u.k. economy. needs it.conomy we are in an economic struggle in the u.k.. exports to the u.s. are essential. anna: clearly he was asked for his opinion by the sun newspaper. is there logic to what he has to say about the ability of the u.k. to do trade deals? the future would have to be with the eu. that is not the case. therefore, there is room for conversation transatlantic. way -- the has some rest of europe, to make a deal for the brexit. reach going to probably an agreement in terms of international trade. paper, wethe white have a lot of leeway to go to achieve a swiss style agreement. probably it would take much longer and fewer months remaining. after the referendum to make the agreement. it will be probably a painful process. again, in the next month. maybe the first time about the brexit, we were talking about brexit or nothing. we are on the same kind of process regarding the negotiation on the brexit. anna: hard brexit was the leeway. as you mentioned, it is essential. on goods but not on people. it will put pressure on surfaces -- services, especially financial se

u.k. economy services making up 80% of the u.k. economy.: what we have seen as a heavy bias towards goods. we have mutual recognition or managed to virgins? those two things are playing out now. what we will see is a lot of horsetrading for the detail in the white paper. i think the white paper has been pushed back. francine: why the markets so cool about it? the pound is barely moving. >> i think one reason the market might not be moving much is because this is still step one. all of this debate and focus and what we are talking about here is what is the position in the negotiation it going to be? a negotiation has two sides. once the position is decided on, how much of it will be possible to agree on with the rest of the eu. thatthat negotiation part is the greatest sense of uncertainty and volatility. isn't moment, the market reacting much and that's understandable. we think volatility for sterling will rise. there is a wide range of possibilities. theon't think that prevents tank of england from raising rates in august. there is uncerta

u.k. economy and business grays. and be he's not what a majority of the people voted for what a majority of people want there was never a majority in parliament in the country. certainly not in business. for the sort of breaks it's even wants so the idea that oh it's all the fault of. backstabbing remainders i'm a reason that i or it's all of fault of conniving brussels bureaucrats or someone and so forth which is the sort of narrative you get from stephen and people like john said just doesn't make sense and this is not the sort of places he wants is perfectly also full but he's not what the british public want to know of the british parliament wants and it would be absolute disaster for the u.k. economy so it can't happen the question is well well it can't have if it does happen it will happen by accident on the question is how do we get through this in a way which doesn't have command some sort of majority support and i also agree with them and i've heard that you know get it treated base after a compromise. major

u.k. economy is twenty percent goods eighty percent services to so to have a deal or to have a proposal to put to the european union which had nothing to say about services eighty percent of the u.k. economy that is a problem for governments but we do see to resume a making efforts to try and preserve the u.k.'s economic relationship with its most important trading partner it is a crucial time for the for the country right now time is running out is this you willing to your m.p.'s willing to rally behind this plan now in the absence of credible alternatives but as i said we are willing as we were two years ago to sit down with her and discuss what she might be willing to offer what her position is to see whether we can provide some support i think that the that is there is a requirement on opposition parties to do that when the government of the day are in such chaos i thank you very much for sharing your thoughts of this member of parliament tom break liberal democrat party. it with the news hour live from london much more still ahead a desperate search for survivors goes on in japan wher

u.k. economy.stment stage, maybe companies listed in the u.k. -- these are multinationals. i think you should look for companies with a much more diversified business, less focused on the u.k. economy, or have a contingency plan if brexit does turn for the worse. the chief asia market strategist at j.p. morgan asset management. we will continue the conversation on brexit. we delve deeper into developments this morning, the resignation of david davis and what that means for theresa may and brexit. stay with us. ♪ >> u.k. prime minister is --resa may david davidson, two of his deputies quit saying her plan for a soft split was unworkable. they left the government two days after may secured backing with keeping closer ties with eu. our editor-in-chief has more on this story. what are the more realistic options with theresa may? >> i think her main option is to keep going with this plan, and probably to bring in somebody else. to try and replace david davis. she is stuck in one of those pockets where s

