tom keene in new york. francine lacqua. tom keene in new york. no deal brexit continues to be painted. of large fiscal quonset is if they were to get a hard brexit. is --cal quonset whence consequences if they were to get a hard brexit. brexit minister was saying he felt the implications would be lower than the chancellor was suggesting. all of this is allie renson, institute of directors, head of europe and trade policy. good morning. timing waslor's interesting, putting out these comments at the same time the technical papers were being published. are those papers help? >> i think it depends on the sector you are in. in financial services and pharmaceuticals, we saw commitment to unilateral measures the government said it would introduce. had talked about providing temporary authorization for firms operating in london to continue trading. in pharmaceuticals, they said they would continue to recognize the standard certification on pharmaceutical drugs. in other sectors, there's a lot --t to be seen and i signal single out goods trade. it does no

tom keene joins guy johnson. tesla shares lower in the premarket as well. bloomberg. ♪ tom: this morning, after jackson hole, a grinding curve flattening. the peso of argentina, the turkish lira both weaken. stocks have a bid. the impact of sanctions and tariffs. if you are in cash, where should you invest this monday? mccain willy, john rest in the capitol rotunda. this is "bloomberg surveillance." morning, a august new slow continues. we see that headline on mr. erdogan's travels in september. guy: i think he is in for a busy time. we also have the relationship with germany, which i think is going to be interesting there. it is going to be interesting how he plays the europe angle, the iran angle, the united states angle, and where russia fits into all of this. tom: the jigsaw puzzle of it. right now in new york with your first word news, here is taylor riggs. taylor: the u.s. and mexico could renew their trade talks as early as today. bloomberg has learned there have been significant breakthroughs during the past several days on two of the biggest issues,

nejra cehic in london and i am tom keene in new york.assador's conference. -- comments from president erdogan at the ambassador's conference. are made more important by what we see in turkey, the turmoil of much higher yields and further lira weakness this morning. the italian peace out. an update on the corporate world. here is kailey leinz. v.f. corporation plans a tax-free spinoff to shareholders. willest of the company keep the name and will include its apparel and footwear brands such as timber linn. -- timberland. president trump is backing harley davidson motorcycle owners who will boycott the company if it moves production out of the u.s. harley does not sell bikes it makes overseas in america. the company says the tariffs imposed after the trump administration slapped duties on steel and aluminum reduce the price in europe. it was a stunning debut for a movie about a shark. the meg took in $45 million in north america over the weekend. that is almost twice what analysts expected. warnerproduced by a chinese joint venture. -that

nejra cehic and tom keene. we are watching e.m.eight right now in lira, but there's a couple other stories, including indian rupee having a tough go of it. nejra cehic, what is trending? nejra: let's check on what's trending across the bloomberg universe. victoria's secret is getting worst according to an analyst from jeffries saying that two tops were not in style and leopard print pajamas where fashion miss. the u.k. and eu have dropped october as of deadline to reach the brexit deal. they now want to reach a deal by november at the latest. the most read story on the bloomberg terminal in third is ceo troubles tweeting, aston martin announcing shares in london, and trump warns tech giants that search results are rigged. let's also do the bloomberg first word news with taylor riggs in new york. taylor: it's a sign that negotiators in the u k and the european union have struggled with brexit talks. they dropped october as a deadline and hope to finalize talks by the middle of november. there's a greater chance that will not be a de

tom keene is with me, as is jeff rosenberg. tom, this is kind of a nonevent.ot the turkish lira at five, either a canary in a coal mine? no. things so many exogenous going on. says it will be a predictable statement. there's plenty to talk about. scarlet: will fed officials be chewing on the turkish lira question mark -- >> it is as tom said. there's a lot going on. they may not be so focused on the fed statement, but there's a lot going on. on the at fomc go, terminal, bring it up if you could. these other said meetings, when does the fiscal deficit click into the calculus? not in september. testimony,up in the and it is a longer issue, and i think we will get into it later, the interplay between fiscal and monetary policy. the site in the announcement today, talking about the impact of higher rates and higher costs in servicing the debt. that's where you are going to have the interplay show up. >> this is so important. we go interview to interview, the two-year, the two-year, there's real spillover effects to a high two-year yield. scarlet: we know the fed i

