this is bloomberg "surveillance," francine lacqua in london with tom keene in new york. a big move on yen and we are watching the fed. tom: i am most focused on deutsche bank. dropping.ank was job it is just not happening. francine: that was pretty much expected and when you talk about not happening, you have to look thehe stress tests for european companies and unicredit may be about to make some big announcements. it is now official, the democrats made history at their convention in philadelphia. hillary clinton is the first woman nominated for president in a u.s. party. sanders: madam chair, i move that the convention suspend the procedural rules. i move that all votes cast by delegates be reflected in the official record, and i move that hillary clinton be selected as the nominee of the democratic party for president of the united states. taylor: a few hours later, bill clinton told the convention that his wife has never been satisfied with the status quo and always wanted to move the ball forward. a $265 billions stimulus to prop up the economy. it is unclear how muc

this morning from london and new york, with scarlet fu, i am tom keene.scarlet: i am scarlet fu with tom keene in new york. french president francois hollande, as well as prime minister manuel valls, have arrived in nice. you can see video of them arriving after the attack that left at least 84 dead. france has declared three days of national mourning area we will continue to -- france has declared three days of national mourning. tom: without question, it is a great week for sterling, from to 1.33.level up for those traveling from london to paris this weekend, .8332 is the number you will need to know. with us this morning, and on u.s. politics, is robert hormats, serving the president and secretary clinton within the state department, with kissinger associates. i have to rip up the script and ask you about a candidate being vetted for vice president by secretary clinton. , thenow admiral stavridis dean of the fletcher school. give us this idea of military men as vice president. why would secretary clinton look for another supreme commander of nato? bob:

from new york and from london, this is bloomberg. ♪ guy: i am guy johnson with tom keene. m was mentioning before the break what is happening with vw, out with some news. vw says profits higher than analysts had expected. they are guiding the stock higher and as you can see, vw in frankfurt trading up by 5.71%. tom: guy johnson, thank you so much. day two of the republican national convention is over. democrats when after it, republicans went after it. i like what the new york times said about it. she is our presumptive person with no sleep, or tall of joins lev joins margaret ta us now. what does trump need to accomplish today? >> in its to build on the gains that he tentatively made yesterday and moving the bond the melania trump controversy. he will be introducing mike pence. i should say mike pence will be introducing himself but there will be this high of some loose ends. ted cruz and marco rubio among those speaking and the question is, how far they willing to go? tom: i want to get a civics lesson for me right now. i with thunderstruck at how empty the arena wasi wit

francine lacqua at london, tom keene in new york. have to look at banks and of course the political system in the u.k. tom: i agree, united kingdom politics is front and center. we will have a little bit in the 6:00 new york our as mr. sanders i believe is going to endorse secretary clinton today. feel and youbetter really wonder if brexit is moving on to a new stage. let's now get to the bloomberg first word news. nejra: theresa may now has just two days to build a team to rescue the u.k. from its worst political crisis in a generation . she is going to replace david cameron by tomorrow night and will need to decide fast who will be in charge of negotiation's to leave the eu and will lead to elect someone to steer the economy. in japan, the prime minister's government is keeping people guessing on a stimulus passage -- package. he says he will spend money on transportation and told ben bernanke today that he wants to accelerate japan's exit from deflation. manila, hundreds of demonstrators gathered outside china's embassy to protest

guy johnson in london, tom keene in new york.lk about the day one surprised -- it was not the guy with a bandanna, it was not this or some musician or some sitcom guy from a million years ago. it was mrs. trump as she talked about donald j trump. mrs. trump i thought was really quite eloquent coming out, then an uproar over some of her language and the idea of theft from the first lady. i guess we all do that, but here it was maybe, as the president said, "it reaches." we were raised with so many of the same values, that you work on what you say you are going to do. >> my parents impressed on me the values that you work hard for what you want in life, that your work is your bond, and you do what you say and keep your promise. tom: there it is. you have heard the compare and contrast. that is wonderful. in terms of those claims, strongly echoing the first lady in 2008, the trump campaign said, inviting her beautiful speech, mrs. trump's team took notes, in some instances included fragments that reflected her own thinking. me here.

