king-loving scum. >> after 10 years in london, this is how i'm received? >> i apologize for the reception, dr. franklin. ever since lexington and concord, all of america has been on edge. >> lexington and con... >> of course. you've been at sea. america is at war, dr. franklin. welcome home. >> good god. >> ♪ my country, 'tis of thee ♪ sweet land of liberty ♪ land where my fathers died ♪ land of the pilgrims' pride ♪ from every mountainside ♪ let freedom ring >> pushed to their limits by an oppressive empire, a determined group of rebels unites under the cause of liberty. their quest for freedom will unify a people, ignite a revolution, and forge a new system of government. in time, these brave men and women will come to be known as the american patriots. benjamin franklin -- brilliant renaissance man, world-renowned genius, and enduring symbol of america's potential for greatness. but behind every genius stands a man, and behind every legend lies the truth. [ indistinct conversations ] >> is this the pennsylvania delegation? >> maryland, sir.

in london. in new york. it is independence day in america. you're watching the "european" on "bloomberg markets." ♪ mark: r.i.m in london for the hour. plus conference stories from paris, australia, and china. here's what we are watching today. nigel farage stepped down from the u.k. independence party after leading the campaign for brexit. who will step up and lead during the negotiations? the recent market rally has come to a halt. watch the ftse. it is close to entering a bull market, recovering from its brexit losses pay we are live in paris. wants toonomy minister claim the euro clearing business for paris. 30 minutes left in the trading session in europe. have a look at where the session is headed. down by 7/10 of 1% on the stoxx europe 600, falling for the first day. , the most since february. the gauge is 4% below where it closed june 23 before we knew the results of the referendum. it has fallen almost 11% in two trading days. i want to tell you what is happening in the banking industry. the worst performers. six of them are italia

flight 1,000's destination, london. luggage was prepared for loading and all other routine preflight activities were taking place. 1,000 seemed to be just another flight to london. in all respects that its passenger list was twice as large as on ordinary trips. flight 1,000 was air borne but no plane was used. this was the first of so-called airline paper flights, complete simulation of an actual flight repeated more than 2,000 times since. the reason to prepare for revolution and transportation that is now here, the advent of commercial flying by jet clipper. in the early days weather information and all other paper jet flights was gathered as carefully as if real jets were to cross the atlantic. for example, it is now known that at the altitudes at which jets cruise generally 30,000 to 40,000 feet flying will be above the weather. after years of paper flights like number 1,000 and many hundreds of real flights with prototypes the jet age is now here. the jet age begins before takeoff at the airline's new terminal now

from new york and from london, a beautiful london, this is "bloomberg surveillance." stay with us. ♪ tom: good morning. from new york, from london, tom keene and guy johnson. let me do a forex report. -- 106.10. 105 i am watching the renminbi as well, 6.69. that has been a migration weaker in the renminbi over the last number of weeks. guy: coming up shortly, "bloomberg ," david westin with alix steel and jonathan ferro. definitely front and center is the 1% 10-year yield call from morgan stanley. we will also be taking a deep dive into tech, particularly looking at apple with gene munster of piper jaffray. we will be talking with the cfo, dominic caruso, of johnson & johnson in just a moment. tom: bring me up the surveillance wall, if you would. this is the bob doll theory. it is shut up and buy quality. we are going to bring the chart at right now. the orange line is what you did not do -- wait, it is also what i did not do -- which is j&j was a dog for a number of years. you acquire the shares, and it outperforms in this case the s&p. bob dole, it is really n

johnson in london. mr. kuroda changed the news flow. guy: this appears to come from a bbc interview that was pretty recorded. it was not done today. this is something that was a pretty recorded program. no helicopter money. you see the asset prices react. we have seen big moves over the last few days. you wonder how that will change the q&a with mr. draghi. right now, our first word news. taylor: in cleveland, donald trump will except the republican nomination for president, one day after ted cruz was booed off the stage at the convention. the texas senator ended his speech without specifically endorsing trump. we will unite the party, unite the country, by standing together for shared values. standing for liberty. god bless each and every one of you. god bless the united states of america. is widely expected to run for president in 2020. president air to o -- imposed aerdogan state of emergency, saying the government will use its added interest the of democracy. in kuala lumpur, investigators searching

