your party and your former prime minister will be remembered as having brought to the united -- brought the united kingdom out of the european union. huge challenge and somewhat say causing huge damage to the united kingdom. what do you say to that? sajjad: well, i think one thing is absolutely certain, that by the united kingdom coming out of the european union, we have a weaker europe. and that is not in the interests of either the remaining members of the european union or the united kingdom. that is not something that david cameron or any of us that were in the remain cap ever wanted to see happen. ofrying the burden potentially having delivered that. laura: a i ask you, what are your personal plans now that there will be no longer any bridge numbers of the european parliament? sajjad: what i'm finding is that at this moment in time because the negotiating process, i'm finding myself in quite position in that we have to deliver this negotiating round and finalize which means i'm going to be spending far more time in brussels in the coming months ever done in the past and even though i've been an extre

referendum we don't know if these would be acceptable to the united kingdom. another model is switzerland erlands, a answer -- series of bi lateral agreements that give them access to certain aspektd of the single market but they also have to contribute to the budget and accept free movement. the final could be a model such as canada ar -- or anyone else, which would require the negotiation of a free trade agreement between the u.k. and e. u. so i think ttd premature at this point to predict what the impact will be the what is clear is that there is a differ between being in the european union and not, and unless the u.k. were willing to accept that, it is quite possible there will be new trade agreements between the u.k. and-iron union that will have to be developed. >> so there has been some talk that this is a victory for russia, which would benefit in theory from a divided europe. what is your response to this comment? >> well, i'm not sure that anyone benefits from this situation. i think we have to be honest and say we would all roth -- rather we were not

this is not a good outcome for the united kingdom. we will look at the committee as we get issued up and running and look at the alternatives, but i really think that is not a good outcome for the united kingdom. [inaudible] >> thank you, mr. speaker. that i thank the prime minister for service to this country, for his support for northern ireland and the northern island executor and very difficult time and also support the united kingdom in which him and his family very best wishes for the future. on the issue of the summit came the prime minister spell out again not least to reassure our european partners, our commitment to nato and our european partners who are now speaking somewhat ill of our decision last thursday, should be reminded that the uk is one of the main contributors to nato come as a firm supporter of european defense and security and that they should play a greater role in stepping up to contributing to europeans defense along with the americans and ourselves? so in all of this the wider perspective needs to be looked

the people in the united kingdom in the majority voted for leaving the european union. s the mandate that the new government has been given. we have not asked the united kingdom to leave the union. we respect the decision that has been taken. we have to know exactly what shape and form this relationship of the people of britain with the european union is to be. we are saddened that we will that we willed have good bilateral relations. europe, remains part of if not part of the union. it is not as if the british prime minister would sit then at the table of the european council. we will have to find other ways and means to conduct our bilateral relations. we are listening to the united kingdom, listening to britain, what it actually wants, and then we will give the right response to that great it doesn't mean it makes any sense to now engage in speculation. 27 countries will give you different perspectives, depends on their view of the matter. we don't want any turbulence. we don't want to much disturbance. there has to be trust built, with mutual respect, in the spirit o

as we mentioned, a historic day here in the united kingdom. ming up, david cameron meeting with the queen right now. we will continue to follow the headlines. we know that he will be speaking with the queen about 15 minutes with the conversation, where he will tender his resignation and he will recommend theresa may as his successor an entry summit will make her way to buckingham palace, where she will be confirmed as the 54th prime minister of the united kingdom. this is bloomberg. ♪ shery: this is bloomberg markets. a historic day in london as david cameron steps down as prime minister and theresa may is about to be named his successor. scarlet, you are there. what has the mid-been like? scarlet: so many things moved quickly and without precedent over the last three weeks. inside of three weeks following the exit of though. but today, things feel like they have slowed down a little bit. there's a lot of pomp and circumstance, a lot of formality as david cameron renders his resignation to the queen and theresa may makes her way to buckingham p

