the u.k. basically negotiating with a gun to its head to you on march twenty ninth twenty nineteen whether it's go to do it or not. it's up against time pressure it is the week of pots and negotiations which remember it's u.k. this initiated this you know the u.k. early you know has to done to do is sit tight and wait for the u.k. to shoot itself in the foot or our economy was good predictors i did a conference in norway this week and we had two mobile economists and both of them they're very good at analyzing why something is the way it is but they're not good at telling you about what's going to happen tomorrow not certainly true and i'm not attempting to predict what the economic outcome will be when you were talking earlier about. the possible cost of this sort of i'm not attempting to predict that i think it's extremely dangerous to try and project that far into the into the future say oh my goodness it's going to be terrible or oh my goodness it's going to be marvelous the reality is pro

the u.k., a hung parliament with conservatives falling short of a majority. plunging theling most since january and raising doubts about negotiations with the european union. the u.k. could be without a full functioning government 11 days before brexit talks are due to begin. rishaad: the questions are being the primet minister's future. she may not survive. this is our special coverage of the british election. i am rishaad salamat coming to from our asia headquarters in hong kong. in sydney. haidi lun asia awaking to political turmoil. when will we learn? trump, brexit, and now more political uncertainty, the range of outcomes is starting to narrow when it comes to what sort of situation theresa will be dealing with. to theot arguable contrary that this has been a disastrous results for theresa may and her political future is in doubt. let's haveght, well a look at what is going on. we have currency reaction. 9236, this is sterling heading towards a key level of 1.27, a since the middle of ap

mark: the u.k. retailers are quaking in its boots the most today in the wake of this $13.7 billion deal. >> accardo has probably got the most to lose because online grocery and is never been very profitable. if amazon expands internationally, you could struggle. linkedy've always been with amazon. we argued that if amazon is going to buy the u.k., it shouldn't by accardo, it should by booker. ,onnie: i thanks to brad stone and andrea felt dead and -- fel dstead. as well as tom keene. mark: have a look at what european equities are trading, 60 minutes away from the end of today's session. we start with the stoxx 600 individual movers within the retail sector, i think you understood what i was saying, retail worst-performing, industry groups say look at the big presence in the united states is the result of the belgian and dutch merger, 8% lower today. a big presence in the united states. 4.5%, andrea says it's a double-edged sword. could it be a target of amazon in the future? is it going to be hit h

the u.k. while planning an exit will be trade based on the way talks are going it's unclear if the u.k. will retain access to the e.u. single market and that could spell a lot of trouble for the british economy moving forward reporting in washington bianca seanie r.t. . spineless the word us like economist steve keen to describe the u.k.'s approach to the bracks of talks he sat down with me to explain check it out. the british have given a why on day one they've agreed to stop by talking about the cost of the divorce settlement and then talking about the arrangements after that they should have said we do it in power little i mean only work out what the costs looked at what the actual impacts are so they've been very spineless negotiators and i'm think as soon as they agreed to that the your opinion vote with got them ok so you say spineless spineless spineless leave us a light at the end of the tunnel here what do you what do you think a positive could come out of i think the positive is goin

you have the u.k. elections, the ecb, james comey, testifying in front of congress and they all fall on thursday. anna: another story we are focusing on on daybreak. you talked about it already and daybreak team- picked it up. trump wants to deescalate -- they want to deescalate the gulf after saudi arabia letter drive qatar.ate qatar can still access shipping routes. as well as those of. and in man. to theting listening diplomatic efforts to resolve this. let's hope they do. aboutreflecting yesterday the food sourcing and if they close the border where some of that is going to come from. enough of my personal anecdotes. >> we can never know enough about what level you -- of shopping you did. cansing on something that be a bit of an issue for the markets. plunged to the lowest in the most three decades. this was yesterday and the bonds , also done with the cost of senior bonds, jumping up to 720 basis points. that is amid conflicting reports of whether executives will go ,hrough with a planned meeting

