the u.k. while planning an exit will be trade based on the way talks are going it's unclear if the u.k. will retain access to the e.u. single market and that could spell a lot of trouble for the british economy moving forward reporting in washington bianca seanie r.t. . spineless the word us like economist steve keen to describe the u.k.'s approach to the bracks of talks he sat down with me to explain check it out. the british have given a why on day one they've agreed to stop by talking about the cost of the divorce settlement and then talking about the arrangements after that they should have said we do it in power little i mean only work out what the costs looked at what the actual impacts are so they've been very spineless negotiators and i'm think as soon as they agreed to that the your opinion vote with got them ok so you say spineless spineless spineless leave us a light at the end of the tunnel here what do you what do you think a positive could come out of i think the positive is going

the u.k. basically negotiating with a gun to its head to you. to go to do not. it's up against time pressure it is the week of pots and negotiations which remember it's u.k. this initiated this you know the u.k. early you know has to done to do is sit tight and wait for the u.k. to shoot itself in the foot or our economy was good predictors i did a conference in norway this week and we had two mobile economists and both of them they're very good at analyzing why something is the way it is but they're not good at telling you about what's going to happen tomorrow or not certainly true and i'm not attempting to predict what the economic outcome will be when you were talking earlier about. the possible cost of this sort of i'm not attempting to predict that i think it's extremely dangerous to try and project that far into the into the future say oh my goodness it's going to be terrible or oh my goodness it's going to be marvelous the reality is probably muddle but you know it's hard to predict but

the u.k. concedes on the order of negotiations will step mark carney and philip hammond speak later this morning. >> fourth time lucky. china braces for the decision on the msci benchmark bid. we are live in hong kong. anna: the global equity rally extends to asia after u.s. stocks close at a record high. a very warm welcome to "bloomberg daybreak: europe." i'm anna edwards. matt: i'm matt miller, in for manus cranny. i'm really excited to see about this china decision, but we have comments from the fed that are moving markets and there is so much turmoil here in europe because of the brexit negotiations in the middle east with qatar. anna: we will get that decision later from the msci as to whether the chinese domestic concluded to the benchmark. could it be fourth unlucky for china? this is the fourth time asking to be included within the benchmark. we have this chart here, showing the china rush. this is one example of the appetite for chinese assets. it shows appetite for a particular asia

the u.k. collapsing in the polls, the question is, where are those u.k. voters going? e they going back into labour, or the conservatives? biggest regional swing for the tories have happened in the northeast of england. a crucial part of the biggest co be watching as the initial results come through. will have aly we fuller picture of what will happen over the next few hours. what you are looking at is the biggest question. what does this mean for a hard brexit? seb: as i say, theresa may went into this looking to extend her , intiating position brussels. even if she has a slim majority, it will make getting legislation through very difficult. it seems the electorate here is looking for a softer version of brexit than what theresa may has put forward. checking inll be with you throughout the course of the next few hours. we will continue to follow the election across bloomberg television later on bloomberg surveillance we hear from a former u.k. justice secretary. we will also be hearing from sydney or8:30 in 11:30 a.m. in london. the other big story making headlines, o

whatever the u.k. ped to achieve in terms of balancing it among this first day of historic talks didn't happen. the timetable, the sequence, all of that has been set by the eu and the u.k. agreed to that yesterday. and is the timetable that we are going to be using going forward. hand, there is lots of expectation that we would see a softening in the brexit position of the u.k. given all that is happening in london with the tories and everything. as hasn't happened. david davis was still hartline in with the u.k. -- how it will go about these talks as theresa may has been. we expect that to soften, but at this point, we are in that same position. guy: what happens next? jones: the very next thing is there is a summit in brussels on thursday and friday. show barney a is going to report on the early talks to the eu leaders sent theresa may is going to go there. she is going to bring with her an outline of her proposal for citizens rights and this is one wants toitial issues wrap up before they can move on