that a brexit is equal -- equivalent to a breakup of the united kingdom. ink that is the best thing she can be doing both for scotland as well as for the rest of the u.k., and that is what she will continue to press. shery: still ahead, no shortage of opinions on brexit. we hear from the world's top portfolio managers, economists, politicians and central bankers. , more "bloomberg best" is next. ♪ ♪ shery: this is "bloomberg best." i am shery ahn. our global tour of the weeks top business headlines continues with financial and economic conditions tied to the brexit. wordtainty seems to be the used most by money managers and economists, and there was good reason for what happens next to remains anyone's guess. joe: you say you are not convinced that this brexit vote would be the spark for the political class to get smarter about more inclusive growth. what would be that catalyst? mohamed: i'm afraid to say it would be a bigger crisis, a bigger economic and financial crisis. and step back. as you know, i have this notion the role we have been on characterized

we share and both days and ordered to defeat and can absolute you concerned against the united kingdom believed the european union. the united kingdom is not leaving europe and cooperation will continue. thank you, mr. speaker. and i welcome the prime minister to her place and wish her well in healing the country in the month and years to come. after all, she and her colleagues are both divided. can i thank her to, mr. speaker, the wholehearted support and endorsement for official labor party policy. such a change from the dispatch box -- [shouting] as the father and uncle, on behalf of 5000 people -- connecting to prime minister for the example she has shown to these people and demonstrating without a doubt this doesn't hold us back in any way whatsoever. there is no doubt whatsoever that the prime minister's predecessor left the nhs in a much worse condition than he found it. will the prime minister -- will the prime minister visit my constituency and honor the promises made further. thank you, mr. speaker. can i say the honorable gentleman makes a ref is two divisions on the conserv

this happens as the united kingdom get the new prime minister. teresa may now the leader tapped with an ugly divorce from the eu answer country looks to hook up to other nations both big and small. we are live with ambassador gordon gray of the us and israel, what she needs to do to save her economy. on wall street check it out. record closes on site right this second as the tao in the s&p fight for a new page, the tao jumping 32 points, oil is sputtering below $45 a barrel. we are less than an hour to the closing bell, the markets, poke stocks on play, start the countdown. the bull are fighting for oxygen in the final hour of trade and have it at the moment right out of the gate this morning, the tao and the s&p hit new record highs and lost them but now they have got them back. any gain on the tao, the s&p will be enough to get us to records once again. we have 28, s&p 500 stocks hitting lifetime highs, names like consumer things you use all the time, pepsi, monster beverage, kellogg, cisco, up 2%. interesting with general mills and a bunch of

i absolutely confirm that, yes, the united kingdom will leave the european union, but the united kingdomnot leaving europe, and our cooperation will continue. >> i welcome the prime minister to her place, and i wish her well in healing the country in the months and years to come. after all, it is she and her colleagues who so bitterly divided it. can i thank her, too -- speaker,nk her, mr. for her wholehearted support for policy on trident. it is such a refreshing change to hear that from the dispatch box. as a type 1 diabetic and a father and uncle to children with type 1 diabetes, and on behalf of 500,000 people in this country, 30,000 of them children, may i thank the prime minister for the example she has shown in demonstrating without doubt that it does not hold us back in any way whatsoever? there is no doubt that the prime minister's predecessor left the nhs in a much worse condition than he found it. will the prime minister visit west cumberland hospital and honor the promises i the previous prime minister? prime minister may: thank you, mr. speaker. the honorable gentleman makes

for what he says about terrorist attacks and how we should stand together on the issue of the united kingdom'sure in a relationship at the european union. we need to negotiate the best possible deal for the united kingdom and the closest possible relationship and that would also be the best possible deal for scotland. that's what we need to focus on and what needs to be done >> on the contrary, yesterday the scottish parliament passed a motion across the parliament including the labor party, scottish liberal democrat integrates a law mandating to have discussions with the u.k. government, other default administrations come and e.u. institutions and member states to explore options for protecting scotland's relationship with the e.u. scotland's place in a single market and social employment and economic benefits that come from that. every party in the scottish parliament voted for that except the conservative party who abstained. when will the conservatives finally join with all other parties in scotland and protecting god's place in europe >> the best way to secure scotland's place in a single