but the u.k.'s deficit has also been associated with markedly and increasingly rapid consumer credit growth. this isn't an imbalance funding its own resolution. large,r despite the depreciation around the referendum, the extent to which moved closeras to sustainability is a question that remains open, hinging on the outcome of the negotiations. most fundamentally, the u.k. relies on trade investment and financial fragmentation which have increased. the world economy has been here before, in 1930 one monetary policy was exhausted and fiscal policy was held in a band. there was a wave of protectionist measures in the united states, spread into your. so what should be done to prevent history from rhyming? in the simple world of the economist, the prescription is straightforward -- deficit countries, loosen monetary policy, tighten fiscal policy. itsnly the 21 roll up sleeves at one of its countless meetings, it could be easily solved. but those cures are prescribed in the abstract, where policies y sp

the u.k. is looking for a drug trade deal there's a guy on the other side of the pond who's a big negotiator at least claims to be he's looking for a well he's looking for a trade deal is this an opportunity for the u.k. of the united states to do things maybe in trade that they haven't done before why would he prefer a trade deal with the u.k. over a trade deal with the he wants individual trade deals that's the troll yeah that's what he is already caught out nato for not paying their bill when it comes to security i'm not talking about meghan yet i know that there is a lot to do with the trade deals do i think that trump would probably do a deal with the brits if they aggressively push there could be a business opportunity or you know i don't think the u.k. would be top of that it's no i think that. the renegotiating nafta is very high up the list i think that potentially trying to do by lateral trade deals with other countries is quite a list as well i think that actually trying to sort out

negotiations with the u.k. government. backfired forcing the prime minister to scramble for a coalition to brussels use the confusion to pull more. come to negotiations collapse into hard or even a new deal worse and what will that mean for both sides of the english. skep professor emeritus of international history at the london school of economics founder of the u.k. independence party and the new deal party here a skeptic welcome back to my show it's great to have you with us alan. hello thank you as the bracks it negotiations get on their way between the u.k. and the e.u. european politicians are saying that a door back into the union is open but that it will be a brand new door that the u.k. will still lose money if it wants back in why is russia has taken this position i mean does it also want the u.k. to leave or is it just making an example of the u.k. oh i think it's just playing games i mean this new prospects of the u.k. returning to the day specially if the conditions are that we would give up our rebate and we

what we are watching in the u.k. general election tomorrow is whether there is a majority or not and we have reason to believe that the conservative majority will hold and quite possibly be expanded. this will take some uncertainty away because we have been updating with this government now for almost a year. we have roughly known where they want to go on the all-important brexit question which appears to be a hard brexit. manus: good morning to you. let's take the conversation forward, that is the base case scenario for s&p. thatve a bloomberg case says in the brexit scenario he expects seven point 5% participation in the u.k. economy over the coming year. 100 40 billion pounds worth to be shaved off the economy. would you share as negative view on that on a hard brexit scenario, what qualification can the potentialout contracts into the u.k. economy? moritz: this is a has to this game to estimate by pound and penny how much the cost of a hard brexit would be. for the simple reason that we -- noow comparison compari

the u.k. concedes on the order of negotiations will step mark carney and philip hammond speak later this morning. >> fourth time lucky. china braces for the decision on the msci benchmark bid. we are live in hong kong. anna: the global equity rally extends to asia after u.s. stocks close at a record high. a very warm welcome to "bloomberg daybreak: europe." i'm anna edwards. matt: i'm matt miller, in for manus cranny. i'm really excited to see about this china decision, but we have comments from the fed that are moving markets and there is so much turmoil here in europe because of the brexit negotiations in the middle east with qatar. anna: we will get that decision later from the msci as to whether the chinese domestic concluded to the benchmark. could it be fourth unlucky for china? this is the fourth time asking to be included within the benchmark. we have this chart here, showing the china rush. this is one example of the appetite for chinese assets. it shows appetite for a particular asia