the u.k. is looking for a drug trade deal there's a guy on the other side of the pond who's a big negotiator at least claims to be he's looking for a well he's looking for a trade deal is this an opportunity for the u.k. of the united states to do things maybe in trade that they haven't done before why would he prefer a trade deal with the u.k. over a trade deal with the he wants individual trade deals that's the troll yeah that's what he is already caught out nato for not paying their bill when it comes to security i'm not talking about meghan yet i know that there is a lot to do with the trade deals do i think that trump would probably do a deal with the brits if they aggressively push there could be a business opportunity or you know i don't think the u.k. would be top of that it's no i think that. the renegotiating nafta is very high up the list i think that potentially trying to do by lateral trade deals with other countries is quite a list as well i think that actually trying to sort out

negotiations with the u.k. government. backfired forcing the prime minister to scramble for a coalition to brussels use the confusion to pull more. come to negotiations collapse into hard or even a new deal worse and what will that mean for both sides of the english. skep professor emeritus of international history at the london school of economics founder of the u.k. independence party and the new deal party here a skeptic welcome back to my show it's great to have you with us alan. hello thank you as the bracks it negotiations get on their way between the u.k. and the e.u. european politicians are saying that a door back into the union is open but that it will be a brand new door that the u.k. will still lose money if it wants back in why is russia has taken this position i mean does it also want the u.k. to leave or is it just making an example of the u.k. oh i think it's just playing games i mean this new prospects of the u.k. returning to the day specially if the conditions are that we would give up our rebate and we w

the u.k. d be without a full functioning government 11 days before brexit talks are due to begin. rishaad: the questions are being the primet minister's future. she may not survive. this is our special coverage of the british election. i am rishaad salamat coming to from our asia headquarters in hong kong. in sydney. haidi lun asia awaking to political turmoil. when will we learn? trump, brexit, and now more political uncertainty, the range of outcomes is starting to narrow when it comes to what sort of situation theresa will be dealing with. to theot arguable contrary that this has been a disastrous results for theresa may and her political future is in doubt. let's haveght, well a look at what is going on. we have currency reaction. 9236, this is sterling heading towards a key level of 1.27, a since the middle of april. now sterling in this broad thee, looking at one stage it swing towards labor was not as big as reflected in the exit polls. polls forecasting labor will win 200 66 seats, up 3

changes int stance the u.k. ment, given the movements of labor, the increase in votes for the liberal democrat committed to the movement of free markets, we will have to wait and see. >> we have had oscar wilde, we have had shakespeare, we have had isolation. jeremy cook, first chief economist, stay with us. remember, if you are a bloomberg customer, it is election watch on tv go and we are streaming live throughout the day on radio and tv. ♪ anna: welcome back, everybody. this is a special edition of asoomberg daybreak: europe," we bring you the election results from the u.k. a surprise results here, a hung parliament. it looks like the most likely outcome. we have the pound edging slowly lower once again, approaching lows. let's talk about some of the politics that led up to this position and focus on the scottish position. conservative is made major gains in scotland, taking down major names along the way. thetheless, the leader of says the election results put the prime minister, theresa may, in a difficult p

its analysis of the u.k. hows it is more sensitive to changes in uncertainty even than it is to consumer spending, and that is an indication of how this can take even a bigger toll on the u.k. economy than we have seen so far. david: just to add to what you said, visa credit card came out with new data and are basically saying expenditure in may fell , so how does time this come together on super thursday, the boe, what can they do and what to expect them to say? they are planning to keep their policy on hold because of the slowdown we have seen in the u.k. economy so far, even though inflation his accelerating quite a bit. carney will be speaking publicly about their decision and it will be interesting how he falls election uncertainty into his outlook. inflation is moving up so quickly. it has been expected by the boe. you can see the white line, the turquoise, both above the 2% target and presumably headed for maybe 2.7% on the latest reading later this week and as high as 3%. spending,tioned, u.k. the late

mark: the u.k. retailers are quaking in its boots the most today in the wake of this $13.7 billion deal. >> accardo has probably got the most to lose because online grocery and is never been very profitable. if amazon expands internationally, you could struggle. linkedy've always been with amazon. we argued that if amazon is going to buy the u.k., it shouldn't by accardo, it should by booker. ,onnie: i thanks to brad stone and andrea felt dead and -- fel dstead. as well as tom keene. mark: have a look at what european equities are trading, 60 minutes away from the end of today's session. we start with the stoxx 600 individual movers within the retail sector, i think you understood what i was saying, retail worst-performing, industry groups say look at the big presence in the united states is the result of the belgian and dutch merger, 8% lower today. a big presence in the united states. 4.5%, andrea says it's a double-edged sword. could it be a target of amazon in the future? is it going to be hit ha