for which the united kingdom would be hate crimes. there are some helpful differences and i am here is a fascinated observer of how america does politics, and understand how brexit happen. the real story is little people, ordinary people has completely given up politics. don't believe anyone speaks for them or represent them. if you inspire people to vote. >> host: who else has a question? over here? >> i mark mc keg, a delegate from texas and i was wondering, nigel farage, the impact you had on the larger conservative party impacting the way it campaigned and governed. how would you say -- were able to steer the forces of the conservative party into the governing style of the electoral leadership? >> guest: 25 years ago i embarked on this because i didn't feel our country was headed in the right direction, the european project which my parents bought into being about trade, about being good neighbors, i could see the political dimension and we had a treaty 25 years ago, i have been doing this for 25 years and one of the big questions

we are focused on the united kingdom. eased with the messaging from angela merkel and others in europe? they have notent decided to lay out the terms and deliberately so and the space in the maneuvering that they all want to offer or expect from their partner. i understand that because there has to be certainty about the timeline. the two years which will be triggered by article 50 which has not yet been invoked will open a limited period of time and i can see why they would not want to put their cards on the table yet. if the u.k. moves in the direction of clarity of purpose, transparency then certainly the europeans should respond. my hope as a european myself is that european leaders will find the strength and determination to bring about them of those structural reforms. changes that will deliver value to the europeans that will demonstrate that it is worth being together. and it's the future. ♪ >> you're watching bloomberg best. last week turkey faced a coletta cataclysm -- political cataclysm. now they face painful e

on friday alone, we made 1500 businesses across the united kingdom. early morning hours of friday, we had foreign exchange trading through the system, we normally have in a full day. to know what our corporate clients are asking in the institutional clients, so we are very prepared and i feel terrific about how the bank and of itself. the other thing which is quite different than what we may have seen in previous financial crisis is the corporation between large banks and regulators. ♪ ♪ shery: you are watching "bloomberg best." i am shery ahn. even though the aftermath of the brexit about dominated the news bloomberg brought you the very , latest in other news around the world from settlements to stress tests. michael: the first round of a stress test showed they had adequate capital. this was round two. the qualitative test were the risk management systems that, as you can see, the unit of deutsche bank, deutsche bank trust did not pass. >> stop there. that is misleading. that is hsbc and the toronto group dominion. that is not deutsche bank. that i

are yields going to plummet further for the united kingdom? ph: it is too early to address the ecb what the bank of england. we need to see more hard evidence of how the economy is doing and how the negotiations will go with regards to brexit. i think they will not react as quickly on the ecb side of things and the bank of england will wait until august. the rate cut is fully priced in. right now, i think a lot of you are already on the downside. caroline: stimulus, when will it be announced? what will be that stimulus? christoph: we are looking for another rate cut, but not before december. they will wait a little longer than some people are expecting. they will expand qe purchases for longer. caroline: wonderful speaking to you. christoph rieger, head of rates and credit research at commerzbank. seems as though it is time to go where the ecb doesn't go, corporate credit. back to you in the studio. manus: caroline, great conversation. let's see how low those yields can go. lufthansa cut its profit forecast. easyjet missed their earnings estima

so much to talk about about the united kingdom. first word news, here is nejra cehic. theresa may has promised to build a more just united kingdom. that for brighton to feel their life has made insecure by globalization. >> not by the interest of the privileged few, but by yours. we will do everything we can to give you more control over your lives. ejra: in one of her first actions, the architect of david cameron's austerity policy, she replaced him with philip hammond . she named her new break since our, david davis. locked --ter may mocked boris johnson's negotiating skills he has been named the foreign minister. he accused president obama of disliking the british legacy because of his kenyan ancestry. the number of japanese living in japan phil are the most on record last year. at the same time, the number of foreigners rose. unless japan's birth rate increases, the labor force could fall 40% white 2060. global news -- by 2060, global news, 24-hours a day, powered by our 2400 journalists, in 150 news bureaus around the world. . checkst's go to the data then get to p