londonancine lacqua in with tom keene in new york. one thing that surprised me this so -- ifo the east report out of germany and there is a huge brexit angle as it seems to have doubled -- affected german confidence. tom: the nuances of the market are very subtle. since you have been gone the one idea is euro rolling over to parity, one of our themes today. it is an odd monday. francine: it is going to be a very big week. let's get to the bloomberg first word news. authorities and germany are trying to figure out if a bomb explosion is linked to terrorism. a refugee blew himself up near a music festival and 12 people were wounded. he had been denied asylum last year but was allowed to stay in refugee housing. meanwhile, police in munich are questioning a friend of a teenager who went on a shooting rampage. there is speculation the friend may have known plans of the attack. loner been described as a obsessed with playing video games. controversy overshadows the start of the dnc today. debbie wasserman schultz will resign at the end of t

in london, tom keene in new york.om: what a movable feast this morning. tick by tic as we went into this opening, francine and i were going back-and-forth over the dynamics, and i have to say this, we do note -- we do not know why deutsche bank is south but it is south. francine: i think there are concerns that the brexit shows investors are very nervous and it goes into the weak spots so i think we will see many more spots like this. there may be something more underlying. let's get straight to the bloomberg first word news. nejra: the field is down to three and the race to become the next british prime minister. theresa may took the lead in the battle to succeed david cameron, winning 165 votes in the first round. she was followed by andrea leadsom and michael gove. stephen crabb has dropped out and liam fox desk liam fox was eliminated. the next vote is tomorrow. report is likely to revive recriminations over the iraq war. it will probably pile criticism on politicians, officials, and the military. led to thet poli

tom keene took you away from me. i'm not happy about it.ime to talk about the sustainability and the limitations of monetary policy. focus andf japan and later on, the ecb as well. president draghi and his compass coming up on bloomberg . -- his press conference coming up on bloomberg . we will be talking crude with harold hamm. central banks very much in focus. thank you.y: we will be carrying on the conversation surrounding ecb. joachim fels still with us. but think about the option alley that mario draghi has in the ates by which he is governed the moment. how far do you think mario draghi has pushed the rules? how near the edge of what was originally conceived for the ecb is draghi or as he gone further than that already? >> i think he is still within the rules. the ecb is conducting monetary policy, not fiscal policy. of course, there is different interpretation of the rules. so let say some german economist and german lawyers may have a different view, but i think he is firmly within the rules. he is conducting open marchers o

scarlet fu in london, tom keene in new york. coming up, richard turnill of black rock will join us on this important moment for the united kingdom. on london, new york, this is bloomberg. ♪ tom: as scarlet mentioned how will europe respond to what we have seen in the united kingdom? one is to celebrate bastille day . scarlet fu in paris, doing what they do every year. i was there in the summer of 1968. scarlet: it is supercharged today. the euroy did not win 20 16 championship -- a wonderful celebration in paris for bastille day. in london, the bank of england will announce it interest-rate decision. it is the first time the monetary committee has voted since the brexit. a cut would be the first since 2009. anna edwards is at the bank of england. i know mark carney said there would be easing, but there has that hasa lot of data come out that would support a rate cut at the moment. not a lot of data or fax to go on. a bit of survey data says consumer confidence is not looking great. the housing market not looking great. will they

tom keene is in new york. tom, i think we have to look at a lot of macro data. the economy in europe is quite slow and that puts extra on the currency. tom: questions on banking in germany. francine: let's get first to the bloomberg first word news. taylor: hillary clinton said she is ready to lead and warns that donald trump cannot be trusted in the oval office. clinton accepted the party nomination to be the presidential candidate. she belittled trumps claim that the country'solve problems. >> it is wrong to take tax breaks with one hand and give out pink slips with the other. i believe wall street can never, ever be allowed to recommend wreck mainn/-- street again. in japan, the central bank has buying in a bond limited way. but it is not increasing the pace of government bond purchases. it will assess the effectiveness of its policy in december. economy failed to expand in the second quarter. the data may have been fueled by a strike of french oil refineries. $24 billion to build the first nuclear power plant in the u.k. in more than 20 years. is british gov

francine the clot, tom keene in new york. the currency moves -- francine lacqua in london, tom keene in new york. my number one message is that markets are on the move. you do not see it in equities. bonds,om equities, currencies, and oil are a jumble not lows but nevertheless markets on the move. bp,cine: when you look at the refining margin is nowhere to be found that they are sticking to the dividend. let's get to the bloomberg first word news. bernie sanders supporters ignored his pleas not to protest on the opening day of the democratic convention in philadelphia, many angry over revelations that the dnc favored hillary clinton. sanders did not directly call for his supporters to vote for clinton but made it clear where he stands. mr. sanders: any objective conclude are -- observer will conclude that hillary clinton become the next president of the united states. taylor: senator elizabeth warren urged reluctant liberals to vote for clinton and told the convention that when democrats turn on each other they cannot fight a

