u.k. economy.t will remain a slow growth economy. >> david owens, it was a pleasure to have you on set. >> thank you >>> all right. back to corporate news state side tesla making progress towards its goal of producing 5,000 model s cars per week by the end of this month. elon musk showing off the new production line in a tweet it is the third line of the factory in fremont, california it was built in three weeks. it's rolling out the high anunced recentlyl 3s that they >>> musk congratulated the workers but says, quote, radical improvements are still needed to reach tesla's production goal. >>> sticking with tesla, another troubling story around that company which is now looking into what caused one of its model s vehicles to catch fire in california. landon dowdy back at cnbc hq with more. landon >> that's right. mary mccormick posting this video of her husband's tesla on fire it happened over the weekend her husband was forced to pull over to the side of santa monica boulevard and evacuate the ve

u.k. economy on the other side and a great fear is what happens to the financial sector in the u.k. there have been some debate about how to manage that, including where the financial controls get, brussels, the u.k.? your view is aligning with brussels makes sense. >> my view is that once we leave the european union, it will make sense from our point of view and from the remaining eu 27 point of view that we continue to have cross-border trading in financial services. london is europe's most important financial center and an asset not just for the u.k. but for the whole european union. finding a way to allow us to do that, that recognizes the legitimate concerns that the rest of the eu would have about a major financial center serving the market with outside their jurisdiction. we have to address those concerns. also, encouraging our eu partners to reduce -- resist the temptation to be crudely protectionist in the way they look at the future of financial services in europe. >> there has been a suggestion that although financial services is important, like 20% of the total economy.

u.k. economy. well i mean there's one very simple reason why we're not any closer to understanding what is going to look like which is that the british government still hasn't made up its mind and there's no immediate sign of that being solved that a big divisions within the government the longer that that goes on the more likely we're to see firmness investors begin to. implement their contingency plans they'll be planning on the basis of worst case scenarios which might even be that there's no deal we're told by the time yukio leaves the e.u. and certainly they'll be planning on the basis that there will be some disruption at the end of the transition periods so yes we are we are almost certainly beginning to enter a period where investors and businesses are adjusting to the delays in the negotiation how does this complicate business is in in the decisions that they have to make the longer this uncertainty goes on well if you are. a manufacturing business that's operating in the u.k. but it's rel

u.k. economy is on a wall it's a bit of a model culture it's only property speculation i know from starting companies in the u.k. my employees were only interested in speculating in the property market the idea of having a start up or the stock price goes up when you create a technology company was completely alien to them well you mentioned decline and was a big topic here at money comp of course we we've been speaking here for. quite a few years and now they're introducing crypto cop all of these events that have talk about money and banking there are having to introduce and being forced by between to recognize them and start talking about it and what is this so many contests of crypto conficker and this is here but this was an interesting story as well in the headlines while we've been here and this is from the c.e.o. of lazard and if you don't know who loves art are. probably the most powerful bank in the world behind the scenes they are not like you're not going to go it's not a high street bank you know i could go deposit your funds there but they are very very powerful in terms of ho

u.k. economy. well i mean there's one very simple reason why we're not any closer to understanding what is going to look like which is that the british government still hasn't made up its mind and there's no immediate sign of that being solved at a big divisions within the government the longer that that goes on the more likely we're to see firmness investors begin to. implement their contingency plans they'll be planning on the basis of worst case scenarios which might even be that there's no deal we're told by the time u.k. leaves the e.u. and certainly they'll be planning on the basis that there will be some disruption at the end of the transition periods so yes we are we are almost certainly beginning to enter a period where investors and businesses are adjusting to the delays in the negotiation how does this complicate business is in in the decisions that they have to make the longer this uncertainty goes on well if you are. a manufacturing business that's operating in the u.k. but relies on s

u.k. economy is so vulnerable it's a bit of a model culture it's only property speculation i know from starting companies in the u.k. my employees were only interested in speculating in the property market the idea of having a start up or the stock price goes up when you create a technology company was completely alien to them well you mentioned that quine and was a big topic here at money comp of course we we've been speaking here for. quite a few years and now they're introducing crypto cop all of these events that have talk about money and banking there are having to introduce and being forced by between to recognize them and start talking about it and what is this so many contests of crypto conficker and this is here but this was an interesting story as well in the headlines while we've been here and this is from the c.e.o. of lazard and if you don't know who loves art are. probably the most powerful bank in the world behind the scenes they are not like you're not going to go it's not a high street bank you know i could go deposit your funds there but they are very very powerful in terms of