tom keene joins me out of new york. later, we will be speaking to warren buffett. oomberg. ♪ ♪ tom: this morning, just me, it is idiosyncratic. we consider the correlated dysfunction of the lira, the rupee and the selected peso. incoming. the debt and the ever greater trillion dollar deficit. it was adams versus jefferson, this thursday, trump versus google. we consider the outlet that alphabet. i'm tom keene in new york, this is "bloomberg surveillance," ne jra, em currencies, quiet. here, here and here, weakening forever. you were ahead of the curve with bringing this up yesterday as well. aboute saw was jitters turkey and argentina feeding through to the rest of the space. we continue to see the lira weekend as well as the rand. tom: we will show the numbers. alex, i love that chart. nejra does, the way it. president trump is optimistic the u.s. and canada can reach a deal on the north american the trade agreement this week. the president is giving canada until friday. justin trudeau says his government is trying to reach an agreement with the u.s. but he says he

i am francine lacqua in london and tom keene is in new york. tragedy. i think everyone who has gotten in touch with me because my family is from genoa. this is politicize now. this islace are saying the fault of the eu because the infrastructure is not good enough. budget lawso be the that will be passed in a couple of weeks. atlantia whois is manages this stretch of the highway and it is their responsibility. in theere was no one english media more qualified to speak about this. tell our audience worldwide what this ridge means to your -- bridge means to your genoa? francine: it is part of a highway, the only way to go to the beach and airport. it is the main highway that links genoa, one of the biggest cities in italy which has crew ships and containers, it is a port and you have a lot of economic activity. the only one that links it to the airport and the rest of the region. this is a huge deal, not only for the human loss of life but one of the most used highways in italy. tom: remarkable. so much other news flow. let's get to the first wor

tom: you look great in that ostrich coat. >> tom keene style. peterson institute. , to go with your foreign affairs article on the long-term cost of economic nationalism. is investment going to move from the gateway to the sorts over to china -- ozarks over to china? >> yes. thank you for citing my article. it's a very simple point. we have seen the collapse in foreign direct investment into the u.s. over the last two years and particularly in the last few quarters. this collapse came even though the tax code and the other changes republicans in congress passed with the president should be pushing this way up. what that tells you is that companies making long-term business decisions about the competitiveness of the u.s. as a place to produce are opting out. everything kevin just said is totally beside the point and nonsense. because -- the president gets to go forward because this is what he believes. he's not listening to mnuchin. navarro is there because the president believes this anti-china stuff. he wants to be anti-trade. congress is being

i am in london and tom keene is in new york. it is all about policy.about jackson hole. tom: to an extent but this nation is riveted by the paul cohen dayichael two. is the president tweeting about africa? there was a headline on the africa willat said call the u.s. ambassador in for discussions. francine: this is a serious deal. this had a huge impact on the south african currency. we do not know if the tweet was interpreted at the u.s. looking at sanctions on south africa. let's get to the bloomberg first world news. kailey: the u.s. and china have imposed new tariffs, just as the sides resumed trade talks. taxes being levied on $16 billion of products. the u.s. is targeting chinese made motorcycles. china retaliated by a slapping duties on coal and cars from america. president trump making it tough or his administration to close the deal on a new north american free-trade agreement. boost tariffs to on cars imported from mexico that do not meet stricter rules. south african currency fell after the president tweeted. the president asked mike pompeo t

tom keene is having the day off. are in talks for the revocation of their italian license. it was lost after the collapse of a highway bridge in genoa. politicians are demanding justice for the disaster that killed at least 39 people. joining us is the bloomberg senior italy reporter. what we know about the license? >> there is an interesting division inside the italian government. on one side we have the populist five-stars asking for revocation. they are targeting the family that owns atlantia. the eu has a more pragmatic approach with atlantia to get a ticket00 million euros atlantia to rebuild the bridge. why we are seeing atlantia shares rebound from yesterday. people also telling us that the government is thinking of a noty fine for atlantia, but the revoking of concession. they're saying we need to revoke the concession because the bridge is not there and people are missing. guy: how will this affect the budget discussion? did we get more clarity on that? >> it is still unclear at this point. and nationally at