u.k. economy. construction is unlikely to be finished before 2026. >> what is actually happening is tot we are seeing this go airports like frankfurt, paris and amsterdam. hong kong published theirs in 2011. >> if you're asking me to come with this badly articulated -- it is bad value for money. this would be it. homes will go. this is the biggest forceful removal. community centers, open spaces. even our offices. >> there was some happiness. there was excitement outside of a london hospital. sixths the queen's great-grandchild. the news was avoided almost simultaneously. >> i'm sure the whole house will want to join me in sending the royal highness our warmest congratulations on the first of their sons. they congratulated peers when prince harry american meghan markle in may. i proclaim that they are husband and wife. bustling in the commons is just one of those things that happens. williamson discovered a new tactic. and surrounding areas. this is serious premonitions. >> high apologize for that.

u.k. economy and business grays. and b. it is not what a majority of the people voted for what a majority of people want there was never a majority in parliament in the country. certainly not in business. for the sort of break this even wants so the idea that oh it's all the fault of. backstabbing remainders like the reason they are it's all of fault of cannot i think brussels bureaucrats or someone and so forth which is the sort of narrative you get from stephen and people like john said just doesn't make sense if this is not the sort of break that he wants is perfectly possible but it is not what the british public want to know what the british parliament wants and it would be absolute disaster for the u.k. economy so it can't happen the question is what will well it can have if it does happen it will happen by accident the question is how do we get through this in a way which does somehow command some sort of majority support i also agree with them and i think that you know get it treated base after a compromise. that's

u.k. economy and politics. they are in a difficult spot.been criticized in terms of communication, i think as much as they can do, they are being pretty on message. jonathan: quite educated people are presenting the idea that you hike now see you can cutlet appeared is that what -- so you can cut later. is that with the bank of england is thinking here? is theyf the messages will be watching the politics unwind here, so this might be it for a while. jonathan: why hike into messy politics? , ifecause inflation numbers you are doing your job, you should be looking at that and hiking. and therepen economy, is a lot be said in terms of brexit, not only hurting manufacturing but in how the crisis follow-through. >> think that's right. expecting the one hike. i think the economic data inflation does warrant a rate rise. think they have their mandate and a job to do and they will push through. jonathan: payroll is coming up next week. a federal reserve decision and bank of japan, a lot next week. from new york, this was real yield. ♪ you said: you

u.k. economy but also the politics as well. they are in a difficult spot.hey've been criticized in terms of communication but as much as they can do they have been pretty on message with this. ,> it is a nonsensical argument the idea that you hike massie you can cut later. is that what the bank of england is thinking about here? >> i think they do. one of the messages is that they will be watching the politics unwind here. this might be of for a while. >> why hike into the messy politics? >> because the inflation numbers are if you're doing your job should be looking at those and hiking. economy andopen there are things to be said in hurting brexit not only the manufacturing but how the prices follow-through. >> that's right. hike, notecting one to keep hiking like the fed is. inflation definitely does warrant a way rate rise. they have their mandate and their job to do and i think they will push through. >> payroll is coming up next week as well. week.on deck next i wants take the opportunity to run through some rapidfire questions or he. if i can tell you

u.k. economy is a very open economy. the bank's current forecast is expecting growth in a u.k.pivot from consumer spending to trade and investment. that will surely be fined as a risk. that being said, since that interview, there's been some relatively positive news on the eu-u.s. trade front. that was something draghi mentioned last week. trade talks are being conducted within an existing multilateral framework. nejra: super thursday, the rate hike is priced in by the markets. but we look ahead to forecasts as well. the boe -- publishing new forecasts. mark carney mentions this. he says it is important to have. relatively clear messages. now they have to be accurate. should people in the country be oriented that rates are more likely to go up without not? yes, they should, because that is more likely, but not at a more rapid pace. i am already getting lost. we will also hear from the neutral rate. jill: very interesting decision. at the end of the day, we are getting you forecasts. there is a rate rise coming for not typically positive reasons. the potential growth rate of the