u.k. economy was temporary. and now what it is seeing and thinks is it is right.t thinks it is temporary. he thinks he has seen enough and we need higher rates right now. you have still got six members of the committee who are not convinced, but over the coming weeks, the august meeting we think they will be convinced. there is more data to come and it will come out relatively strongly and prove growth is likely to rebound in the second quarter. we do think the bank, at the moment at least, is on track to lift rates in august. francine donald trump : -- vonnie donald trump : threatening the european union with an new ultimatum on trade. he says on twitter he plans to impose a 25% tariff on all cars imported from the bloc unless it removes tariffs and barriers to other u.s. goods. justng a new front or poking the bear? >> it is odd he is tweeting this now. there were reports the german ambassador was in washington to bring some kind of offer that would maybe lead to the tariffs being zeroed out eventually. that is one of the puzzle pieces. the commerce secretary in

u.k. economy. well i mean there's one very simple reason why we're not any closer to understanding what is going to look like which is that the british government still hasn't made up its mind and there's no immediate sign of that being solved at a big divisions within the government the longer that that goes on the more likely we're to see firmness investors begin to. implement their contingency plans they will be planning on the basis of worst case scenarios which might even be that there's no deal we're told by the time yukio leaves the e.u. and certainly they'll be planning on the basis that there will be some disruption at the end of the transition periods so yes we are we are almost certainly beginning to enter a period where investors and businesses are adjusting to the delays in the negotiation how does this complicate business is in in the decisions that they have to make the longer this uncertainty goes on well if you are. a manufacturing business that's operating in the u.k. but relies o

u.k. economy doing better than expected, three-month high or services. see the british pound tick higher as the boe seems to be vindicated for that selloff. that issue with the overall gdp growth was just a temporary one. julie: let's check in on bloomberg first word news. >> the u.s. has quietly asked saudi arabia and other opec members to boost oil production. the trumpinion wants anonlln barrels a day to become. u.s. gasoline prices have hit their highest levels in three years. the trump administration has publicly complained about oil prices. the present tweeted that the russian witchhunt hopes continues because jeff sessions .id not tell him leaderu.k., labour party jimmy carter will accuse promised her of failing to stand up to president trump. he wi say she is not fighting back because she wants a presidential trade deal after brexit. in italy, new prime minister giuseppe conti promised that his government will push through a populist agenda. he promised guaranteed income for the poor, tax cuts, and limits on immigration. he called for a fairer, s

u.k. economy, after big bang, became the leader in europe.big bang, in the decades preceding big bang, it was a laggard. what she did was unlock all this energy, all this potential. we saw it manifested, especially in the 1990's, and it continued right to the 21st century. jason: part of what she did was britishatization of telecom, british steel, british airways. that is history that is not too long ago that a lot of people have forgotten. >> when british telecom went public, when it became a public company, it was the proudest possession of britain, i share of british telecom. people were so proud back then to own a shared british telecom. that's how big a deal it was. that was a transformation in the way people thought. up until that point, britain had become very statist, very pessimistic about his future because none of these state-owned enterprises were doing anything that was successful. they were going to die eventually unless something else happened. and of course, big bang was the vehicle for unlocking the rebirth of british capital

u.k. economy.have theresa may winning some sort of a victory, dampening down the rebellion thus far, but the eu at the moment is a this is a holdover. how much does this remain for the -- the u.k.? the bank of england's perspective, they are a bystander in this. as the data starts to deteriorate, they will change their tone significantly. aftermath of the brexit vote as well, the economy was more resilient. it seems at the moment like we are muddling through, but that political uncertainty and cloud is not lifted, and people are now talking about march 2019. you have the transition at the end of 2020, and it is highly unlikely that it will be sorted out by then anyway. it will be there for a long time and the bank has to navigate the data as they see it. caroline: and today, the market navigates the news by pushing the pound up. that was dan hansen, joining us from bloomberg. this is bloomberg. ♪ vonnie: time for the bloomberg where we divide context and background on interest. today, opec has a be

