a tie between taylor riggs and nejra cehic. nejra: we saw the european markets close just about half an hour ago. let's see where they ended the day on the stoxx 600. lower biome as 2/10 of 1%. losses pretty much across the board. the dax and in lower. second day of decline for european stocks. this is bloomberg. ♪ >> it is noon in new york, 5:00 p.m. in london and midnight in hong kong. welcome to bloomberg markets. vonnie: from bloomberg's world headquarters in new york, here are the top stories on the bloomberg and around the world that we are following. >> hoover's next direction. they look for a new leader after forcing goobers founder travis kalanick to resign. a saudi shakeup. theking named his son as ruler next in line. we look at what this means for the kingdom's future. anxiety after a bear market. we are halfway into the trading day and abigail doolittle joins us now with the latest, mostly it is about oil. be getting very moment. now we have a divergence. abigail: we have the dow trading slightly lower. the nasdaq

nejra: i am nejra cehic in london. in the house of lords earlier today, outlined the prime minister agenda. he took about the goal for his exit in the eu -- eu. >> the priority is to -- a secure the best as the company leaves the european union. administrations, business and others, to build the widest on thee consensus country's future outside the european union. >> anna edwards joins us from westminster now. great to see you. we heard a little bit from queen elizabeth ii there. but he you make of the comments on brexit? -- what do you make of the comments on brexit? >> thank you. the commitment we heard there from the government, they must have confidence. let's get some analysis now. i'm joined by sam from the smith institute here with me. overlooking westminster. very good to see you today. what do you make of the comments? leaving the union to put that kind of trade policy in the queen posse's speech today? >> they have said again and again they will not leave the union. the manifested to the northern iron -- irel

. >> in london, i am nejra cehic. let's check oil trading. >> we got oil prices tumbling this morning along with other commodities. that is the big move we are seeing in markets today as nymex crude falls below $33 a barrel now. not quite at low for the session, but indeed, tumbling to its lowest. the lowest since the u.s. elections. gasoline is also lower. upper futures are taking a hit. a relatively broad selloff within commodities. we have an uptick in libyan production. that pumping the most prudent for years. that is putting pressure on oil as is the build we saw last week in gasoline and crude oil. here in the united states. over to stocks, we see declines there as well. relatively modest ones for the dow and the s&p and the nasdaq, falling a third and a quarter of a percent respectively. they closed at records yesterday. if you look at the groups on the move, energy is responsible for the declines in the s&p 500. down but00 group is telecom and material stocks are also falling. only health care and utilities ar

this is bloomberg. ♪ nejra: live from london and new york, i am nejra cehic. vonnie: and i am vonnie quinn. turning over to energy and oil again thiss moved week, june not turning out to be the best month for commodities. a barrel costing something like $43 right now. for more, let's bring in a chief economist. the international energy company rolls out with a new report on the future of global energy markets. eirik, welcome. as chief economist of an oil how do you differ from a regular economist, if i can call it that? eirik: we have a look at the same areas, oil and gas is determined. globally. it in an oil and gas company, we have to be concerned both about the short-term and the really long-term. better he also have rejections and better data to work from. eirik: to some extent, yes, because we have our own data. but everybody has to struggle with global data, and then we rely on international instances. vonnie: i imagine it is a little bit like running a campaign, having polling data and an outside data. talk about this year for the report and how it diff

it >> and in london, i am nejra cehic. it is time for the bloomberg business flash, look at some of the biggest news stories right now. toshiba.lems for shares have been demoted for the second section of the tokyo stock exchange. toshiba asked for an extension to submit its earnings report. slippede, shareholders into negative territory. toshiba has been rocked by multibillion-dollar lawsuits. they are selling off its memory chip business to make cash. tesla ones music to go along with its collector cars. they are in talks with record labels about starting its own music streaming service. the carmaker also -- the carmaker already offers spotify. the biggest ponzi scheme in u.s. history says his problem was that he always wanted to please everybody. bernie madoff was questioned in april as part of a lawsuit involving his investors. he also said he is not proud of what he did. madoff received a 150 prison year sentence for his crime. the head of german rocket head says his company is a force in investments. berline to bloomb