u.k. economy overnight and in ireland which could resume. instability in an even war in that province and so it's a total disaster no government could ever advocate that position and we know government has been running from it because they have made every concession necessary to the e.u. over the last year because they're so such so scared of a no deal story and it needs did you want to chip in there very brief answer i need for me please. i agree with jonathan that the no deal sonar is the nuclear option and it's nobody wants to have that neither the u.k. noid the e.u. nonetheless very strange things have been happening in global politics in the past two years and i wouldn't put it beyond this government to see that there could be a no deal option simply because that's a negotiations get completely log jammed because of domestic politics here at home politics on the european stage and global events with you know what donald trump is doing for example at the nato summit this week so i don't think it's impossible i don't think it's my base ca

u.k. economy to europe. asian equity futures are pointing to a positive open. the u.n.taken a beating. president trump has threatened to extend the tariffs to cover have a chilean dollars. china has said a trade war benefits no one. extend the terrace to cover $1 trillion. the first victim would be u.s. jobs and u.s. workers. i do not want that to happen. british police say one of the two people thought to be poisoned by a nerve agent has died. a woman was exposed to the chemical last week, and the man remains critically ill in hospital. the former brazilian president has been told he must stay in jail, hours after another judge said he should be free. should bee said he allowed to take part in october's presidential election, and the other saying there is no legal basis for that view. he is in jail for accepting gifts. and disney's latest marvel movie -- ticket sales of $67 million. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. yvonne: let's look at how the asian markets are shaping up with

u.k. economy that is a problem for governments.

u.k. economy growing at full capacity. whatever comes out of the eu-u.k.otiation this year, there will be future escalation between the u.k. and europe. there will be more frictions. that is a headwind to long-term potential growth. manus: more friction possibly to come. we have more to delve into. our guest stays with us. anna: this is bloomberg daybreak: europe. it is 6:30 here in london. the dollar against the yen, a little bit of movement there. the yuan is a little bit stronger. we see some money still going into havens, gold is stronger this morning. here are some of the things we're watching for today. and bond markets are closed, today is independence day. don't lose our live coverage of our boston fireworks spectacular. when :00 a.m. london time. whensed to be a time independence day would be quiet and global markets. you can't be sure these days. manus: we should save of you extra fireworks. the exports from china to the a record,tes are at no irony in that. youave a full and square -- are up very late last night. i wonder what you were doing. fi

u.k. economy is and why not brags that it can't get any worse but my point is not that i think the e.u. is great i think the is atrocious the way that they treat greece is atrocious the way the e.u. is true in the u.k. now is like they're treating the u.k. like greece did become an easy country to attack financially and profit from its demise but my point is not that the is good my point is that the e.u. had a influence on the u.k. that made the u.k. less horrible if you take the e.u. out all you're left with are now parliament the u.k. all the institutions of the u.k. unchecked by any civilised and smaller metal whatever northern ireland is going to be gone so now you've got all these predatory creepy men piers in the prime minister and all these institutions like the b.b.c. preying on children it's nothing to stop them no rules and you just attacking the population unmercifully so here are some more corporations leaving we're just going to go over some of the data just to show you state of play a lot of companies have been kind of waiting they've been doing a waiting game because you

u.k. economy and also the politics as well, and the impact the politics is having on the economy.in a difficult spot. i know been criticized in terms of communication, but i think as much as they can do, they are -- they have been pretty on message. jonathan: quite educated people have the idea that you can hike now so you can cut later. is that with the bank of england is thinking here, that they need some capacity, some space? >> i think they do. one of the messages is they will be watching the politics unwind here, so this might be it for a while. jonathan: why hike into messy politics? >> because some of the inflation numbers, if you are doing your job, you should be looking at that and you should be hiking. it is an open economy, and there is a lot be said in terms of brexit not only hurting some of the manufacturing, but in terms of how the prices follow through. >> think that's right. i think were expecting the one hike. now we have the second to keep hiking like the fed is. i think the economic data inflation definitely does warrant a rate rise. their policy is incredibly