u.k. wants. matt: a developing story in london. hit a group of muslim worshipers in northwest london, one is dead. police are treating it as a potential terror attack. anna: macron's majority. while the french president is that to secure the biggest parliamentary majority in 15 years, voter turnout was the lowest ever for a french legislative election. show.e paris air analysts expect fewer plane orders for boeing and airbus after the industry gets hit by low fuel prices and weak fares. we will take a look at the health of the industry and bring you live comments from the event. ♪ anna: a very good morning, welcome to "bloomberg daybreak: europe," our flagship morning show from london. plenty to talk about. stocks in asia going higher, keeping an eye on what has been called a u.k. terrorist attack in london, another key test for the may government. agenda, theeconomic eurozone seems to be impressing even those with leveraged money to spend. , this ispositioning leverage money going long

taxco it in perspective, is the number one largest grocery and the u.k. and the u.k. market underwent the advent dle on the low end and on the other side, online groceries. has been crushed. it's down 60%. about three or four years ago, morrison signed a deal with ocado so morrison was the number four player in the market and goinged everybody was online and they cannot compete and they did not have the resources. years, ocado took them from zero to 300 million pounds of revenue. and profitable. o is a british company? >> people think they are a grocer but they are really just ask company which is an and to end a solution. from your user interface of the computer, i go online and pick out the things i want and they show up at my door within one hour. that iioned in january get better selection, better convenience and ultimately i get better freshness because the way the logistics works, once you centralize down to one hub, everything is fresher. you love jeff bezos and you think the guy is a genius. you told me as much in january. you then said that the best way to be

u.k. u. do want a strong they want and economically stable u.k. michael: that is right, but you have to remember from the european side, we voted to leave. the europeans want to make sure that he don't what the week u.k., butnce a weak there is a quid pro quo there. see. be interesting to guy: michael will stick around. michael metcalfe at state street global market stays with us. the story down at downing street, it has been quite a night. it is eerily quiet. surrounding how the process of government works now. the queen's speech, a stabilization, and then maybe the knives come out in terms of who is going to be the next leader. there was an expectation that maybe we have estimate from theresa may. that has now been pushed back. we have not heard. up next, we continue the conversation surrounding what is happening in the market reaction. the market reaction, really interesting this morning. it has not been as dramatic as the referendum, but more granular and interesting. cable is trading. this is bloomberg. ♪ ♪ 15 minutes into the open. welco

crosstalk in the u.k. i'm joined by my guest steve keen in london he is a professor of economics at kingston university of london. as well as the economic advisor to asymmetric return capital also in london we have marcus papadopoulos he's the editor of politics first magazine and in salford we cross to you stephen fielding he is a professor of political history at the university of nottingham are you gentlemen cross-link rules in effect that means you can jump in anytime you want and i always appreciate steve let me go to you first in london i suppose a very simple question at the top of this program is the u.k. in crisis and maybe explain why go ahead i think it isn't process because what's really we're at a turning point where the u.k. was when neoliberalism was born maggie thatcher and her little handbag carrying around a copy of. freedom freedom book really set the china that was advertising this is going to be a tough new world where tough love is going to be the rule and the perspective i think was

today the u.k. prime minister faces a catastrophic election, the loss of the parliamentary majority. investors assess the political risk. qatar feels the pain. almost a week after the isolation, investors cut losses. we will head to delhi for the latest. awaiting the fed. investors expect the central bank to raise rates on wednesday, even if the inflation outlook weakens. ♪ anna: a very good morning, you are watching "bloomberg daybreak: europe," i'm anna edwards in westminster. manus: and i manus cranny, safe in the studio. you are in for a rough and tumble week in westminster. what can we expect? theresa may has got to go to her party and explain herself. anna: yes, indeed. the first place, the cabinet meeting. we heard from the former counselor george osborne, enjoying his new role at the newspaper, describing her as a dead woman walking. within the cabinet she has been giving some support -- boris johnson denies he is planning a coup, liam fox speaking favorably, but she is sent to promote som