if you compare london to new york or tokyo, london gets to spend 7% of the taxes raised here. new york 50%. this is a chance to give london more say over how our city is run so i'm pleased to say the government appears to be listening. >> in terms of some of the bigger issues that london is dealing with at the moment. you said the housing crisis remains the top of your agenda. why don't you just build more affordable housing prevent the big gaps that brexit has occurred where people are having difficulty selling their multimillion pound homes. other people are sleeping on the streets in westminister. >> one of the great benefits of new york or chicago or ra paris is you request pitch the best ideas. what we need to do in london is build generally affordable home. i met yesterday with government to discuss a passage that can kick start house building in london. the right source of homes being built. there's no point building homes that are used as gold bricks for investors overseas that lead them open. we need to build homes that are affordable for londoners. i i'm afraiding ho

to understand his attraction to use socialism look to london instead of moscow. he was very close to wrestling those forces even though he reportedly told the investigating authorities and i speculate it was close to the british communist and then returns to london and also to travel throughout europe. to say that he overdoes it and then to an adoring audiences. after his life that -- his wife that passes away will be one of the closest comrades that is a working-class community in the city of philadelphia that becomes a virtual recluse because of budgetary the health. because they pay homage vp debated is the case through the civil-rights movement through sncc but also will read as scott king and the associates also paid homage for years and philadelphia. because of socialism that has a resurgence in the united states. and the cause of the breath of humanity because one of the keynotes of paul robeson life was his maniacal study that he reported the could read dozens of languages in from his point of view if humanity was one such as socialism then he felt in ter

i have to be in london, but why rush? asian investment in london is so crucial. but if they want to maintain the path it has been on, what you have from asia about appetite? niccolo: absolutely. well, first of all the asian investors are not really investing in the super primary. iat north aker is developing, don't have a lot of data points. what you are talking about on the commercial side, it is true there will be some yield substantial. and commercial risk will be suffering in the short to medium term. there is no doubt about it or on the central side, manus: we are not seeing that. manus:let us talk about the contagion, the potential contagion. this is all about the psychology of pricing. if you have this retail gauge that is going on a commercial property, people are talking about commercial property, between 20 and 30%. while will that arbitrage continue between your market and the commercial property draw out, because that is what we are looking up. you're looking at the potential of the gulf opening a. uip. >> obviously there is some correlation between t

in london, giant -- guy johnson. what is the prism of cleveland from london? it is that we have a broken political system we are trying to understand. how did it get to this situation you have with the divided party and what are the repercussions in europe? we are just trying to figure out where it goes and what it means for us here in europe. tom: i totally agree and particularly nation to nation as may makes a visit to merkel today. now to our first word news, here's taylor riggs. taylor: donald trumps son announced that he had the number of votes needed to win the republican nomination. his son says that as president, trump will not take no for an answer. >> i know that when people tell him and cannot be done, that is when he guarantees it can be done. when someone tells him something is impossible, that is what triggers him into action. taylor: the convention also nominated mike pence. there will not be any hard targeting when theresa may meets with angela merkel. merkel has said there will be no concrete negotiations until the u.k. triggers the clause. ma

let's go to london. may has promised to build a more socially just united kingdom after being named prime minister. she says lives there have been made insecure by globalization. >> the government identification will not be driven by the interest of the privileged few but by all. we will do everything we can to give you more control over your lives. in one of her first actions, she fired the chancellor of the exchequer, the architect of the david cameron austerity budget. ,he named her new brexit czr david davis. -- boris johnson has been known about talking about foreign affairs and accuse president of, about disliking the them. her legacy. kerry meets with the russian president vladimir putin today in moscow. he will lay out a potential deal that could prevent an escalation of fighting in the syrian civil war. they will share information targeting the islamic state. in return, russian would have to keep syrian forces from attacking rebel troops to agree to it the cease-fire. the population of the world

