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tv   The Pulse  Bloomberg  July 8, 2016 4:00am-5:01am EDT

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shotine: four snipers have 11 police officers at a protest in dallas. a protest was being held over a fatal police shooting of two black men. can today's jobs number lift the post-brexit gloom? the conservative party's theresa andrea madson battle it out to succeed him. welcome to "the pulse." i'm francine lacqua.
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first thing is first, we have plenty of news to get through. let's check the markets. european shares seem to be a little changed. this is after quite a volatile week. investors awaiting eagerly the u.s. employment report. equities rebounding a little bit yesterday, but there has been so much concern over the strength of the italian banking system, and people are still trying to decide,nd and basically, what the repercussions of the u.k. vote to leave the european union will mean for not only markets but insurers and some of the property funds as well. you can see euro-dollar. pound check below 1.30 still. let's get to first word news. an update on the situation in dallas. policefive dallas officers have been killed and six other works wounded by snipers during a demonstration protesting shootings by officers in minnesota and louisiana. suspectslieve four
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court noted the attack with rifles and positioned themselves and triangulated locations there the end of the route the protesters planned to take. three people are in custody and in the early hours of this morning, police were negotiating with the fourth in a garage in downtown dallas. the u.k. is set to have its second woman premised it with the race down to two runners. they will choose home secretary theresa may or energy minister andrea bussan. michael gove came last in the second round of voting by tory mp's and was eliminated from the race. hasdirector james comey defended his recommendation against criminal charges for hillary clinton. his comments came through five hours of tough questionings as republicans vowed to investigate whether she lied to congress. a househallenged by panel about details uncovered by the fbi that appear to contradict clinton's earlier statements about her use of private e-mail as secretary of state. global news 20 for hours a day
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powered by more than 2600 journalists and analysts in 120 countries. this is bloomberg. francine: let's introduce our next guest. he's with us for the hour. thet to have you on program. we are trying to understand the follow-up between the markets, the pound and the turmoil here. we talked about this last year. -- last week. does it make a difference if it is andrea leadsom or theresa may? >> you have a real gulf of experience. what is come to light over the last 48 hours is some questions over andrea leadsom's career in the city. that, in itself, what kind of role she has is not material but clearly, she misrepresented herself. it is the kind of story you do not want to have. when people are looking for the kind of candidate that will require great leadership to knit --ether in an easy load
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coalition, someone who has got the experience, battled hardened. on the other side of the leadership contest is theresa may who can be described as battle hardened, having been in the toughest apartment estate in the u.k., the home office, a department that went to almost everystate year under the last administration. she has been there for six years and successfully. i think you do have a gulf. markets were respond accordingly. they will be much more nervous with andrea leadsom. francine: does theresa may have the better chance of securing a better deal with the e.u.? simon: i think so because she represented a reluctant remainer during the campaign. so, she ate knowledges this is a difficult decision. it wasn't black and white -- she acknowledges this was a difficult decision. that is negotiating in the middle ground will be easier for e.u. leaders to deal with. the problem will be unifying the
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party and the country behind her who have a much more polarized set of use. francine: we have more of a sense of when each candidate will trigger article 50, especially for the city of london, with brussels? simon: the most material announcement we have had since the vote was from angela merkel. the announcement that there was not going to be any pre-negotiation ahead of article 50. she's trying to encourage the u.k. to stop the clock. that can beail added on the british side, the easier it is to sell that deal. think if you have andrea leadsom she will go for a quicker timetable. theresa may will want to understand the negotiating position and take longer. francine: let's move it onto the u.s. jobs. it is jobs day in the u.s. after lackluster numbers that show the weakest implement growth, 38,000, investors are
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wondering if weather is that is -- whether it is a trend. 180,000.ate is for how important is this number to the "data dependent fed"? have we gone back to the 1970's where it is impossible to predict jobs. simon: those headline numbers, they start floating around from month-to-month. it was a problem with last month's data. with thergue this least important jobs number i can remember for the last couple years. why? because the next fed meeting, the july meeting, is not likely. you would need in a norm a surprise to bring july back onto the table. francine: because of all the these uncertainties. uncertainties, only brexit really. is that fair? simon: look at the italian banking system and the devaluation of the yuan and you