vonnie: nejra cehic, thank you for that. this andn to the mark how they are digesting this news . if we do not have enough, investors are taking the election results in strides what all of the indices in the u.s. at a high. the fed and the bank of england and bank of japan as swiss national bank will all meet. a strategist joins us. digested itrket has without being royals in any way, can anything ruin it? >> next week will shift it's a central market policy and how much we might have in the next 12 to 18 month. the key when is the fed not just whether they raise interest rates for what they do to the balance sheet. that is one of the key elephants in the room. how they are going to be drawing the balance sheets down? vonnie: do you think there will be an actual discussion? don't think it will be a battle plan drawn out right away but maybe more hits about what they will do to the balance sheet. fedave had comments from officials but i do not think we will get a clear outline until later. vonnie: we have a broad outline or signals, but if we got something even more detailed, would

nejra: i'm nejra cehic in london. let's see how investors are digesting the news with a look at the markets here's julia chatterley. julie. julie: thanks so much, nejra. we are watching some of the hospital stocks in particular here. this is an index of health care facilities and hospitals. the h.c.a., excuse me, not the some .a., lifepoint and of the various health care chains and some of them with exposure to geographically areas that have a lot of medicaid patients. if those patients had lost their coverage, that would then put the onus on the hospitals. because if someone comes through the door and needs coverage, the hospitals ethically are required to cover them. and so these are seeing a spike here as this latest version of the bill on the senate side does show perhaps a slower winddown of medicaid expansion. so you see here this group is up by 2.8% and many of the vivid components also spiked

nejra cehic. anna is with me throughout the show, live at westminster. our guest host is the chief managing director. welcome to the show. it is one of those tough days, where we try to do our best of bloomberg to take what is a horrible terror incident, put the political context around it. will terror trump the strong and stable mantra, the brexit debate, in these final three days of pulling into the election? this is the chart i showed you at the start of the show, after the tragedy in manchester, it certainly did nothing to boost theresa may and the conservative's bid in terms of the polls. >> well, you're absolutely right. the mood is somber today, but london is a great city, it's an open city, it's a resilient city. coming in this morning, people sharing stories about where they were, and there is a sense we are all shouldering this burden together. this time around, there may be different reactions to previous terror events, simply because the normal chain reaction in a risk off mood followed by time,ization -- this complicated by the fact that w''

nejra: from london, i am nejra cehic. mastec stockholm will set a record tomorrow as five companies will be lifted in a single day setting a new record for europe. we are joined from stockholm. you on the to have program. is sweden'sk, why ipo market so red hot right now is t? adam: have a strong equity culture, government culture in terms of the country being well prepared. we have a strong ecosystem supporting the companies. these are companies leveraging the capital markets and benefits of raising capital through the exchange. the momentum we have seen 2012 -- the momentum we have seen since 2012 has been tremendous. nejra: you talk about a culmination. any that mean there is bubble territory and we could see risks ahead? adam: i don't see that. we have many parameters playing into the equity markets with low interest rates and volatility. well, and weform see a strong appetite for investors, a strong appetite from companies to access the market. from that perspective it is not a culmination. from this perspective, we

let's get to the business flash with nejra cehic. nejra: alibaba has predicted 49% revenue growth this year compared to an analyst projection of 35%. investorhina's largest -- invest in online media. air may -- ariba's may be thrown a lifeline. talkses is said to be in to buy more planes as airbus cuts production. $8.7rder could be worth billion before discounts, although people familiar say the carrier hasn't decided how many planes it wants. we's investors will buy more than 99% of the rights offer raising the turnaround plan. this is the second issue since the ceo took over two years ago. funds raised will complete his business overhaul and expand in wealth management. partedl, credit suisse with its lucrative swiss operation. that is the business flash. francine: you are looking at pictures of theresa may, who is about to go and vote. her constituents -- constituency. polls are closed and these are the rules by electoral law in the u.k. atcan say the polls opened 10:00 this morning london time and will close at 10:00 p.m.. 10:00