, but will london be at the table? rajesh: that is what we are hoping for. gdp.n has 25% of the we pay one third of all of the taxes in the u.k. we have every reason to actually have a voice and not just a voice but a strong seat on the table, through which we will be able to protect the interests of london. >> that is what business is telling you. what is central business -- central government saying? going in with passporting, the essential message? rajesh: we have been highlighting that since the referendum days. the last three weeks, i been speaking to many businesses in the city. two or three things emerge constantly. number one is they want continued access to the single market. number two, they want to keep their passporting rights. passporting goes both ways. there are a lot of banks and financial service firms from europe who were also working in the u.k., and there are a lot from the u.s., because it is such a global hub. thenumber third thing is extra talent pool, one of the reasons why london is such a grea

london will jump out of the gate at .7%. other global markets look like they will be reasonably positive as well. european markets set to open a little bit higher. market --s the london the purple market is the dax. we sold off a little bit into the close on friday and now we are jumping higher. getting up to the session highs that we saw on friday. it is interesting to see the cac slipping a little bit. dax opens inow the just a moment. the dax and the cac are now both jumping up. a positive start to the session here in europe. let us get the details on how the session is starting. bera: it is shaping up to similar to asia. in asia we saw material stocks leading the game. if we look at the imap -- it is predominantly green as it was in asia. the game leading followed by consumer discretionary. where we had the laggards at the moment are ip and energy that we are seeing pretty much every industry group gaining on the stoxx 600. crude oil rally today. let us look at how the gilt markets are opening. unchanged on the yield. vi

anchor: our correspondent is following the story from london. christopher, why is farage stepping down? why now? reporter: well, we just heard from him there, saying he's pretty much achieved his political goal so there's nothing more for him to fight for. he's also cited personal reasons. he wants to have his life back, he says. i think what's perhaps more likely and that also answers your question about timing is the fact that ukip is keen to expand its voter base now and farage is such a polarizing, such an abrasive and populace leader that he's probably not the right man to help them do that. british politics is in a phase of such dramatic reshaping that there may be new opportunities for ukip and this is perhaps why they've decided now to jettison farage. they're looking to gain voters from the labour party, for instance, in its working class heartland and they need a more moderate, safer leader, in a sense, to take them down that road. anchor: meantime, there have been so many dramatic moves in the past week. first cameron stepping down, t

and anna edwards georges from our london studio -- and anna edwards joins us from our london studio. anna: we are focusing on the politics. u.k. politics takes center stage. a chart shows the political risks as measured by the bmt, political risk index. it shows the surge in euro political risks. the central bank having to deal with it that's a deal with an uncertain environment and that heart of the world. the brexit conversation and the result of that referendum on the 27th of june has raised the political risks in europe and -- in europe to levels that we have not seen. we see the uk's conservative party, the government here trying to find a new leader. conservative mps will be voting today. this is the first of a number of votes that they have and they gradually reduced the list of right around five, down to a final one. the contenders are trying to differentiate themselves on policy toward eu nationals the live in the u.k. the most of them are talking about the end of freedom of movement across europe. some of the contenders come from the leave campaign and some from the remain

it is not just in london. house prices have risen dramatically in many places, which has led to this challenge regarding affordability. the real issue for the housing market is to make sure the transaction level are sustainable, not so much the pricing. i think a flat lining in prices is not a bad thing for a period of time. let's be honest. what we really want is to ensure the lending environment does not gum up. guy: you want people to be able to move homes, move jobs. >> in a real economy stems -- and a real economy stems form tharom that. guy: do we have sufficient people to be able to build a lot of houses, as well as a lot of infrastructure? simon: i think without drawing on migrant labor, the answer must be no. i mean, the evidence is very clear. with the people talking about the preponderance of eu workers on their construction sites. it is clear, we need labor. we do not have all the skills we require in this country at the moment. it isne: simon rubinsohn, great to have you on. up next, we are sticki

london, with europe, ,he u.k. retailer is plunging not plunging as much as it was before, down modestly after the company reported its worst closing sales in eight years, falling 8.9% in the fiscal first quarter. this is -- there ceo employing a new strategy to fight a four-year slump in sales. london, sports direct hire by 4% after the beat full-year revenue estimates as they move toward a large format sale, up-to-date but down 50% year to date, could be one reason they are thinking about employing a stock buyback, their first since 2009-2010. samsung in asian trading, up by 2% after the galaxy smartphone maker beat estimates, the best profits in two years, taking advantage of slumping iphones and some pockets of the smartphone market are thriving. david: thank you. our next guest warns against overreacting to the u.k. leaving eight, but for more you property funds are frozen with ross as investors dump real estate holdings because of brexit. -- they thread suspended trading of billions of funds and aberdeen mana