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go, that is good for deflationary pressure across the world. given that, why would the u.s. federal reserve act? i don't think the jobs data today will necessarily take a data dependent fed anywhere different to what we saw on the june minutes. francine: i want to come back to u.s. jobs, but very quickly, we saw four funds properly go under. is this a canary in the coal mine, or is it just related to real estate in the u.k.? simon: they shattered the doors for 30 days. hat you describe is -- particular market sentiment amongst commercial real estate. but i would say that was there already. 2/3re looking at cfo's, thought the commercial real estate in the u.k. was overvalued. uncertainty over financials and passports in a post-brexit
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world. is it a clearing in the mind for overall gdp? i don't think so. francine: something worse. we are going to take a short break and then it will ask it. -- ask you. stay with "the pulse." plenty coming up, including with the markets pricing a less than 12% chance of a fed rate rise, we will get an update on the u.s. economy and go to our economics editor in the united states. what the number of candidates for the u.k.'s next prime minister down from five to two means. we will profile theresa may and andrea leadsom. we will talk about the nato summit and global situations. this is bloomberg. ♪
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4:11 am sad five dallas police officers have been killed by snipers during protest. police believe for suspect positioned themselves in a trained to related location near the end of the route the protesters planned to take. barack obama is in warsaw to attend a two-day nato summit. our white house correspondent is traveling with him and joins us on the phone. we heard a little bit.
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it has been three or four days of very sad news coming from all sides in the u.s. we know the president has talked briefly about it. is he expected to say more today? justin: we are expecting to hear from the president in 45 minutes. he has got a meeting coming up with the heads of the european commission and the european council. we are expecting him to give remarks on the latest developments in dallas. he has been brief by national security officials. francine: what exactly, again, this is something that we hear too often, shootings and i don't know if it's retaliation but certainly there is a big movement called black lives matter? how does the present respond to this? has the divisiveness gotten worse since he become president? justin: yeah, the president just last night when he arrived in
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warsaw spoke about some of these issues. he implored americans to do better and address issues of racial bias. said these protest should not be seen as a taxon law enforcement. -- as attacks on law enforcement. really prompt some tough reflection. i think we are going to hear the president talk about that today and talk about some of the difficulties that the nation is facing. with a topic that has really exploded and turned deadly. francine: how much will this be one of the issues talked about in the u.s. presidential race? justin: certainly this is an issue that the democratic presidential candidate has talked about extensively on the trail. hearld fully expect to hillary clinton and donald trump weigh in on this. i think there's going to be a lot of attention turned to how
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donald trump handles it. obviously been very critical of the president in the way he handled these types of situations before. so, weather and how he chooses is situation isth going to have an impact on the presidential race. francine: we will get live sink, whitem justin house correspondent, throughout the day. barack obama is set to speak in warsaw. he is expected to comment on the situation in dallas. we will bring you those comments live. up next, with european stocks set for their worst week, investors worried about the italian baking sector. we will get more with our guest. this is bloomberg. ♪
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francine: welcome back to "the pulse." let's did to the bloomberg business flash and an update on the situation in dallas. nejra: five dallas police officer seven killed and six wounded by snipers during a demonstration protesting shootings by officers in minnesota and louisiana. police believe four suspects coordinate of the attack with rifles and positioned themselves and triangulated locations near the end of the route the protesters planned to take. three people are in custody heard in the early hours of this morning, police were negotiating
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with the fourth in a garage in downtown dallas. britain's decision to leave the e.u. had an immediate impact on the high street. bdo says like for like sales amid market retailers fell 3.6% last months, the worst june results for more than a decade. steel has halted the sale of its u.k. assets after many of the shortlisted figures pulled out. to sell tata is keen the business and will hold a board meeting to discuss what to do next. air france klm has announced has he will remain until november 4, while his successor is found. the company said a pilot strike will have an estimated impact on his june operating result of around 40 million euros. shares traded lower the smarty. is seeking to deal
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with its bad loans in two weeks. bank aimsling italian signal to theong market and exploit the states guarantee for inevitable recapitalization." and that is the bloomberg business flash. francine: now, go to back to -- to go back to the italian banks. it seems that every day in almost every hour there is more speculation. we now understand that monte paschi is seeking a deal with 10 billion euros in bad loans. i have a great chart for the day. the price-to-book ratio. the white line is monte paschi. the blue line is deutsche bank. simon french is with us. when you look at these italian banks, brexit was a concern but it is not a concern if anything goes under in italy.