vonnie: nejra cehic, thank you. looks to be like nice weather. let's check in on the first word news with courtney donohoe. >> the director of national intelligence declined to say whether president trump pressured him on the russian investigation. dan coats testifying right now on capitol hill. that thessociates president asked him to intervene with the james comey. the president wanted comey to back off of its focus on former national security adviser michael flynn in the russia probe. president trump has fit -- picked a formal program -- federal prosecutor to replace james comey. he said he will nominate christopher a. wray, who ran the criminal division department under president bush. a man ofls wray impeccable credentials. in iran, suicide bombers attacked two locations. two people were killed and more than 40 wounded. attackers first assaulted the iranian parliament. that began a siege that lasted four hours. authorities say one of them blew himself up. meanwhile, a suicide bomber triggered an explosion at the shrine of ayatollah khomeini.

mark: nejra cehic in london -- in luxembourg. 10:56 in new york. coming up with the european close and we are 30 minutes away from the end of the friday session area this is bloomberg. ♪ vonnie: breaking news, amazon is buying whole foods and retailers are showing reaction around the world, including europe. oppenheimer saying there may be competing better, this is the european close on "bloomberg markets." on vonnie quinn. mark: i am mark barton. trading lower, pulled lower by consumer staple stocks. i should also mention of the top of the last hour we got the university of michigan consumer confidence, which should show the biggest drop in sentiment since october. that is in the nikkei in mind as we look at a big consumer deal this morning. as one he mentioned, the folks at oppenheimer are saying another bidder could emerge for whole foods, but if you look at how the stock is trading at how amazon is trading at, it doesn't seem the market is really pricing in that possibility. the stake a look at shares here. because we have whole foods trading

for that, nejra cehic. nejra: u.k. homebuilder beltway hitting its highest in almost a month. robust marketut conditions, the housing market remains positive, they see full-year housing completions growth at 10%. that reacting positively. on the downside, euronext. this is about b.n.p. paribas selling a 3% stake, worth about -- the two frank banks are selling these shares to institutional investors in an accelerated book telling, they find a new shareholder agreement . a group of about eight shareholders retaining a 24% stake in this new pack. euronext down 2.3%. finally, gkn, this company produces automotive components and aerospace vehicles. this is about an analyst regrading. we have seen a downgrading of gkn from a cell to a halt. a is lower by 1.5%. is between aney rock and a hard place. the bank of england's governor is not seeing inflation accelerating faster than anticipated with the latest figure 2.9% yesterday. a four year high. new minority government and plenty of uncertainty around brexit. more data today. unlikely to be keeping pace with the headline inflation ra

let's get over to nejra cehic for this top stories on stocks. nejra: we are starting with a record high. the drugmaker announcing a share buyback, proposing it will spend as much as $6.7 billion on that. we saw the stocks up by double digits, rising the most since 2006, up 8.3%, hitting a record high. popular rebounding today. we saw the stock up as much as 16%. this is over doubts of its rescue options. concern over whether us -- over whether this wonder will rescue itself. yesterday, we saw the shares extend a five-day palling street , rebounding today. not clear with the impetus is, but banks performing well following what was happening in the u.s. session as well. popular up 4.5%. also, white bread dropping. matt: you have to wonder how many of those banco popular investors are punters, because it is a three sent gain. nejra: if you look at the losses yesterday, no clear impetus. maybe some people seeing the opportunity after those five days of losses. that could be why we see those gains today. matt: thanks for that. i want to bring our vie

