thank you to michael mckee and my cohost tom keene. markets continues next with a look at facebook earnings after the bell. from new york, this is bloomberg. ♪ scarlet: 3:00 p.m. in new york, 12:00 team in san francisco, and 8:00 p.m. in london. welcome to "bloomberg markets." julia: we are live in bloomberg world headquarters in new york. here are the top stories we are covering. in markets, investors have their sights set on two words from the fed's decision -- relatively soon. that is the guidance on when it plans to begin unwinding the balance sheet. holded also decided to rates steady, sending the u.s. dollar to a 14-month low following the statement. in politics, senate republicans bracing for a chaotic week of voting, set to vote on mitch mcconnell's proposal for a straight repeal of obamacare this hour. speaking of chaos, taper to the rescue. to public is planning to roll out a melted cheese dish to boost sales. it has had a recent food safety crisis. one hour from the close of trading. let's check markets. julie: there was an

tom keene in new york. d wimbledon of the weekend.eir at some point just to balance out other things like game of thrones. gdp increased in the second quarter. it increased 6.9%, beating the estimate of 6.8%. economicsasia correspondent joins us from hong kong. there is a subtext surrounding china, and that is about debt. at the moment, i think this economy is moving along successfully. nothing seems to be going wrong at this point. do you think the chinese are happy? if they are happy, why are we so concerned about risk? >> good morning. i think is on track to interviewed about one third of global growth this year. we are seeing domestic demand. consumption is a big part of the story now. at the same time, authorities know the business model behind this economy. they want to rein in that risk of debt. they don't want to take the kind of measures that will chill the overall economy. the message now is one of stability in the chinese economy. weakon friday we had u.s. data. today we had strong chinese data, and equity markets went down

tom keene is in new york. let's talk about what is happening in latin america.resident has the the -- 2/3defeat would have to vote against him to put them on trial before the supreme court. this case comes as the former was sentenced yesterday for money laundering. let's talk to our reporter. .et's stick with lula the market reacted positively to this news. is that because investors now don't expect them to run in 2018? >> exactly. a very good point. we are talking about someone with a very strong political influence in brazil. and any indication that he may not be able to run for president next year or that he may not chances of winning an election is a good indication for the market. as someoneis known who is against all of the reforms that have been implemented in brazil. markets have given a clear message here. any bad news for lula is good news for investment. the goodny bad news news for the current incumbent? because at the moment, it seems to suggest that maybe he had more longevity but my understanding is that the markets want everything to happen quick

pitch -- tom keene in new york. the news here at taylor: republican attempt to scrap obamacare has collapsed in an early morning boat. john mccain and other republicans joined democrats to defeat a stripped-down repeal ill. the bill would have ended the requirements of that individuals buy health insurance and companies provided for their workers. attorney general, jeff sessions, says he is staying on the job. he tells the "associated press" he wants to fight for the president's agenda. the president has criticized sessions for being weak and ineffective. it russia is striking back at the u.s. hours after the senate approved new sanctions on russia, moscow ordered the u.s. reduce its diplomatic staff there. the total staffing should be 455 people by september 1. it is not clear how big the cutback is. says it is monitoring the situation closely. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. you so much. this is the inte

full marks with tom keene.hart, when you see the inflation we had yesterday, what does it mean for boe? >> the inflation under shots expectations quite significantly . does it tell you anything about underlying inflation and pressure? does it really change the policy challenge. we will be waiting until 2019 to lift interest rates. the u.k. may underperform of it >>. jamie, thank you so much. we will continue with bob since. >> morgan stanley, we mentioned lloyd blankfein and that wonderful cover. we should do something on james gorman. he is killing it at morgan stanley as well so we are looking at morgan stanley earnings to come up and sometimes come up early. james gorman is very unpredictable. that is how i would put it. tv , we are bringing it up for you. isyou have a bloomberg this how you watch tv live but way more important than watching my ugly face live, you can come over here and you can click up francine lacqua is killer chart on chinese steel production bonus round. you can steal francine lacqua