u.k. economy. jim mattis says that he will do a lot of listening during his visit to china. today in beijing the first visit from a defense secretary in four years. he also plans to visit south korea and japan and is expected to press chinese leaders for continuing cooperation on your programs, despite tensions between the large economies from everything to trade and taiwan. of holden faced questions today on its judicial system seen as a violation of western democratic stance or -- standards. the european commission launched a rule of law procedure that could result in poland losing its eu voting rights, including giving the executive and legislative branches greater control over the judiciary, which opponents say could weaken the democratic system of checks and balances. global news, 24 hours per day, on air and on tictoc on twitter, 27 hundred journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. david: thank you, mark. canada is set to prepare steel quotas and tariffs on china and others, responding to american steel tariffs. saying that a

u.k. economy is performing. oblem is consumer confidence is being dull by the brexit negotiations and making it harder for companies to invest, which means the u.k. mark been the rated. some fund managers are sayin there may be some good opportunities out there and companies that trade internationally. they have to look at it, company by company basis rather than try to understand what is goi o in the brexit deliberations, because it is really hard to get clarity. different signs and exposures, and that all matters. in terms of the money market, guestbeen speaking to one and he's talking about the mess politics here. would you go along with that, or think that the euro with all its troubles around italy is not meyer.n the brexit grexit seems to me there is still so much to be determined and decided about what is happening with brexit that the pound could go either way. anna: we still could have that staring into the abyss moment. if prime minister may manages to come up with a really good deal, the markets will s

u.k. economy? when you look at the weaknesses, they are near each other whether you are a global economist or biof -- buyout form. paul: i think in the near term, absolutely. the weaknesses, when you have trade regulation or if you are dependent on the eu. it starts a shift and it is more about the opportunities rather than the problems, over the longer term. cause ais the exit will drop in the trend rates of u.k. tor --in the shirt short-term. but it is how the u.k. adapts and changes that will matter. do we change the immigration policy to allow more immigration from outside theshort-term. but it is how the u.k. adapts eu, for example? do we tried to liberalize and produce the regulation that has perhaps became an obstacle to rapid change in the u.k. economy? francine: could the u.k. also cut taxes? could the u.k. become ireland? paul: we have to be a little bit careful here. eu, for20 billion using a nonet brexit dividend, so havto find money for that. then, net will probably cost us to leave th

u.k. economy since the financial crisis 10 years ago?nswer is we would have had a much worse economic outcome. i think qe has worked. it has boosted economic activity and demand. obviously, linked to that is the vision to equity markets. --, if we had not had equity if we had not had qe, equity markets would not be where they are today. anna: he stays with us on the program. turkey's market continues to rally after an emergency rate hike a week ago. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ anna: this is bloomberg daybreak: europe. the dollar against the yen on the move a little bit. we have a little bit of weakness in the dollar.

u.k. economy?ems that we never make any issue, ofn this whether the united kingdom is going to be out or in, as far as the customs union. is that kind of thing holding back business spending decisions from being made? david: the bank of england did a survey where they asked business is about uncertainty related to brexit. that hasn't picked up sharply, but obviously, the surveys are pretty lacking in terms of being a bit out of date by weeks or months. what we saw recently in the data is that trade flows are beginning to roll over. this is not just trades that the u.k. does with the rest of the eu but with the rest of the world. the point here -- the bank of england was expecting that trade with the united kingdom after brexit, would slow down significantly. that did not happen, maybe because the currency adjusted. now, we are at an area where .rade flows do seem to be slowing there is much more question about fdi flows going forward. in it is having an impact.pact it is much more of a slowing down

u.k. economy. well i mean there's one very simple reason why we're not any closer to understanding what is going to look like which is that the british government still hasn't made up its mind and there's no immediate sign of that being solved at a big divisions within the government the longer that that goes on the more likely we're to see firmness investors begin to. implement their contingency plans they will be planning on the basis of worst case scenarios which might even be that there's no deal we're told by the time yuki leaves the e.u. and certainly they'll be planning on the basis that there will be some disruption at the end of the transition periods so yes we are we are almost certainly beginning to enter a period where investors and businesses are adjusting to the delays in the negotiation how does this complicate business is in in the decisions that they have to make the longer this uncertainty goes on well if you are. a manufacturing business that's operating in the u.k. but it's reli