the eu is looking to see what the u.k. position is. theresa may of course several weeks ago put her position out there fairly clearly with a very hard brexit in mind. that has gone by the wayside after the u.k. election. we are still waiting to see how things fall out within the tories in the u.k. and therefore what kind of position the u.k. ultimately will bring to these talks. that the u.k.ing seems to be conceding on is this issue of talking about the split before talking about the trade agreement. somethingt was theresa may wanted in tandem but it looks like that's a different situation? >> right, it looks like we will definitely talk about what the eu was calling the separation issues first and get those out of the way before moving on to the things the u.k. really wants to talk about. today from the eu side, what is to nail down the timetable so we know what will be happening going forward. wants to go to the eu leaders later this week and say they made constructive product that progress. we will see when i have a press conference

the u.k. will be very difficult, something impossible to achieve in 21 months. divorce: there's a settlement, the so-called brexit bill, today and yesterday is really about immigration and solving that issue of the 3 million eu citizens that reside in the u.k. and what kind of rice they will get after brexit. what have we learned, what's been agreed, and we are the differences? matt: so far, theresa may has said those eu 27 citizens who lived in the u.k. and have lived there for five years before the cutoff date will be granted settlement status, which raise the get access to everything the uk's citizen would have access to, from health care to pension plans. if you haven't lived there for five years but you are still in before whatever day they decide to set, and they haven't given it yet, we just know will be from march of this year to march of 2019, you will be allowed to clock up the five-year time in the life resettlement data's, anyone who gets and after the cutoff date before brexit will

the u.k. ection. >> rick perry in beijing talking clean energy and the paris accord. our exclusive interview of little later. this is "daybreak asia" coming to you live from bloomberg's u.s. and asian headquarters. we have the u.k. of election out of the way, but uncertainty here to stay. theresa may hanging by a thread as prime minister as she tries to string together some kind of coalition party. the dup still in question. the pound taking it on the chin. mostound falling the against g10 currencies come especially the canadian dollar, -pound getting a bit. the only exception is the yen and the new zealand dollar. pound seeing pressure, not a lot of reaction to surprise appointments in may's cabinet. theresa may fired when she took power, so showing how weak her position is. >> and karma too. you would have thought that dominated the markets more given how much pent-up anxiety there was. in the u.s. markets, we still onaged to squeeze out again friday, the dow up 89 points, the s&p unchanged,

ambassador to the u.k. son is also chairman and ceo of a company, a private asset management firm and the great-grandson of johnson and johnson. of the biggest banks operating in the united states have clearly federal reserve stress test. the first subject to phase test exceeded minimal thresholds. morgan stanley trails on a keep measure of leverage. -- on a key measure of leverage. the governor of mexico's central bank says it has taken the steps for inflation to meet its 3% target. he was speaking to bloomberg after raising borrowing costs for the seventh time in a row. >> the last months have been good month. we had a rocky year last year. of the correction taking place has been the result of policy actions we have taken in the monetary side, the fiscal side. going for theare dynamics that is consistent with inflation shock. juliette: president trump appears to have changed his review of china's belt and road initiative. the foreign ministry in beijing u.s.the president says the is willing to cooperate wi

exit polls adjust the u.k. is headed for a hung parliament with theresa may falling short of a majority. speculation sense sterling plunging to its lowest since april. it adds to the uncertainty surrounding brexit. and questions are being asked about the prime minister's future. george osborne says she may not survive. and war of words in washington. fired fbi director james comey accuses president trump of lying and defamation. we have got the world covered on bloomberg television on this epic day. live in london as we see results from the u.k. polls. here in washington, we're all talking about james comey's testimony. we will have plenty of reaction to that. absolutely. this is bloomberg's continuing coverage of the u.k. election result. it is just after 7 a.m. >> just after 7 p.m. in washington, d.c. i'm kathleen hays. is that shocking exit poll out of the u.k. we are focusing on, suggesting this election could go either way. not what we were expecting when asia went to bed last that. the instant reaction was