tom keene is in new york. we need to take stock of the fact that not only is there a president -- a new prime minister and the u.k., the second female, but this is a new era. she will go to brussels to renegotiate and try to extract the u.k. from the eu. tom: you are right, the idea of a new era. she would not -- she was not leave. she?as not a brexiter, was francine: she was not but she was not one that really campaigned to remain. she stood in the middle and was very cautious. one thing that people are saying and she probably has to pick someone to negotiate who was for brexit. it is all about theabinet and we may get some appointments at the time we finished today. let's get straight to the bloomberg first word news. nejra: we are a few hours away from a changing of the guard at number 10 downing street. davidh prime minister cameron will face questions and the house of commons for the last time and then we'll go to buckingham palace submit his resignation. the queen will ask theresa may to form a new gover

tom keene in new york. markets with the dollar tailing. tom: we got the markets today and the jobs report. i tell you, this nation shaken. memories oflearest 1963 and 1964. i don't mean to compare anything we have seen in the last 48 hours to that, but i tell you, this is a changed america this morning. the president is in europe. world.e: it is a changed it affects us all. let's get the first word news with nejra cehic. nejra. nejra: a peaceful demonstration in dallas, texas, turned into an ambush pierce clippers opened fire killing five officers and wounding others. arrested.le have been there are media reports that a fourth suspect who had exchange gunfire had killed himself. british prime minister david cameron heads to his first major summit since the country voted to leave the european union. in warsaw, he would make argument that britain is still relevant to its allies. he will pledge more than 3500 troops. some will be deployed in eastern europe. may says it issa time for her to make the case to the nation why she should be the next

i am of managing director christine lagarde sits down with tom keene at the new york fed and we will t conversation live. scarlet: the republican national convention kicks off in cleveland today i got an exclusive interview with tom barrick who will take the stage and support of donald trump this week are you matt: plus, the ceo of pete's coffee joins us, celebrating their 50th anniversary and how it competes with big names like starbucks and dunkin' donuts. scarlet: first, let's go to the markets desk and julie hyman. i have been watching volume, about 20% below the 20 day average for the s&p 500. you can see markets are trading a little higher but you can call it a sideways move. big action last week with the dow and the s&p at records but the nasdaq is gaining the most, up half a percentage point. we have strengthened technology. take a look at the bloomberg. it's tech and financials, the most heavily weighted groups in the s&p 500 which are tipping the scale. energy, however, is holding things back as well as health care. that is playing out in the index contributors to the up-and

i am tom keene. it is a europe buffeted by challenges, isn't it? e to the credit suisse ceo. he says it is a good first step. there are so many challenges tom: we willead continue our interview with the executives at credit suisse. >> president obama made his most forceful case for hillary clinton. he offered endorsement in philadelphia. president obama: there has never , not mean,or woman not bill, nobody, more qualified than hillary clinton to serve as president of the united states of america. >> clinton joined the president on stage and they left to loud applause. michael bloomberg said clinton is not a flawless candidate, but voters need to select her over donald trump, who he called a dangerous demagogue. -- dismissed almost 1700 members of the armed forces, including 149 generals and our -- and admirals. british prime minister theresa may is on the road, seeking allies for her brexit negotiation. are skeptical. there was a surprised increase in your area. it is a sign the -- may have an impact on growth. i am taylor riggs. this is bloomberg.

i'm tom keene in new york. francine lacqua in london.erest rates is the theme of the weekend and this morning. francine: i think you are right. europe ministers meet in to talk brexit and negative yields and italian banks. things are dynamic to say the least. cehic.nejra >> prime minister shinzo abe has won a victory in parliamentary elections. the conservative coalition has a super majority. wonliberal democratic party 56 of the seats in contention. he said he would take a broad bold measure to expand japan's economy. hits to walle street today to try to shore up investor confidence in the wake of the u.k. vote to leave the european union. he will go on similar missions to china and singapore. angela merkel says it is now inevitable that the u.k. will leave the european union. she said britain will formally apply to leave once a new prime minister is in place. she dodged a question over whether she will run for a fourth term next year. there was another protest against extrajudicial police murders of black people in baton rouge, louisia