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do they need a resolution and how quickly? simon: given the size of the nonperforming loan portfolio, isut 17% of the loan book nonperforming, yes, they do need a solution. i think we need to start talking about, there are two sets a solution second happened. state haven and how to the rules of the eurozone have to be adjusted to facilitate that? and this is complex part of the discussions. there were always penciled independent to brexit to second half of this year. think, you, i acknowledge that it is very difficult to do that without some sort of mutual's asian -- of fiscal policy and political control, then you need to realistically have a conversation about whether the italian banking system remains within the eurozone. i was struck by a speech i went to for the next governor of the
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bank of england mervyn king where that was the key issue, is the startven't, since of the eurozone, have the integration and the completion of monetary union. the elephant in the room for the european commission, the ecb keep talking about completing monetary and union to the guys a political issue. where is the public support for this? francine: yesterday we spoke to a former general manager of unicredit, then an advisor. one of the things they kept on saying is fundamentally nothing's happened. if you look at nonperforming billion.'s 200 you can inject capital and they can survive a little bit, as long as the e.u. were more flexible. is it really huge problem, the italian banks, or is it that that the markets have fears that came to the surface because of brexit? simon: it depends on whether you think that the current rate of
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growth and not over a twelve-month horizon, but since the inception of the eurozone, and italy has been acceptable. i certainly don't think it is been acceptable. there are many structural reasons but the health of the financial system, as they further -- a further dampening factor on an economy that has gone nowhere. the problem is if you diminish through which you can find productive enterprises and that is destroying the balance sheets of italian banks, then you diminish the growth potential going forward. you can sit type. ultimately, you get the political spike we have seen all over europe, most notably in brexit, if policymakers think they considered on their hands. i agree with your first statement. we must have a resolution here. the question is when, what is the political interface with economics and the necessary economics and monetary union to come together? francine: with the commission --
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this is something that the italians argue -- the amount into theto pump italian banks is fairly small compared to the risk. there are similar concerns in german banks. maybe not any of the big ones but the smaller ones. it would be in everyone's interest to be more flexible. simon: sure. you look at the brilliant charts you have got behind you. the absolute level is 0.25. that is enormous capital destruction in the eurozone's preeminent economy and the preeminent bank within that. eo, the solution is not, th problem is not solely in italy. it is also in germany, but it lends itself to a collective decision regarding completion of monetary union. if it doesn't, than an acknowledgment that there are some economies within the system for whom the single currency does not work as a unifying force. start talking credibly
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in terms of a roadmap for potential separation or fiscal and political mutualization. francine: do the italian banks have the potential of putting the eurozone into recession? how systemic is it? we don't understand. you have someone from sogen, the chairman, he says this is systemic. you have others who says it will contain. it will not spread. it will not be that damaging. simon: i will explain why that question is so difficult to answer, because i am fond what ofthey gave us a lot phrases. francine: " hotel california." simon: my favorite one was that the eurozone is basically made up as you go along. answering a question as to whether it is systemic, depends upon the tolerance.