we're focused on the united kingdom. pleased with the messaging from chancellor merkel and others within europe? christine lagarde: for the moment, they have not decided to lay out the terms and the space and the maneuvering they all want to offer or expect from their partner. i understand that, because there has to be certainty about the timeline. the two years which will be triggered by this article 50 has not yet been invoked. i can see why they would not want to put their cards on the table yet. if the united kingdom moves in the direction of what i hope, purpose, clarity, indication of timeline, europeans should respond. my hope, my real hope as a european, is that the european leaders will find the strength and determination to bring about those structural reforms, changes that deliver value to the europeans, that will demonstrate it is worth working together. it is the future. ♪ >> you are watching "bloomberg best." last week, turkey faced a political cataclysm as the erdogan government repelled an attempted coup.

did they want to break away from england and the united kingdom? at was less of a changed more in scottish politics. here is the situation. a large part of the reason why rejected independence was fear. fear jobs were at risk. to their european union would be cut or 20 u.k. voted to leave the eu, overwhelmingly scotland voted to stay. ofscotland sees the prospect being taken out of the eu against our will. i view that as democratically unacceptable. >> necklace storage and -- nicola sturgeon enjoys widespread support. her support exploded after the 2014 referendum. year.hopping 115,000 this in the 2015 general election, seats inon all but 3 one ofliament making it t the largest parties in westminster. is this scotland's independence, finally? here is the argument. nationalists say that the united kingdom scotland voted for 14 years ago is not the same as now. for them, the brexit changes everything. it is the opportunity the movement has been waiting for, though it is less than ideal. >> it is clearly an option on the table, and it is very much on t

the united kingdom is one of them. ough the cameron government did institute significant reductions in public spending in recent years, they did recently meet the 2% standard. i think most allies are hoping they will continue to do so but will be under economic pressure. it will be a concern. >> more interesting days ahead for europe. esther brimmer, thanks for being with us. >> thank you very much. >> ifill: now we kick off a special series about efforts to try to end the aids epidemic. leaders and researchers from around the globe will be meeting at the international aids conference in south africa next week. one major focus: how to stop the epidemic. but with no vaccine or cure in sight, how likely is that? this week, we're looking at efforts around the world. we start in san francisco, where we've followed people for the past six months. correspondent william brangham and producer jason kane reported this series, with support of the pulitzer center on crisis reporting. >> reporter: san francisco's gay pride events w

not so terrible for the united kingdom or the united states but when it comes to germany and france its a lot worse. elisa: what we are actually seeing today as they are pointing to a flaw if the bailout goes ahead. they pointed to some bank valuation being so low, unicredit, it is an opportunity to come in. these talks are coming to a for gains and not further losses. wrote ark gilbert wonderful piece yesterday, is brexit a lehman moment? he talked about the roles for europe to be dealing with this banking crisis if you can call it that, head on, not just in italy but in other nations. is there a sense the rules could be pushed aside and use brexit as an excuse? statesthe laws do allow to come in and effectively bailout their lenders. what will be key is whether this is that one time because clearly it sets a precedent for europe at a delicate time. market alone pointing to needing more flexibility. blackrock, they say europe needs its top moment. us,: thank you for joining elisa martin newsy -- martin newsy -- martin newsy. vonnie: it is been a rocky month for tesla. what is next for

the united states. there's going to be a transition, a metamorphosis. manus: great work, ryan. ryan chilcote on the special relationship between the united kingdomd states. rob wood's chief u.k. economist at bank of america merrill lynch. embarking on this road of putting the great act in great britain beyond the european union, that is boris johnson's job. is he the man for the job? rob: i don't think that is for me to say or not. with the u.k. now embarking on leaving the eu, which to my mind probably means worse trading now, setting has of better terms with other countries is vitally important. the real difficulty that the u.k. will find is if -- informal talks are one thing, but trade deals come down to the detail, the nitty-gritty. at the moment, the u.k. doesn't have its own tariff or menu of external tariffs that it applies. they are part of the eu. manus: surely that is where people would say, use the wto menu. talk to me about theresa may. very interesting, these nuances in terms of how we think the negotiation of start and go in terms of theresa may's ambition to have access to the eu, but to reduce immigration. square the circle. rob:

