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

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

haidi: guy: let's get back to the u.k. exit polls and the u.k.usive election result with theresa may's conservatives falling short of a majority in permit. it is early days. it is going to be a long, long thet as we go through individual constituencies. joining us is the bloomberg intelligence chief european economist, janie murray. there's a number of ways of coming at this story. let's talk about what it means for brexit. if you can come up with a great answer, i am all ears. jamie: let's forget about the exit polls. let's imagine that theresa may got a bigger majority. we are looking at a softer brexit, potentially because she would have her hands freed. let's imagine instead that labour had won the majority. they may have been able to secure softer brexit. but where we are now, we have no one in power, a hung parliament and that means the government is rudderless. and negotiations are supposed to start a week monday. this is delaying the beginning of the negotiations by six months, maybe another election, who knows? we are up against a two-ye

but the u.k.'s also been associated with markedly and increasingly rapid consumer credit growth. this isn't an imbalance funding its own resolution. large,r despite the depreciation around the referendum, the extent to which moved closeras to sustainability is a question that remains open, hinging on the outcome of the negotiations. most fundamentally, the u.k. relies on trade investment and financial fragmentation which have increased. the world economy has been here before, in 1930 one monetary policy was exhausted and fiscal policy was held in a band. there was a wave of protectionist measures in the united states, spread into your. so what should be done to prevent history from rhyming? in the simple world of the economist, the prescription is straightforward -- deficit countries, loosen monetary policy, tighten fiscal policy. itsnly the 21 roll up sleeves at one of its countless meetings, it could be easily solved. but those cures are prescribed in the abstract, where policies y spaces are con

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

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

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

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

the u.k.hung parliament with conservatives falling short of a majority. plunging theling most since january and raising doubts about negotiations with the european union. the u.k. could be without a full functioning government 11 days before brexit talks are due to begin. rishaad: the questions are being the primet minister's future. she may not survive. this is our special coverage of the british election. i am rishaad salamat coming to from our asia headquarters in hong kong. in sydney. haidi lun asia awaking to political turmoil. when will we learn? trump, brexit, and now more political uncertainty, the range of outcomes is starting to narrow when it comes to what sort of situation theresa will be dealing with. to theot arguable contrary that this has been a disastrous results for theresa may and her political future is in doubt. let's haveght, well a look at what is going on. we have currency reaction. 9236, this is sterling heading towards a key level of 1.27, a since the middle of april.

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

u.k. a detailed plan emerges monday. jumping the first hurdle. 34 of the largest banks operating in the u.s. clear the fed's stress test. this is bloomberg "surveillance ." sincexactly one year on voters in the u.k. went to the polls to decide on the country's european future. we will look back at that result and what has changed as the negotiations finally get underway. we'll speak to a member of the house of lords who thinks that brexit want happen. -- won't happen. we will also have the director of europol. this is what we're getting. a little bit of news in the form of pmi. this is what they're coming out with. falling to 54.7. below forecast. we were expecting a figure of 56.8. it's coming in at 57.3. that is for manufacturing. if you look at the services june pmi, falling by three percentage points. seeon to the data to whether we are seeing any impact from that weaker than expected pmi. overall, global equities mixed after we did have some fed speakers saying they will do little to

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

u.k. time and emergency crews were at the scene six hours later. it is not clear if residents were trapped but people at the scene spoke of not being will to reach friends and family who had been inside. still in the u.k., prime minister theresa may is under pressure to abandon her plan for hard brexit. that comes as she tries to stitch together a deal with the democratic unionist party that will keep her tories and power. emmanuel acheron echoed the german finance minister who said it would not be too late for the u.k. to change its mind and stay in the eu. the u.s. attorney general has denied any suggestion that he colluded with russia to interfere with last year's presidential election. jeff sessions was speaking during his appearance in front of the senate can't -- intelligence community -- committee. >> to suggest i which is abated in any collusion, that i was aware of any collusion with the russian government to hurt this country which i have served with honor for 35 years or to unde