u.k. economy and business grace. and be he's not what a majority of the people voted for what a majority of people want there was never a majority in parliament in the country. certainly not in business. for the sort of breaks it's even wants and the idea that oh it's all the fault of. backstabbing remainders i'm the reason they are it's all of fault of conniving brussels bureaucrats or someone and so forth which is the sort of narrative you get from statesman and people like john said just doesn't make sense and this is not the sort of places he wants is perfectly also full but it is not what the british public want to know of the british parliament wants and it would be absolute disaster for the u.k. economy so it can't happen the question is well well it can't have if it does happen it will happen by accident on the question is how do we get through this in a way which does somehow command some sort of majority support i also agree with them and i've heard that you know get it treated base a compromise. that's maj

u.k. economy overnight and in ireland which could resume sort of instability in an even war in that province and so it's a total disaster no government could ever advocate that position and we know government has been running from it because they have made every concession necessary to the e.u. over the last year because they're so such so scared of a no deal story and it needed to do you want to chip in there very brief answer i need for me please. i agree with jonathan that the no deal sonar is the nuclear option and it's nobody wants to have that neither the u.k. noir the e.u. nonetheless very strange things have been happening in global politics in the past two years and i wouldn't put it beyond this government to see that there could be a no deal option simply because that's a negotiations get completely log jammed because of domestic politics here at home politics on the european stage and global events with you know what donald trump is doing for example at the nato summit this week so i don't think it's impossible i don't think it's my base case scenario but the most disastrous outco

u.k. economy and business grace. and be he's not what a majority of the people voted for what a majority of people want there was never a majority in parliament in the country. certainly not in business. for the sort of break this even wants so the idea that oh it's all the fault of. backstabbing remainders i'm the reason they or it's all of fault of conniving brussels or kratz or someone and so forth which is the sort of narrative you get from stephen and people like john said just doesn't make sense and this is not the sort of place he wants is perfectly also full but it is not what the british public want to know what the british parliament wants and it would be absolute disaster for the u.k. economy so it can't happen the question is well well it can't have if it does happen it will happen by accident on the question is how do we get through this in a way which does somehow command some sort of majority support i also agree with them and i've heard that you know that tory that may have a compromise. majority supp

u.k. economy and also the politics as well, and the impact that the politics is having on the economy.ey are in a very difficult spot. i know they have been criticized in terms of communication, but i think as much as they can do, they have been pretty on message with this. jonathan: is a nonsense argument, but presented by many people, many educated people, that you can hike now so you can cut later. is that with the bank of england is thinking here, that they need some capacity, some space? jack: i think they do. one of the messages that might come out here is that they will be watching the politics unwind year and forward, so this might be it for a while. jonathan: why hike into messy politics? jack: because some of the inflation numbers are -- if you are doing your job, you should be looking at that and you should be hiking. it is an open economy, and there are a lot of things to be said in terms of brexit not only hurting some of the also in terms but of inflation for how the prices follow through. marilyn: that's right. i think were expecting the one hike. now we have the second

u.k. economy. construction is unlikely to be finished before 2026. main five of london's arguments will be closed. and what happened madam speaker is that we are seeing business leave the united kingdom and go to airports like frankfurt, amsterdam, paris that have made additional capacity provision. >> the third runway was first published in 2002. hong kong in 2011. therefore we built in five years if we are to remain internationally come petty. we agree that we should get on and build it. >> if you are asking me to come up with the most backward looking ill-thought through, calmly buttoned down by the articulated on a wing and a prayer, bad value for money, most loosely airport plan i could find this would be it. >> 4,000 homes would go. 8,000 to 10,000 people forcibly removed from the community. the biggest force is the scottish. a church -- a temple, community centers, open space and even our hospitals are threatened. >> in the mist of this, there was some happy news. m.p.'s offered their congratulations for two big royal events. >> those outside

u.k. economy eighty percent of it is based on the services industry the biggest country that they export to and twenty seventeen was the u.s. they need the u.s. the problem is what is the u.s. lead in return and that's where it gets difficult for example there's been talk about genetically modified food other issues that the u.k. that brits britons do not particularly like but i think the two reason may she needs to make this work she needs to prove to both sides in her party and to the u.k. in general they can get an agreement with the united states while still staying fairly close to the e.u. do you think she did a mission accomplished for tourism a today. i think she did the best that she could in very difficult circumstances she was undermined before he had. even left for the u.k. and that was what was very difficult she knew this was going to be hot protests on the streets had everything to keep trying out of london everything had to because croft and i think all things considered it i don't i'm not sure what else she could have done ok trump also had some strong words from germany dur