u.k. economy billion of pounds, thousands of jobs and leave many families without a main income. is under mounting pressure to spell out britain's vision for the eu relationship. she promised the paper on her plans before the summer recess on july 24. she must reach consensus with her cabinet and party. bitcoin bounceback after dropping to a 2018 low on sunday. the biggest ritual currency has fallen as much as 5.2% to pierce the years previous low set the jury sixth. -- february 6. ony are increasing scrutiny regulators and global central bankers are raising questions about its viability. bitcoin is down 70% from its record high of $20,000 reached in december. that's your bloomberg business flash. i'm debra mao. back to you. matt: thanks very much for that. the eu remains divided on the issue of migration flows after an informal leaders summit in brussels. despite failing to reach a agreement, angela merkel said officials will continue to work towards a solution. this comes ahead of a key eu summit thursday. joining us in berlin is chad thomas. we had an informal meeting last nig

u.k. economy. trade tensions between the u.s. and china are putting several projects at risk.ment pledged almost $84 billion in shale, gas, and chemical manufacturing products after president trump's trade mission to beijing last november. the trading giant has canceled additional meetings amid escalating trade issues. staying with trade, president trump has accused harley davidson of a surrender in his budding trade war with the you. this -- e.u. this after harley davidson is said it would relocate some manufacturing overseas. and a tweet, the president said he was surprised the motorcycle maker would be the first to wave the white flag. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. alix: thank you so much. if you have natural gas wrapped in any trade tensions between the u.s. and china, they both have quite a lot to lose. north america will add 160 billion cubic meters per year, which is equal to almost all of latin america's annual output. the u.s. will ship a lot about to china. joining us now

u.k. economy? benjamin: you are looking at a company and an industry that is core to the u.k. u.k.rospace and aviation. rolls-royce is the engine maker. you have smaller suppliers which rely on the contracts. it is not just overnight. they have been talking about this three years. overnight, the statement was the harshest they have given, saying they would have to review investments in the country. it is not clear whether that would mean future investments that could be made in the u.k., the u.k. missing out on that or whether it could be removing the facilities that they have here and shipping it elsewhere. david: when it comes to auto companies, supply chain, when you are not part of a customs union, what happens with parts crossing the english channel? is there also an aviation issue here? if they pull out, it could affect overall air traffic, which would affect airbus necessarily. benjamin: you are looking at two issues here. two hugely significant ones. the initial one is whether aircraft will be allowed to fly between europe and the u.k. this is an issue that british airways,

u.k. economy and boe trying to figure if they are more associated with the u.s. model, or go slower like the ecb. alix: what do think about the ford guidance they qe will end. >> that is breaking news. to say we will stop qe when we get to one point 5%, that is very specific, saying to the market don't expect we will have anything in terms of slowing down before we get to this level. they are giving very clear guidance. it is risky. what if other conditions change, other things turn up or down? it is eye-opening to be honest. mr. carney does not necessarily follow through on promises. you will be sticking with us. to recap the boe decision. until thecontinue qe rate reaches 1.5% instead of 2%. were 6-3.ters in the which are seeing markets, the ftse negative, off .4% as sterling gets a boost. you can see 132 is the cable rate. not a huge move, but positive territory. the gilt market getting hammered. the spread in the u.s. continues to flatten. 1%.off i'm watching how much opec will raise output. output. that is the question for the crude market. david: first, how

u.k. at economy will be able to stay on the rails? u.k. civilization, in your view.t view it as a softening of brexit that more of a realism. eu, you'renot in the not subject to the requirements. the ok remains fixated with the approach -- the u.k. remains fixated with a certain approach. if you do not reach agreement and you try to purchase a car from someone and you cannot agree on the price, you walk away and things rehe same. negotiation, we will be leaving at the end of the article 50 process. is agreed to, there is a material change and i believe that trade will collapse. an agreement will ultimately be reached but under which government and in which way, i don't know that. guy: you say you are short the pound. crunchwill come across a point in the next month. how volatile is sterling going to be in the next month? and again back to the a symmetry of the story -- a symmetry of of theries -- asymmetry stories, what will this produce? when cable went over 140, it seemed they were pricing in a lot of good news and i think sterling has to weaken before get stronger