was anhad in the u.k. outcome that raise political uncertainty, but it also lowered what is the biggest risk to markets, the u.k. would pursue a hard exit cushioning strategy. with a much slimmer majority, razor thin hold on the comments, with the need to go in on an alliance with the dv. the odds of theresa may pushing hard brexit are lower and that produces one of the major tail risks we had to u.k. growth and for the pound. think ok, what makes you that the tail risk is really been reduced? because i put it to you as the europeans don't want to see as an incapacity to the economy. not at all, but it hands all the cards to the opposition. just the way we approach that is that europe has held the cards all along. this outcome just increases the odds that the u.k. will realize its negotiating position is a weak one. it will have to compromise, it would not be able to go in and make unilateral demands. ultimately, the greater realization of that at the beginning of the process is the best outcome. it reduce

as the u.k. faces a hung parliament and an unclear course and its approaches exit the european union. u.k. stocks rallying the most amongst developed markets on the back of pound lower. this is bloomberg. ♪ francine: you are watching bloomberg "surveillance" here in westminster. to checkall, we need on markets. seeing a little bit of the slide in the pound heard here is mark barton with your asset check. localized market reaction. this is the chart of the day, the map of the day. e.u. go is where you will find the election map here in the u.k. the color looks very blue. but it's rural areas. the city areas have turned out red. look at the percentage of the vote, conservatives 42.3%. labour 40%. theresa may needed 326 seats to gain a majority which means she is going to fall short and seek some sort of coalition with northern ireland's dup. this is the percentage drop in sterling, going back to just before the brexit vote. brexit sterling fell by 8% the trading day after brexit, 27th of june. to

the u.k. government is heavily criticized anger at what people call the small sums allocated for the survivors of the felt our fire in london.

law and courts while living in a post that u.k. the u.k. isn't likely to agree with that since it's given more rights. citizens than u.k. ones so there's a lot to iron out the rest of may's conversation with e.u. leaders this week should be interesting considering the u.k.'s central bank governors recent comments during the speech on tuesday mark carney said the u.k. will be worse off after officially leaving the e.u. . we've always got a lot of numbers floating around. you know measurement if it's good bad or ugly it's really hard to confirm those numbers but obviously carney sounds very very negative why can you really just point to one measurement what's the overall picture with him while so i mean he's an economist so he's looking specifically at the numbers that he is getting from his own institution the bank of england and their estimates are all looking pretty negative they're seeing a decrease in g.d.p. they're seeing weak income growth and they mean right now it doesn't look like the u.k. will definitely get access to the single ma

u.k. prime minister takes full responsibility for the election disaster. she meets with the d.u.p. to prop up heard minority government. and the trillion dollar question. fed'she timing of the great unwinding make or break the bond market? "bloomberg surveillance ." i'm francine lacqua. let's check in on the markets. i put in treasuries for good measure. that is the two year yield. stocks overall are advancing after the global sellout with a yesterday. technological shares showed signs of easing. the pound starts to strengthen a little bit. and then of course, i want to show you crude, one of the stories we have been following on bloomberg, trading about $46 per barrel, following the first back-to-back game in three weeks. fromll have plenty more your markets shortly, but first let's get to the bloomberg first word news. nejra: firms that clear euro denominated derivatives will be forced to relocate after brexit. under the proposals to be rolled out today, firms deemed systemically importa

-u.k. relationship following the elections in the u.k. and the theresan position for may, who invested quite heavily in trying to build that relationship controversially in the u.k.. expects relations to improve whoever is in power in the u.k. and they will shoulder burdens together. he is optimistic that relationship will continue. the u.k. looking for a free trade agreement with the u.s., although some way off at this stage. rishaad: thank you. up, what schroeder investments says bond traders should be placing their bets as yields a dip. this is bloomberg. ♪ haidi: the weighted average and year estimate for 10 years fell down 20 basis points. long-term yields have remained low. segment, aal yield big week clearly for central banks. if you look at what the fed is , perhapsll telegraphed looking for details of the great unwind at the balance sheet. bond investors have been doubting janet yellen so far. generally the story has been the u.s. economy has been growing at a slower pace than expected in the first quarter. the if it takes up i