think story much, nejra cehic with the market movers. a major poll shows president acron on track to win crushing majority in the two-round national assembly election this sunday. if the projection is correct, he will be more likely to pass reforms into law. >> i am joined. billion -- euro cap company, providing services, good morning.ces, macron is onel month into his presidency. he said your activity in france do week in the first half, you expect a rebound fueled by services and new economic policies? >> i hope so, of course. france is a very important market for said xo. -- said xo. -- sodexo. the biggest problem in france is its unemployment. the focus on labor reform is very appropriate. i hope this labor reform will happen and will encourage investors from all over the world, but also france investors. you have job creators in france wanting to continue to hire people to tackle this enormous problem of unemployment. >> we have seen polls showing emmanuel macron is on track to get a large majority in parliament, do you think this i

let us go to nejra cehic for a look at the individual stock movers. quite a bit matt, going on below the surface of interesting stock soars to look at your picture fact rising the most since september 2016 -- to look at. rising the most since september 2016. there seeing it as one of best performers on the stoxx 600, up 6.2% at the moment. i'm looking at euler hermes , with a third of the global market. already controls this company. according to people familiar with the matter, allianz is exploring a plan to buy the shares it does not already own and take euler hermes private. it hit the highest since june 2015 at one point in the session. it is up 1.9% at the moment. they have not commented on what the people familiar have been saying. the stock moving nonetheless. auto trader down almost 4.2%. one of the worst performers on the stock exits full-year revenue was a beat. adjusted profit was also a beat. it is confident of delivering growth in the coming years, but the market has seen something negative in these numbers. auto trader says it sees 2018

nejra: i'm nejra cehic in london. let's see how investors are digesting the news with a look at the markets here's julia chatterley. julie. julie: thanks so much, nejra. we are watching some of the hospital stocks in particular here. this is an index of health care facilities and hospitals. the h.c.a., excuse me, not the some .a., lifepoint and of the various health care chains and some of them with exposure to geographically areas that have a lot of medicaid patients. if those patients had lost their coverage, that would then put the onus on the hospitals. because if someone comes through the door and needs coverage, the hospitals ethically are required to cover them. and so these are seeing a spike here as this latest version of the bill on the senate side does show perhaps a slower winddown of medicaid expansion. so you see here this group is up by 2.8% and many of the vivid components also spiked on this latest version of the bill. the other group that we are seeing have the biggest reaction is perhaps the medicai

nejra cehic, from just south of london bridge. as i drove across waterloo bridge this morning, they have already erected barriers on one side of the bridge, and i suspect you may see that on other bridges. we are already talking about it. let's talk about the market reaction. mark cudmore joins us for more. mark, the financial markets have become desensitized to attacks such as this, but the proximity of the general election does raise an extra issues surrounding this. , thewas to watch one thing foreign exchange market for instance, what should i be paying attention to? >> that's a great question, actually. as you said, markets have finally become desensitized these horrific events, but it really depends on how it will slide in the election. people are struggling to work out that battle. it really depends on the day today. there are other data points coming out, other things driving the markets. but i think in today, euro-sterling may be the most interesting to watch. dollar has a lot of other dominant factors after the nonfarm p

here's nejra cehic. nejra: the pound has been buffeted by conflicting projections over the general election result. sterling dropped to a more than five-week low after a study they stone a new model showed theresa may's conservatives may fall short of a majority. that came in contrast from a few weeks ago when a comfortable victory was a foregone conclusion. rival party leaders attacked theresa may's decision to skip a debate on wednesday saying it proved she's unfit to lead britain. the prime minister was replaced by the home secretary. may decided not to take part even after labor party leader jeremy corbyn's last-minute decision that he would appear. the u.k. slumped to the bottom of the economic growth table of advanced economies for the first quarter after canada registered strong gdp data. it was the final g7 member to report growth figures which confirmed the u.k. is the joint worst-performing member so far this year along with italy. global news 24 hours a day powered by more than 2600 journalist