tom keene joins me. you more with bloomberg's editor-in-chief interview with donald trump. this is bloomberg. ♪ morning, contagion for a selecting emerging-market currencies. they continue to weaken yet. is the mighty dollar strengthening? september beckons. there is no pass fail behind the oval office. the president gives himself an a plus. the attorney general struggling toward the quality c. it's the end of the summer of 2018. what do you do? maybe go to cash. good morning, everyone. this is "bloomberg surveillance." i'm tom keene in new york with nejra cehic in london. you look at em currencies this continues.d it turkish lira does better, but there are a lot of other challenges out there for em, aren't there? nejra: yes, we saw the argentine peso slide yesterday. you see the rupiah take a hit again this morning. the indian rupee hitting a record low as well. the turkish lira, the outlier for once. tom: this is the backdrop not for em, but maybe for chairman powell and mr. draghi, the idea of euro ar

tom keene joins me out of new york.k with the chief executive of hong kong exchanges and clearing. that is coming up. this is bloomberg. ♪ ♪ two, down and back up. our phones are more than just phones. they are pocket sized personal trainers... last minute gift finders... siri: destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet. which could save you hunreds of dollars a year. plus get $150 when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. amid growing concerns that the u.k. could leave the e.u. with no future for economic tice. good morning, everyone. this is bloomberg "surveillance." i'm francine lacqua in london. tom keene in new york. we have quite a lot of stories. we'll look at euro politics in the u.s. om: sterling is interesting. here is taylor riggs. taylor: the u.s. is escalating the trade war with china. the government said it will start imposi

this is "bloomberg surveillance," francine lacqua in london, and tom keene in new york. eadline from the u.k.. that was minutes ago, saying the u.k. is expecting to see a brexit deal deadline for the end of november. tom: the calendar is out there. terrific heat in america. really extraordinary. overnight, the fires in california have become a huge story. francine: certainly a big story in europe. let's get to first word news. here is kailey leinz. >> u.s. sanctions on iran have now kicked in. they have aimed to stop the government from using dollars and trading gold and other precious metals. the sanctions were expected after president trump quit the 2015 nuclear accord in may. present were some money -- president rouhani. a diplomatic crisis with the us has sent the turkish lira to a low. the lira fell more than 6% before rising today. the trump administration has sanctions inmic order to get turkey to free an american pastor. donald trump's lawyer rudy giuliani told the washington post there is a reluctance to allow any question about obstruction with an interview with

tom keene has the day off. let's talk about the m&a stories.$3.2 billion. the beverage giant would gain technology for making soft drinks at home amid rising concerns about plastic waste. joining us now is michael arnold. six months ago, pepsico could have bought this business for less money. what is it they are buying and why are they prepared to pay such a high price? >> they're buying a company that is growing by leaps and bounds. sodastream has gone from strength to strength with every quarterly report, having laid out a strategy a couple of years ago that had its finger on the pulse. was made two changes, one to get out of the soda business. it is ironic they are being purchased by pepsi co.. the other was to push themselves as an environmental company, focusing on the fact you can reuse bottles. thateo correctly grasped health and environmentalism were going to be trends with consumers and that is what pepsi is buying. francine: why are they buying it now? >> for one thing, even though the stock has gone up, there is the chance that the s

tom keene in new york. francine lacqua has the day off.t is trending across the bloomberg universe. kraft heinz plans to overhaul its packaging designed to find greener alternatives. donald trump is taking credit acrossise in spending nato states. mobiusspecial, mark warrants there is a real possibility of turkey imposing capital controls. john bolton warns there is nothing to negotiate until turkey releases a detained american pastor. find out more across all of bloombergs platforms. elon musk continues to release details about his plan to take tesla private. he says he is getting interest from goldman sachs and private equity firm gold lake. alex, are we any closer to understanding what happens to tesla next? >> i think the reality is no. he did not even quite say he is working with goldman and silverlight. it is still very unclear. the way he tweaks seems to be hedging on his part in terms of demonstrating what tesla is doing and what he aims to do with tesla. ngths toto great le demonstrate from saudi that he had the funding to take it