i am francine lacqua with tom keene in new york. there is a little bit more bullish than an hour ago on stocks. there is a lot of money going to havens. tom: the flow of news into this morning's call more. -- is calmer. the fragility, within the united kingdom and united states political scenes, something else to talk about today. francine: there is a second vote and we understand it will be a two-way race between andrea leadsom and theresa may. let's get to the bloomberg first word news with nejra cehic. nejra: francine, exactly as you say, the race to succeed david cameron is narrowed to two candidates today. theresa may and andrea leadsom are the favorites. conservative party lawmakers vote in the second round today. the two contenders will face the parties wider membership. the new leader will be selected by september 9. germany's chancellor angela merkel says there can be no sustainable security in europe but without russia. germany and its partners the -- agree -- an offer to have a dialogue. merkel told lawmakers she plans to

. ♪ >> i am guy johnson with tom keene in new york.ociete generale says london home buyers could fall more than 30% because of the brexit .ecision to leave the eu they will certainly have to move some of their business is to eu market.ss to the and prices tapering off. prices rose in june, down from 60 cities animate. more are following the lead in shanghai and slowing down the property basis. a huge deal in the semi conductor field. $32 billion represents a 43 percent premium to the closing price on friday. becoming one of japan's most acquisitive companies. it owns shares in alibaba and sprint. we studied the details of this transaction. rick david covers for bloomberg news. in the post-brexit world, we have been anticipating people would use this in an opportunistic way to get into stock. insist that or something else? of both.a bit this is not just a brexit deal. that is correct. if you look at how the company has performed post-referendum, it was up 16% on friday. yes, the pound has declined against the yen about 11% but it cannot

. ♪ a tom: francine lacqua and keene are off today. independence day in the u.s.nd or equity trading in the united states. ministerench economy has told bloomberg paris is a contender for the european .usiness post brexit other cities have been gearing up for a battle for transactions done in london. for a lot of financial institutions, the brexit will be a big question. it will depend on the axis, the organization of the brexit. our role is not to play on this uncertainty. what weesponsible and have to do is respect the vote and organize the brexit. at the same time, it is true, it could be -- for our financial place. we have a lot of financial institutions and we can welcome who wouldnstitutions like to join the eu. u.k. constructed contraction -- u.k. construction contracted. the purchasing managers index slid to 46 from 51.2 a month earlier. it adds evidence the referendum was hindering the economy before the shock vote to leave. analyzes a hit to gdp in the wake of the u.k. brags it vote. they also predict britain will barely escape a recession as it sees a 1

francine lacqua at london, i am tom keene in new york. in the u.s. 10 year and we just saw a curve flattening below 80 basis points . absolutely remarkable. right now to our bloomberg business flash. thea: for the first time olympics has an official insect repellent partner. the rio de janeiro games has ensurea brand to tourists and competitors that they will be safe from the zika virus. investment has suspended trading in its $3.9 billion u.k. real estate fund. they invest in a mix of prime real estate assets. london values could fall up to 20% within three years of the u.k. leaving the eu. in the wake of the brexit vote, british confidence has dropped and pessimism about the economy has soared according to a new survey. british firms expect exports to andnk in the next year almost half are pessimistic about the economic outlook. francine: this is what we're watching for the rest of the week. later today in washington while we get the latest reading from the factory orders in the u.s. and president obama campaigns with hillary clinton fo

highlights from tom keene's conversation with christine lagarde.omberg. ♪ david: donald trump has not been shy in saying why he should be our next president. one reason is the businesses he's built in the way he circulated his wealth. we've taken a closer look at how about the mr. trump truly is. mr. trump wealthy truly is. >> his net worth has gone up $3 , less than the $10 billion he claims. david: how confident are you in his numbers? >> you never know what a building will go for until it actually sells. assets, theses trophy resort properties, you could expect maybe someone would pay a healthy premium above the revenue is businesses are generating just for the sake of owning them. basis, we are confident in the range we are in. david: he has also borrowed a fair amount. a wonder to $70 million loan out against the new hotel use building and washington, d.c. -- $170 million loan. it is expected to open in time for the election in november. he needs to fund his own campaign. how much cash can he reads quickly? quickly -- how much cash can he reac

