let's get back to jacob zuma.n the end, he is at the heart of this question of governance and integrity in south africa today. there is a sense that this has become personal between you and him. going all the way back to your investigation of the nkandla estate scandal — the degree to which you revealed that he had spent an awful lot of money in ways that were nothing to do with security, but, it seems, to do with personal enjoyment of his property. in the end, he had to pay back a huge amount of money, i think more than half a million us dollars worth of improvements, he had to pay back. do you think that he now regards your relationship with him as personally toxic? he hasn't said that to me. i recall that before the constitutional court decided that my powers were binding, and that there was nothing wrong with the decisions i had made, i met with him on a friday, we had a cordial relationship — or a cordial meeting with him and his son, and we discussed this matter. and he just said he was wrongly advised by la

president zuma survived an attempt to oust him. more from johannesburg. >> we have seen calls to have him ousted as president if opposition party bus now it seems mounting pressure within his own party, the ruling african national congress, for him to leave. what we do know is that the big things that are at stake is the credit rating downgrade which happened after he reached out for the cabinet quite surprisingly. it seems the mounting pressure from within the ruling party, which -- which he is leading, could seize it. >> what's going to be the next milestone that could decide president jacob zuma's fate? what's the key event? >> we know that the ruling african national congress' decision making body in the a.n.c. met over the weekend and they cited the credit ratings downgrade as a big concern and a reason for him to be stepping down as president. they will be releasing a ratings review on the country's growth prospects. we'll be keeping a close eye on that as that could be a pressure point. another key factor is that the a.n.c.

willlation that lawmaker try to out president zuma by a confidence vote.y talked about that rumor for the last few months. mexicoheck of dollar here. we have mexican central bank decisions there. aising rates by quarter of percent. joe: finally, on commodities, let's look quickly as oil and gold. both up a little bit. oil has been getting smoked the last few days. of relief there. gold taking a higher on the same bid that push treasury yields lower. we told you about in healthcare driving the index gains today. now to analyze what investors need to know about the unveiled healthcare legislation bloomberg healthcare reporter zack tracer and bloomberg coverage editor who is in washington. zack, i want to start with you. mentioned there was nothing about prescription drugs bill. it wasn't just pharma companies moving up. of the hospital stocks didn't like the house version of the bill. had a good day today. what was in the bill that investors reacted positively to? bill -- we have a bunch subbeds -- subsidies being funded. at least over the next few years. pa

matt: was losing jacob zuma as president help or hurt the case for south africa?dent now for 10 years of the agency. -- that he that that has been a very controversial presence, particularly in the last five years. within his own party there have been calls for his resignation. his alliance partners are calling for his resignation. it is not for business to call for the resignation of a one can sayt what is that the prospect of a new president of the nancy and -- of and provide an opportunity for south africa to take significant steps forward. south africa is a very strong country with a lot of potential. great to see you this morning. this is bloomberg. ♪ francine: o the pressure mounts drawingith her handling criticism. the challenges facing the prime minister just days before the breadth and negotiations begin. recalibrating inflation expectations. some of the world's biggest central banks. the bailout deal reached for greece, but it is not enough to get the img lending to them for now. good morning, everyone.

parliament can hold a no-confidence vote on jacob zuma in secret.arliament had said she did not have the power. the opposition filed a no-confidence motion -- after he fired the finance minister. that led firms to downgrade south african rand to junk. global news 24 hours a day, powered by more 2600 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. francine: thank you so much. there is a great injustice in this world. tom is about to speak to tyler about why we should all moved to tokyo. we are looking at south african rand after we had that ruling from the top court in south africa and we see it actually moving out quite a lot. it has been a little bit of a zigzag because this was a very nuanced verdict. basically the top court ruled the speaker of the parliament, which is the top measured -- member of zuma's party, she can allow whether to approve a secret vote, but is not required to do so. they thickly they are saying it could happen. if you have a secret ballot, it is more likely there is a no-confidence

if zuma is out, you can see 5% or 10%.e is the terror that it goes the other way, like zimbabwe. have azimbabwe did not strong constitution. south africa has a strong constitution. i am saying that on my own the half. if it was not for the south african constitution, zuma would have done and even worse job than he has already done, because the constitution would keep him in check. it is also the investigation pursued by the constitution of course. the huge differences they have a classic constitutional framework that supports the democracy. guy: and independent central bank. steen: absolutely. aboute need to talk plenty more. the emerging markets story is fascinating, but the u.s. and said our front and center. , what is happening in the states today. the comey countdown. we will preview the live event. a testimony, six hours and 33 minutes a day. 33 minutes away. this is bloomberg. ♪ talk.paper talk -- taper will the ecb start its march towards the exit? election day in the u.k.. the polls have been open for 90 minutes in