m a in london. emma in london. emma: a suicide bomber killed security personnel in one of islam's holiest sites. in iraq, the death toll has gone up from the truck bombing in bag that. at least 175 people were killed in almost 200 were wounded. the islamic state claimed responsibility. in australia, they are counting the vote in an election that has failed to reduce a clear winner. c needed for a majority government. australia's election commission has just started to count more than one million pallets. president obama will campaign for hillary clinton at the first time today. president obama remains wildly popular among them at. donald trump will also be an painting later today. global news 24 hours a day powered by more than 2200 journalists and analysts in more than 120 countries. this is bloomberg. thank you. coming up on this program, italian banks to record lows. up next, an economist at the -- has what it takes to support nation's banks are from london and new york, this is bloomberg. ♪ alix: hardest hit

in london. alix: welcome to "bloomberg markets." ♪ scarlet: from bloomberg world headquarters, welcome. frome covering stories london, tokyo and beyond. here is what we are watching. .hanging of the guard putting together the team that will oversee britain's exit from the eu. >> jpmorgan kicks off learning season as the global bond market rallies. >> and the biggest tech ipo of the year. shares of "line" surging. we hear from the company's cfo. we are halfway through the u.s. trading day. we need to head over to the markets desk where julie hyman has the latest. a lot to

the brexit france overead with the claim london businesses. the french economy minister has laid out why he thinks that paris is the new home for banking operations. >> i think for a lot of financial players and deeper marketplace in paris so that is something to be negotiated definitely into be discussed. i think it does makes. anna: we are live in paris now. he spent the weekend in provence. ceos seem confident that france could get a piece of the financial cake? is the euro clearing business? several cities are competing to get a piece of the market. , at thering business moment, 70% of euro denomination thering takes place in u.k., only 11% in paris and 7% in frankfurt. despite the bad reputation in terms of doing business and the labor market, france and paris could get a part of this euro denominated clearing. he also said that europe should nextpart of the presidential campaign. he did not exclude that he should himself run for president . he said that the campaign should be a pro market, focusing on offering that alternative to french

jeffrey brown reports from london, part of our ongoing "culture at risk" series. >> brown: along london's famous skyline, cranes and towers of all kinds, and hundreds more under construction or in the planning stages. the recent brexit vote may raise new questions about the future, but there's no question that this city has been going through an unprecedented re-shaping. financial times architecture critic edwin heathcote. >> in the center of the city there's never been anything on this scale. and when i say "never," even after the great fire of london, things were only rebuilt to five or six stories. >> brown: yeah, because there's a lot of history here; you mean "never." >> i mean, never! >> brown: in this global financial capital, property prices have skyrocketed, along with the demand to build, and there's no place to go but up. while heathcote sees individual buildings he likes, he worries about the larger picture. >> now we have a much more generic, globalized city. the architecture is more like chicago or singapore. it is changing in the texture and the architectural language and t

london up -- will it last? anna: a shot of the city of london. we will see you tomorrow. ♪ guy: welcome to on th guy: welcome to "on the move." i'm alongside caroline hyde, and here is what we are watching. carney cracks open the toolbox, the bank of england governor speaking at 11:00 a.m. today -- can he soften the economic flow of brexit? banks battered. the u.k. wreaks havoc from italy's recovery. is there a silver lining to be found here? and not so bullish. vitol ceo eve

so he was promoting in london. so he's like, "guys, you know, like, before my birthday, you know, i'll be promoting in london. everybody should come to london and we'll just celebrate my birthday there." i was like, "wow. that's kinda -- that's cool." so we go and hang out for his birtay and i'm like, "man, that's really good." he wanted his family with him. and calvin harris is performing. [ cheers ] we went to the show. and then we go to a restaurant. and, you know, and jaden is just particularly excited. you know? and we sit down at the restaurant. and he looked at the waiter and he says, "i'll have a tequila." [ laughter ] i said, "whoa, whoa, man. hold up. what you doing?" and he says, "the drinking age is 18 in england, dad." [ laughter ] >> jimmy: that's why -- that's -- oh, no. that's why he got you out -- >> i was like, "you joker!" [ laughter ] you joker. >> jimmy: that's how you got us all to come out. >> so, yeah, i was thinking fast. i ws thinking fast. i said, "oh, but hold on, hold on, hold on. it's