tom keene is off. americany 4 to our viewers.illions in accounting and legal fees. something of a rebound in the first half of the year. terry leahy, former ceo of tesco, and also the chairman of and an advisor to a private equity firm. thank you so much for sticking around and giving us a little of your time. what is it like being involved in private equity? do you just spot trends? terry: i am fully involved. it is a great find. -- fund. you work as a team, working out investment ideas, identify companies, try to buy them in competition with others, and improve the business value and sell the business. it is. business. pure great fun -- it is business. it is great fun. i am learning a lot. there is a real discipline. you have to pay the right price. you only have a limited amount of time. what are you looking at at the moment? i know you will not tell us. what are the important trends on where you can find value? terry: finding value at the moment is difficult. if you don't want to pay to much, you will have to sit on the sidel

nejra here in london and tom keene in new york. economist -- we will have a quick look at was happening with european equities. stock are rising. it is all about the fed today. what will they say about balance sheets? one of the questions investors will be eager to be answered during a news conference chair yellen will hold. european stocks rising today. the stoxx 600 is up by 1/2 of percent. also, stocks have had a rough time of it in the last couple of days. keep an eye on exporters of course as the euro continues his strength. "surveillance" continues. this is bloomberg. ♪ tom: there is disinflation and chair yellen, she must adapt and adjust. this morning, safe havens show a weaker. the vix signal continues. are they good for europe and brexit negotiations? and it is a trump zero world. it is every what has faction for itself. this is "bloomberg surveillance" and i'm tom keene in new york. nejra in for francine. do you think we are going to take the month of august off in the brexit negotiations? does everything just pause here

guy johnson in london, and tom keene in new york.ut with its latest decision on interest rates. bankamerica of merrill lynch is still with us. nevertheless, this was the bank that started the move in the markets for central banks to take back some of this emergency stimulus. they are out on wednesday, what happens if they don't deliver? kamal: we have about 85% probability of rate hike, so for them not to do that you would have significant pressure on the canadian dollar. central banks historically don't like to surprise markets. the bank of canada wants to signal, not backtracked, so they are going to hike in our view. and commodities in general ed,k of canada, are they link are they really linked into these countries or separate? kamal: i think they very much are. we reckon the bank of canada thinks the canadian economy has whether the commodity price storm -- weathered the commodity price storm. these central banks are looking at the bigger picture. the bigger picture for canada is the housing market, which remains relatively stro

right now, francine lacqua in london, tom keene in new york, kevin cirilli will join us at the top ofloomberg. ♪ ♪ tom: this thursday it is a washington vote-a-rama. two down, one to go, skinny and mr. scaramucci. it is a great soap onto economics. economics, chair yellen gradually and robustly commits economics in this hour. richard clarida of pimco on indigestion. on the deutsche bank recovery. good morning. this is "bloomberg surveillance." we are live from new york. . am tom keene francine lacqua putting up with adverbs in london. i was impressed with john cryan's idea of patients. francine: you are mindreader when it comes to me and adverbs. i do not know if shareholder --tients runs out patience runs out at some point. tom: where is deutsche bank 3, 4, 10 years out? taylor: the end is in sight for libor. the benchmark that underpins 350 trillion dollars will be phased .ut by 2021 british regulators will try to replace it with a more reliable system. it became the byword for corruption after traders were caught trying to manipulate it. a bare-bones approach and repealing obamacar

tom keene in new york. golf tripson's continues.n terms of the story surrounding the dispute between qatar and many others in the gcc. the issue is becoming increasingly problematic for the white house. hosting regional headquarters for the u.s. central command. our middle east anchor is here. , kuwait has been trying .o broker an agreement what message do you think he will bring from kuwait? they don't have much opportunity to change the discourse. do you think simply adding the u.s. secretary of state and that or -- -and acid >> depending on what the state department says through their spokeswoman, last time they did not make progress, this time around they will have a creative twist. the united states arguably has assets in most of the gulf cooperation council. they will take some of those some and try to mesh in foreign-policy from the u.s. and as of the u.s. to get everyone around the table, but it does not look like it will happen anytime soon. if you look at the record from the saudi led block, they are persistent. they are p