the concessions the u.k. has made so far are concessions that were likely going to be have to be made anyway. a -- those are concessions that probably would have had to be made. are left with is the hard negotiating point. from there, that is where i see a lot of uncertainty hitting the headlines, impacting sentiment, potentially impacting investment intentions. long-term, i think it is a case that there is now, especially with the debacle of the election, there is a case for a softer brexit. in the meantime, it is going to be volatile getting to that stage. guy: i don't understand how you price the u.k. right now. in some ways, you want to pricing risk, the worst-case scenario. you talk to people about what they think and how they are positioned, and the two seem to be different in my mind. the market is position for the hard brexit, because you larger glee expect that is what you have got to do. -- you logically expect that is what you have got two. when you discuss it with people, the mood changing is diff

in the u.k. met losses for one of asia's richest men. they were among the biggest losers in hong kong as the slump in pound cut the value of the u.k. earnings. bid to percent after conservatives lost the majority in parliament. c.k. hatchets and generated 3 6% of pretax earnings from the u.k. last year. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> thank you. theresa may's failure to win a majority in parliament and election she called for herself is casting a shadow of uncertainty over the economy. keepof the weak enough to the boe monetary policy on hold this week? kathleen is here with more. thatve seen politically the election result was bad for theresa may and her party, but economically speaking, we see these forces when you have lower growth, higher inflation, and a weaker pound. a weaker pound and so much uncertainty. forgeresa may palling to ahead and get on with brexit negotiations which start on june 19.

the u.k. prime minister signals she is thinking new powers to fight terrorism in the wake of london's attack that left seven dead and 50 injured. cutting ties with qatar. a saudi led alliance severs diplomatic relations and closes off access amid escalating tensions over iraq. and jpmorgan's jamie dimon says u.s. infrastructure is "embarrassing," this as president is set to kick off his initiatives today. ♪ manus: welcome to "bloomberg daybreak: europe," our flexion morning show in the city of london. i'm manus cranny. anna: and i'm anna edwards in westminster. good morning. this was always going to be a week where we focus on the u.k. story, the u.k. political story. today we do that with an attitudes of sadness, given the terror attacks over the weekend, the third in just three months in this country, and we are told that five other attacks were foiled within that period. this is a time when we were going to talk about the election. politics is very much at the fore. political reaction to

what form the u.k. government would take and what form the on the brazen negotiations they would take. a lot of uncertainty. we do think it is lower. those numbers actually aren't very far away from where we are today. we have been through a lot of weakness. it depends on the horizon. longer-term, things could change. i'm looking for things from daybreak. the prime minister has yet to realize that he is a political zombie. for all the players on downing street, this is the day after britain's general election which declared that she is roaming the land of the undead, sooner or later, reality will find a point to bite hard. what does it mean for brexit negotiations? >> the thing with any negotiations like frexit is that starting points do matter. also, in terms of the amount of money that the u.k. owes the airway before they were able to leave, how strong of a can you canposition start up with? that is important in as much as what the u.k. want out of the process. the bottom up for markets is that there

i am wondering if the u.k. does not remain in the customs union, how likely is this order that the dmp is looking for? mr. donohoe: we feel it is exceptionally important and positive that the british government in its new composition that it is going to take focuses on a frictionless border. it is so important for northern ireland and the entire island of ireland, in terms of how it is going to happen, this will be one of the outcomes that will come from the process now underway in the government of the united kingdom. in relation to their potential relationship and all of this is now grown into cv negotiations that we play -- and to see the negotiations that the u.k. and the eu have. -- the more easier it will be to allow a mechanism. much, fornk you too the finance minister of ireland, paschal donohoe, joining us in an exclusive interview from dublin. much appreciated. vonnie: great stuff, nejra. let's check in now on the first word news. vonnie.morning, a list of demands given to qatar by saudi arabia and al

now u.k. conservative party m.p. claims the country snap election earlier this month could have fallen foul to vote afloat with more haze. well look this system in the u.k. is that you can be registered to vote in two places so where you live and where you say work or study but you only have one vote in you have to cast that vote in one place and there are concerns now that that system may have been abused at the general election earlier this month british students have apparently been boasting about being able to vote twice both where they live and where they study during the election they apparently these posts have been seen on social media and some members of the conservative party are very keen to investigate this further take a listen to one conservative politician asking for an investigation from the leader of the house of commons the conservative. colleagues know about those. people can be registered in two places to vote. the number of students or bragging about the front. not only. where they go to universi