-- turkish president erdogan -- >> in the aftermath of that failed coup, christine lagarde tells tom keene the quick action -- allish central bank the highlights from that exclusive conversation. we are still hanging onto those gains. which means another potential record close for the dow and s&p 500, even though if a volume onl gain it is a tight range. us in record territory. if you are the s&p over the course of the day you have a tight point range. one of the narrowest ranges we have seen thus far this year. the nasdaq is back in the technology happens to be one of the winning groups today. holdings of the chip designer from $32 billion. other stops we have been watching and technology considerably higher today. elsewhere in terms of the individual stocks we have bank of america, which reported its earnings that fell. but still beat estimates. though shares have been benefiting from that. by 2018 they will fall even further. in the past few moments we have headlined on nonsense so that i want to mention. monsanto is said to be in talks with a buyer over a nondisclosure agreement that w

let's go to tom keene and michael on bloomberg radio. h janet the much better than expected jobs report. tom: we welcome bloomberg television with the radio audience. we have jp morgan here. bill gross of janet's capital. this is a point where you smooth things out. i'm looking at a three month moving average of 147,000. that is stabilizing the shot that we saw last month. yeah, i think so. the fed's statement last month suggested unemployment, uncertainty. straight- as you things out, that does it. the unemployment rate went up to 0.2.ages increased things are not as hunky-dory as 287,000 might suggest. but it is maybe a normal 150,000. it is nothing to get excited about. but doesn't get anybody interested in what janet yellen and company are going to do? does that change the calculation of when they might move at all for you? bill: i don't think so. into is the brexit to look the eyes of brexit, i guess. they have problems with italian .anks does with the ecb and the eu do, problems with u.k. the property, mutual funds. there is a sense

i'm matt miller in midtown manhattan with tom keene. tom: good evening.is a very fluent moment right now. we will have mark crumpton bring you up-to-date. we are doing everything we can to aggregate the headlines globally. best thatpeak to the we can find on international relations on the distinctions and differences this time. our single message at 7:19 eastern time. this is a highly fluid situation across all of turkey. right now, let's go to mark crumpton for an update. president obama is urging all parties in turkey to support the democratically-elected government of president erdogan. president obama is urging restraint and to avoid violence or bloodshed during a military takeover. --sident or no one has said president erdogan has said that despite the military action, he is still in charge and the head of the military. however, we have had reports of some protesters being fired on. president erdogan one had urged protesters take to the street in peaceful protest to confront those wanting to take over the country. the president says he is still in ch

tom keene will be joining me from new york.ut italy'sking good banks and talking to a general manager of any credit. we will look at some of the havens, markets. more of that coming up on surveillance and this is bloomberg. ♪ francine: frozen. for more u.k. property funds halt withdrawals after investors look to dump assess after post-brexit. talks between heavily in the european commission over safeguarding the nation's banks hit a wall. a will speak to the ceo -- $12 billion bid for whitewave foods. it is about currencies and organic foods good this is bloomberg surveillance. i am francine lacqua with tom keene in new york.

advisor -- tom keene is here. good time to speak to him. he is the liberal from gary indiana.r liberals, joe 's -- tz great to speak to you. can hillary clinton craft an economic policy that will be enjoyed by liberals and independents combined? yes, i think she can. our country faces three big issues -- slow growth, growing inequality and the two together have meant that the vast majority of our citizens have had a stagnant income for a third of a century. 2008, we express a really serious financial crisis. i don't think we really immunized us adequately against another financial crisis. the problem is, first the diagnosis. how did we get here? it has been largely because over the last third of a century, you wrote the rules of the market -- ote the rules of the market economy. increasing inequality was somewhat intentional. what led totood this, we can find recipes, prescriptions, and that is what she has been doing. that is what i have been talking about. recipes are prescriptions that will simultaneously increase economic growth and reduce inequality. and reduce attentive

tom keene is in new york.some euro unemployment figure falling, actually the eurozone area is not doing to

tom keene's conversation with christine lagarde.loomberg. ♪ ♪ >> donald trump has not been shy in saying what he should be our next president. one of the reasons is that the businesses he has built and the way he accumulated wealth. bloomberg news looked at how wealthy mr. trump really is. ps just written a piece out on the bloomberg. caleb, what have you found? >> 12 months later, his net worth has gone up $3 billion. to $3 billion, less than the $10 billion that he claims. that is what we can account for. you incomfortable are these numbers? there is a fair amount of appraisal and estimation. >> exactly. you never know what a building will go for unless it actually sells. some of the trophy resort properties, you could expect someone with a healthy premium above the revenue the businesses are generating just for the sake of owning them. financeumbers basis, a basis, we feel confident about the range. >> his properties are worth more, he has also borrowed a fair amount. >> he has a $170 million loan against the new hotel and washin

tom keene will join me from new york. we will bring you all of the analysis.0, we speak with the citigroup economist. ♪ francine: 11 police officers protests were being held over the fatal shooting of two black men. three people have been arrested and a fourth person has killed himself. job stay in the usa. leftn today's job numbers the brexit market gloom? party theresaive may and andrea leadsom battle it out.