. ♪ amlor: live from new york, i tom keene. -- taylor riggs. romaine: i am romaine bostick.aylor: time for the biggest stories in the news. shares of dick's sporting goods falling with slumping sales and ending sales of assault style rifle's in february. same-store sales down a worse than expected 1.9%. they say they are experiencing significant declines in under armour products, under armour shares also trading lower. the trade war has hurt jack say they assumed eu tariffs imposed in june will stay in place the rest of the year. put on auties were number of american products in retaliation for president trump's tariffs on european goods. parent haveoogle's a new number one fan on wall street, morgan stanley has jumped up price targets for amazon by 35% and target or alphabet at 14%. now higher than any of the other analysts surveyed by bloomberg. morgan stanley sees amazon's cloud service as good. that is your bloomberg business flash. british and eu negotiators are saying the brexit deal may not be ready by october. senior officials tell us by mid-november is more realisti

i am tom keene in new york. guy johnson is in london.out the hour, the royal family of another time and place. this is something the world is watching right now in washington. this happened around the death of princess diana and the queen offers assistance to having the flags of half-mast. it ended up in half-mast because the royal family realized the and groundswell of opinion grief. in many ways, at times like this is called upon to reflect on that. what he does and says is very important. tom: the message was conveyed yesterday afternoon. we've got presidential tweets up. you want to get those to you. they become messaging for the president of the united states. we had tweets on a fake news. we went over this before. i'm not going to go through it. do we have the latest tweet out? do we have that up yet? we will get to it. right now, let's get our first word news. taylor: president trump and justin trudeau will continue productive conversations on a trade. they spoke after the president announced a new trade treatment with mexico. the

this is "bloomberg surveillance," i am in london and tom keene is in new york. lusive interview with italy. there is an emerging-market scene with lira lower. tom: i would note the tesla story continues to keep on giving. extraordinary moment yesterday.. "bloomberg surveillance," on radio, when we saw those headlines come out, the confusion between the board and mr. elon musk. francine: we will continue with a spotlight on tesla. let's get to the first word news. the u.s. is warning the latest round of sanctions on russia may not be the last. announceddepartment new penalties punishing vladimir putin's government for the nerve agent attack on a former double agent and his daughter in the u.k. the uss sanctions may be followed by a round of more penalties later this year. the u.s.rt that secretary of state is giving north korea a deadline on nuclear weapons. according to the news website, vox, they told kim jong-un he must hand over 70% of the arsenal within six to eight months. mike pompeo has presented the plan's multiple times over the last two months and it ha

this is "bloomberg surveillance," i'm francine lacqua in london and tom keene is in new york.ng on. the market is directionless. populist agenda in europe, brexit, emerging markets. we do not have one clerestory like yesterday. tom: this is the first day -- we do not have one clerestory like yesterday. tom: i want to know if i need suitcases on my next trip to london. you just had a wonderful interview with iain duncan smith. is thoroughly going to 1.19 so i can shop at harris? -- harrod's. francine: it is clear that sentiment is high. all bets are open. come over and bring the empty suitcase. the bloomberg first word news. shares of the italian company that operated the collapsed bridge are being battered today, suffering the biggest loss in three decades. the government has begun the process of revoking atlantia's concession. 39 people were killed in the disaster. for the first time in two months, u.s. and china will resume negotiations in the trade dispute. it will be at a low level. the chinese delegation will meet with the treasury undersecretary. the nations have appeare

