philip hammond has that job.we know, do we understand fully what the main difference between philip hammond and george osborne will be? simon wells: it is a very different economic environment. when your economy is crippled by there is a much stronger public policy role and potential for the public-sector investment to pick up the flak. so we have already had theresa may and philip hammond saying balancing the books by 2020 is no longer a priority. it will be a priority over a longer amount of time. when we think of the u.k., we think of the 1970's and the made theew where they worst cars on the face of the earth. and that is why we clam up when we hear industrial strategy. francine: saying it as it is. simon wells and simon kennedy. this is a picture of your asset class. 1.5 hour away from the bank of england decision. this is bloomberg. ♪ [hip hop beat] ♪olympics 2016, let me get you on my level. ♪ so you never miss a moment, ♪ ♪miss a minute, miss a medal. ♪ ♪ why settle when you can have it all? ♪ ♪soccer to

that will be later this year as the chancellor philip hammond putting on the touches.to him about all of those things later on. a slightly different conversation. global m&a activity in 2016 is not living up to last year's record breaking a total of $2 trillion. how is this part of the world doing? great to see you and have you on the program. maave pulled up the great function here on bloomberg. you can see the dramatic fall in m&a activity as we went to the quarters of 2016. look at that drop. the first reaction would be one that makes a lot of sense given the deal political -- given the geopolitical instability. >> in terms of global m&a activity, a big part of the drop is driven by sentiment and expectations run interest rates. huge surge ine volumes the last few years, as russia late last year, to a large extent, the low interest rates globally are driving the financing of these megadeals and mergers particularly in the u.s. and the availability of cheap financing. as the expectations of the fed rate hike increases, it reduces the appetite of business leaders to p

monetary easing out of the u.k., and likely we will see a bigger fiscal package announced with philip hammond'sstatement. there is the prospect of further stimulus from the eu and likelihood that china will will have to stimulate strongly to growth targets in the second half of the year. that scenario, commodities compelling, as do emerging markets, bond yields are pushed down by respected easing programs across europe, japan, and in the hunt for yield and the bounce and commodities all makes emerging markets look compelling, as well as a range of material companies as well. rishaad: when you look at relative valuations for europe and the united states, emerging markets become that much more interesting to look at. >> certainly, certainly. markets, someging of the biggest gainer so far have been argentina, brazil, verying the year off on low valuation terms. of course, still a lot of uncertainty as to how those economies will play out, but the toire for yield and the hope find a reasonable place to has seensome funds rallies in those downtrodden emerging markets as well. rishaad: tell me about

philip hammond would like to reset fiscal policy through tax cut and other measures. am joined by paul allen with a look at the markets. good morning. paul: good morning. trading is already underway in new zealand, underway for 30 minutes. indexes are looking good. we are seeing some weakness for areei futures, and we expecting a flat start on the asx. we saw oil down overnight. for a case study of what the do, look noces further than malaysia, their state oil company reporting profit down 96%. here in australia, oil search is reporting low as well. this is after comments from reserve bank governor graham wheeler, saying rapid cuts are not justified. i am paul allen in sydney australia. ♪ ramy: this is "bloomberg west." a group of chinese investors says it will pay $900 million for media.net. the company provides technology , and it may not be as cut and dry as it first seemed. the first agree to sell in a move that closely resembles a private merger that bypasses the formalities of an initial public offering. joining us to talk about the deal is founder, div turakhia

obviously, we have to wait for philip hammond to come up with something on fiscal side.ion that article 50 might not be invoked for longer than we thought? perhaps the ultimate rather than the first quarter. >> i'm not sure that's that much of a surprise. we have very little time for the government to try to give us a time horizon over which they expected to trigger article 50. as we know the relationship with the eu is hugely complex. having a new team in complex, needing to put stuff into that team means that actually it's more important that the job is done right rather than done quickly. >> agree. >> in light of what we saw the rate cut in the bank of england, global bond funds a tacted the highest for 18 months. i think it was five days after they cut rate we saw what, $10 billion invested in just five days. also huge into uk corporate debt as well as a result of the bond buying program. where would you be buying, she says, with all the negative yields out there? >> the irony is that i actually think sovereign bonds are a good investment. the main reason -- >> where

a number of uk media outlets are reporting that the chancellor philip hammond is at the center of a disagreement over access to the single markets. they want to focus on making sure that the city of london does not lose access to europe. may and several pro-brexit ministers are set to believe that britain will have to lose access to the single market in order to address immigration. >>> as always, e-mail the show, get involved nice and early. street signs europe at cnbc.com. that's the e-mail address. also on twitter. >> carolyn -- or at louisa bojes bojesen. find us at street signs@cnbc. >>> coming up on the show, can brazil's president survive as she goes on trial. an analysis when we return. don't go away. ught i was crazy to open a hotel here. everyone said it's so hard to be a musician, but i can't imagine doing anything else. now that the train makes it easier to get here, the neighborhood is really changing. i'm always hopping on the train, running all over portland. i ha to go wherever the work is. trains with innovative siemens technology help keep cities moving, so neighborhoods andbus