. ♪ ♪ nejra: live from london, i am nejra cehic, with the european close minutes away. vonnie: and do in new york, i am vonnie quinn. erik schatzker sat down with bruce berkowitz. toce: it does not make sense me, but i am not a gross investor, not a visionary. i am the guy looking to buy a dollar for $.50. if i am wrong, i will get my $.50 back. if i am right, i will do better than the dollar over time. erik: you are underperforming, but you are hardly alone. why do you think it is so difficult for active managers to beat their benchmarks? bruce: the big problem is when you are it an investor in public security, people have to agree with you. in other words, i can be right, but until others agreed i am right, i will look very wrong. what it takes for me to be right is for a the companies i invest in to fix the problems that are fixable. erik: but you are a values investor. there are lots of other active managers who are not values investors, but they are underperforming as well. it is like a disease. why.: i do not know i do not pay a lot of attention to other people. -

nejra cehic is live. thereuld be fair to say is not much appetite in the conservative party to have another leadership election, thereby probably there is not much appetite to go to the public to have another general election, which leads to the conclusion that the prime minister is safe in her job, at least for now. nejra: yes, i think it is fair to say that. of course, there is the question of whether she is working with borrowed time. i am keeping a close eye on this door, because the prime minister has been holding her cabinet meeting. leading members of that cabinet have come out in sean support of her, including boris johnson and -- cabinet have come out in strong support of her, including boris johnson and david davis. theresa may is due to meet with the 19 22 committee, the rank and file members of the tory party. it is here that some say she may face opposition, some anger over the rather disastrous election campaign, which led to conservatives losing their majority in parliament friday. the chai

. ♪ nejra: i'm nejra cehic in london. tom keene in new york. here's jessica summers. >> top corporate executives are pushing president trump to keep pariss. in the landmark climate change record. he announces his decision today at 3:00 p.m. he is leaning toward walking away from the deal. among those appealing the u.s. to stay on board, apple, elon musk. central bank can raise interest rates four times this year if the economy gets sterner. he says the next big step for the fed will be to reduce the size of its balance sheet. that's likely to happen later this year. security and terrorism continues to be a big issue for world leaders at a time of changing dynamics. hadralia's prime minister this to say on intelligence cooperation and the global terror threat. >> asia the americas australia. the sharing of intelligence not just between the five eyes but between all nations committed is more important than ever. >> global news .4 hours a day powered by more than 2600 journalists and analysts in more countries. tom: it is st. petersburg. not flori

nejra cehic reporting from westminster ahead of the election tomorrow. we have a guest here, the u.k. election pairing with the ecb decision, comey's testimony. our next guest says it is just another day. joining us is the head of .nvestment strategy serge houles, thank you for being with us. these are various scenarios painted by deutsche bank. labor wins, hung parliament, conservatives win. paint the scenario of what it means for the bond market. serge: from our perspective, we are short on all the bonds that we trade. on strategy is built underlying fundamental drivers, so we don't have any target price for the bond market. even though you have all of these concerns about brexit, hard brexit, soft brexit, we are seeing the u.k. economy is still going strong. inflation pressures are still there. hence, this is a short view on theserformance because of underlying fundamentals. pound, areabout the you betting on the pound relative to other currencies? we are not betting but we have a position. we are long on the pound actually. about 10%. we were short l

guy: i want to go to nejra, nejra cehic. nejra: i want to start with one of the biggest movers on the company0 -- this is a that saw quite a few challenges post-brexit in terms of the stock and profit, leaving the ceo to step down. analyses a turn to sustainable profit growth and that seems to be what is moving it. it says it is on track to conclude in the second half with year to date trading performance in line with forecast. it has risen as much as 15.3%, the most since 2002, and hit its highest since october, 2016. i am also looking at petrofac, witht a training contract the contract valued at over $25 million usd. i am looking at one of the biggest decliners also providing the biggest drag on the ftse 100. eye and ithe london also has attractions in berlin, it hasl, and munich -- been talking about the recent terror attacks in the u k, saying it has seen a deterioration since that softer domestic trade and that it was broadly in line with views but is cautious on trends in overseas tourism. drop in iscould already 3% do