we have highlights from tom keene's exclusive conversation with christine lagarde.is bloomberg. ♪ david: donald trump has not been shy in saying why he should be our next president. one reason is the businesses he's built and the way he circulated his wealth. we've taken a closer look at how wealthy mr. trump truly is. >> his net worth has gone up $2 billion to $3 billion, which is less than the $10 billion he claims. david: how confident are you in these numbers? >> you never know what a building will go for until it actually sells. some of trump's assets, these trophy resort properties, you could expect maybe someone would pay a healthy premium above the revenue his businesses are generating, just for the sake of owning them. on a numbers basis, a finances basis, we feel pretty confident in the range we are in. david: he has also borrowed a fair amount. >> he has a $170 million loan out against the new hotel he is building in washington, d.c. he is renovating the old post office there. it is expected to open in time for the election in november. david: do you get

i can't wait to show these papers to tom keene. this is bloomberg. ♪ francine: tom, let's get straight to the bloomberg usiness flash. >> the bagging sector has been among the hardest hit. shares in you want k. banks have been backed, despite a broader rally in the ftse 100, and the question has become, could the problem be systemic? eric schatzker spoke to jeff daly. >> i think the crisis we're facing right now is a political crisis. it clearly will have economic consequences. but right now, we have a political crisis that may lead to economic challenges facing a banking industry that actually is in very strong shape, particularly in the u.k. >> i think the slump in banking shares was caused by concern about earnings, not liquidity or capital. and that's the bloomberg business flash. francine, you're sticking with european banks. francine: yes, thanks so much. i wanted to actually put the highlight on some of the italian banks now. we've been talking about italian banks day in and day out. because over the last two months, there's

a churn to the session, as tom keene would say. we will check out the other asset classes. session trade. yields coming in as a get breaking data in the u.s. alix: we have housing month on month coming up at 4.8%. that is a big read from estimates, that was 4.2 of 1%. huge for june. may was revised quite lower, down 1.7%, and was previously at -.3 of 1%. you have a revised lower but june of the revised upwards. building permits month on month beating a touch, 1.5%, taking a good read on the housing market. similar for permits. you had may revised lower but june beating estimates. futures, not&p 500 seeing that much of the movement. pointsill by about 4.5 and on the two-year yields, not particularly the movement. high yields still negative but klein back to their neutral line. -- but clawing back to the neutral line. checked on the yen as a put my computer, a safety increase and the u.s. dollar moving slightly higher versus the yen, one of six, but not a lot of movement as housing data comes in much better than estimates. jonathan: let's get to the morning must rates. christ

for bloomberg surveillance with tom keene and mike mckee.n, you should be talking about this. jon: possibly. thank you very much. looking forward to hearing more from tom keene throughout bloomberg go is the weeks progressed. the dollar dropping today from its one-week high, a jobs report tomorrow. the number one ranked fx forecaster is bullish. you on thet to have program. why are we not seeing the dollar strengthened the way you anticipated? when will we see it? >> it all depends on the u.s. development. the information of the market stopped economic data. we expected it would be better, and not only better than the first half of this year, but also better than expected. this would be markets changed to the last 18 months, were u.s. data had always been disappointing. support for the u.s. dollar comes from expectation of what the fed will do. we had expectations following the brexit vote that the fed would cut rates. we think this speculation is overdone, and expectations of will creep-- hikes into the money market again and that will supp

coming up next is tom keene with "surveillance."bloomberg terminal, probably my chart for the next hour. some traders are not taking any chances and we have seen this in the last couple of weeks. this is an index we do not look at often. index thats is an measures how much traders and the options market are willing to protect -- paid to protect against extreme events. theose to the highest since 1990's pre-brexit and we have seen a little bit of recuperation but still quite high compared to the average of the last 12 months. keenes my chart, and tom be looking at the housing market in the u.s. ♪ ♪ ken carney fix what can cam carney fix -- carney fix what brexit vote? the uk's governing party takes its first step toward electing the new prime minister. the italian impact, monte dei are down.res this is bloomberg "surveillance,"