u.k. economy. >> have you made any -- [inaudible question] >> there will continue to be difficulties. we continue to talk about them. but alongside that will see if we can't be the way that we should be. it's important for participati participation. >> i recognize that with this commission. >> tonight, remarks on doctor anthony on the past year's flu season which the government says killed more children than any other non- pandemic you're on record. he spoke at the national press club. will say that at 9:00 p.m. eastern at c-span2. then testimony from jerome powell on monetary policy and the u.s. economy. he spoke before the house financial services committee. that airs tonight at 10:00 p.m. eastern on c-span2. >> "washington journal", live every day with me some policy issues that impact two. coming up on thursday morning, utah republican congressman chris stewart will discuss the fallout from president trumps meeting from the meeting with vladimir putin. then we'll talk about the meddling in the election and to the impact on the 2018 midterm elections. watch thursday morning. join t

u.k. economy that was the world but he still went ahead and gamble with the future on the prosperity of tens of millions of people without any preparation for the cunt of destruction that he warned about how could you the cabinet how could he have been so careless with the fate of so many millions of britons well i think it's important to understand the context in which the referendum arose there were and there still are many many millions of people in this country who were unhappy about the relationship with the you with our membership and they wanted to leave that become a defining topic surely with the voters it was a top issue in the conservative party there was with the voters well it became it was rising up if you remember more than anyone talking about you know use of art is you know i was very wrong to screen out and fed up with the air with my party banging on about how this was all done to clear the air in your party no it was undone to clear the air of you know to so. feeling from it in that the election look i deeply regret as somebody who can paint vigorously for remained i regr

u.k. economy, services.it fails to realize is when they talk about negotiating new agreements around the world and the freedom to do those, if you are bound by the rulebook on goods and bound by the rulebook, but you say, we can still have freedom in terms of services, if you try to export those services in the market which wants to export to use their good, and then, actually, there was a problem because there is an asymmetry. we have real issues with the way in which this deal has been put together to try and create unity n the party, and not to look at what is in the best interest of the economy in the u.k. in the future relationship with the eu. caroline: meanwhile, the lead negotiator for the eu has are to come out on the current deal, seemingly wanting access to single market, and if you want access, you have to have freedom of movement. would you be able to satisfy all? a customs union does not need to have that and that is why we have proposed a new customs union. the single market is a different mat

u.k. economy. you have the boe decision next week. you see the u.k. economy has firmed somewhat.support to sterling? true that the second quarter firm up -- we are tracking growth around 0.4% and above trend. trent is around .325%. all of this is true and gives a view to hike next week. as far as sterling goes, we just discussed brexit. i'm afraid that is the overarching theme that is driving the currency. nejra: hans, i am wondering if you agree with that. i know you said you are bullish on the euro against the dollar. for the time being it is leaning to the upside. which isis a currency hugely undervalued but is becoming weaker because of political considerations. when you take politics out of the equation, when you think you're getting into calmer waters considering the relationship with the euro, then the sterling is going to offer significant opportunity. the question is from which level are we going to start. i'm afraid at the moment we have little visibility on that side. i think for the time being euro-sterling is catching a bit and it is going up but i would say later in

the future of this country in the future of this country's economy hinges on what kind of breaks the u.k. gets well i think you think they're more responsible attitude from the prime minister and the government wouldn't you what i think is you just said this is incredibly important these negotiations for the future of the united kingdom and particularly of the for the shape of our economy ok there have been things have been agreed with the e.u. relation to the draw agreement on the amount you paid on citizens but the import of the matter is that well look i go about sequencing of the talks that are going on i'm not here to i'm not here to defend the government because i'm a backbench member of parliament and chair of the house of commons major select committee also i'm here to ask the questions well. absolutely i mean i think that do i think the conservative party is the right party to be in government absolutely of course i do all the questions about the future relationship yes of course there are other things i'd like to be seeing done differently absolutely and that's what m.p.'s are