and the u.k. the central bank wants to change its legal statute to be given a clear legal competence -- 3/4 of trading in euro denominated interest swaps takes place in britain. in the u.s., center republican leaders have issued a health care proposal. the plan was immediately opposed by a group of four conservative senators, rand paul, ted cruz, ron johnson and mike lee. it could threaten a position -- passage of the bill. president trump: obamacare is totally dead. we're putting in a plan today that is going to be negotiated. some democratave support. but they are obstructionist. we won't get one matter how good it is. sebastian: president trump has named rudy johnson as ambassador to the u.k. firm.he ceo o centralrnor of mexico's bank says it is taken the right steps for inflation to reach its 3% target. speaking as closely to bloomberg after raising borrowing costs for the seventh time in a row. >> the last months have been good months. we had a rocky year last year. i think that a lot of the c

was anhad in the u.k. e that raise political uncertainty, but it also lowered what is the biggest risk to markets, the u.k. would pursue a hard exit cushioning strategy. with a much slimmer majority, razor thin hold on the comments, with the need to go in on an alliance with the dv. the odds of theresa may pushing hard brexit are lower and that produces one of the major tail risks we had to u.k. growth and for the pound. think ok, what makes you that the tail risk is really been reduced? because i put it to you as the europeans don't want to see as an incapacity to the economy. not at all, but it hands all the cards to the opposition. just the way we approach that is that europe has held the cards all along. this outcome just increases the odds that the u.k. will realize its negotiating position is a weak one. it will have to compromise, it would not be able to go in and make unilateral demands. ultimately, the greater realization of that at the beginning of the process is the best outcome. it reduces risks

the u.k. vernment has announced it has canceled the queen's speech to give lawmakers more time to deal with exit legislation. the leader of the commons said the next parliamentary session, due to start wednesday, was being doubled in length to two years. the announcement comes as talks between the divorce finally get underway today. in france, there was no public celebration from president emmanuel macron's government last night, as his party claimed an historic majority in the legislature. according to early results, they are on track to win 350 seeds in the 577 strong seat national assembly, the biggest majority in 15 years. but turnout of 44% was the lowest ever for a french legislative election. the u.s. navy has identified the seven sailors who died when they collided with a container ship on saturday. the seven crew members had been unaccounted for. divers recovered the bodies after the severely damaged fitzgerald returned to a navy base in yokosuka, japan. global news, 24 hours a day, po

in the u.k. next year to make the final decisions. initially, we will probably get some evening news on citizens rights. francine: holger, what does that mean, a soft brexit? and does that come from the eu? >> well, the eu has a menu of options, as the u.k. in the end has to choose. one would be the stages of norway, the minors, and the minors would pay a special part for the access to the eu financial market. or, there is the hard brexit. the eu has various options and in the end, the uk.k. has to choose. francine: have you see it playing out? for me, there is a red line. said,hink it will, as we a soft stance on brexit from the u.k. government will possibly make you know, the man in the streets in the u.k. quite unhappy. i believe the financial sector and the rights of the financial sector are going to be a key point into the negotiation. you know citizens rights, i believe that will end up to be relatively soft. the u.k. cannot afford to have a tough stance on citizens rights. has a key carde,

you have the u.k. ons, the ecb, james comey, testifying in front of congress and they all fall on thursday. anna: another story we are focusing on on daybreak. you talked about it already and daybreak team- picked it up. trump wants to deescalate -- they want to deescalate the gulf after saudi arabia letter drive qatar.ate qatar can still access shipping routes. as well as those of. and in man. to theting listening diplomatic efforts to resolve this. let's hope they do. aboutreflecting yesterday the food sourcing and if they close the border where some of that is going to come from. enough of my personal anecdotes. >> we can never know enough about what level you -- of shopping you did. cansing on something that be a bit of an issue for the markets. plunged to the lowest in the most three decades. this was yesterday and the bonds , also done with the cost of senior bonds, jumping up to 720 basis points. that is amid conflicting reports of whether executives will go ,hrough with a planned meeting this wi