here's nejra cehic. nejra: we are looking at live pictures in the u.k. london's fire commissioner says there have been a number of fatalities after a huge blaze engulfed a tower. the ambulance service has said that more than 50 people have been taken to hospitals. the fire started around 1:00 and time at grenfell tower was attended by 200 firefighters. u.k. prime minister theresa may is under pressure to abandon her plan for a hard brexit as she tries to stitch together a deal with northern islands democratic unionist party. yesterday, french president emmanuel macron and german finance minister wolfgang schaeuble both said it wasn't too late for britain to change its mind. in the u.s., the federal open market committee is expected to announce an interest rate increase later today at the conclusion of its meeting. it will probably acknowledge recent inflation declines while sticking to previous guidance for another hike before the end of this year and a first step toward unwinding the central bank's balance sheet. we will bring you that announcement at 7

for that, we go to nejra cehic. nejra: my first stop moving on potential m&a move. it is really extending gains, up .3% -- up 30% at the open. a person has said softbank has entered into talks are a possible deal with in my set -- inmarsat, one of the best performance on the stoxx 600. and i am looking at barclays. we heard yesterday that barclays will sell 100s -- 187 shares. the africa stake sale has been approved by south african authorities. the point of it is to boost capital, so we are seeing barclays move a little higher in today's session. finally, i am looking at bingo popular.- banco bank'se considering the sale for 55 cents per share, below the initial target, by the way, of 1.2 euros per share, set executives,ar according to the reports. they are selling a stake for 65 million euros. the sale impact is not material for capital or earnings, probably why we have not seen a lift on the back of that specific news. this bank has been struggling. if you want to know more about it, there is a great summary about the implications for spanish banking. matt: thank

let us cross over to nejra cehic, and get some mid-caps movers on the day. nejra: starting with a design and engineering company gaining one of the best performers on xx 600. it beat estimates. the company said the new financial year has started in line with forecasts, so that was on the upside. aoking at rereading fear, group cut to neutral from outperform at may 1. we are seeing it lower on that lyle3.5%, and tate and also moving lower, down 2.5%. theresa may said she would be willing to tear up human rights legislation in the battle against terrorists. speaking to supporters at eight campaign event outside london, -- at a campaign event outside london, she says she wants to make it easier to limit the freedoms of individuals who pose a threat but cannot be prosecuted in court. the legislation changed during the conservative liv government. last day of campaigning, what ?an w anna humanshe would rip up the rights clause to defeat terrorists. much arity is very dominant theme. brexit increasingly also a theme. we have seen the two leading parties trying to

i am nejra cehic. francine: the ruler of kuwait will travel to saudi arabia to mediate an end to the diplomatic crisis in qatar. qatar airways has suspended all flights to the uae. the white house says president trump wants talks with all parties to resolve the dispute. >> the president is committed to having conversations with all the people involved in that process. we want to continue to de- escalate that. at this point, we are continuing to work with each of those partners. francine: plummeting the most since 2009. for the latest on the diplomatic span, bloomberg's middle east anchor joins us from dubai. what is the latest on the political front? there seems to be a lot of will to resolve the situation, but what is the likelihood of that happening? >> a lot of commentary,what is e political francine. the united states has answered through central command in qatar. you saw some of those developments firsthand. ultimately, if you look at the u.s. track record of patching up relationships in the middl

i'm nejra cehic. this is bloomberg. this is what we are looking at. we have breaking news out of china. we have this very nice bloomberg scoop saying that because the yuan was stabilizing, china was possibly ready to purchase more treasuries. we have the total end of may foreign-exchange reserves and they are coming in line w ith what analysts expected. and they have risen some $24 billion from the end of may. but nothing huge there. the bigger story when it comes to china was that bloomberg scoop saying that because we understand the chinese of 30's think the yuan is stabilizing, they might be ready to purchase more treasuries. thisd trump is in talks morning and we await the highly anticipated testimony from james comey tomorrow. comey will stop short of saying if he thinks the president sought to instruct a federal probe. meanwhile, jeff sessions is said to have suggested in the last several weeks that he might resign amid risks with donald trump. the white house would not say whether donald trump retained confidence in sessions. for more on this,