chancellor philip hammond has expressed readiness to reset fiscal policy through corporate tax cuts to support the economy. dayal news 24 hours a covered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . i'm shery ahn. this is bloomberg. thing -- anna: thank you very much. juliette saly is standing by in hong kong. good morning to you. nintendo has been getting a boost. shinzo abe dressed up as super mario at the closing ceremony for real. back on earth, what is happening this morning? juliette: super mario to the rescue perhaps because japan is such a different picture to what we are seeing today. asian investors taking those hawkish comments and stanley fischer over the weekend and we are seeing dollar strength, which means yen weakness. japanese export stocks go higher. the nikkei is outperforming the rest of the region today. nintendo not showing on that screen but it has been having a good run today. the stocks are looking good. toyota also leading the way in japan. kuroda also saying there is sufficient

wait until we get the fiscal reset, that chancellor philip hammond talked about. i will ask about the pound, peter. the currency very much in your dna. i have here this graphic that shows funds at their most bearish on the pound, short positions reaching a record before the bank of england's decision today. do you expect further weakness in the pound as result of this? obviously, when you see this, that is what you get. but will that be long-lived? peter: what we were talking about a second go with manus, we are seeing heavy levels of exhaustion when it comes to central-bank policy. therefore, the driver of prices, which has been monetary policy, has sort of taken a step back. the fact that the market is not expecting sort of already pricing in this policy move, means that the short sterling position will probably be pressured and become unwound, we see a less than super dovish boe today. we expect sterling the probably gain on this afternoon's offense. manus: peter, is one more thing it is thet market, best bond market in 2016. it is barnstorming. we will get a l

what we really need to see is not mark carney at the forefront, it is theresa may and philip hammond.o drive the economy going forward. tom: let's rip up the script. what have you learned about how everybody including governor is, come on, which adults, let's get going? there is nowhere else in the world this debate will be more important than in london. mark: if you look at what is happening in japan, canada, south korea, we are starting to see more concerted action to have more fiscal stimulus from the government. in the u.k., there is a fantastic opportunity for that, probably with infrastructure bonds. tom: steve stanley, is this just helicopter money in disguise? whether it is a monetary policy and mark carney is pleading yesterday for fiscal authorities? steve: there are different things that you could expect out of fiscal policy p review could get the classic keynesian stimulus, which is what everyone is calling for. or you could get -- tom: what about a check in the mailbox? steve: we have tried that a few times. maybe it works for a month or two, but it does not have a -- itg

and the chancellor philip hammond, who is basically looking at this and saying if you have a shortage, maybe i can help you with that problem. guy: i think that is what they are going to look for in the autumn statement. we already have one of the longest duration stories of any major economy. the u.k. has the longest bonds out there already so in some ways there should be a shortage at the front and, but that is not what the market wants because of the duration mismatch . the bank has said it is going to buy reasonably evenly across the curve and it this stage it says it is not going to change that. jonathan: guy johnson from the city of london. a fascinating story. ared: another thing we focusing on is the new controversy surrounding donald trump. speech last night he suggested gun owners might be able to do something to stop hillary clinton. : hillary wants to abolish, essentially abolish the second amendment. ,f she gets to pick her judges nothing you can do, folks. although the second amendment people, maybe there is. david: we are joined by megan murphy, our washington bureau ch

if you are philip hammond and you have that date in your diary, is the prudent thing to do to run theudget in october before the inflation report? mr. owen: i think it is. or at the very least, run it in tandem with the inflation report. should by october, they have a much clearer view about what the economy is doing. fewously, we have had a surveys but they are pretty patchy and we need to get more hard data coming through. say, it is the consumer who has to bear the brunt picking up the weaker exchange rate. again to tryd cut to lose consumption. be a lot more focus on fiscal policy, going forward. and they highlighted there's only a limited role that monetary policy can do. in these flights i'd response, you could argue where that volatility comes into its own. so infrastructure should be on the agenda. david: you said that they have indicated that they will keep going. and they set a majority members of the mpc thinks there will be more by the end of the year. if that is true, why not do it now? give more money to people's hands? mr. owen: i think they want to keep some of the pow

philip russo of peabody who was shot and killed after a party on chestnut street. >>> police in newton are investigating claims that man was attacked outside of a cricket club overnight. he was walking along hammond street when two men in masks and hoodies jumped him. the victim said he was slashed with a box cutter. newton detectives are hoping to review surveillance video for more information but so far ha n arrests. >>> a u.s. navy tugboat searching for answers as the final resting spot of the cargo ship el faro. 33 crew members including three people with local ties died when the cruise ship sank in a hurricane. >>> massachusetts state senator was expected to have surgery today but was still unclear what's wrong. he was rushed to mass general hospital over the said he needed surgery within 48 hours but did not indicate why. the senator donnelly is currently in his second term. he represents arlington, billerica, burlington. >>> happy update to a story we brought you last week. this is 7-year-old gabby mahoney. last week she was struck by a car while riding her bicycle on route 130 in mash apache helicopters today officers from the mashpee police department stopped by spaulding rehab in boston