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and we don't know the tolerance of policymakers to add further liquidity and further schemes perhaps ae will political leaders, particular in northern parts of the european union. we just don't know where that tolerance comes to an end and political expediency takes over from the right financial sector response. francine: what happens to the euro from no one? crucialthe euro will be to see how german exporters and southern european exporters will fare. simon: there we have to look further to the east, particularly in china because the interface between a thatning yuan and a euro is trying to weaken, certainly, while it has not been explicit to the ecb, but it has been implied to the start of the year, i think mario draghi has given up on that and starts to look at the corporate credit markets. the euro, the active strategy of trying to weaken euro, in a
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world where everybody is trying the same game, also in japan and china, you look around the world and there is very little in terms of geographical jurisdictions, currencies, that really are bucking that trend. the ones that are, the suisse, the yen, they are not keen on that. ads actually ishe further strengthening and the current environment where geopolitical risk makes it. optically look like a bit of a safe haven. paradoxically look like a safe haven. francine: we will talk more about u.s. jobs and the fed next. why the fed should hike. not bejobs number may enough but the u.s. central bank should raise rates anyway according to mark gilbert. thisgotten traction with controversial line of thinking. that conversation is up next. this is bloomberg, where markets
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really awaiting the u.s. jobs data. for the moment they are pretty much flat. euro-dollar is one we will watch out for. ♪ you guy's be good. i'll see you later
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francine: welcome to "the pulse" live in london. i'm francine lacqua. let's get straight to the first word news. for more on the situation in dallas. policefive dallas officers have been killed and six wounded by snipers during a demonstration protesting shootings by officers in minnesota and louisiana. suspectslieve four chordata the attack with rifles and positioned themselves in triangulated locations near the end of the route the protesters planned to take. three people are in custody and in the early hours of this morning police were negotiating with the fourth who is in a
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garage in downtown dallas. the u.k. is set to have its second woman prime minister with a race down to two runners -- conservative party members will choose home secretary theresa may or energy mnister andrea leadsom as the next leader. last in the came second round of voting and was eliminated from the race. fbi director james comey has forcibly defended its recommendation against criminal charges for hillary clinton. uring fivets came d hours of tough questionings as republicans vowed to investigate whether she lied to congress. a panels challenged by about details uncovered by the fbi that appear to contradict clinton's earlier statements about her use of private e-mail as secretary of state. global news 24 hours a day powered by 2600 journalists and analysts in 120 countries. this is bloomberg. francine: thank you so much. market slightly flat.
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let's head to the bloomberg for your asset check. mark: ahead of today's jobs report, still we on track for the biggest weekly drop since may. it comes after the biggest weekly gain an a month. stoxx 600 7% below the levels it was at the close of june 23. the latest signs that brexit is harming the nation's outlook. the core index sliding to -9 in a post referendum survey conducted from june 30 to july 5. today's jobs report is key. may, 38,000, was the lowest since september, 2010. watch out for today's figure -- 180,000 is the number penciled in. the average hourly earnings, 2.7% on the year would be the fastest since 2009. the report will not give as much clarity on how employers reacted
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to brexit. this is our lovely wipr function. world interest rates probability showing expectations of a hike at 2% in july and september and 2% in november, you get the gist. no expectation for a rate hike going through september 2017. francine: let's get more on the crucial economic data. joining us to talk u.s. jobs and what june's number means for the fed, michael mckee. michael, thank you for joining us. i always love your insight because you have a better understanding than anyone about the u.s. economy, except for the people -- that came out wrong. not for the people onset. for today, rebound in american hurry, but wall street may be setting up for disappointment. michael: we are looking for 180,000 jobs.