guy johnson and tom keene will be speaking to bruce kasman. bloomberg. ♪ tom: this morning in washington, they are transfixed by trump junior emails. they are all on the relationship between the president's campaign and the government of russia. the white house attempts to define pollution and conspiracy. i love it, so does michael mckee. this morning we hear chair answers toimony and piercing questions from representatives of the house. and the many mysteries of dis inflation and relfation, and what does this mean for policymakers? this is "bloomberg surveillance ." i'm tom keene in new york and guy johnson is in for francine lacqua. i was stunned by real wages in the united kingdom, back to 1975. guy: actually, the dates were a bit better than anticipated when it came to the story out of the you cables of the pound was down earlier. two way action in sterling this morning. tom: it is interesting to see, folks. this will be a theme all through "surveillance" today. bruce kasman from jpmorgan will join us. from our first word news, here is tayl

francine: i promise that i will get tom keene a map and i will quiz him on germany. a mascot. francine: thank you matt miller. joining us now for the hour, we are welcomed -- we are pleased to welcome anne richards. we have xi jinping meeting the president and we have vladimir putin meeting the president and a lot of movement on bond prices. for the two related or is it still in the central banks? we are living in a time of turbulence. that is true politically and on the bond side. feel there is something in the movement of the stars that is giving angst to people. if you look at the broad sweep of markets over the last five years it is hard to notice. we focused on the micro but actually the macro is much smoother. when you look at bond markets in particular it is about central banks. they are immune relatively to what is going on in the geopolitical world right now. i think actually to an extent, you could say they have remarked -- they have the haber remarkably well. we've just had a major -- they have behaved well. i think it is about central banks. bond markets d

here in london, i am joined by tom keene. we will follow the president path comings and goings. talking about north korea and the fact they could take significant action. tom: the overlay of stories here is too much. 6:00ill join us in the hour. what is remarkable, it is about to change poland. initiative i find interesting. the former communist countries with austria. it is an important project. poland has raised eyebrows and concerns about cracking down on the press becoming inward looking. trump arguing the future of western civilization is in poland. you can see that as they fight against extremism. tom: let's get started on this hour of "bloomberg surveillance." the u.s. ambassador to the united nation is threatening trade ties with countries that do business with north korea. nikki haley told the un security u.s. will present a resolution with response to north korea upon action. >> we recognize north korea continues their nuclear weapons and -- how to uphold the pressure on the north korean regime. >> moon says the crisis should be resolved in a peaceful way. changes woul

tom keene is in new york. extension for the country to meet its demands. that is according to the state run saudi press agency. qatar's benchmark index is gaining a little ground today after all and yesterday. let's get to tracy alloway. welcome back to the program. will this make a difference? question that big investors and a lot of political commentators are asking themselves. the important thing to remember is this extension was agreed to by saudi arabia in response to a request from kuwait that has designated itself as a regional mediator. we don't know if qatar has agreed to it or will even find it useful. judging from some of the new movements we are seeing , it does not necessarily seem like the next room 48 hours will be useful. the comments we are seeing out of qatar are seeming pretty pessimistic. we saw yesterday a statement saying the company would not do anything to curtail its national sovereignty. tom: help me with the geography of the peninsula of qatar sticking into the persian gulf. how is s

i thank you for the plug, tom keene. tom: jonathan ferro, thank you so much.hat show is very informative. he is informed for decade, nicholas hemanth i would suggest knows more about -- nickolas heymann, we are honored to have him on the phone. mann, when did hey we see the new ge after the ceo exit? : i think that will show up this fall and i don't think we are talking about changing structurally the company in a major way, but we will work to reset expectations that were probably a bit more aspirational than intended when originally set for 2018 i think we will also have a clear line of sight cashtting this company's flow operating to $20 billion. tom: i look at the press release and it reminds me of ibm. is general electric financial engineering or is there a real meat to the cash flow in the distribution to shareholders? nick: there was a structural return to the industrial roots and in the process, there was a confluence of many things that ultimately drained a lot of cash, whether it was the simultaneous introduction to new confer --asset -- to to conver