the u.k. kosovo. we will be joined by anna and nejra in just a second. but first here's first word news. >> let's get started with oil here. for countries like by saudi arabia cut diplomate ties with qatar and access to the nation started over and its support for the muslim brotherhood. rex tillerson has urged members of the gulf cooperation council to remain unified. we encourage the parties to sit down together and address these differences. if there is any role we can play in terms of helping them address those, we think it's important for the gcc remain unified. says -- present >> jamie dimon says the bank is hoping to get up on the license in the country and would consider another venture in asia's largest economy. progressave made huge in financial reforms, market reforms. they're going to have tough times and we should understand that. it's true for every single country that goes from emerging markets to a developed market. global news 24 hours a day, powered by more than 2600 journalist

i am wondering if the u.k. in in the customs union, how likely is this order that the dmp is looking for? mr. donohoe: we feel it is exceptionally important and positive that the british government in its new composition that it is going to take focuses on a frictionless border. it is so important for northern ireland and the entire island of ireland, in terms of how it is going to happen, this will be one of the outcomes that will come from the process now underway in the government of the united kingdom. in relation to their potential relationship and all of this is now grown into cv negotiations that we play -- and to see the negotiations that the u.k. and the eu have. -- the more easier it will be to allow a mechanism. much, fornk you too the finance minister of ireland, paschal donohoe, joining us in an exclusive interview from dublin. much appreciated. vonnie: great stuff, nejra. let's check in now on the first word news. vonnie.morning, a list of demands given to qatar by saudi arabia and allies, accordin

what form the u.k. take and what form the on the brazen negotiations they would take. a lot of uncertainty. we do think it is lower. those numbers actually aren't very far away from where we are today. we have been through a lot of weakness. it depends on the horizon. longer-term, things could change. i'm looking for things from daybreak. the prime minister has yet to realize that he is a political zombie. for all the players on downing street, this is the day after britain's general election which declared that she is roaming the land of the undead, sooner or later, reality will find a point to bite hard. what does it mean for brexit negotiations? >> the thing with any negotiations like frexit is that starting points do matter. also, in terms of the amount of money that the u.k. owes the airway before they were able to leave, how strong of a can you canposition start up with? that is important in as much as what the u.k. want out of the process. the bottom up for markets is that there are many more que

or the u.k.. an or conservative base, you need to spend more and tax more, how do you fit the bill? it's probably by having additional debt. this is a topic of discussion around the corner. guy: sill around the corner. so you have the fed wending its balance sheet down. plus the additional supply that could come as a result of that what does that mean for yield? guest: is a complex question because definitely we are seeing real pressure on inflation numbers, but on the other hand, you have all these credit elements which are obviously calling for pricing gilts and treasuries hiring on top of yield. right now for investors, rather than making directional poll in terms of yield getting higher, you are much better in every position on volatility and alone volatility where everybody is complacent with regards to volatility outlook and to capture the fact -- belong treasury volatility right now. haslinda: particularly in interesting feature which is along this bonds, this is where the spread between it

. a live use event now of the whole of the u.k. and the rest of the world paying their respects to the victims of the graham full tower fire a minute's silence being held there as the police just this last hour raised the death toll there to seventy nine and the search continues. you're watching r.t. international very odd. hello good afternoon from me kevin thanks for joining us it's just turned one of the afternoon here in moscow for our other top story this morning as well this afternoon here is also starting in the u.k. there overnight a van drove into a crowd of pedestrians injuring several people in north london there are moscow overnight one person died at the scene police are treating the incident as a terror attack the suspects been arrested and charged with attempted murder. suddenly my way home i hear the big noise the crash noise when i turned back i saw the the van hit the people and when i ran to the place i saw a lot of people all florida the one that and the all that badly injured one of them and that we have a guy w

john sparrow has arrived in the u.k. walk us through what he is getting in terms of the market reaction. he's going to be joining us to be joining us throughout this conversation as well. we are bringing together some of the best minds we have a bloomberg. we are minutes away from the european market open. we're going to give you a heads up on what you need to know throughout the day. the headlines look like this. it is a hung parliament for parliament -- for britain. some talk we would hear from theresa may around 10:00. that is denied right now. exit uncertainty is the big story surrounding this. is a softer brexit now a more likely outcome? we are going to take you lived to brussels to discuss that issue. what is going on with the pound? it is trading lower. the cash open in around 30 minutes. matt: it was interesting. when i came into this trading for around 4:00 this morning, there had not been a lot of action overnight, especially not relative to what you softer -- after brexit and the trump election. i thought we