-u.k. relationship following the elections in the u.k.r may, who invested quite heavily in trying to build that relationship controversially in the u.k.. expects relations to improve whoever is in power in the u.k. and they will shoulder burdens together. he is optimistic that relationship will continue. the u.k. looking for a free trade agreement with the u.s., although some way off at this stage. rishaad: thank you. up, what schroeder investments says bond traders should be placing their bets as yields a dip. this is bloomberg. ♪ haidi: the weighted average and year estimate for 10 years fell down 20 basis points. long-term yields have remained low. segment, aal yield big week clearly for central banks. if you look at what the fed is , perhapsll telegraphed looking for details of the great unwind at the balance sheet. bond investors have been doubting janet yellen so far. generally the story has been the u.s. economy has been growing at a slower pace than expected in the first quarter. the if it takes up in second quarter, inflation has

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

u.k. wants. matt: a developing story in london. hit a group of muslim worshipers in northwest london, one is dead. police are treating it as a potential terror attack. anna: macron's majority. while the french president is that to secure the biggest parliamentary majority in 15 years, voter turnout was the lowest ever for a french legislative election. show.e paris air analysts expect fewer plane orders for boeing and airbus after the industry gets hit by low fuel prices and weak fares. we will take a look at the health of the industry and bring you live comments from the event. ♪ anna: a very good morning, welcome to "bloomberg daybreak: europe," our flagship morning show from london. plenty to talk about. stocks in asia going higher, keeping an eye on what has been called a u.k. terrorist attack in london, another key test for the may government. agenda, theeconomic eurozone seems to be impressing even those with leveraged money to spend. , this ispositioning leverage money going long on

the u.k.nd tech selloff, turmoil the fed coming up this week. >> theresa may embraces conservative rivals. half of u.k. voters want her to quit. trump renews his attack on james comey, tweeting leakswere cowardly -- were cowardly. boj governor kuroda likely to win a second term. economists say he is the only possible contender. >> we have the world covered here on "daybreak asia" and go to london and discuss the fallout from the u.k. election. >> rick perry in beijing talking clean energy and the paris accord. our exclusive interview of little later. this is "daybreak asia" coming to you live from bloomberg's u.s. and asian headquarters. we have the u.k. of election out of the way, but uncertainty here to stay. theresa may hanging by a thread as prime minister as she tries to string together some kind of coalition party. the dup still in question. the pound taking it on the chin. mostound falling the against g10 currencies come especially the canadian dollar, -pound getting a bit. the only exc

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

taxco it in perspective, is the number one largest grocery and the u.k. and the u.k.derwent the advent dle on the low end and on the other side, online groceries. has been crushed. it's down 60%. about three or four years ago, morrison signed a deal with ocado so morrison was the number four player in the market and goinged everybody was online and they cannot compete and they did not have the resources. years, ocado took them from zero to 300 million pounds of revenue. and profitable. o is a british company? >> people think they are a grocer but they are really just ask company which is an and to end a solution. from your user interface of the computer, i go online and pick out the things i want and they show up at my door within one hour. that iioned in january get better selection, better convenience and ultimately i get better freshness because the way the logistics works, once you centralize down to one hub, everything is fresher. you love jeff bezos and you think the guy is a genius. you told me as much in january. you then said that the best way to bet on the f

u.k. u. do want a strong they want and economically stable u.k.el: that is right, but you have to remember from the european side, we voted to leave. the europeans want to make sure that he don't what the week u.k., butnce a weak there is a quid pro quo there. see. be interesting to guy: michael will stick around. michael metcalfe at state street global market stays with us. the story down at downing street, it has been quite a night. it is eerily quiet. surrounding how the process of government works now. the queen's speech, a stabilization, and then maybe the knives come out in terms of who is going to be the next leader. there was an expectation that maybe we have estimate from theresa may. that has now been pushed back. we have not heard. up next, we continue the conversation surrounding what is happening in the market reaction. the market reaction, really interesting this morning. it has not been as dramatic as the referendum, but more granular and interesting. cable is trading. this is bloomberg. ♪ ♪ 15 minutes into the open. welcome back. i