u.k. stock market is not the economy. ions are beginning to look quite interesting, because you can get a lot of great international businesses in the u.k.. i think there will be continued pressure on the u.k., brexit will be ongoing headwind. absolutely not in brussels interest to make breakfast and easy experience. it would raise the risk of eurozone constituents where there is some fragility. while britain can leave the european union, and it will be a bad experience, we can leave without causing a financial accident. but you can't say that about a eurozone constituent, i think that would be a bad thing. francine: all right, mark and lucy stay with us. africa,a look at south and we did extend the slump after reaching 13 per dollar. we have several shirts. -- charts. certainly, that is one of the stories of the day. we look at g7, we look at the fed hikes, and what that means for emerging markets. latestbecame the emerging-market central bank to deliver a surprise rate increase as the currency sank. in the meantime, let'

u.k.'s economy. this is just under one hour. terrorists. >> order. russians to the prime minister. dr.whitehead. >> first of all, mr. speaker, -- >> thank you. [shouting] mr. speaker, mr. speaker, yesterday marked one year since the attack on the park mosque. it was a cowardly attack that was intended to divide us but we will not let this happen. we've been joined today by the amount of the mosque and i'm sure members from across the house will join me in

u.k. economy, more uncertainty. but the results show that there is at least leadership and a captain at the helm. so a little bit more uncertainty , perhaps more negotiation. you might see that pickup in investment to that we need once we know what is coming through. francine: simon, the chance of a rate hike? simon: less than 50%. very little core inflation went and next export growth. boe can afford to sit tight. francine: thanks for joining us. our guests stay with us. we talk about sterling and euro pound. labour, we speak to party veteran and what it means for brexit party talks. we are seeing movements when it comes to not only pound but currencies. this is bloomberg. francine: welcome back, let's get straight to the bloomberg brexit bulletin. theresa may has fended off a rebellion from within to win a crucial vote. whether shes over should be able to take the u.k. out of the eu without a deal. dozens ofet to hand companies a pre-brexit bombshell. they say this controversial tax rate could lead to an excess of

u.k. economy is weaker than we have it in the market.f the moment that people realize what a mess it is, you will see a weaker pound. i think that will be the direction. of what news you specifically get coming out of there, it is tough to say. timing is never are strong suit. [laughter] tom: we will talk about the timing of the world cup's poll. erik: that we can talk about. tom: francine is doing better than i. coming up on bloomberg radio, the lead story, is francine lacqua vaulting off of the world cup poll? that after your monday briefing. "bloomberg daybreak" on radio. ♪ francine: this is "bloomberg surveillance." 's and francine from london and new york. crude trading to the downside after opec members pledged an increase of one million barrels a day franc,.ine lacqua. will oversee the hike. we spoke with several key players in the and on the deal. >> i believe that president trump is going against market fundamentals, against a market, against the free market. and it is not going to benefit even the consumers. the high-level pric

u.k.'s economy. this is just under one hour. terrorists. >> order. russians to the prime minister. dr. alan whitehead. >> first of all, mr. speaker, -- >> thank you. [shouting] mr. speaker, mr. speaker, yesterday marked one year since the attack on the park mosque. it was a cowardly attack that was intended to divide us but we will not let this happen. we've been joined today by the amount of the mosque and i'm sure members from across the house will join me in paying tribute to his extraordinary bravery. >> hear, hear. >> mr. speaker, friday is a second anniversary of the rival of the wind rush. it is right we recognize and honor the enormous contribution of the generation. that is why we have announced an and you'll wind rush which will keep an eye on legacy for future generations adventure we all celebrate the diversity of britain's history. mr. speaker, this morning i had meetings with ministerial colleagues and others, and in addition to my duties in this house, i shall have further such meetings later today. >> dr. alan whitehead. >> i can concur with the prime minister in her re

u.k. economy -- u.s.ely. >> i think investors are appropriately looking ahead and saying the trade discussions and issues haven't been escalated. we thought was a minor thing in march with posturing, they are real now and we've seen some companies recognize they could have problems as a result. if you start to connect the dots , you worry this could lead to lower earnings or less productivity, inefficiencies of people deal with supply chains that are now disrupted. you can see of the market is getting jittery. that's why diversification is so key. the next few you weeks will be important. what happens by july 6 will matter. tom: thank you so much. we will continue through the morning. general electric is up nicely. still finding out there. please stay with us through the morning. this is bloomberg. ♪ david: combing the waters. navarro denies reports of restrictions in the market settle down. xi says he believes in punching back at least when it comes to trade. emerging markets are caught in the crossfire.