we will have more for you coming up on monday because tom keene will sit down with christine lagarde.p.m. in new york. shery: still ahead, it is our mistry stock of the day. high in stocks, this stock is at the bottom. this is bloomberg. ♪ shery: this is bloomberg markets. i'm shery ahn in new york with scarlet fu in london. julie hyman has the big reveal on the mistry stock. here you have a hint again -- a loss for this highroller after it hit a lucky number year to date. despite the record high, it's at the bottom of the deck. something to do with gambling? julie: yes and the clue to the name is in the first you words. it is a loss for this stock -- is?opposite of a loss . when -- a win wynn resorts. the stock has done very well year to date. it has a lucky number of 32% year to date but it is pulling back because one analyst cut the stock to neutral from overweight partly because of valuation and it had outperformed this year. to the annualast performance, is down by 4%. analysts pointing out it had this run-up earlier in the year because of enthusiasm over the when palace grand op

tom keene said that you and i had to keep things calm while he was gone today. [laughter] missingis going to be the fun because that is not going to be happening. speed.et everybody up to let's get the first word news. >> donald trump said no one knows the system better than he does and that is why he is the only one who can fix it. last night, he asked that did -- accepted the republican presidential nomination. mr. trump: we must work with all of our allies who share our goal of destroying isis and stamping out islamic terrorism and doing it now, doing it quickly. we are going to win, we are going to win fast. >> he also blasted his opponent. new data shows the british economy has been hammered by the vote to leave the european union. a purchasing managers index fell below 50, the number that divides expansion and contraction. president erdogan in turkey is already signaling that the state of emergency may not be long enough. thaty's news agency says more than 10,000 people have been arrested in the wake of that failed coup. athletes staying away from the summ

tom keene will be joining me from new york. we will talk to james bevan about yahoo!'s rise.s out of erickson. strength.lk germany's this is bloomberg. ♪ francine: the g-20 takes on the globalization backlash. terror, how much will politics way on the boj and said this week? the dnc begins today as the head of the committee resigns over yet another e-mail leak. can clinton come through unscathed? verizon isverizon, said to be offering $4.8 billion for

surveillance is up next and i will be joined by tom keene talking about central banks, currency movesry latest from some of these italian banks under pressure. ♪ ♪ risk aversion smashes records, global stocks sink with the pound fund to save its financial system. financial system. property goes cold as three of the uk's largest property funds halt exits. life after cameron as theresa may takes a clear lead in the race, but an eventual victory is far from guaranteed. this is bloomberg

tom keene asked if myers' compensation was deserved given yahoo!'ice during her tenure. >> $213 million for basically a business that declined 10% every year? see had several years to right the ship. that is a job anyone would want. you pulled it off. that does not justify a million dollars, let alone 200. pew research yesterday have great charts showing how verizon and yahoo! together with aol is so small versus facebook and google. do you assume that verizon has to get much, much, much more scale fast to make this pipe dream work? >> that is exactly right. what they are doing with aol, adding yahoo!, they want content, users, the mobile side. that is what they are putting together. it is part of a bigger picture strategy that is coming together. >> i want to move to apple. when i was looking at the analysts this morning, i've never seen them more at odds. do think that it is over for apple, or at least the peak? -- can they can they continue getting market share? >> what is he make about owning apple going into the next quarters is that you get 2

you've got guy johnson, tom keene, having a conversation with the head of microstrategy at alebris investmentg to talk politics with the bond and central-bank policy with pimco. this is bloomberg. ♪ \ ♪ tom: draghi press conference. the ecb president will select tools from his cutie infinity toolbox. is.erto gallo of algebr n declares adoga state of emergency. to 2020.es on this is bloomberg surveillance live from our world

"bloomberg surveillance" anchor tom keene is with us. tom: vonnie, thanks so much. william grosses with janus capital. he has been unconstrained, which has been a tough battle given the back and forth in the crosscurrents. i want to congratulate you on surviving given what has gone on. what is the biggest challenge of managing money given global central-bank theory? tom, andl, the fact, thank you for the compliments. 2/3 of the that for year. but the biggest challenge is obviously what the central banks are doing, near 0% interest forwardhe judging going from what they may continue to do. doj meets thursday night. they will probably have a special surprise for us. the 100% certainty that u.k. will initiate some program in august. lower move lower and and lower. the trick is to know when they stop and to get out before the music stops. tom: i want to get to helicopter money in a minute, but this is important -- all of our viewers and listeners, whatever their walk of life, i am certain that we will see a great distortion in bill gross' world. you have said this will

tom keene will be joining me from new york.omberg. ♪ as thee: a new era conservative party leader theresa may plans to take over. life after cameron, the pound --lies, the bank of england mass psychosis, jeffrey good dlach diagnoses madness. this is bloomberg "surveillance."