. >> ifill: the united kingdom has a new prime minister, and her name is theresa may. the second woman ever to hold the office, may takes over the top job after an extraordinarily rapid turn of events following last month's popular vote to exit the european union. we begin our coverage from london with this report from chris ship of independent television news. >> less than three weeks as print voted in the e.u. referendum, a new prime minister, theresa may was walking down downing street and a new chapter beginning in british history. not just a new occupant in the building but a new direction as ms. may made clear from her first words in her new job. >> i have just been to buckingham palace where her majesty the queen asked know form a new government, and i accepted. the government i lead will be driven not by the interests of the privileged few but by yours. we are living through an important moment in our country's history. following the referendum, we face a time of great national change. i know because we are great britain that we will rise to the challenge. as w

up next on "the pulse," pmi for july in the united kingdom. the first piece of post brexit data. will it set the tone? this is bloomberg. ♪ manus: welcome back to "the pulse." we had a seven-year low in the composite flash pmi, purchasing managers index. a seven-year low, 47.7. the market was looking for 49. this is july. this is the world, and the reality for manufacturing and services in a world at the beginning of the shock and all of the brexit vote. , 1.3216. dropping services, 47.4. market was looking for 48.8. manufacturing came in a little bit better, 49.1. the manufacturers will benefit potentially from a lower bound. manufacturing beat. services is where you are seeing the significant drop in the number. ote wreaks havoc. there has been deterioration in the economy post brexit. could we fall into a recession? the latest readings put the economy on course to contract. what happens next? we will get into that discussion with my guest. in the meantime, the first word news. nejra: hillary clinton is poised to unveil her choice of running

s biggest guilders of commercial property in the united kingdom. they are saying to us that the first-quarter dividend is confirmed at 7.3 pence. they have seen a robust position post brexit. british land says it is in a robust position after the brexit vote. in terms of disposables during the quarter, this is something we heard quite a bit of. you and i had a conversation with mark at aberdeen and he said they were selling british property ahead of the brexit. british land, non-quarter disposals, selling those. in terms of the first-quarter, 25,000 square feet of office renewals. that is the state of play on some of the breaking news that we have. what a day and what a crown jewel to consider getting off the books. the futures, let me pull them up for you. we have an indication, a little bit stronger. if you look at all of the risk we are taking on board, equity futures all trading higher. london up by 20 points. the dax up by 35 points. anna: we have emerging markets it -- market currencies for you. have, just to tell you where we are -- en has co

you have got four key western players, france, italy, the united states, and the united kingdom. believe the french and americans have firmly presence of special pharmacist -- special forces. shdely reported as was an ambu against british and italian forces a couple of months ago. these forces face a very difficult situation. they have a challenge from competing militias, which are fighting each other. that is the case around benghazi. the big worry is that this chaos will spill over into europe, not just in terms of security but in terms of refugee flows. >> thank you very much indeed. we heard from the french president, the confirmation of the deaths of those three junior soldiers. not more about the people involved or the circumstances of their deaths. there was a visit to a training center. he spoke to the other big story, the investigation that continues into the attack last week in nice. 15 people are still between lie fe and death after a truck rammed into a crowd of people. although the anger of the french people was legitimate, that anger was not be allowed to degenerate

we are still the united kingdom. our values remain exactly as they were. rning, i woke with a song in my heart. -- he has put down the mighty from his seat. a few days later came the verdict of the archbishop of canterbury. >> the course of the campaign was both robust as it should be on such great issues but at both sides were not just robust but unacceptable. through those comments were in the politeness and tolerance of our society through which since the referendum we have seen an outpouring of poison and hatred that i cannot remember in this country for many years. >> how about this verdict from a former cabinet secretary -- >> i do not remember us an unholy mess as we are in now perhaps -- it is an existential and a political crisis. david cameron argued that matters were out of his hands. >> we know that many millions of people in this country felt they were deceived by the exaggerations and lies in the campaigns of both parties and they now feel themselves cheated by that result in millions of people have protested. right that we look again at the p