., let's turn to nejra cehic in westminster. nejra the prime, minister trying to get it back on course, to focus on her strength. the brexit agenda, the front page of the newspaper is just somewhere else. is the election somewhere else as well? nejra: well, it's interesting. you can look at it in two ways. you can look at it as cod confie on the part of the conservatives, going for the labor hartline's, which voted in the brexit referendum. that you can also say this is a position of weakness in the sense that theresa may and the conservative government are coming under fire and questions in terms of cuts to the police that happened while she was home secretary during 2010-2016. perhaps this is a sign of her government trying to turn the attention away from that in the wake of that terror attacks that happened on saturday night, more toward brexit. that seems to be what she is doing in sending boris johnson to the northeast, where you would expect her to say that only make can get brexit right. as we have heard, the labor campai

speaking in an exclusive interview with bloomberg's nejra cehic, he said he needs to study recommendations that suggest altering the reserve bank's multi-focus less on inflation and more on societal need. i am still studying the report to understand the full of the remedial action being proposed, the context in which it arises, and therefore, what the intended proposal of the constitutional amendment is. if used to be a conundrum in these regards. the context in which it arises is not quite clear to me. proposal of the amendment is not quite clear given the issues that were being investigated. thirdly, the procedure of affecting this remedial action leaves some gaps because the bank is the mandate of the national treasurer, yet the proposal is being made to the portfolio committee of justice, and not to the minister of finance, which means that we need to resolve these issues. now, having said that, i need to understand all of this and make a determination on what is the best way for the constitutional court in south africa. unless reviewed by a court of law, which means that if we must re

francine: thank you so much, nejra cehic. let's get back to my gamy, a portfolio manager -- mike amy, portfolio manager from pimco. when we are talking with gina, you seemed to suggest it is unlikely that theresa may are -- theresa may can stay on as prime minister. are we going to see volatility on currencies and on gilt when and if she steps down? >> i think we are going to see volatility one way or another because given the outcome and the uncertainty about negotiations as far as how brexit negotiations will proceed, and the endgame will remain very elevated. from that perspective i still think we are going to see a pricing in of high risk premium, in the gilt market as well as sterling. tom: our morning must-read, there is a lot out in the literature today. from bloomberg view, therese raphael, assuming the prime minister achieves a new trade deal with the european union and a smooth exit in 2019, bloomberg intelligence's forecast is the u.k. economy will still be 2% smaller than had it remained in the e.u. may simply fou

and anna edwards and nejra cehic on-site as the conservatives figure out their passport. later today with david gura on "bloomberg surveillance" on bloomberg radio, we are talking about the tax degree of the republican party. this is bloomberg. ♪ ♪ tom: good morning. "bloomberg surveillance from franco, germany and new york. francine lacqua talking to benoit coeure right now. we will get that to you in a bit. let's get to the morning must-read. the smartest thing i read about one path in britain. mrs. may is a remainer who tries too hard to compensate. pritchard goes on to say -- sharyn o'halloran is with columbia university, and james bevan knows about the norwegian solution in london. james, it is absolutely fascinating to me where the united kingdom would set up like norway. is that feasible, is ambrose right? james: the real challenge is getting agreement within two years. of course, britain can recommend a route forward. to walk away is to inevitably retreat from the wto arrangement does not give real free trade in the way that we enjoy free trade with europe at

now isn: joining me nejra cehic from london bridge and andna. what have we heard from the opposition party and how does this set us up in three days time? >> we heard from theresa may. shetalked about extremism, talked about terrorism. she quickly moved on to trying to get back to some of the campaign themes we heard about before the manchester attack. in that sense you can draw a line between what she said and what jeremy corbyn said. he also wants to return to some of those themes. she was talking about strong and stable leadership. the contrast between her style of leadership and jeremy corbyn. he talked about governing for the many and not the few. acknowledged what happened in london on saturday night, pausing to think about those who lost their lives. jonathan: the situation on the ,round in london bridge stunning reaction from the police and security force, neutralizing the threat in just eight minutes. what's the latest on the investigation? earlier,a may spoke having her second cobra meeting. she said 11 additional people are being deta