tom keene is in new york. we have an interesting day. months away from the german election. we look at politics, and, of course, we look at dollar movement and dollar dynamic. tom: dollar dynamic front and center in washington. later, we have a weaker dollar call. we begin the two-day meeting, we go to the fed meeting tomorrow afternoon. within it all, in part maybe even of the debate in europe, it's no inflation. francine: yeah, no inflation, certainly something that we'll be watching out for. chief economist of the d.o.e. is speaking. now let's get straight to news. taylor: as you were mentioning, in washington, a dramatic turn of events for senate republicans preparing to take up healthcare legislation. senator john mccain will return to washington days after being diagnosed with brain cancer. today's vote is whether they begin debate on the issue. republican leaders still haven't decided which healthcare proposal to vote on. they promised for years they would repeal and replace obamacare. and there are now multiple reports that presid

i'm david gura in new york, in for tom keene. francine lacqua in london.lor riggs -- bloomberg "first word news" from taylor riggs. kim jong-un launched a second intercontinental ballistic missile in the matter of weeks. rex tillerson says the u.s. wants a peaceful resolution to the tension. the top american general discuss a possible military response with his south korean counterpart. says hisresident military has the confidence and capability to bolster the country's rise into a world power. he oversaw a parade that showed off chinese forces and has pushed for a modernization program, aimed at making the military a leaner force. retired marine corps general john kelly takes over as white house chief of staff, today. donald trump cap kelly on friday to replace -- tapped kelly on friday to replace former chief of staff reince priebus. i'm taylor riggs, this is bloomberg. david: let's get more on that shakeup at the white house. joining us from the white house -- joining us from rhode island is the chief of political science at -- kevin cirilli telling is

i am tom keene with jonathan ferro. he has been begging to do this. i said no. we said finally. nie: he made that up -- jonathan: he made that up. tom: we did this in davos, late in the morning. jonathan: that is how it works. tom: jonathan ferro with us today. here is taylor riggs. taylor: president donald trump and the first lady are attending bastille day celebrations in paris. yesterday, donald trump addressed the situation of his son meeting with the russian lawyer. >> he is a great man. he is a fine person. he took a meeting with a lawyer from russia. it lasted for a very short period. nothing came of the meeting. i think it is a meeting most people in politics would have taken. taylor: the president will fly back to the u.s. today. no margin for error as to republican senators immediately rejected the parties health care bill. majority leader mitch mcconnell added $70 billion to stabilize insurance exchanges. over in the ok, it has acknowledged for the first time on paper it will have to pay money to the european union as negotiators prepare for a round of talks. previous

he will be joining tom keene at 8:00 eastern. let's whip through things for you.utures go nowhere on the dow. the s&p is grinding toward a second week of gains. treasuries, yields are low. you are watching bloomberg. ♪ whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest prices. so if you're anything like me... ...you'll want to check tripadvisor. we now instantly compare prices from over 200 booking sites... ...to find you the lowest price... ...on the hotel you want. go on, try something fresh. tripadvisor. the latest reviews. the lowest prices. you are watching bloomberg daybreak. futures go nowhere on the dow after another record in the session. the s&p was flat as well. there is not much price action across europe. we are about an hour away from some important economic data. retail sales are on deck. grinding lower over the last five sessions. single basisother point. been seen is is emerging. 2%. about the senateot republicans redo of their health care bill yesterday. it seems like there was som

isolates david: tom keene and i were on the radio watching world leaders arrive at the first session of warmth between angela merkel and the first session. there was a lot of interaction and conversation among the world leaders. matt: it seems to be a mutual admiration society. no doubt they knew that it would work out the cease-fire. tillerson and laugh rob had been meeting before that. interesting to see how much the two of them seemed determined to build on a friendship or build a friendship in such tumultuous times. david: let me ask you about the communique. how much work did the sherpas you mentioned, the folks on staff, charged with getting policy points through have to do before we get to that communicate tomorrow? i know they've been working extremely hard so far. yesterday, i talked to the russian sherpa. she had six staff members and said most of the other sherpas have the same amount and had been meeting nonstop for the past 48 hours and would do so again today. a lot of people in one room trying to hammer out agreements strict leon policy, doing nothing political. cyber

