficult decisions because about my principles first. anna: thousands marched on london to protest the decision to leave the eu. frederick is still with us. this political backdrop is still uncertain, leading you to a risk-off stunt. some historical context for us. even through the eurozone crisis, i would argue that not only are we bad from an uncertainty point of view, but also in terms of looking at the uncertainty, what that means from an economic perspective, how to think about this from a valuation perspective. where we find risk premiums, it is to some extent in the u.s. it is still 10%. some allocations still relatively large allocations in emerging market debt. 21% both in local in hard currency debt but then large ourcations now

the justice secretary michael gove is set to make his case to be britain's next prime minister.fter he betrayed boris johnson who pulled out of the race yesterday. his sights are set on the home secretary theresa may, the early favorite, and three other candidates to head the conservative party and the country. global news powered by more than 2600 journalists and analysts in more than 120 countries, i am nejra cehic. this is bloomberg. talk about the bank of england. the bank has signaled a rate cut within months as it tries to shield the u.k. economy from the shock in the eu. governor mark carney said he wouldn't hesitate to act and is considering what he called a host of measures. to slowing growth at the npc identified as a risk associated with the referendum now looks likely to be our central forecast. it seems plausible that uncertainty could remain elevated for some time with a greater drag activity than we previously projected, and moreover, its effects will likely be reinforced by tighter financial conditions and negative spillovers to growth in the uk's main trading pa

i think he thinks if boris johnson and michael gove had not rebelled against him, had not gone to the leave side, i think he thinks he probably would have won and he may well be right on that. >> rose: and can always come back to the second act. >> that's what you've seen in the tory leadership race has been a follow on to that. theresa may inherited george osborne's machine in what he imagined would be his attempt to be the next leader. o>> rose: what happens to george osborne? >> the big question is does may keep osborne or say phillip hammond replaces him. a lot of the leaders were with not enthusiastic and osborne but now are confidence. may was a remainder. >> rose: whoo what happens to boris johnson? >> boris johnson is in an unusual position. all of his life, he's been loved, sometimes not always wholly, but he's plead the people laugh and been the court jester. he was funny and clever and and amusing and it seemed to be going well. he was ambitious. he saw his chance when the referendum was called and a lot of friends of his would say that he expected the referendum to be won

michael gove and andrea leadsom. gove comes with a track record.is tarnished in the wake of the boris johnson fiasco. many in the party blame gove. whether the members of the party blame him, we'll see. guy: will there be a general election? >> most people say there does not need to be. some of these voices have said we don't think we need to get another mandate. no election until 2020. guy: may have credibility. the others do not. anna, thank you very much indeed. anna edwards. stay with bloomberg television. up next it is "the pulse." francine lacqua will be taking things from here. this is bloomberg. ♪ francine: frozen. for more u.k. property funds holds withdrawals. the tory race narrows to two. the industry manager and candidate lays out her post-brexit vision. we bring you that live. the french company makes a total billion-dollar bid. ♪ francine: welcome to "the pulse." live from bloomberg's european headquarters. i am francine lacqua.

the race is coming down to theresa may and andrea led som after michael gove was eliminated on the second round of voting. it will be the country's second female prime minister. david: she's got a hard act to follow after maggie thatcher. concerns about the economy here are weighing very heavily on voters. 84% of registered voters have concerns, according to the latest "fox news poll." next guest says the u.s. economy's potential is stunted and it is the government as melissa has been telling us for years that is to blame. here is walter, legendary entrepreneur and author of government is killing the economy. walter, wonderful to see you, thank you so much for coming in. growing at the slowest rate in 40 years. i haven't seen growth like this since the late 1970s when we had the limits to growth mentality. most americans haven't had a raise in 15 years. what do we to to get back on track? >> we have to tackle regulation, waste and fraud. just to put it in perspective. $2 trillion in regulation every year and fraud and waste costs another trillion dollars. that's $3 trillion. the governmen

his support melted away after a key conservative party ally, michael gove, announced his own candidacy. johnson had been a leader of the campaign to quit the european union. he says his focus now will be on making the transition. >> my role will be to give every possible support to the next conservative administration to make sure that we properly fulfill the mandate of the people that was delivered at the referendum and to champion the agenda i believe in. >> sreenivasan: current prime minister david cameron is stepping down after losing the fight to keep britain in the european union. >> woodruff: a new palestinian stabbing attack today left a 13- year-old israeli girl dead, who was also an american citizen. israeli police say a man broke into the girl's home in a west bank settlement and knifed her as she slept. he also wounded a guard, before being fatally shot. another palestinian was killed later after he stabbed and wounded two israelis in the coastal city of netanya. >> sreenivasan: back in this country, the navy blamed weak leadership and bad judgment for iran's capture of ten

michael gove said it will take some time to invoke the e.u.'rticle 50," which formally begins a two-year exit process. >> i would only trigger it after extensive preliminary talks of the kind that i discussed earlier, so i have no expectation that article 50 would be triggered in this calendar year. i argued for specific changes in the referendum campaign. i believe in those changes. i will deliver them. >> woodruff: meanwhile, britain's finance minister, george osborne, announced that leaving the e.u. will cut government revenue, so he's giving up on reaching a budget surplus by 2020. amid the brexit fallout, britain and france joined in marking 100 years since the "battle of the somme" in world war i. it was one of the bloodiest in history, with one million killed over five months. leaders from both countries met today at a memorial in france. the ceremony included cannon fire and flowers laid at soldiers' graves. china today celebrated the 95th anniversary of the ruling communist party's birth. president xi jinping urged the party to return