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

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

the u.k. regulators scramble to get holdouts to back the health care field out of a possible vote next week. where is the tax reform? from new york city, good morning. this is "bloomberg daybreak." i am jonathan ferro alongside alix steel. county down to the opening bell. futures really do go nowhere, in the fx market is a softer tone for the dollar. the euro-dollar climbs .1%. yield higher by a single basis point, 2.16 on the 10 year. alix: sterling the best performance up by about .4%. 148 is where it was a year ago. yields up by about three basis points, the vix little bit softer. jpmorgan says you want to buy hedges against the pickup, .5% jonathan:. jonathan:jonathan: garland -- i'm going to borrow". whether you think the year has passed quickly or not depends whether you are a sterling fx trader. it's on one year since that vote. >> the british people have made a very clear decision to take a different path, and as such, i think the country requires fresh leadership to take it in this di

law and courts while living in a post that u.k. the u.k. isn't likely to agree with that since it's given more rights. citizens than u.k. ones so there's a lot to iron out the rest of may's conversation with e.u. leaders this week should be interesting considering the u.k. central bank governors recent comments during the speech on tuesday mark carney said the u.k. will be worse off after officially leaving the e.u. . we've always got a lot of numbers floating around. you know measurement if it's good bad or ugly it's really hard to confirm those numbers but obviously carney sounds very very negative why can you really just point to one measurement what's the overall picture with him while so i mean he's an economist so he's looking specifically at the numbers that he is getting from his own institution the bank of england and their estimates are all looking pretty negative they're seeing a decrease in g.d.p. they're seeing weak income growth and they mean right now it doesn't look like the u.k. will definitely get access to the single mark

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

the u.k. government is heavily criticized anger at what people call the small sums allocated for the survivors of the felt our fire in london.

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

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

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

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

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

u.k. time this morning. manus: it is voting day and the u.k. -- in the u.k..guy: good morning welcome -- and welcome. the first trade of the cash session coming up surely. i am guy johnson, i am in london. i miller is in estonia and seems to have found in an erect. this is what we are talking about. start toward the exit? beene u.k., polls have opened for 30 minutes and they close at 10:00 p.m. u.k. time and the

but it will not be a bigger outcome beyond the u.k. u.k.-europe much a story.ithrk, great to have you us, mark cudmore, macro strategist. if you want to follow all the action, you can if you are a bloomberg professional subscriber. up next, we get the view of a conservative here and former prime minister, frances moore. the u.k. decides the exit poll was inconclusive. much more. ♪ ♪ from london and viewers worldwide, bloomberg tv and bloomberg radio, breaking news. the united kingdom appears to be headed for a hung parliament after the general election called by theresa may. the conservative party will fall short of the majority, with only 314 seats, down from the 330 they had before the poll. meanwhile, jeremy corbyn's labour party will win 266, up from 229. read, andeliminary exit poll. but the market is adjusting. >> it is significantly tighter than when we started this process on april 18. there was an expectation we would see a big majority for the conservative party. the markets have been adjusting, but we have seen a big adjustment this morning when it c

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

the u.k.ant from the divorce? light from the paris air show, analysts expect fewer air shows after low fuel prices. we will speak to the test names in the industry, including the ceo of boeing. majority, he claims an extraordinary victory. what does it mean for his ability to enact reforms. we are watching a developing story in london. a ban hit a group of people thought to be muslim worshipers leaving a mosque in the north of the city, killing at least one person. mayor said the con showed this -- called this a horrific terrorist attack. guy is in paris for the error show. i know it's very hot, but so is the roster of guests you have coming up. what are you looking out for? guy: we are here for one day. we are going to speak to the ceo of boeing. plane,nnouncing a new the next 10? also have the issue of qatar and back prices impacting future sales or current sales. that's a big question we will figure out. we will speak to the ceo of qatar airways. then we will talk to airbus a little bit lat

u.k. assets -- see how big their they fared. the pound some 16% lower since the brexit votes. this is a chart tracking it. you can see the significant drop we saw on the day of the vote, sinceit hit its lowest the 1980's. if you look at the ftse 100, this is the u.k. benchmark that largely got companies that are export heavy internationally focused. the ftse 100 tends to benefit from the weaker sterling and this chart is normalized as sterling has moved lower. you have seen the ftse 100 move significantly higher in these local currency terms. it has surged some 17%. if you look at the ftse 100's sterlingce without the boost, in dollar terms, it is less impressive. it is hampering near the level -- it is hovering near the levels seen before the brexit results. actually, it is projected to end not --r at 700 500, so 700, 500. 600.e lower on the stoxx it is heading for a weekly drop, also for its first monthly decline since january. most industry groups lower, health care outperformed on the