the u.k. want from the divorce? light from the paris air show, analysts expect fewer air shows after low fuel prices. we will speak to the test names in the industry, including the ceo of boeing. majority, he claims an extraordinary victory. what does it mean for his ability to enact reforms. we are watching a developing story in london. a ban hit a group of people thought to be muslim worshipers leaving a mosque in the north of the city, killing at least one person. mayor said the con showed this -- called this a horrific terrorist attack. guy is in paris for the error show. i know it's very hot, but so is the roster of guests you have coming up. what are you looking out for? guy: we are here for one day. we are going to speak to the ceo of boeing. plane,nnouncing a new the next 10? also have the issue of qatar and back prices impacting future sales or current sales. that's a big question we will figure out. we will speak to the ceo of qatar airways. then we will talk to airbus a little bit l

the u.k. regulators scramble to get holdouts to back the health care field out of a possible vote next week. where is the tax reform? from new york city, good morning. this is "bloomberg daybreak." i am jonathan ferro alongside alix steel. county down to the opening bell. futures really do go nowhere, in the fx market is a softer tone for the dollar. the euro-dollar climbs .1%. yield higher by a single basis point, 2.16 on the 10 year. alix: sterling the best performance up by about .4%. 148 is where it was a year ago. yields up by about three basis points, the vix little bit softer. jpmorgan says you want to buy hedges against the pickup, .5% jonathan:. jonathan:jonathan: garland -- i'm going to borrow". whether you think the year has passed quickly or not depends whether you are a sterling fx trader. it's on one year since that vote. >> the british people have made a very clear decision to take a different path, and as such, i think the country requires fresh leadership to take it in this di

for the u.k. prime minister's response to the tragedy has been heavily criticised meantime the huge set of protests in the capital have been calling for treason made to step down one aspect this particular anger the british public was may's u. turn on where the survivors would be re home now every single family will be re housed in the local area we are committed to ensuring that people are really housed as far as possible within the bara or in neighboring areas some people may actually want to go to another part of london. through the maze ordered a thorough inquiry into the tragedy and pledge five million pounds to help victims but the u.k.'s labor party leader says the is clearly not enough jeremy corbin also suggested nearby vacant homes in the wealthy area of kensington should be opened up to survivors too there are a large number of deliberately kept very conflicts and properties all over london it's called land banking people with a lot of money buying a house spire flat keep it and you wou

haidi: guy: let's get back to the u.k. exit polls and the u.k. suggesting it inconclusive election result with theresa may's conservatives falling short of a majority in permit. it is early days. it is going to be a long, long thet as we go through individual constituencies. joining us is the bloomberg intelligence chief european economist, janie murray. there's a number of ways of coming at this story. let's talk about what it means for brexit. if you can come up with a great answer, i am all ears. jamie: let's forget about the exit polls. let's imagine that theresa may got a bigger majority. we are looking at a softer brexit, potentially because she would have her hands freed. let's imagine instead that labour had won the majority. they may have been able to secure softer brexit. but where we are now, we have no one in power, a hung parliament and that means the government is rudderless. and negotiations are supposed to start a week monday. this is delaying the beginning of the negotiations by six months, maybe another election, who knows? we a

who's the director of the u.k. based think tank and also thinks washington could push damascus to retaliate this is used as a principle to prevent the syrian army from the story over to get a struggles against storms that forth in a sentence about a year of the united states or still no action but but a year ago they were actively using possibly using. forces are used as forces to pressure to put pressure on the state or an army now they seem to be actively protected and this is. the fact of the matter is still the syrian army needs to protect itself the syrian the american army when they say where we are attacking forces or we are protecting our personnel if the syrian army decides to switch on. batteries or recitals are they attacking americans or are they or would they be protecting themselves as well this is this is not. any we are safer. it's been exactly five years since julian assange steps into the ecuadorian embassy in london and he has left the wiki leaks editor so political asylum that sweden investigate