who's the director of the u.k. based think tank and also thinks washington could push damascus to retaliate this is used as a principle to prevent the syrian army from the story over to get a struggles against storms that forth in a sentence about a year of the united states or still no action but but a year ago they were actively using possibly using. forces are used as forces to pressure to put pressure on the state or an army now they seem to be actively protected and this is. the fact of the matter is still the syrian army needs to protect itself the syrian the american army when they say where we are attacking forces or we are protecting our personnel if the syrian army decides to switch on. batteries or recitals are they attacking americans or are they or would they be protecting themselves as well this is this is not. any we are safer. it's been exactly five years since julian assange steps into the ecuadorian embassy in london and he has left the wiki leaks editor so political asylum that sweden investigated

he said the u.k. uld be welcome back to the european union if the british decide they no longer want to leave. he also mentioned last week's election results. colleague told me that they are thinking about what does it mean that a lot of voted for labor, not for the conservative party. the idea that, the reason they , [inaudible] it is what they are thinking. there are some parallels. if you look at the french election. generation [inaudible] -- very much favor in favor. there is an opportunity to bring europe forward. the first day that brexit is a decision we have to accept by the british voters but we will minimize the potential damage and maximize the benefit. think these young voters, do you think that britain has the ability to turn -- isround, is that is there a possibility that brexit does not happen? >> it wouldn't -- would not be helpful if we started speculation. if they wanted to change they would find open doors it i think it is not very likely. more what if they wanted time to negotiate.

starting with the u.k. where millions of people are voting today in the general election. >> if you look at the front pages of the british papers you might have the impression that they are ganging up on jeremy corbyn. that's what the guardian says. the guardian actually endorsed corbyn himself. thethey are ganging up on jeremy corbyn. that's what the guardian says. mirror comes out in favor of jeremy corbyn but probably has a very unflattering picture of theresa may for its front page with the headline lies. many of across the u.k. them are urging british voters to choose theresa may. don't sun's front page, chuck britain in the corbyn. he will declare war on business and hike taxes to fund his socialist promises. that's what the sun says. starring -- mail is trying to stay true to its hyperbole. >> it calls on readers to reignite the british spirit and vote may. also endorsing the tories, the financial times, daily telegraph and the independent seems pessimistic about corbyn's chances. it says final reckon

sebastian: let's start with the u.k. prime minister. n parliamentary approval in the first test of her new alliance with the democratic unionist party. frexit dominated agenda passed by 323 votes. fractures in the main opposition party were evident as 51 labour lawmakers defied jeremy corbyn's orders to abstain. scotland's first minister pushback plans for a second independence referendum. nicola sturgeon vowed to revisit the possibility once the terms of brexit are no next year. the decision came after voters turned away from the scottish national party and this months election. three european official told bloomberg the bloc is willing to give grounds on the judges protecting the rights of e.u. citizens of the u.k. the onus back on britain to increase the level of protection it's offering. sentiment among u.k. households has fallen to its lowest level since the brexit referendum. the consumer confidence index dropped to -10. as the rising cost of living in the income -- deterred britain's from spending on big ticket items. global news

what happens in the u.k. is the driver of the company. the fact that the u.k. ter is very positive. anna: international is not the focus as a business. it has been moving away to international toward that u.k. business. anna: how well of a doing at the fixing? when i was looking at this number ahead of time, it says the u.k.'s biggest market, being tesco, has the best benefit in the drop of commander -- in consumer spending. that end of the market could do ok. can andi think tesco has done ok, but it would be very easy to get very carried away with these numbers. no doubt, higher food prices are helping, but the market has done nothing for the last few years about falling food prices because when prices are falling, they need to sell more volume of goods to make the same amount of value. it gives them a bit of with before they do anything, but it is a double-edged sword. if there is too much inflation, then consumers will go back to discounters, and that is what we have seen. you get the benefit without losing customers to the discounters. of the german discount