u.k. economy is and why not brags that it can't get any worse but my point is not that i think the e.u. is great i think the atrocious the way that they treat greece is atrocious the way the e.u. is true in the u.k. now is like they're treating the u.k. like greece did become an easy country to attack financially and profit from its demise but my point is not that the is good my point is that the e.u. had a influence on the u.k. that made the u.k. less horrible if you take the e.u. out all you're left with are now parliament the u.k. all the institutions of the u.k. unchecked by any civilised and smaller macassar whatever northern ireland is going to be gone so now you've got all these predatory creepy men piers in the prime minister and all these institutions like the b.b.c. preying on children it's nothing to stop them no rules from just attacking the population unmercifully so here are some more corporations leaving which is going to go over some of the data just to show you state of play a lot of companies have been kind of waiting they've been doing a waiting game because you know

u.k. economy against which we can come forward. [indiscernible] >> this involves a lot of u.k. collaboration and jobs are at stake and security interests and the reason why we are involved in the first place. prime minister may: we will be difficulties and continue to talk to the commission about them. what we are doing along side that is looking to see if we can't -- in a way we believe should be and important for our participation and are looking at doing that, taking the project ourselves and not all potentially with others. but i recognize this. prime minister may: those proposals were looked at and decided the route we were going to take and spent some time discussing that with the europe commission and obviously and the negotiations with the europe union. it became clear that that was not negotiable. and we were looking at the customs arrangement in which with the two options and ensure we could deliver on the trade at the border and northern border with ireland. what became clear was that it necessary to evolve the mansion house position and in advance of that public mee

u.k. economy overnight and in ireland which could resume sort of instability in an even war in that province and so it's a total disaster no government could ever advocate that position and we know government has been running from it because they have made every concession necessary to the e.u. over the last year because they're so such so scared of a no deal story and it needs no did you want to chip in there very brief answer i need for me please. i agree with jonathan that the no deal sonar is the nuclear option and it's nobody wants to have that neither the u.k. noid the e.u. nonetheless very strange things have been happening in global politics in the past two years and i wouldn't put it beyond this government to see that there could be a no deal option simply because that's a negotiations get completely log jammed because of domestic politics here at home politics on the european stage and global events with you know what donald trump is doing for example at the nato summit this week so i don't think it's impossible i don't think it's my base case scenario but the most astros outcome i

u.k. economy supports a move to higher interest rates.ng increasing confidence that the first quarter softness was due to winter weather, not the economic climate. his upbeat remarks leave the door open to a hike as early as the next meeting, on august 2. u.k. prime minister theresa may is fighting a cabinet revolt. it is over her plan to tie the country close to eu trade rules after brexit. senior freezers -- senior figures meet later to compromise. her top brexit negotiator is already said to have reject did it. foreign secretary was met on thursday night and later raised their concern with downing street. china has confirmed its support for the iran nuclear deal, saying those involved have an obligation to keep it in place. speaking in a meeting in vienna, the foreign minister said the accord was an international treaty, and its collapse would hurt chances of peace in the middle east and damage the credibility of the world order. the u.s. pulled out of the deal in may. >> the deal is an international multilateral treaty. that's why all

u.k. economy, or the resignation of brexiteers? alexis: i think what has happened raises the prospect of one of the more extreme outcomes. if you think about what could deal,ut, anything run no down to brexit not happening at all, those possibilities are raised. because of the deal which is being struck, which has led to several resignations, the prospect of no deal is much more likely than it was. we are still more likely to head to a point where the u.k. has a softer version of brexit, keeping close ties to the e.u. manus: very good morning to you. interesting how on friday we had a pop in asia. here we are waiting to see what boris johnson really will do. have a look at this. this is the longer-term chart. my question to you is this. is the pound just going to tread water until we get more clarity on the resignations? alexis: i think that is right. there's been so much uncertainty. although we've now moved closer to a final deal, it remains to be seen whether the e.u. will accept what has been proposed by the u.k. there has stil