is the u.k. in crisis after a series of deadly terrorist attacks a hung parliament and the horrific human tragedy of the grenfell tower as well as the burning issue of breaks it. many are asking if the ruling elites of. social environment. right. chemical discoveries over the last century made everyday life easier but at what cost this is syria is exceptionally sick. no wonder it's cause and. says says the years old industrial giants reap the benefit ignoring the caused by chemical production. you know as if these people aren't people just experimental animals decades later the toxic environment continues to poison lives and we found these astronomically high levels of dioxin levels that my staff think maybe some of the highest levels ever found in the united states for almost thirty years this very serious problem had not actually been addressed what will that investigation into the chemical industry secrets revealed. to. the earth there's. a batch or sudden passing i've only just learned you wo

changes int stance the u.k. parliament, given the movements of labor, the increase in votes for the liberal democrat committed to the movement of free markets, we will have to wait and see. >> we have had oscar wilde, we have had shakespeare, we have had isolation. jeremy cook, first chief economist, stay with us. remember, if you are a bloomberg customer, it is election watch on tv go and we are streaming live throughout the day on radio and tv. ♪ anna: welcome back, everybody. this is a special edition of asoomberg daybreak: europe," we bring you the election results from the u.k. a surprise results here, a hung parliament. it looks like the most likely outcome. we have the pound edging slowly lower once again, approaching lows. let's talk about some of the politics that led up to this position and focus on the scottish position. conservative is made major gains in scotland, taking down major names along the way. thetheless, the leader of says the election results put the prime minister, theresa may, in a di

what happens in the u.k. is the driver of the company. the fact that the u.k. is doing better is very positive. anna: international is not the focus as a business. it has been moving away to international toward that u.k. business. anna: how well of a doing at the fixing? when i was looking at this number ahead of time, it says the u.k.'s biggest market, being tesco, has the best benefit in the drop of commander -- in consumer spending. that end of the market could do ok. can andi think tesco has done ok, but it would be very easy to get very carried away with these numbers. no doubt, higher food prices are helping, but the market has done nothing for the last few years about falling food prices because when prices are falling, they need to sell more volume of goods to make the same amount of value. it gives them a bit of with before they do anything, but it is a double-edged sword. if there is too much inflation, then consumers will go back to discounters, and that is what we have seen. you get the benefit without losing customers to the discounters. of the ge

exit polls adjust the u.k. is headed for a hung parliament with theresa may falling short of a majority. speculation sense sterling plunging to its lowest since april. it adds to the uncertainty surrounding brexit. and questions are being asked about the prime minister's future. george osborne says she may not survive. and war of words in washington. fired fbi director james comey accuses president trump of lying and defamation. we have got the world covered on bloomberg television on this epic day. live in london as we see results from the u.k. polls. here in washington, we're all talking about james comey's testimony. we will have plenty of reaction to that. absolutely. this is bloomberg's continuing coverage of the u.k. election result. it is just after 7 a.m. >> just after 7 p.m. in washington, d.c. i'm kathleen hays. is that shocking exit poll out of the u.k. we are focusing on, suggesting this election could go either way. not what we were expecting when asia went to bed last that. the instant reaction wa

strongest u.k. sales growth in seven years, the supermarket leader resisting raising prices as much as rivals in the face of brexit fueled food inflation. greece, and luxembourg creditors agreeing to release eight and a half billion euros, capping the next chapter of the bailout. it means that greece can pay its debts this summer. the imf is not taking part. this is the chart. it wants its debt load to be sustainable and this is the debt load relative to gdp. francine: thank you so much, mark barton. must a year after the u.k. voted to leave the e.u. the brexit secretary and his e.u. counterpart will finally sit down on monday to begin negotiations. let's talk more about what we can expect from the discussions from my guests. baroness angela smith and ed vaizey. thank you both for staying with us. you,e start off with because we were expecting the chancellor of the exchequer yesterday to make the case where a new path for brexit. how do you see him laying out his vision for the future? ed: it is inc