of janet yellen's testimony to the house financial services committee, robert kaplan spoke with tom keeneher exclusive conversation. unemployment and relatively labor slack -- low 6,bor slack, and i look at u and that is still not far away from the pre-recession levels. at that low level of unemployment, you would historically see inflation pressures. we are not. march was weak, april and may stronger, and some of this is transitory. there are some one-time factors in the march numbers but some is not transitory. technology enabled disruption, workers replaced by technology, shoppers can use technology and , businesses power have far less pricing power than at any time in my lifetime. asause of that phenomenon well as to some extent globalization and that goods and services are being competed for need to, i think we accept that some of this muted inflation is the fact we are in a different economy den 5-10 years ago. >> that's brilliant. michael dell, you say he will see wage growth. when will he see it? , i have to tell you in my conversation with business leaders throughout the 11th dis

the house financial services committee, dallas federal reserve president robert kaplan spoke with tom keeneive conversation. >> at 4.4% unemployment and a relatively low amount of labor slack and i look at u6, and that is the unemployed, discouraged workers, and people working time , that ismic reasons still not for away from prerecession levels, 8.6%. at that low level of unemployment, you would historically see inflation pressures. we are not. march was weak, april and may were a little stronger, and i believe strongly that some of this is transitory. there are some one-time factors in the march numbers, that some of that is not transitory. technology enabled disruption, the fact that workers replaced by technology, shoppers can use technology and have pricing power, businesses have far less pricing power than at any time in my lifetime. >> interesting. >> i think because of that phenomenon as well as to some extent globalization and that goods and services are being to some extent competed for globally, i think we need to accept that some of this muted inflation is the fact we are in a d

financial services committee, dallas federal reserve president robert kaplan spoke with bloombergs tom keene --st: that for roy for sent that 4.4% unemployment and the unemployed plus discouraged workers as people working part-time for economic reasons is still not far away from the pre-recession low at 8.6%. at that low level of unemployment, you make stories we have seen more -- you would historically have seen more inflation pressures. we have not so far. march was weak, april and may were a little stronger. i believe some of this is transitory, meaning there is some one-time factors in the march numbers. i think some of it is not transitory. technology enabled disruption. the fact that workers are being replaced by technology, shoppers can use technology and have much thinkricing power, i businesses have far less pricing power right now than any time in my lifetime. because of that phenomenon, as well as to some extent globalization, and that goods and services are being competed for to some extent globally, i think we need to accept that some of this beauty deflation is the fact that so

i am joined by tom keene. thee look ahead to be on 2:00 p.m. thoughts are you have fed board nominee testifying to the central banking committee tomorrow. this testimony could move rate markets. down the line, his boat could be a tie-breaker and september. this signifies we are getting into the end of the year until the president has to make a choice about the future of his fed. he mentioned today, we will talk to jeff rosenberg about this, it it waslow rate randy, low rate janet as we talked about earlier. you will see david myers pointing out to me the fix coming in. can you bring up this chart right now? before we get to medina board, i want to bring up this chart. that circle is a 9.04 on the vix yesterday. we just have a little bit of a rollover in the commodities. we go into the fed meeting i would think a little deceptive. let us look at the data right now. us go to one screen here. the dow, i cannot round it up to 22,000 yet. brent crude is near 51. who do we have to speak to today ? is a chiefenberg income strategist. a lot to talk abo

am tom keene. in london, looking towards berlin is francine lacqua. is the political tension that you are alluding to. it is also clear that if there is one person who may be could get china on board, it could be angela merkel. i was struck that the chancellor an opinion -- in piece. whether that was domestic politics or whether it means something different. tom: absolutely extraordinary. he would have thought it would be quiet. but forget about that. let's get you up to speed with the first word news with taylor riggs. taylor: a pointed response to north korea's announcement it has used an intercontinental ballistic missile for the first time. china conducted -- the u.s. and south korea test today. missile the united nations security council will meet on this matter today. moving to the u.k., theresa may's disastrous performance in last month's election may have been a gift to business leaders. according to the is a dude of directors, it gave them greater leverage to negotiate for a softer brexit. they are now asking for ideas and solutions to concer