economy. areat 9:30 a.m. u.k. time -- that is at 9:30 a.m. u.k.e. ♪ manus: it's a live shot of new york on this beautiful monday morning. politicalit more instability in europe and in spain. let's get your bloomberg business flash. sophie: bayer is planning to raise money to help purchase monsanto. this cap's nearly two years of antitrust reviews. investors will be able to buy two new shares for every share held at a price of 81 euros. this is a discount of 22%. acquiret has agreed to the code repository companthey could announce the ds soon as today. prefer to sell the company rather than going public. valued at $2 billion in 2016. unicredit is considering a europeanth another company. supposedly the idea has been developing for several months. would not bank discuss the potential merger. redit werenic unanswered. boeing's efforts to undermine sales of airbus have moved into india. a market seen as crucial for extending sales of the plane into asia. bloomberg has learned that the indian a fairly -- indian affiliates have opted for the 787. this f

u.k. politicians looking at the success of the bust most of the gibraltarian economy well as a remain are and ninety six percent of us were at the time i probably shifted my lesions to two a lever over the last two years i'm not sure if we voted again possibly leave because i now realize i think there is life outside the e.u. how the e.u. have conducted themselves in that o'shea sions doesn't make me want to be part of those those people the business model here. copes with being outside the customs union and i think we can have the confidence to trade beyond just the just the e.u. if you look at spain spain exports far more to goods and services far more to the u.k. and vice versa you know they they they need us we just need to stand up and and trust our inabilities a bit more so i think there is there is life outside the e.u. so i'm shifting and in terms of gibraltar's place in the negotiation i mean ireland is dominating negotiations the border issue in ireland. i suppose the single biggest issue in the negotiations that may be the straw that breaks the camel's back but you brought the

u.k. not going gangbusters with the economy so well to keep an eye on it as you say you know it wasn't but maybe ten days two weeks ago danielle we spoke about this said you're going to end the bond buying and they're going to maybe look at starting to increase interest rates that year and now they've sort of said wait a minute they're like the g.p.s. right there recalibrating so we'll keep an eye on it reprieve you helping us with that let's move back to the u.s. and here in the states with all the rising trade rhetoric with china and other nations in the trumpet ministration there's been some pretty ominous projections and predictions not yours i've just raised them because they're out there but recently the bond yield curve the difference between the short and longer term bonds has been touted as a potential problem and you know this may be one of these inside you know the financial system things explain to all the boom busters what the yield curve is why it matters and why some people look at it as a potential indicator of recession. well if your joke you bank you theoretically are goi

in the u.k., the economy is creating jobs at a healthy pace. added better jobs atected, 146,000, the end of april. thejobless rate is at 4.2%, lowest since 1975. it suggests the economy has some spare capacity. the debut of the world's biggest maker of electric car batteries has produced its third billionaire in two days. co. rose 10% in its second day of trading after soaring 44% on the first day. that pushed the net worth of shareholder pay passed the $1 billion mark. the founder and his top aide became billionaires monday. global news 24 hours a day on air, powered by 2700 journalists and analysts in more than 120 countries, i'm taylor riggs. this is bloomberg. tom: thank you so much. it is the far side of the world, the president leaving siorenow,d through hawaii on his way back to washington. opinion,rote in his "it is always challenging when a president returns from a foreign policy trip." i believe that is some distance from the fullerton hotel, that many of you will know in singapore. we are going to continue on here with the headlines

u.k. if britain leaves the effort u. single marke a customs union without a deal. airbus employees more than 14,000 people, contributing over $9 billion to e british economy every yearb.m.w. has said that uncertainty could damage the u.k.'s car industry. our business edito simon jack reports. reporters: the boss of airbus in the u.k. issued a stark warninover theons queens of any interruptions to their supply changes. >> we're fearful of chaos at the bders and we want the operation to operate ass smoothly possible. >> we've heard this is scare mongering. >> this is explaining the risks for our business. i'm not a politician. this is daunting reality. >> this operation in northern wales is the biggest of airbus's 25 u.k. sites. the local people will worried. >> it would be disastrous for the communities. >> it's not just air because. it's all the -- airbus. it's all the suppliers that supply>> them. airbus is nothe only major industry concerned. 27li trucks der millions of components here every day just in time and in the right order to make one car every 6 seconds. mini's owner b.m.w. says it eds clarity on future trailed and border arrangements by this summer. >> i