what we are watching in the u.k. row is whether there is a majority or not and we have reason to believe that the conservative majority will hold and quite possibly be expanded. this will take some uncertainty away because we have been updating with this government now for almost a year. we have roughly known where they want to go on the all-important brexit question which appears to be a hard brexit. manus: good morning to you. let's take the conversation forward, that is the base case scenario for s&p. thatve a bloomberg case says in the brexit scenario he expects seven point 5% participation in the u.k. economy over the coming year. 100 40 billion pounds worth to be shaved off the economy. would you share as negative view on that on a hard brexit scenario, what qualification can the potentialout contracts into the u.k. economy? moritz: this is a has to this game to estimate by pound and penny how much the cost of a hard brexit would be. for the simple reason that we -- noow comparison comparison, no precedent of an

comey's testimony, the u.k. election and the european central banks rate decision tomorrow, stocks are rising. gold and treasuries rising as markets study themselves following yesterday's risk off trade. that britishme of election vote will determine the path of brexit negotiations. sweden's finance minister joins us with her thoughts on the path ahead. 30 minutes into the u.s. trading session this wednesday. it is wednesday but it feels like it should be later in the week. julie: thursday is really the big day of all of these events, including the comey testimony and ecb decision. all three major averages are rising ahead of that, although still shy of their records. certainly near them. once again we have technology playing an important role in the gains we are seeing. the nasdaq 100 touching the intraday high for the six session in a row. facebook and microsoft both turned lower but touched her records on a closing basis earlier today. apple is higher, alphabet shares at a record. if you look at what is going

today the u.k. prime minister faces a catastrophic election, the loss of the parliamentary majority. investors assess the political risk. qatar feels the pain. almost a week after the isolation, investors cut losses. we will head to delhi for the latest. awaiting the fed. investors expect the central bank to raise rates on wednesday, even if the inflation outlook weakens. ♪ anna: a very good morning, you are watching "bloomberg daybreak: europe," i'm anna edwards in westminster. manus: and i manus cranny, safe in the studio. you are in for a rough and tumble week in westminster. what can we expect? theresa may has got to go to her party and explain herself. anna: yes, indeed. the first place, the cabinet meeting. we heard from the former counselor george osborne, enjoying his new role at the newspaper, describing her as a dead woman walking. within the cabinet she has been giving some support -- boris johnson denies he is planning a coup, liam fox speaking favorably, but she is sent to promote some p

crosstalk in the u.k. i'm joined by my guest steve keen in london he is a professor of economics at kingston university london as well as the economic advisor to asymmetric return capital also in london we have marcus papadopoulos he is the editor of politics first magazine and in salford we cross to stephen fielding he is a professor of political history at the university of nottingham all right gentlemen crosstalk rules and effect that means you can jump in anytime you want and i always appreciate steve let me go to you first in london i suppose a very simple question at the top of this program is the u.k. in crisis and maybe explain why go ahead i think it isn't process because what's really we're at a turning point where if the u.k. was when neoliberalism was born maggie thatcher and her little handbag carrying out a copy of. freedom freedom dork. really set the china that was advertising this is going to be a tough new world where tough love is going to be the rule and the perspective i think was alway

the concessions the u.k. far are concessions that were likely going to be have to be made anyway. a -- those are concessions that probably would have had to be made. are left with is the hard negotiating point. from there, that is where i see a lot of uncertainty hitting the headlines, impacting sentiment, potentially impacting investment intentions. long-term, i think it is a case that there is now, especially with the debacle of the election, there is a case for a softer brexit. in the meantime, it is going to be volatile getting to that stage. guy: i don't understand how you price the u.k. right now. in some ways, you want to pricing risk, the worst-case scenario. you talk to people about what they think and how they are positioned, and the two seem to be different in my mind. the market is position for the hard brexit, because you larger glee expect that is what you have got to do. -- you logically expect that is what you have got two. when you discuss it with people, the mood changing is difficult to pin

the u.k. prime keep that minority in government. and the 10-year yield, yields one basis point, and crude up .3%. for your s time morning brief at 8:30 eastern time. we're going to get durable of s orders for the month may. around 1:00 this afternoon, european central bank president federal ghi and former reserve chair ben bernanke will give speeches in portugal. 5:15 this afternoon in washington, president trump and give s prime minister joint statements from the rose garden, right after their meeting at the white house. day, ur top news of the theresa may finally seals the deal. you've got sterling advancing his morning after the u.k. prime minister struck a deal with northern ireland. or more, we're joined by ben stills of bloomberg news editor who joins us from madrid. us. thanks for joining what kind of position does this leave theresa may in now on his week where they're going to vote on the queen's speech in house of commons? a modicum of ides after ty for theresa may a rough few weeks s