julia: tom keene talks about how to listening.rd a new high or a new low. call it what you will.et: the market close is next. unless than four minutes to go before the close, the dow at a new high and the s&p 500 also at new highs. from new york, this is bloomberg. ♪ ♪ joe: the s&p 500 and dow hitting new records. inflation data came in a little iffy. if you are tuning in live on twitter, welcome to our closing bell coverage. every weekday from 4:00 to 5:00 eastern. scarlet: let's begin with our market minutes. another green day for stocks. the dow gaining 87 points. s&p 500 adding 11 points. up by at least 4/10 of 1%. the way, this marks the sixth straight day of gains. this is on the heels of disappointing economic data. joe: remember rotation. scarlet: what happened to that? not another story that did pan out. julia: it is all about the day do, who cares about fundamentals? moving on. scarlet: look at returns for the week. guess who is the big winner? technology. up by 4%. energy stocks a close follow-up, getting by 2%. there was a downgrade from bank of america. this is a def

tom keene in new york. we are looking at banks, opec, and politics in the u.s. and poland.front and center. today, asianss strength as well. hans redeker this hour it is a good time to brush up on what foreign-exchange is telling us. francine: i am looking at the impact dollar weakness has. let's get to first word news. taylor: the president of poland says he will veto part of a judicial overhaul that is threatening the independence of the court system. the legislation has led to eight straight days of antigovernment protests. the eu has threatened sanctions over the issue. in st. petersburg, opec and its partners meet today to discuss oil pumping cutbacks. one item that will not be on the agenda, production limits for nigeria and limit. imf sees the u.s. fading as an engine for the global economy. the world economy will expand 3.5% this year. according to the imf, the world will rely less than expected on the u.s. and u.k. and more on china, japan, the eurozone, and canada. the new press secretary sarah huckabee sanders says the trump administration supports the bill that

jonathan: bloomberg's tom keene and david gura speaking with will gross.number at 222,000. unemployment back up to 4.4%. wage growth coming in softer on the month and the year. month on month coming in at 0.2%. the previous month revised lower as well. that is the story. coming up, rick rieder, black cio, and alex acosta, u.s. secretary of labor, will join the program. from new york am a we will speak with princeton's alan krueger. we will get into the detail in a moment. this is bloomberg. ♪ emma: this is "bloomberg daybreak." coming up, alex acosta, u.s. secretary of labor at 9:30 a.m. eastern time. ♪ jobs friday, the number coming into the upside. 222 thousand jobs created in june. the unemployment rate rises to 4.4%. average hourly earnings coming in at a lower consensus at 2.5%. here to break it down is jim paulsen of what held -- leuthold group and alan krueger of princeton. anything stand out to you on the downside? alan: still looks like a solid report. 35,000 jobs were added in government, but if you look at the revisions and hours, you look at th

up next is "bloomberg surveillance" with francine lacqua and tom keene.erg radio with carolyn hester for "daybreak europe." ♪ francine: concern for health of that with earnings season in full swing. make or break time for the u.s. stock market? is deutsche bank about to move 300 billion euros of assets from london to frank for? -- to frankfurt? lending surges. this is "bloomberg surveillance ." i am francine lacqua in london. we are looking at data and some of the earnings and

happening --at is about what is happening with tom keene.ome of the most-watched videos on bloomberg. up next, live in sydney. why is it looking up down under as the aussie dollar surges to a two-year high. more and that story when we come back. this is bloomberg. ♪ ♪ guy: 7:42 in london. let's get another bloomberg business flash with juliette saly. guy, shares and toshiba have soared in tokyo trading as green light capital revealed its stake in the conglomerate during the second quarter. to --rm is wagering toshiba shares will rise once it exists contracts tied to westinghouse. quarters second profitability and sales have come in weaker than analysts estimated. closely watched growth margin -- margin shrank while revenue in the three months into july fell 7.8%. it highlights the challenge facing the ceo who took over six months ago to improve performance. ethics has scored a record second-quarter, surpassing expectations and boosting subscriber totals. 500 million subscribers in the second quarter, 200 million more than forecast. or than 4