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i don't want to sound tom keene here. if you look at the kew it's weighted towards the high site. trotters have say they see wall street setting up for a better number, perhaps better than 200,00. given the volatility we have seen and the fact that the past onlye of months have not been lowered but revised lower, there is the possibility that wall street could be extremely disappointed today if we get a weak number. francine: what will janet yellen and the fed be looking for? michael: they are obviously looking for the headline number but in her case what she would like to see is a continued increase in average hourly earnings. the forecast is for a 0.2% gain. it would push it up to 2.7%. that tells the fed that at least the labor market is starting to isduce, a tight labor market starting to produce some value
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for the people who are getting jobs. francine: michael, talk to us about something that actually has struck you and i also packed up on. we heard from janet yellen catch you talked about fed policy on minority on a planet. michael -- minority unemployment. michael: a came up in the minutes of the last fed meeting. african-american unemployment is more than double the rate for white. it is concerning to the fed that the benefits of the low unemployed but we are seeing have not reached minority communities. median household incomes for african-americans and hispanic has not reached the level it was at before the financial crisis. while it has for whites. janet yellen is focused on this. it is one reason she wants to keep rates lower for longer and certainly it obviously is an important factor in what is going on in some of the news stories today. francine: our resident expert on u.s. jobs and economy. michael mckee joining us from
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new york. now, there is a great opinion piece on the bloomberg today which argues we should raise rates to stimulate the economy. that's welcome the author of the story. mark gilbert. and still others, some in french. we talkis is something about because it is a story that you came out with a couple weeks ago, and then you updated it. i imagine people are pushing back. you argue that we should raise rates tho shock the consumer. mark: the amount of feedback was saying, look at demographics. look at the fact that the over six to five's in -- over 65 in doubled.has they have all the savings. they spend the income but they do not touch the capital. if they've got no income on the savings, they are not going on cruises. you have killed off a huge section of the spending economy
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by having such low interest rates. raising interest rates would give them a one time pay increase. and that might spur the economy. francine: would you not -- it means mortgages are more expensive? if you raise rates, you are no better off. mark: in terms of getting retail spending going, that is a bottom of the economy, the real driver of the economy, the over 65's are being savaged by this punishment of savings. something that germany is concerned about as well. this one-off shock, it is unconventional but there is a fantastic bank of america note he failures ofl t quantitative easing, which is what we echoey of seeing. if quantitative easing isn't working, and the only game in town us to do more of the same, that strikes me as the run approach. francine: can we say q.e. isn't working?
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simon: we can certainly say they're a diminishing returns at this stage of the economic cycle, given where bond yields are. i think it is a brilliant piece. the challenge is that most central banks are macro economic forecasting models -- the consumption would be negatively correlated with interest rates. -- therefore, and probably the problem we have is we do not have any experimental economics, it's part of the economics field that should be able to do this here. because we have experimented with very anti-consensus economics notably in japan with a sales tax. it is counterintuitive to boost inflation. we have looked at that and the real world example has not been great. you do not want to try that out on a developed economy. you want to experiment and come up with conclusions that challenge the consensus holding sway in central banks. mark: negative rates is the
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biggest experiment we have ever seen in global economics. and that is happening in a lot of developed economy. that doesn't seem to be averting inflation. simon: the challenge has been being counterfactual without q.e. the problem really has been that q.e. has been squandered. time suchhere to buy that the structural reforms to labor markets, to welfare systems that were built up in a time of very different demographics, they were supposed to be reformed. the banking system was supposed to be, the regulatory system was supposed to be put in place. in the main, it has but the structural reforms are behind the eight ball on this one and need to take place for q.e. to be unwound. francine: how much about the psychology of people spending. the baby boomers, the way they vote because of brexit are
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different to what the millennials do. how difficult is it to forecast what an interest rate hike would do to spending? ever central bank in the world is telling me i should be terrified by the future by keeping interest rates low -- mark carney's first reaction is we should cut interest rates. why should you borrow to invest? francine: but what about default? you argue if you hike interest rates it pushes the weaker companies into shutting down. mark: you have some darwinism in the system. you want productive companies with healthy futures. you don't want companies that are kept alive because interest rates are zero. francine: it impact your psychology. if i read the paper, does it not? this person is going bust. do you not hold back spending? mark: you would rather have