i am tom keene. in london, giant -- guy johnson. what is the prism of cleveld

david: coming up on monday, do not miss tom keene's exclusive interview, he will sit down with imf manager christine lagarde here in manhattan. monday 1:30 -- that is at 1:30 p.m. in new york, 6:30 a.m. inlondon, and 1:30 hong kong. ♪ matt: i am matt miller. >> we have 30 minutes away from the closing bell. matt: let's check in with the headlines. here is mark crumpton. mark: president obama says the united states will stand with france following last night's terrorist attack in nice. public bank -- president obama: we come here with heavier hearts the normal. overnight we witnessed another ongic and appalling attack the freedom and the peace that we cherish. today our hearts are with the people of france and with all the innocent men and women, and so many children who are hurt or killed in this sickening attack. earlier today the president signed a proclamation honoring the victims in nice. it calls for flags in federal properties to be lowered to half on july 19.sunset france from moreland says -- francois hollande says -- he 202 the number wounded at with 52 in critical condition. he s

later today, tom keene will sit down with imf managing director christine lagarde in an exclusive conversation♪ ♪ >> this is "bloomberg markets." breaking news. fiat chrysler is under by thegation for fraud u.s. justice department. prosecutors are scrutinizing whether fiat chrysler violated u.s. securities laws. at thesem looking stock now. it has taken a leg down. it is still showing green for the day. it is still up about 3/10 of 1% at 677. they had been up 2 1/3%. so investors not really selling off the sales. >> and the spokeswoman for fiat chrysler did not respond to a call seeking comment. we can tell you a chicago area dealer alleges fiat chrysler inflated u.s. caals by paying dealers to report more car sales than they did. chryslergain, fiat under investigation by the u.s. justice department for fraud, accog

tom keene will join me.about banks, consolidation, janet yellen, stephanie flanders will be here. we will also be talking brexit. ♪ francine: the market bounces. markets rally after u.s. data brightens the outlook. heading to wall street in a bid to boost confidence in the u.k. can osborne and carney sues the markets -- sooth the markets? burning with the ceo of -- boeing at the farnborough airshow. we have a busy

later today, tom keene is going to sit down with managing director christine lagarde in an exclusiven from the new york fed. that is 1:00 p.m. in new york, 6:00 p.m. london time. a must watch interview. you are watching bloomberg markets. this is bloomberg. ♪ >> it is 11:00 a.m. here in new york. i am vonnie quinn. >> live from london. you are watching the european close on bloomberg markets. ♪ we will take you to istanbul and tokyo in the next hour. here is what we're watching. soaring on the news that softbank will acquire the company for $32 billion. the 43% premium pay. bank of america posted higher profits in each of its four main businesses. bond trading revenue increasing. we will get an analyst's take on the recent quarter. then, focusing on investment in turkey. failed coup attempts over the weekend. whether it is time to buy and sell amid the latest tmo

guy johnson is here in london, as ever tom keene is joining him from new york. picked to the former nato supreme allied commander. ♪ .] >> this monday, turkey considers democracy after a failed military coup. president erdogan must invent a new turkey. in direction this morning, a global risk on trade. cleveland, it greets the grand old party. in new york, monday, july 18. picked the short straw in london,

i am tom keene in new york, guy johnson in london in for francine. sort of an

we are joined here in the studio with tom keene. rallels between theresa may and margaret thatcher -- tom: i think that's what's coming. now that we see the prime minister making arguably the most famous trip in politics. i guess there is the presidential inauguration and the print -- the trip down pennsylvania avenue, but there is extraordinary pageantry that takes you back to may 79. the washington post talks about theresa may's pragmatism. the idea here is how will she be as per minister? does she come out of the blocks strong? that she surprise the nation like margaret thatcher? incredible.een one would assume that she had put her team in place. because that is how long the conservative leadership race was going to last. she has had the most of it though 48 hours after andrea lets him dropped out of the race. to 48 hours.runk that is a lot to do in two days, forming a cabinet, getting the process underway to extricate ourselves from the european union. ryan: i think that is a fair point. she was expecting to become prime minister