starting with the u.k. where millions of people are voting today in the general election. >> if you look at the front pages of the british papers you might have the impression that they are ganging up on jeremy corbyn. that's what the guardian says. the guardian actually endorsed corbyn himself. thethey are ganging up on jeremy corbyn. that's what the guardian says. mirror comes out in favor of jeremy corbyn but probably has a very unflattering picture of theresa may for its front page with the headline lies. many of across the u.k. them are urging british voters to choose theresa may. don't sun's front page, chuck britain in the corbyn. he will declare war on business and hike taxes to fund his socialist promises. that's what the sun says. starring -- mail is trying to stay true to its hyperbole. >> it calls on readers to reignite the british spirit and vote may. also endorsing the tories, the financial times, daily telegraph and the independent seems pessimistic about corbyn's chances. it says final recko

you do have exposure to the u.k. but it is confused. u.k. investors were needing some guidance. >> all it does is cloud what the government's strategy is. the talks are next week. manus: i do not know what he will do but that is unlikely. dan: all this is going to do is make it more uncertain about what the government's negotiating stances. you saw michel barnier say the u.k. needs to get going. there's a short time to get this yield on and if you keep delaying, there's a chance you will follow with nothing. anna: he said i cannot negotiate with myself. inc. is so much to the both of you. a lot to watch later on today. manus: futures are lower, the european market open is next. i will see you in 10 days. ♪ ♪ guy: good morning. welcome back. :his is "bloomberg markets" europe." matt miller is in bern. what are we talking about this morning? inflation expectations. the fed raised rates. it is going to start pretty soon. the big question is

plans on how we propose to protect the rights of eu citizens and u.k. citizens as we leave the european union. it will also be important issues like counterterrorism. correspondent: brexit is not the priority in brussels. german chancellor angela merkel has set out her priorities clearly. talking about the future of the eu first and then about britain's withdrawal. the scale of the summit suggests just that. the leaders will talk about brexit for dessert. brent: max, brexit for dessert, i guess theresa may just added something a little sweet to the menu? correspondent: she did, although it is quite clear how sweet it actually is. she apparently promised other leaders that note eu citizen living lawfully in the united kingdom would be forced to leave after breakfast. some details of this the deal are emerging. at least five years before a certain cutoff date, there might be a grace. -- a grace period. it might depend on the details who gets to stay and who doesn't. but from the side of the u.k., there is a certain amount of goodwill. brent: we know the e

it gives it a little more leverage over the u.k.. on the other hand, we will also u.k. as france has called for a more generalized location requirement. germany has been more cautious. it will have to remain a political hot potato. mark: thanks, alexander. bloomberg reporter for the eu financial regulations from brussels. vonnie: a lot of hot potatoes these days. first word news with courtney donohoe. courtney: president trump says former attorney general loretta lynch broke the laws for secretary clinton. in a tweet he says that lynch gave clinton a free calling it "totally illegal." former fbi director james comey said lynch lost credibility because she met with former president clinton. lynch said they never discuss the investigation. in the u.k., prime minister theresa may discussing a possible alliance with the northern ireland democratic party. last week's election cost her the conservative party majority in parliament. conservatives are angry about the election disaster. also said she would rethink her approach to brexit. any u.k., inflation rose to the fastest p

but it will not be a bigger outcome beyond the u.k. u.k.-europe much a story. withrk, great to have you us, mark cudmore, macro strategist. if you want to follow all the action, you can if you are a bloomberg professional subscriber. up next, we get the view of a conservative here and former prime minister, frances moore. the u.k. decides the exit poll was inconclusive. much more. ♪ ♪ from london and viewers worldwide, bloomberg tv and bloomberg radio, breaking news. the united kingdom appears to be headed for a hung parliament after the general election called by theresa may. the conservative party will fall short of the majority, with only 314 seats, down from the 330 they had before the poll. meanwhile, jeremy corbyn's labour party will win 266, up from 229. read, andeliminary exit poll. but the market is adjusting. >> it is significantly tighter than when we started this process on april 18. there was an expectation we would see a big majority for the conservative party. the markets have been adjusting, but we have seen a big adjustment this morning whe