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every company and no companies going bankrupt. mutual destruction to get the economy flowing. all the low interest rates will not help us there is no demand for capital spending. it's not going to work. francine: simon, when you grow the weekend, is there someone you read to understand how we should be looking at economics or data differently? mean, i think, i try to read a lot of those people who have gone ex-central bank. they have seen the way things operate. and they have a new perspective going back out watching the trrl world. mervyn king, ben bernanke. i mean, there are a series of people who are very interesting -- who retrospectively go outside and then they have a new branch of research. they try and look at the data in a different way. hopefully, they are not
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cautious. this is something i concern myself with. cautious with trying to provide that information, that new insight back to their successors in central banks to challenge the preconceived theories on, say, mac or economic forecasts. -- macro economic forecasts. the samey went to schools, read the same books, they have the same groupthink. they are all academics. peoplee you not got setting monetary policy the front businesses? francine: they tried with the latest appointment. he is coming from a hedge fund. mark: he has not had to make payroll. i would love to have richard branson on the mpc. we will look back and say why did we have academics running an economy that depends on businesses? simon: i have would caution that we saw during the referendum
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campaign this devaluation of expertise. there are a lot of people who spent their entire career, not necessarily pursuing groupthink, the challenge is to get experts in monetary policy in macro economics drawn from a variety of schools, rather than from a single pipeline. i think that is where you have problems. adding --hat you i'd much rather see people who have built companies. organizing the economy and setting monetary policy, because the big question is not where you do set interest rates. francine: i want to shortlist. come back next week with a shortlist. thank you very much. simon french stays with us. you can follow mark on twitter. up next, with the number of candidates for the u.k. prime minister down from the original five, we will profile theresa
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may and andrea leadsom. this is bloomberg. ♪
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nato leaders begin a summit in warsaw today where they focus on boosting the alliance presence in eastern europe. the fallout from britain's decision to leave the e.u. is on the decision. simon french is here. in the u.s. ambassador to nato
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has called this the biggest inflection point for the alliance since the fall of the berlin wall. tell us about that. >> yeah, you can see why he would say that. we think president obama is going to echo those sentiments when he speaks in warsaw. where the nato leaders are meeting. you can see why. we have a newly aggressive russia from the east. got islam and state from the south and terrorist attacks almost on a yearly basis across europe. got populist parties gaining strength. now we have got the u.k. voting to leave the e.u. to these things coming boil means that these leaders meeting here, these 28 nato leaders, have got a lot to think about, what europe is for and how it defend itself and how they get together and how they secure their defenses. that is not straightforward in this new world. francine: ian, very quickly,
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does brexit threaten the alliance? ian: well, it depends who you ask. i mean, they are saying behind the scenes, not really. it's an excuse for the u.k. to play greater role in nato, because it still wants to be a global player. david cameron is coming to the summit and he's going to pledge 500 troops from estonia and more troops around the eastern fringes of nato. the uncertainty and unpredictable it about how european countries interact with each other. francine: our government reported in warsaw. now, from an initial field of five, they've narrowed the choice to two candidates. we'll try to analyze what this means. with us, our european analyst. of course, with us for the
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hour, simon french. when you look at nato, does brexit make us less secure or is nato the one that will keep us safe? david: the security implications of brexit have been over -- the line used in the campaign that did not appear to be successful was the e.u. has been the guarantor of stability across europe in these last 50 years. the counter was always that nato has been the guarantor. it's both. these black-and-white statements that we saw in the campaign were never really true one way or the other pretty fact the u.k. has lost a degree of confidence in one of these multinational institutions, the u.k. has always been very fond of nato, but other countries who are less and that is more of a danger than anything to do with the u.k. if we focus on native. -- on nato. francine: it puts the u.k. in a
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position where they need to show their commitment to nato. david: the u.k. going forward is going to want to look at nato and say this is now the model for multilateral cooperation. the north atlantic treaty organization. the clue's in the name. and the e.u., which plenty of the people in the u.k. is over - - there is probably going to the reaction for that on other member states. francine: what you waiting to hear in the next few days? we do not quite understand the animosity between u.k. politicians, the next prime minister, and what happens in the e.u. how does nato deal with any of those spillovers? david: an inflection point with all these big issues taking place at once.