jacob zuma acknowledges corruption in his country's ruling party but he is critical of opposition groupsm to resign. speaking in johannesburg he said the african national congress needs to cleanse itself of negative tendencies which have crept in over the last years. president zuma admitted he was doing a good job leading the nation despite high unemployment and an economic recession. barack obama and his family arrived today in his childhood home of jakarta. the family visited ancient temples and went white water rafting. he was greeted by indonesia's president. mr. obama lived in jakarta from the ages of six years old to 10 years old. global news powered by 2700 journalists and analysts in 120 countries. this is bloomberg. what'd you miss? one of the big stories was the selloff in global bonds, central banks warned of policy in the future. they got economic data from australia and the u.s. pca. more, a huge week for the intersection of bonds and central banks. taking center stage dictating the town. -- tone. we are still looking at inflation in the u.s. and the eurozone below target as

or if they want to they could catch him very quickly but they don't and i can't tell you why as is zuma fed on the chaos and corruption in afghanistan in his rise in me a month she amassed hundreds of fighters and arsenal of weaponry and handedly defeated both the afghan army and the taliban converting his and. aimee's to his own cause and it wasn't faith that did it you know he's the richest man i know he has support from abroad in soo much money he pays his fighters will most a thousand dollars that's why so many join him for reference that's about five times more than afghan soldiers are paid attempting some refugees say corrupt afghan army troops sell as the weapons he needs them and foreign sponsors many chose to resist some did so by running away risking starvation rather than leave. tehran ical rule others resisted with our arms. is the militia leader he has organized locals into a small force to resist as azula government the us they don't help we finance also by selling our houses mines supply weapons and ammunition all the locals and the fighters we've spoken to say the same t

as if they want to they could catch him very quickly but they don't and i can't tell you why as is zuma fed on the chaos and corruption in afghanistan in his rise in mia months she amassed hundreds of fighters an arsenal of weaponry and handily defeated both the afghan army and the taliban converting his enemies to his own cause and it wasn't faith that did it you know he's the richest man i know he has support from abroad and so much money he pays his fighters almost a thousand dollars that's why so many join him for reference that's about five times more than afghan soldiers are paid attempting some refugees say corrupt afghan army troops sell as his rule of the weapons he needs them and foreign sponsors many chose to resist some did so by running away risking starvation rather than leave and. to radical rule others resisted with our arms. sure is a militia leader he has organized locals into a small force to resist as azula the government the us they don't help we finance ourselves by selling our houses and lands to buy weapons and ammunition all the locals and the fighters we've spo

reform, health and education, but much of the talk will also centre on the future of its leader, jacob zumaes supporting his deputy cyril ramaphosa. forces opposed to the islamic state group have made significant advances against strongholds in both syria and iraq. in syria, kurdish and arab troops supported by the us have the city of raqqa completely surrounded. raqqa was captured by is militants over three years ago and became its de facto capital. our correspondent gabriel gatehouse, who's north of raqqa, sent this report. the battle for raqqa is still farfrom won but already, they are looking to a future post—caliphate. here to meet local leaders in waiting, the us envoy. the american presence here has been growing, quietly. there is tremendous challenges ahead. look, the united states is committed to defeating daesh. that's why we're here. we're going to defeat daesh. and after that? and we want to make sure whatever comes after daesh is stable. and, if you look at the record to date, we have now coalition—backed operations in iraq and syria, have cleared out about 60,000 square kilome

zuma sparred with lawmakers in parliament over the country's recession and his job performance.oraced resignation from his ruling party. gathered atmourners a high school in ohio to celebrate and remember the life warmto warm beer, -- otto who, the college student was imprisoned in north korea and return home in a couple -- in a coma. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti and this is bloomberg. it is just after 5:30 p.m. in washington, 7:30 friday morning in sydney. we are joined by paul allen. he has a look at the markets for us. paul: we are looking at fairly modest gains on the asx futures. it has been a wild week on the asx. keep an eye on the big banking stocks. this is after the state of south australia announced in its budget it would be hitting the banks with a levy on liabilities, intending to raise up to three and at dollars million in four years. that is on top of the one announced by the federal government in may. they have slammed the policy as a joke. in japan, nikkei futures po

jacob zuma is staying put for now. he served raved -- he survived by some in office. is he say for the moment? >> he is certainly. he is keeping control of the country. is vote of no-confidence something that he said he never wanted to hear of again. the constitutional court is debating whether or not to allow a secret ballot on a no-confidence vote in parliament later this year. whether that will happen or not is to be seen but it does deal a blow to that move. nato and theof group of seven summit, emmanuel macron welcome vladimir putin to paris for their first one-on-one meeting. they found common ground over fighting terrorism but that is where the agreement may have ended. they traded barbs over sanctions. micron in accused -- emmanuel macron accused putin of invasion. what is their take? >> the interpretation is that put in an micron did not really managed to establish a rapport. you have to remember this is not a candidate moscow wanted. wall,favorite was france who was defeated in the first round of the presidential election. this was an attempt to build fences