if we don't come to a grown-up trade deal between the united kingdom and the eurozone, it will hurt thee. which is why in parliament, i was urging a grown-up approach. >> mark carney, you said you wanted to see him resign, why? nigel: he is the governor of the bank, he has played a completely partisan role. yvonne: the u.s. is a supporter -- why do you think that is a good thing? marc: we have a constitution. already the 13th century, we swore we would not pay taxes to a foreign leader, and we would never accept foreign judgment. and that is with the european countries have done. they transferred their governance to a bunch of elected people in brussels. and countries function better if they are small. i believe the u.s. will be a better functioning economy is it would consist of 50 different states. not just one federal government running the place. yvonne: some really say this was a result of backlash on globalization, every country for themselves right now. does this put an impact on global growth, which we were talking about before the brexit vote has been very, very slow? marc: wel

opened her emigration did, we've had since the 1950s we've had a managed immigration policy into the united kingdom. net migration rent out about 30,000 people here in the 1950s, '60s and '70s, '80s and '90s. we knew how to do that. we had wanted to difficult but generally of all the countries in europe we have the best race relations, the best integrated levels into our society. we had a tony blair government

the united states with our interests threatened. the relationship between the united states and the united kingdom is special. america is our principal ally and partner around the world and the partnership is vitally important for the continued security and prosperity. we should follow the un foreign policy or fail to speak honestly us )-close-paren should. it is a legitimate factor to be taken into account in british foreign policy. of especial interest in itself makes britain safer. second, it would be wrong to conclude we cannot trust the analysis and judgment of the community. i know as well as anyone the vital contribution and the agency is needed to keep her ten and the british people safe, and i know the risks they sometimes have to take in order to do so. but intelligence is rarely black-and-white and it always starts with a calibrated warming and confidence level the users should attach to it. when the decisions and when the strategic communications are placed on intelligence, the reforms that are put in place following the butler report have quite properly separated the process from the policymaking

and the scottish referendum that scottish national party was campaign for scotland to leave the united kingdom which would have meant that leaving the united -- european union. >> daniel! >> we all stand with the people of france and nice following the terrorist act there last week. will the promise to update the house on how the security collaboration between our two countries can help prevent such attacks in the future and reassure the french people that although we are leaving the european union, the close link between our countries will remain steadfast? my honorable friend raises an important topic. our thoughts are with all the people of france on the appalling attack that took place. we continue to work with the french authorities both in the aftermath of the attack. my old friend is right, we need to continue our security operation. we will not be, by terrorists. we both faced the same threat and we need to work together to defeat the threats. i can absolutely say that the kingdom will leave the european union come up with the night kingdom is not leaving europe and our cooperation wil

our broadcast partners in the united kingdom. with its early morning programing now on the feed coming in to us from the continent and from great britain. and you see their morning show programs will begin in about 20 minutes. and we'll share some of that coverage for you, breakfast time on the bbc and morning programs across sky network. another witness to the emergency services said it took 25 minutes for them to reach the program had in, quoting a truck arrived and smashed into everyone, everyone, the man said, turning to wave at the fire trucks behind him. there was no security. it took the fire trucks 25 minutes or half hour to arrive. of course, security had been quite tight during the evening there had been fears across euro 2016 of all of these stadiums. of course there in nice and beyond. of the heightened security and fears that euro 2016 would become an attack site. and yet it did not. the next great concern was today, bastille day, all across the country. i should say yesterday now. thursday, bastille day. the french p

what does john think about this this vote and what does it mean for the united kingdom? len: i think he thinks it is a setback. he thinks that it is the end of classical liberalism that the u.k. has enjoyed. i think he thinks it is a mistake. and he sort of takes us through the history of the change in the u.k. over time and what this means. it is a special perspective that we are happy to give readers. david: and liberalism, he notes, has not been entirely great for the u.k. ellen: right. for people on the upper end of he saysfor people on the upper end of that it has been better the economic spectrum rather than people who are less fortunate. david: your economics editor peter cory has a piece in the magazine, looking at the referendum, and it is to give again. u.k.ll be terrible for the , and now peter is taking a step back and saying in the long-term, it may not be that big of an issue. ellen: peter says down the line, it will not be a total divorce. it will be something short of that. and he is a little more optimistic than some and basically says it is not over yet.