this is bloomberg. ♪ ♪ tom: francine lacqua in london and tom keene in new york.oomy in new york. and london it is like a painting. look at the difference. on the left is the new york mets with their worst defeat ever, 25-4. on the right is perfection. francine: i know, it's pretty beautiful. i know you are listening to us from london on the radio. it is sunny and bright. we are just not used to this heatwave. tom: my raincoat is nice and dry at home in the closet. let's turn to apple. ivan feinseth with tigress financial partners as we look at apple. and are selling iphone x's they're moving them out at $724 per unit. why does everyone seem to be surprised by that? ivan: people have been predicting they would have a hard time increasing sale prices because they believed people would not pay up for iphones or smartphones. i believe that people's smartphones are such an important part of their personal and professional life's that they will pay up for both the phone and service. you really don't pay $1000 or $1200 retail. you pay somewhere between $40 and $50 per m

tom keene joins me. full roundup of your emerging markets, a full roundup of your domestic markets as we also talked trade. this is bloomberg. ♪ xfinity mobile is a new wireless network designed to save you money. whether you use your phone to get fit. to find meaningful, thoughtful, slightly-weird gifts. or just to know which way you're facing right now. however you use it, your wireless bill is about to cost a whole lot less. ask how you get xfinity mobile included with your xfinity internet. so you just pay for data -- by the gig or unlimited. saving you hundreds of dollars a year. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. francine: guilty as charged. convicted ofr making has payments. markets are trying to figure out the fallout. the which had continues -- president trump says the witch junta continues. -- hunt continues. good morning, everyone. i'm francine lacqua in london. the follow-up on the market has been

tom keene has a well-deserved day off.olding near a two-week high as investors expect another set of solid employment data later today. ully samra,now, k charles schwab u.k.'s managing director. still with us, alberto gallo. anything in here that's going to suppress the market and tell us the u.s. economy isn't on a tear right now? >> i don't think so. an economy n an , the laborclick market is really beginning to tighten. of the labor force has continually been talking about this tightness in the labor market. i think one of the other areas the bears have been talking about has been productivity. one of the things that was gdp number in the q2 is that productivity has doubled . think productivity is starting to improve. we are starting to get improved average hourly earnings growth. francine: we are expecting a little bit of wage growth increase from construction manufacturing and the two sectors showed pretty strong growth. how much will they be had by trade war's? is that what the fed should be looking at? >> i think ev

only tom keene at bloomberg. it does tend to drag in terms of kerry.n short since february because we saw the future as to full, and election with -- to full, election -- no good, election with outcomes. the market will not accept lower price of italian risk than that 90 beid. ecb that for political reasons is having to stop purchases. why would you take on that tie in risk at this level? francine: let's remind yourselves, the coalition is not exactly stable. they disagree on what they don't like, but they don't really agree on what they want to do together. kallum pickering of berenberg, james athey of aberdeen asset management will stay with us. this is bloomberg. ♪ ♪ tom: good morning. "bloomberg surveilllance." thrilled you are with us this morning. we need to chat on brexit. francine, bring us up to speed. francine: we had mr. liam fox, secretary of state for international trade giving a speech in central london, saying the u.k. is falling short of its full export potential. he believes brexit is a chance to embrace opportunity in this new global

francine lacqua and tom keene have the day off. i'm nejra cehic.10-year yield. sayingimon saying 5% and the bull market will go on another three to five years. >> i thought i missed that. for 4% ande prepared 5%, and the bull market can go on for two or three years. nejra: people keep calling out this bear market. it does not come. it does not mean it is not going to come. what is going to trigger it? that 3% level is where we have failed to go beyond three times this year. that is where the market sees the feds neutral rate. let's get the bloomberg first word news. president trump claims he has the upper hand in the trade dispute with china. beijing does not think so. an editorial in the nationalist global times newspaper says china is prepared for a protracted trade war with the u.s. and ready to endure the economic fallout. president trump tweeted over the weekend that u.s. tariffs are working big-time. there has been a dispute between saudi arabia and canada, the saudi's suspending diplomatic ties. last week, the canadian ambassador criticized