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

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

the u.k. election race? toted emirates cuts off ties qatar over its relationship to iran. stock markets plummet. as president trump continues to watch his biggest constructive initiative, jamie dimon tells us that u.s. infrastructure is embarrassing. morning everyone, this is the work surveillance in london. this is a after the weekend of terror in london we will be live to the scene of the attack and to westminster with the latest on the investigation and a knock on effect this will have on the u.k. election. it's on thursday, june 8 that the u.k. kosovo. we will be joined by anna and nejra in just a second. but first here's first word news. >> let's get started with oil here. for countries like by saudi arabia cut diplomate ties with qatar and access to the nation started over and its support for the muslim brotherhood. rex tillerson has urged members of the gulf cooperation council to remain unified. we encourage the parties to sit down together and address these differences. if there is an

products are the u.k. and the u.k. u.k. is a close second to the u.s. and i think if the deals don't get done as we go forward, hear a lot from european companies to their government that is we have a ot at stake here in terms of export markets to the u.k. we don't to want lose those. economic there are arguments that suggest that the k. has some standing in this negotiation. david: we don't hear much about that, actually, certainly from the european side. is that because we haven't got tonight question of the tariffs and the trade yet? ght now we're dealing with european citizens in london and the price that they have to pay to get out of it. dealing with kind of the high-profile issues, but we aven't got be to the nitty-gritty economic issues. when it comes down to it, i think the issues are very, very particularly for european exporters. alix: at 9:30 eastern, theresa to lay out the rights of citizens, 3.2 million so wanted to look at the details, but the response from europe was not very positive. how did you read theresa may's interpretation of thi

u.k., brexit talks, and the macron win. first, let's quickly get onto your data. it is one thing that markets are looking at to see whether there are any tensions or not. global equities are rising and that is filtering through to europe. we saw stocks in hong kong gaining, as technology stocks are beginning after their biggest weekly selloff last week. the yen is falling. oil is down, and we see little bit of pressure on gold. more on that, but first the bloomberg first word news. nejra: theresa may is to chair an emergency meeting of the country's security response team this morning, as police are investigating a potential terrorist attack after a van plowed into pedestrians outside i a north london mosque. at least one person died and eight people were injured when a van was driven into finsbury park. a forest fire triggered by thunderstorms in the north of portugal killed more than 60 people. at least 30 people died in their vehicles, with more bodies found near cars on the side of the

u.k. half an hour. good morning. this is bloomberg "surveillance ." we have a lot to get through today. coming up in our weekly brexit show we speak with the u.k.'s shadow trade secretary. first things first. there is so much talk from hawkishness from the central bank feedings through to the markets. equity markets. now they're back up. we did see a selloff in u.s. stocks being reawakened. the quarter is drawn to a close. bonds extending some of the losses. central banks seem to shift towards a more hawkish tone. the picture for crude oil, above $45. you can see the vix, 2% higher. we will have plenty more for the market shortly but first let's get to the bloomberg first word news. andastian: donald trump -- vladimir putin will meet for the first time next week among heightened tensions between the u.s. and russia over the future of the war in syria and moscow's intervention in the u.k. and investigations into russian medley in the u.s. election. the revised travel ban is facing a new cou

u.k.rime minister theresa may is due to meet the northern ireland democratic unionists in order to prop up her own minority government. she told conservative mps she takes full responsibility for the disastrous election result which cost a parliamentary majority. she signaled she is willing to rethink her approach to brexit. euro denominated derivatives may be forced to relocate from london to the eu after brexit. a person with knowledge also said under the proposal to be rolled out today, the systemically important for the eu financial system could be required to accept direct oversight by eu authorities. in the u.s., the trump administration has laid out its plan for overhauling bank rules. the changes urged federal agencies to rewrite regulations that bankers have complained about since the passage of the dodd frank act. they include adjusting stress test, loosening some trading rules and powers of the watchdog. planning to is scale back efforts to open trade with cuba. the president's