a process that will be decided by the members of the conservative party in the united kingdom. from my own part, i think we've got an incredibly strong hand and i say that because actually the deal that the uk currently has with the eu is a rotten deal. what we joined 40 years ago in a world of high tariffs would could argue gave a significant business advantage, but in a world where after tterre tar ra down. to have the unfree movement of people to be prohibited from making our own trade deals with the rest of the world, but perhaps worst of all, to be stuck inside this outdated customs union that means the 88% of the british economy that is not exporting to the eu is still bound by the same rule book. for all of those reasons, britain's current relationship is rubbish. i hope we see a strong prime minster that recognizes in the commercial world, it is the customer that is king. we are the customer. we are the buyer. the trade deficit is now approximately 70 billion sterling every year. with elections coming up next year in france and in germany, i would expect to see german ca

on monday, we will extend the conversation on europe, the united kingdom, and france. e lagarde will join me on monday at the new york federal reserve. thrilled to speak with madame lagarde on monday. ♪ good morning, everyone. "bloomberg surveillance." we continue with david from deutsche bank. he and his team have been overt and aggressive about a solution for italian banks. let me bring up a chart of the animal spirit of italy. throw this up on the bloomberg surveillance wall. gdp in italy is not getting it done. growth is not there. how do they do a bailout, how do they do it bail in, how do they cram down these losses to the italian public with an economy flat on its back? david: they cannot and they should not. you have to recapitalize the debt. there are three ways of doing it. one of them under the current directive would be the bank resolution recovery directive, the banks need to be in default before you can actually put in public-sector money. the government wants to avoid that. it also means that you can't put in money without being in violation of that direc

we are focused on the united kingdom. pleased with the messaging from chancellor merkel and others within europe? they have notent, and deliberately so decided to and the spacerms and the maneuvering that they all want to offer or expect from their partner and i understand that because there has to be certainty about the timelines. the two years that will be triggered by this article 50 will open a limited time and i can see why they wouldn't want to put their cards on the table yet but if on the other side the united kingdom moves in the direction of what i call clarity of purpose, transparency, then certainly the year opinions should respond. is thatas a european the european leaders will find the strength and determination to bring about some of those structural reforms, changes that will deliver value to the europeans that will demonstrate its worth being together and it's the future. is being regarded as the star of india's online retail scene and also the most valuable startup in the country. it now faces plateauing

cpi in the united kingdom came line plus 2%, very much in with market expectations. a little bit ahead on the year on year. petrol prices have been rising ever so slightly in the united kingdom so what you have is pretty much in line on the cpi. on the retail price index, that is slightly higher. it is the cpi month on month on. the markets focus in the june inflation rises by one half of 1%. it is the very first indication at the end of the second quarter. a lot of this data is for june so it does not give us a real indication in the eye of the brexit storm. 1.3219 is the run up on the pound but analysts are saying you should sell into rallies on cable and it is only a matter of time before the trade to the dime side asserts itself. cpi for the month of june comes in at plus .2% month on month. that is your data. let's get up to date with your first word news. nejra: australia's newly elected prime minister and his cabinet have been sworn in. he reshuffled his team after the narrow election win this month, declaring budget repair the top priority. the ftse 100 is hea

there is a lot of fear in the united kingdom. >> we know she had overwhelming support in parliament but there was a lot of talk that the overall membership in the conservative party may have given 51% to andrea letson. what does that tell us about what the public thinks about theresa may? >> in the conservative party, they were fairly even when you have the latest polls and i think andrea letson really -- she didn't really want to that and this is why theresa may once very much a strong majority of these. she has the power to govern. what the rest of the country thinks of her, we not -- might not find out so soon. for now, that's not on the table. >> arts correspondent in london with a story every day. from the country and political transition to one and political chaos tonight, south sudan's leaders have called on rival factions in the military to stop their fighting. it comes after a day of violence in the capital. troops loyal to the president have clashed with those belonging to his deputy and former rebel leader. both men have appealed for peace as the country teeters on the brink

