vitol ceo.thv we have a comment coming through on radio from the european commissioner, talking about how the comments we have heard from the chancellor, the tax cut he proposed is not a good initiative. what do we read into? what did you make of this pledge to get tax out? it seems like a lot, but there was a plan to get down to 17 already. >> there was. and this is all about signaling, really. he is indicating -- hold your horses, don't go anywhere, there could be good things in store down the line. occurstening to this, it to me that there may have been a secondary objective, to put a bargaining chip on the table with the eu, to say, look, we can be disruptive -- anna: if you can compete on tax. >> we can be a good neighbor or bad neighbor, and we can be a bad neighbor. manus: when we talk about haven and we talk about gilt, what i have for you is 30 year and 10 year government bonds, which are lurching ever towards new record lows in both of these markets. i'm thinking about the gilt market.

ceoill hear from the vitol ian taylor. just glad you have a job, that is what financial firms plan to say to employees, as bonuses are expected to be cut 25%. we will discuss

ceoie: and that was vitol ian taylor speaking with ryan chilcote.'s get to bloomberg's first word news at this hour. taylor riggs is in the new york newsroom. season,summer travel the transportation ministration says it is planning to use c.t. scan us to inspect carry-on bags. the process is mostly automated, and security workers will check a bag of something is suspicious. the agency says it can't cut weight -- a good cut weight times by about 30%. in france, lawmakers are urging the government to overhaul the intelligence agencies in the wake of two terrorist attacks last year. a parliamentary inquiry concluded there were multiple intelligence failures. lawmakers say overlapping agencies should be replaced with unified structure. former secretary general has had his band from football cut from 12 to 10 years on appeal. he was fired over a world cup ticketing and broadcast rights scandal, plus abuses. he was later banned by the ethics committee for several charges of misconduct. and in california, nasa's mission control celebrated as a solar powere

ceoill hear from the vitol ian taylor. mark: and just glad you have a job, that is what financial firms plan to say to employees, as bonuses are expected to be cut 25%. we will discuss this gloomy outlook. vonnie: after the strongest weekly advance since november, u.s. markets have turned negative. julie hyman has the latest from the markets desk. taking a steprs back, looking at whether last in therise was justified wake of the brexit vote. all three major averages are down. the nasdaq down nearly 1% at this point. we saw a slow deterioration in the futures overnight. if you look at the overnight session into today, we were little changed and then we did as european markets opened lower. since then we have made a couple of attempts to come back but then let's lower following them. hard to believe we are almost in earnings season again. alcoa reporting on july 11. if you look at the prospects for earnings, there are continued predictions for them to be negative. analysts are projecting a 5.4% decline in earnings or the qua