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but most of them have nothing to do with brexit. the reason this is an inflection point is not just because russia is more aggressive than it was, but also because it is a changing of the guard in nato. real chance to shape the organization going forward. francine: one quick last question. again, if the u.k. triggers article 50, then they are not going to be able to negotiate in brussels in the future to put sanctions or not on russia. .k.'s foreignthe u policy regards to russia? the u.k. is going to want to change as little as it can of its foreign policy for the u.k. is going to maintain its attitude towards russia as strongly as it has been. francine: for unilateral sanctions? that is not possible. david: it is certainly possible.
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the attitude so far is that anything that can be done multilaterally can be done unilaterally. francine: even with so many russians in chelsea? david: i do not speak for them, pretty much. the u.k. is not going to be practically in a position where it can say, we are not involved in the e.u. sanctions. so if the choice is unilateral sanctions or no savings at all. -- sanctions at all. francine: how much to we know about the u.k.'s place in the world? this must have an impact -- the kinds of soft power that attracts investment. simon: i would not overplay brexit's role in this. the reason being the u.k. remains the only major economy that has the commitment 2% gdp for defense spending. its international to relevant budget. collectively, we talked about soft power. that's hard power. we have got the spending power
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behind both military intervention and also the development of a broader set of countries. outside the e.u. and how that budget is spent gives the u.k. a lot of its influence around the world. i think that, the protection of development budget which is unpopular among the conservative grassroots, that would be more material than the vote in itself. francine: do you see one of the contenders, andrea leadsom or theresa may, as a better prime minister, a better world leader? david: the difference in experience and outlook between two candidates whom most of the mass media are betraying as being similar, the difference between the two is as stark as we have probably ever seen in two members of the same party. may is the only person in history to last a long time ias
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home secretary. david davis was saying he had four ministers to shadow in his short time as home secretary. may has done the job 6.5 years and counting. presentingeadsom is an opposing view to that. one which will resonate with the grassroots but let's not forget may's been a popular figure for a long time. francine: our senior european analyst. now, let's get straight to the bloomberg business flash. for an update on the situation in dallas. nejra: five dallas police officers have been killed and six wounded by snipers during a demonstration protesting shootings by officers in minnesota and louisiana. four suspects coordinated the attack with rifles and positioned themselves in triangulated locations near the end of the route the protesters plan to do take. three people are in custody and
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a fourth suspect who is in a standoff with police has killed himself. britain's decision to leave the e.u. had an immediate impact on the u.k. high street. according to bdo. like for like sales amid market retailers fell 3.6% last month. tata steel has halted the afterf its u.k. assets investors pulled out in the wake of brexit. tata is keen to sell the business and will hold a board meeting this morning to discuss what to do next. air farance klm has announced is cfo has resigned. he will remain at the airline until november 4 while his successor is found. the company said the pilot strike will have an estimated impact on its june operating result of 40 million euros. shares trading lower this
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morning. that is the bloomberg business flash. francine: thank you so much. this is a picture for the markets, so, in, we've had quite a volatile week. now this is the picture as we stand. european stocks unchanged. now, everyone will want to know what happens with the u.s. jobs data. the dollar is probably the best benchmark to look at. before the key u.s. jobs data. oil trading lower. this is something that has been weighing on global stocks. we did have quite a volatile week. japanese bond yields sinking to fresh lows. again, there is a lot of uncertainty. sometimes people react in different ways. italian banks are worried to some. we are still trying to understand who will become the next prime minister in the u.k. and how that impacts the dollar- pound and the triggering of article 50 in on the ongoing negotiation is with a e.u. "surveillance" is upnext.
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tom keene will join me from new york. we will bring you all of the analysis. at 11:00, we speak with the citigroup economist. ♪
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francine: 11 police officers protests were being held over the fatal shooting of two black men. three people have been arrested and a fourth person has killed himself. job stay in the usa. leftn today's job numbers the brexit market gloom? party theresaive may and andrea leadsom battle it out.


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