i know tom keene is particularly excited. is this a measured selloff?e are seeing volatility in a lot of the emerging-market currencies. this would be a concern, because it would be compounded by trade. the big picture that has been concerning a markets is the rising trade tensions. a macro impact, and increasingly becoming a micro. the last earnings season, there was a limited impact. into the second half, there is likely to be more impact on cost. there is going to be more question marks about. -- capx. it is a cost which is not been anticipated previously. those are the things we are looking at. it is in industrials, consumer discretionary. ate areas are also looking the tech sector as the biggest driver of returns. to see where the risks are. can you see any countertrend rallies? i think the fish are all going to swim together. if the situation gets worse, the contagion of broadens out. we are seeing it across the em space and creeping into the g10 currency. maybe from a position a angle, if one phrase more popularly than the other. but, no, when th

hi tom other naafi for one says he is keen to state. this obvious i have a job i can pay my way i feel accepted. now you can say money is also a migrant of types on the move even more so despite all the different currencies in circulation and restrictions in place capital flows to a much better job of integrating themselves all suddenly changing direction that's been the case in turkey over the last few weeks where the cash is leaving quickly. money makes the world go round it knows no borders companies go where everything think it will pay out of. the factories or invest in shares in equity that's how the money makes its way from one country to another. in twenty seventeen one point four trillion us dollars worldwide were poured into foreign direct investment. money as sensitive. as the capital is actually a timid little lamb when capital starts to feel uncomfortable like in turkey iran the way. in recent years turkey has been attractive for foreign investors not least to the low wages and strong economic growth. capital flowed into co

tom depree, his former assistant attorney general in the bush administration. >> the president is keen on doing a few things. limiting the topic matter is that muller can get into. the president's team adamant they want the to be what happened as opposed to after the president was inoculated. >> peschel >> special counsel robert mueller asking things about what happened after the election, include the michael flynn fire ring, president trump's meeting with former fbi director james comey and comey's firing, and the president's conversations with attorney general jeff sessions about his refusal from the russia investigation. plenty of references from those topics in the list of 49 questions mueller's team dictated to the president's legal team back in march. v9 has agreed to reduce the number of questions d he'll accept some answers in writing but he still wants to ask the president in person about issues that go to obstruction. president trump's legal team has been recommending he not do an in person interview with mueller, but the president is telling them to keep talking, keep negoti

keen to talk about this. yes, the impact, the editors talking about hate speech. what we have today is toml media. it has been brewing for a long time. there has been a chilling of the relationship with social media companies. the government is going to put forward a plan in october which has been many months and consultation. this is the opportunity to reset the deal. consultation. this is the opportunity to reset the dealm consultation. this is the opportunity to reset the deal. it is the definition of the social media companies. apologies for speaking over. at the moment they are almost publishers of other content. other people take responsibility for what is on the. newspapers have to take responsibility for what is in them. when social media began not that long ago, no one would have anticipated the level of impact it would have on the life of everyone. we know now, so this is the time. 0ne we know now, so this is the time. one of the popular things social media is the how—to instructional videos. do you use them? a couple of things. i use them for golf tips. they are so popular. i us

tom barton has the details — hejoins us from our london newsroom. i suppose it is how this meeting is interpreted, in terms if she has cut her holiday short, emmanuel macron keenn as a strong voice for the eu, theresa may trying to avoid a no deal. that is absolutely right. although we don't know a whole amount of what went on in the meeting, i can tell you what they had to dinner. they had time flavoured seabass, had to dinner. they had time flavoured sea bass, followed had to dinner. they had time flavoured seabass, followed by chicken, followed by a dark chocolate creme brulee. as for what was said, neither number ten normal the french are giving us any details. we do know that the prime minister kutcher at her italian —— prime minister cut short her holiday to a cce pt prime minister cut short her holiday to accept this invitation because she wants to express the british case directly to the french president and to other european leaders because the british government is concerned that the eu's official negotiator, michel barnier, is at explaining it in the way the government would like. at least we got the menu. thank you very much. the hollywood producer