in the united kingdom, the biggest issue is a shortage of suitable donor hearts and aging population. >> the current situation in the united kingdom, we have only very, very few hearts. and you're only transplanted when you're on the urgent waiting list. no one really gets a heart on the normal waiting list unless you're small and in a specific group. >> there's been a lot of focus on helping transplants succeed after they were complete, getting the immune system to accept the donor organ instead of attacking it. what about before all of that? what about the way the heart is preserved before it even reaches the recipient? >> the heart you know, in many cultures and many parts of the world is really perceived as the most important organ that keeps every part of the body alive. >> while he began his career as a heart surgeon. as a junior resident, he went on a retrieval, getting an organ donor transplant from another hospital. he was in charge of a cooler and realized how rude meant tri it can be. >> it really upset me, that at the time to become a cardiac surgeon, still to today, you n

it is most controversial here in the united kingdom and clearly, we are getting all the feedback that is making world headlines. what about this picture? i don't know that he is ever going to live that down. what boris johnson is respected for is the victory of brexit, one that he didn't even expect himself. --is eloquent, cap charismatic according to some and not according to others. he is highly intelligent, that he is -- all of those are pluses. he speaks four languages, french, turkish, other languages besides. but whatery impressive he is not known for is his diplomacy. diplomacy.n forun- there are many gaffes people can list. people knowsome about john major, when he was prime minister and was described as boring, came up with a puppet and theyat was gray added over his clothes and trousers a pair of underpants. anybody will understand that was not terribly flattering and sometimes i think satire can be a death by a thousand cuts. will it pay off or not? >> that is as far as the foreign secretaries job goes. what about other appointments that have been made so far? >> the day ha

what does he say to global wall street in new york about where the united kingdom is? tephanie: they are trying to get out which is that we are not closed to the world, this is not a little england move, whatever you might have heard in the campaign, this is about embracing the world -- that will be his message. and one of, hold on, watch this space. we were talking about that earlier. that is crucial. you want to at least put a question mark in international business's mind. if they are going to move investment to another country, don't do it quite yet. that is the best he can do. there are huge question marks. after we leave the eu, we won't have trade deals with the eu are any other country in the world and we have not had any trade negotiations for many decades. there are plenty of question marks. he is wanting to at least put something on the other side of the ledger, a reason for people to hold fast for a while. francine: we have never done this before on "surveillance." this is my morning must-read and i want stephanie to react to it. this is from "the guardian."

manus: talking about 100 billion pounds worth of every structure spending in the united kingdom. hat do to the bond market? iain: a really big fiscal spend could start to have that sort of inflation come through which would make it more negative to the bond market. where a long way away from that at the moment. anything about japan, they are going to do some sort of combined wanted to easing and fiscal easing. thank you for joining us on countdown. futures are indicated lower across the board in the equity market. the story that we will be tracking for you right here on bloomberg. dallas under siege at the moment. -- aerospace has been closed the aerospace has been closed over the dallas region. speaking and been the sheriff talks about his concerns. this is bloomberg. ♪ "on the move." guy: welcome to"on the move." -- welcome to "on the move." caroline hyde is over in berlin. this is what we're watching. at least two snipers shot 11 police officers, killing for in a protest in dallas. the devastation was being held during the fatal police shooting of -- was being held over the fat

the last country i would think the international monetary fund would give advice to is the united kingdomof the brexit referendum, what is the path you can take to assist prime minister may to move the united kingdom forward in negotiations with russell's? -- with brussels. >> there has been significant progress in the macro economic situation of great written over the last five years. we have seen it could really move from a fiscal deficit to more than half of that now. torecommendation would be reduce the level of uncertainty, identify clearly what the goals and,identify the timeline as philip hammond said, understand that it will take time. it will require understanding on both sides in order to eliminate the trade uncertainty, the regulatory uncertainty, the passport uncertainty. there is a whole range of issues which need to be addressed which have brought the european country together -- countries together and the united kingdom has indicated its intention to withdraw. , rapidity oftent institutions, identification of both the goal and the timelines would be helpful. tom: are you pl