francine lacqua rejoined by tom keene today. i will be joining bloomberg radio.y to discuss. this is bloomberg. ♪ a ♪ escalation.new north korea's intercontinental missile launch and calls for global action to stop a global threat. this is ahead of the g-20 in hamburg. he meets chancellor merkel in an hours time. the sent anniversary of britain's last rate hike. back then, it was 5.75%. u.k. households should brace for tighter policy. qatar's prices with the credit outlook with pressure in

we are joined later by tom keene. speaking with the leader of the u.k. labor market -- economy jeremy corbyn. we will be talking to him. or not take on whether financial services should be prioritized as part of the brexit talks. some oflittle vague on the details surrounding brexit. we will try to pin him down. we will also talk about whether the solution to the u.k. public service crisis is simply to spend more money. plenty of questions for jeremy corbyn. that is next. this is bloomberg. ♪ francine: fed fragmentation. minutes from the latest meeting show the fomc divided on when to start the balance sheet unwinding. military action against north korea and the cutting of trade ties with allies after missile tests. this come as donald trump arrives in europe ahead of the g-20 summit. john mcfarlane says he is confident the euro clearing will remain centered in london.

tom keene joins me. the dollar, we look at gold.sury as the health care bill strikes out. what is left for the rest of trump's agenda. inlation unexpectedly slows june raising the case for an immediate rate hike. brexit negotiations carry-on in .russels theresa may defines backbiting in her own party. is it to on the way? coup on the way? atad to come back, looking dollar, looking at president trump's political capital, also, u.k. inflation. coordination at the meetings in portugal that has gapped into the diversions between slowing u.s. data -- that sort of thing. a glowing global economy. that is the tension you see in the market. francine: i like that we're talking about central pac. this is the picture. it is important because it gives us a snapshot of what is happening in the u.k. you can see unchanged. in the meantime, let's get to the bloomberg first word news. taylor: senate majority leader mitch mcconnell has raised the white flag on replacing obamacare. he will seek a simple repeal of the affordable care act. it would be d

tom keene joins me at of new york. we will be joined by harvard university's kenneth rogoff. talk about the ecb. we are covering it from all angles. i'm also looking at pound. we talk about the divorce bill with brexit. this is bloomberg. ♪ prepare forrkets draghi's delivery when he faces the media later. trump tells the new york times at jeff sessions should have never recused himself. after theresa may briefs business leaders, will the u.k. pay a divorce bill? this is "bloomberg surveillance." divorce, one hundred billion. that is what is on the cards. the eu commission and france are playing tough. tom: it is back-and-forth and will be like this for two years. buried in the news is the ecb meeting. to me, that is a huge dealing cannot rise above the news flow. calline: when will the ecb it from the markets and underpin what we are seeing from asset classes? let's get to first word news. jeffr: an admission about sessions by president trump. he says he would not have appointed sessions if he knew sessions would work use himself from the russia investigation. recusal unfair

dean finocchiaro, last seen friday, and marge sturgis, and tom meo also missing, not clear if the disappearance also connected but police keenrmation on the missing men. also, checking the forecast, looks like you're tracking some showers? >> indeed, looks like dealing with spotty shower or under this earl storm at some point specially from philly on west, i'm thinking here, through the early afternoon, especially, and at the moment, we have actually seen cloud cover roll through here and there, definitely good example of it right here at pleasant valley middle and high school. currently at 66 degrees, the winds flow out of the south, dew point still relatively low for many of you, something that does creep up with time, as does the mercury, look at this, lower mid 90s, for the next couple of days, and there are a lot of thunderstorm icons on this graphic, but i think tomorrow, specially friday, looks to be the most wet days. >> katie, thank you so much for all of that information, looking outside right now, still pretty slow in certain areas, looking at rotating project schuylkill at the blue route, moving in the westbound