u.k. economy is so vulnerable it's a bit of a model culture and only property speculation i know from starting companies in the u.k. my employees were only interested in speculating in the property market the idea of having a start up or the stock price goes up when you create a technology company was completely alien to them well you mentioned that quine and was a big topic here at money com of course we we've been speaking here for. few years and now they're introducing crypto cop all of these events that have talk about money and banking there are having to introduce and being forced by between to recognize them and start talking about it and what is this so money kompas crypto compeer and this is here but this was an interesting story as well in the headlines while we've been here and this is from the c.e.o. of lazard and if you don't know who loves art are. probably the most powerful bank in the world behind the scenes they are not like you're not going to go it's not a high street bank you know i could go deposit your funds there but they are very very powerful in terms of how they can c

u.k. was the worst performing economy in europe in the first quarter.sn't just the weather, there were more issues in the united kingdom -- uncertainty about brexit hampering investments, etc.. we had a bit of a bounce in the services pmi as he saw this week, and retail sales as well. also better weather, and but you still have the fundamental problem, brexit uncertainty. 0.3, well below what we will be seeing elsewhere. nejra: the wage growth that you pointed to end the expectations of the future visit of the rate ites, is that way have seen not move very much despite the bank of england meeting? >> the bank of england made it quite clear there would like to could.ates if they citing wage inflation as a possible catalyst for this, that would keep inflation higher for longerp those were the comments from dave rims and yesterday, that if we will hit our target, we need interest rates to rise. but when you start to see jamaica sees move down a bit, unemployment rate tipping up a bit, that story -- when you move to see job vacancies down a bit, and unemplo

u.k. is germany which has also seen investment projects climbed by six percent. spain's economy is growing consumption is up unemployment falling and just as a whole is pro-business government starts to see the fruits of its labor shows over the socialists are now back at the helm but that's not facing some spanish entrepreneurs. jahvid marquez is and electrical heating supply amp and a hardened entrepreneur he's not fazed by the turbulence of breck's it nor does the change of government in madrid to worry him he hopes the new one will press ahead with labor market reforms. there are always two large groups of employees. one group is heavily protected and the other has almost no security at all. highly protected people need to lose some of that security and the others need to be given more. one of those with no protection is davidge because who lives on the outskirts of madrid he's paying close attention to how spain's political landscape is changing the law graduate sees himself as a victim of the previous government's labor reforms. that i had a full time permanent position th

you sell more things to us than to u.k., japan and china combined. our economiesorward with these tariffs is not going to just hurt canadian jobs. >> your reaction felt as if you felt jilted, as if you felt canada got like wait a minute, we have done all of these things for the united states over the years. it came across as if you felt as if canada was being taken advantage of. >> obviously we watched this president operate and worked with him over the past year. we know he prides himself with being unpredictable from year to year. one of the things i have to admit on having a lot of trouble getting around is the idea that this entire thing is coming about because the president and the administration have decided canada, canadian steel and aluminum is a national security threat to the united states. first of all, the idea that our soldiers who have fought and died together it in the mountains of afghanistan and stood shoulder to shoulder some how this is insulting to them. the idea that the canadian steel that's in military vehicles in the united states, the cana

economies to collapse. francine: opec collision course. iran rejects a potential compromise, putting the group on track for a clash at friday's meeting. and may stands for, the u.k. p.m. stands firm ahead of a crucial vote. ♪ good morning, welcome to "bloomberg surveillance." these are your markets. we're seeing a bit of edging sideways. we had a few earnings coming out, some guidance to look at.

decent relationship with europe is going to be, maybe not armageddon for the u.k., but a very, very serious blow to an economyo the bottom of the g7 in terms of productivity growth. so i have -- as much as i care about the u.k., i just basically ignore the week to week stuff, because clearlis government is not willing to make up its mind, and clearly the leadership of the labour party is unwilling to confront the realities, either. the eu keeps saying, here are your options, pick one, and as a number of people have pointed out, the real issue is northern ireland. they have no solution for that. >> dr. posen, you are one of the experts on germany, and to that extent the core of europe. they talk about the musical chairs of europe. what does that mean, the musical chairs of the eu? >> well, that's getting thrown up in the air, because of the italians. basically, my colleague is talking about when you are dealing with these top level jobs, the top couple jobs of the ecb, which will be coming open in the next year, the head of the european investment bank, the head of the banking supervisor, the changes that are