make of the u.k. the main objective of this counsel, if i had to give it a main coherence, is to start defining or redefining this europe that is protective. bloomberg's matt miller is following the discussion from brussels and joins us. hey, matt. you could say a little bit of a lukewarm response from e.u. leaders. it but if the sticking point --what is the sticking point? does not have anything to do with the cut off point, but it is about the rights of citizens. them come out and just say he did not think the proposal went far enough to protect citizen rights. 27 citizens are guaranteed certain rights that u.k. citizens don't necessarily have when it comes to immigration of spouses or family members. e.u.e.u. wants -- and the wants those two have the same rights. they most likely will not have that under theresa may's proposal. but that was a general outline. they are not negotiating brexit at this summit. that is not the you summit is for. they talk about it, of course, but she will get the detail

the u.k. prime minister takes full responsibility for the election disaster. she meets with the d.u.p. to prop up heard minority government. and the trillion dollar question. fed'she timing of the great unwinding make or break the bond market? "bloomberg surveillance ." i'm francine lacqua. let's check in on the markets. i put in treasuries for good measure. that is the two year yield. stocks overall are advancing after the global sellout with a yesterday. technological shares showed signs of easing. the pound starts to strengthen a little bit. and then of course, i want to show you crude, one of the stories we have been following on bloomberg, trading about $46 per barrel, following the first back-to-back game in three weeks. fromll have plenty more your markets shortly, but first let's get to the bloomberg first word news. nejra: firms that clear euro denominated derivatives will be forced to relocate after brexit. under the proposals to be rolled out today, firms deemed systemically importan

citizens in the u.k. and who would get custody of gibraltar what thorny issues but there is aroused took a back seat when britain was hit by a wave of terror for terror attacks in the space of just three months to be precise and many britons held to resume a direct plea responsible because she'd been head of the home office for six years before becoming prime minister. and with all the security and political chaos few people even notice that earlier this week brings it negotiations officially kicked off but not in the way that london would have hoped the british government's already been accused of caving into brussels over the brags that schedule and opinion polls now show that if the country got to vote again it would reject leaving you so just like two reason may the plan for braggs it went from strong and stable so we. and wildly within the space of just one and yeah this week especially e.u. summit on briggs it also took place one of the major issues has been the rights of citizens in the u.k. but the

as in the u.k. and who would get custody of gibraltar thorny issues but there is aroused took a back seat when britain was hit by a wave of terror for terror attacks in the space of just three months to be precise and many britons held to reason may directly responsible because she'd been head of the home office six years before becoming prime minister and with all the security and political chaos few people even notice that earlier this week brings it negotiations officially kicked off but not in the way that london would have hoped the british government's already been accused of caving into brussels over the break that schedule and opinion polls now show that if the country got to vote again it would reject leaving you so just like two reason may the plan for braggs it went from strong and stable so weak and wobbly within the space of just one yeah. a special e.u. summit on its second day you know what the opinions of the british prime minister and the president of the european commission seem to

less than 24 hours to go until the u.k. election. theresa may and jeremy corbyn are touring the country on their final day of campaigning. we will have the latest. are mixed today. oil and gold falling ahead of tomorrow's ecb decision. the central bank is said to be cutting its inflation outlook because of weaker energy prices. a bloomberg exclusive interview with marathon asset management's chief executive bruce richards. where he sees opportunity in the distressed market right now. 30 minutes left in today's session here in europe. what a week it has been, what a day tomorrow will be with the ecb, comey, and the testimony, and the u.k. election. markets are less cautious in yesterday. we are seeing stocks rise for the first day in three. most of these currencies falling against the dollar today. sovereign bond yields rising. we will get to lots of corporate news. opular,er, banco p santander agreeing to buy it for a nominal one euro after regulators determine that the lender was likely to fail. santander raising about 7 million euro