south african president jacob zuma acknowledges corruption and his country's ruling party but he is sharplyriticizing opposition groups who want him to resign. speaking in johannesburg, he said the african national congress needs to cleanse itself of the quote, negative tendencies over the years. last week the president declared in parliament he was doing a good job leading the nation despite high unemployment and an economic recession. the united nations secretary-general says progress has been slow and high-level costs reunify the -- ethnically divided island of cyprus. >> all participants have declared they are here to find a solution. they have also demonstrated awareness, and the responsibility they share for a successful article. i call on the leaders and other participants in the conference to lead the call for peace for thousands of cypriots. split in 1974as when turkey invaded following a coup by supporters of the union with greece. turkey has since stationed more than 35,000 troops in the north. global news 24 hours a day, powered by more than 2700 journalists and analysts in over

arliament can hold no-confidence vote on president jacob zuma in secret. speaker of the parliament said she did not have a power to order a secret ballot. the opposition filed a no-confidence moment after he fired the finance minister which led firms to downgrade it to junk. news 24 hours a day powered by more than 2100 journalists and analysts in more than 120 countries. this is bloomberg. let's get more insight into the delicate dance. secretary ofdeputy the department of health human services under george w. bush, and is joining us now from indianapolis. .hank you does it thread the needle well enough to satisfy more it is ative elements great question and i think moderates in the republican party will be quite happy with the bill. it stacks the subsidies for individual insurance for those who most need it in terms of income. offf's the capping medicaid expansion. how do issue will be conservatives react? where is ted cruz and rand paul on this? can they get to 50? a lot here appeases the moderates. i do not see a ton in here that will be activating the

the embattled president jacob zuma is staying put for now.urvived a bit by some to remove him from office. is he safe for the moment? >> he is certainly. he is keeping control of the country. the vote of no-confidence is something that he said he never wanted to hear of again. the constitutional court is currently debating whether or not to allow a secret ballot on a no-confidence vote in parliament later this year. whether that will happen or not is certainly to be seen, but it does deal a blow to that move. >> fresh off of nato and the group of seven summit, emmanuel macron welcomed vladimir putin to paris for their first one-on-one meeting. the two leaders found common ground over fighting terrorism, but that may be where the agreement -- but that is where the agreement may have ended. they traded barbs over sanctions. the ukraine, where macron accused putin of invasion. how is this being played out in russian media? what is their take on this budding relationship? >> the interpretation is that putin and macron did not really managed to es

ruchir sharma: there is a lot of fear of what to do for zuma to try to stay in office. accounts over the last decade or so despite fears to the country. now, it is whether they will stick to that especially given that so many techno-graphs have been shut out. i think the market's hope is that somebody like the deputy president -- i think the key risk remains the longer this plays out, the worse for the country. tom: let's go into the rise and fall of nations to page 164. on radio and i am drawing a circle around the this odd word. client south africa is a ilis country. what is that? ruchir sharma: the fact that you have the country out there, it is very concentrated. a few people which control a lot of what is happening in south africa and we do not have -- institutions can push against that or do they have to do it themselves? ruchir sharma: in terms of the central bank, it is quite independent. it is something that is good in south africa. they have pretty good developed market type institutions. the financial structure has been pretty strong. over theen strong years.

. -- we know zuma is the front face and very strong section. not only about getting rid of the press. how long it will take for this wave to dominate and have the room. i think the same could be true for south africa. muchid they appreciate so over the past two months. we've seen a very nice run. it has to do with the inflation story. a bomb story.e of people decided to cap's cabinet badshow their fading the news and they continue to buy the bonds. >> it is going to be very volatile. >> on this reading up a little bit for the last 10 minutes. will refuted they last-minute meetings which we were talking about and it has been and limited by numerous resources. how difficult is it to understand who the underlying forces behind the economy are? >> it is difficult, particularly being one of the things -- i think the consistency is the leadership. it in terms look at of not a stable investment. .here's not a parallels here there is a regional challenge which seems to be a man from south africa. that appears to be shifting. >> thank you so much for jo

president jacob zuma fired him -- the old one earlier this year.mberg. tom, francine? francine: thank you so much. the fired fbi chief james comey -- the president repeatedly called for loyalty and asked what could be done to lift the cloud over his administration. is our principal russia analyst. still with us is alex friedman. let me come to you first. we are trying to figure out whether anything that president trump is actually illegal. you were telling me that it takes time to go through the documents and understand what happened. alex: obstruction of justice is quite difficult to prove. all we have seen so far is the prepared remarks from the fired fbi director. we would not expect there to be legal conclusions and he cannot release any classified information. an investigation is going to take a while to go through and will be much more relevant in getting at whether there are patterns of obstruction of justice. francine: alex, you said geopolitics are one of the biggest concerns on the market. are you expecting markets to move in any way on t