does the bank nejra cehic and simon kennedy. a year ago, did you think this? they said it was either brexit or not. davidagmatic brexit for -- pragmatic brexit. the european side, saying let's do it. now, mid-june -- >> no progress. >> david cameron made a semi-it would happen and negotiations with -- made it seem like it would happen. i what to bring in jim bianco and michael hanson. what have we learned about brexit? jim bianco: we don't know what to do next. it has been such a difficult process that has taken a year to process. financial markets has largely taken it in stride. yes, the pound is down over the last year but sonata's crossed off it as one would have predicted. -- but not as catastrophic as one would have rejected. -- one would have predicted. david: what is going on with the european economy? >> you have seen a boost from the weak payout, but it is near-term -- you have seen a boost from the weak pound, but it is near-term. it is an and inflationary shock. a little bit of concern about that. david: if you're worried about the eu economy, at wh

. >> live from london, i'm nejra cehic. welcome to bloomberg market. ♪ >> here of the top stories we are coloring -- covering from the bloomberg and around the world. senate republicans are set to toeil their legislation replace the affordable care act. we take a look at the key differences between the legislations. american airlines is getting a big investment from one of its big investors. how will this impact the ongoing bad blood between u.s. and gulf carriers? and there are reports that some trump administration officials do not want janet yellen to get a second term as fed chair. will any uncertainty affect fed policymaking? and what do markets exactly want aheadhe chair? that's all plus more, we are 30 minutes into the trading day in the u.s..

tom: that was -- francine: that was nejra cehic with the south african finance minister malusi gigaba. tom keene and i will be talking to andrew sentance about brexit. i know tom is extremely excited about the queen's speech. today,the big story global stocks retreating, the yen is retreating. supply -- we are looking at shanghai after it got included in the msci index. this is bloomberg. ♪ francine: the queen's speech. domestic politics are expected to take a backseat. from one crown to another. saudi arabia's mohammed bin salman al saud replaces his cousin as heir to the throne. and kalanick out. uber's ceo resigned during the controversy. this is "bloomberg surveillance ." i'm francine lacqua in london and tom keene is in new york. it will be a is the day. markets and at the there is clear risk reversal, and of course, we look at brexit and the queen's speech. tom: we have the saudi news behind the oil news. the queen's speech, it's extraordinarily original, this day for the united kingdom. francine: it is original because it is a dressed down queen's speech. we know she will arr

jonathan: joining us from berlin is matt miller and nejra cehic. i want to talk to about reform. let's talk about europe. the ecb came up with its own planets all the debt crisis in one way or another. is this something taken seriously by the germans? i think the germans are not for euro bonds. he made it very clear for the reason that they don't want to be on the hook for someone else's debt if they can't also take part in someone else's decision-making. pass, whenomes to you get a tool that allows that kind of thing, it seems like they would be on board. the problem is they have to give something to the french if they get what they want. that is structural reform from france. they have to be able to give something to make that. they don't feel they need to put those cards on the table until after the september election. jonathan: the conversation in new york city is by europe -- buy europe. they like the direction of the politics and the reforms. do they think macron can be successful? is he just another renzi in italy? matt: no. he is hopeful. it is vital to the interest of ge

. >> live from london, i am nejra cehic. welcome to bloomberg markets. ♪ vonnie: we will cover oil inventories, the departure, and much more this hour. first with breaking economic data in the united states, let's get straight to julie hyman. annual paceg in an of 5.2 6 million, a gain of 1.1% month over month here. a little bit of a pickup in what has been sort of a choppy data reporting period here. potentially, the housing market is making progress despite inventory constraints we have seen sending prices higher and dampening demand to some degree. will watch the effect if any throughout the day. otherwise, we are not seeing much movement in the m