scarlet: i had a shake shack in london just the other day. it tastes just as good in london . shery: the bank of canada left interest rates on hold up 50 basis points while cutting growth forecast for this year and next, with more of the central banks remark on monetary policy we are joined by pamela ritchie. i'm going to start with boc's decision to leave rates on hold. not much of a surprise there. pamela: not much of a surprise. dovishness in the tone of the remarks as well somewhat expected. we did see the canadian dollar bounce back after a one-week high on the decision to leave rates where they were and also some of the comments. we just spoke to blackrock canada strategist. there seems to be overall optimism, the governor of the bank of canada in his remarks today perhaps warranted. the last time he was speaking publicly, brexit had not happened. oil prices were lower at that point. it had been unclear what the full cost of the wild card was going to be. if you look at where we are from last time things have improved. that was expected by the markets. >> speaking of oil

welcome to "the pulse" live from london. i'm francine lacqua. we have a great show lineup for you this morning. we speak to the ceo of the .orld's biggest reinsurer as we wrap up a week of european bank earnings and look to stress test results this evening, we speak to the ceo of the british bankers association. that is at 9:30 a.m. let's check on the markets. a lot of market swings. 103.65 is where we are. the boj opting for limited expansion. it did say it will plan to reassess the policy. it has already been three years. stocks, iuropean don't know if i would call it unchanged or slightly higher, but we had a lot of earnings news to digest. the banks have been under pressure. we are expecting stress test results this afternoon. watch out for ubs and barclays in particular. let's get to the bloomberg first word news with caroline hyde. caroline: hillary clinton says america is at a moment of reckoning and has belittled donald trump's claim that he alone can solve the nation's problems. clinton said the u.s. can advance only when each segment i

joining us from london is stephen loris. not good news, but at least they get to keep their jobs, i guess. most of them. stephen: indeed. bankers london will be lucky just to have a job in this industry is the most pessimistic predictions come true. a lot of them are expecting their bonuses to be cut in half or go down to zero. , you got ae story quote from hsbc chairman doug saying the work profit and lower revenues mean compensation will be lower. ftse come atthe the forecast for profit and revenue we have on the bloomberg terminal, i see the actually rose after the brexit vote. are you actually hearing from profits and banks' revenues will take a hit this quarter or this year because of brexit? stephen: it depends on where you work in the world. in asia, they will not see quite as much of an impact from the brexit vote. this is focused on the prospects of london's investment bankers. londonple who work in where trading is predicted to be down, the economy will grow slower. makes less money, there will be less money to pay

this is a major shock to the city of london. it remains to be seen whether the city will maintenance financi maintain financial passport. a lot of additional costs a s inefficiencies. bad news for our membership. >> last question because you do a lot of work on flows that go into stocks and bonds. what does it mean for emerging markets. >> that's a good question. emerging markets relatively unscathed. equity prices have climbed a little bit. not that much. bond prices have not increased and we've seen very little impact on flows. the reason for that although there is an impact on the global economy, which is negative, on the other hand prospects of greater easying and prospect of the fed being patient is good news. >> we'll see on strong the dollar gets. good to see you charles. >> wilfred. >> we've got about a minute left of worldwide exchange road trip. it's been a pleasure to join everyone around the world from london for the last couple of weeks. it's time for chart of the quarter. of course at the end of q 2 and i have to g

do you believe the city of london will exit to paris, frankfurt, london -- amsterdam, and points east? edmund: i wrote an article about that this weekend. i think the ultimate answer is no. just to tell you, i just arrived on the train from paris. it made me late for this show because they were 25 minutes late. the point is that the charges and the work in france are major hurdles. the cost of living is 30% cheaper than in london. that is a huge advantage. would you want to live in frankfurt. the answer is no. people who live in london say they would not move to frankfurt unless they absolutely had no choice. tom: bnp paribas has a cautious view of the u.k. -- u.s. economy. what is your sterling target? atund: we are pretty much 1.30. we don't see a big rebound in the short term. from our foreign currency strategies, they would tell you that the uncertainty of the u.k. economy is going to last for at least two years. on that basis, given the fact that we see a technical recession either at the end of this year or going into next year in the u.k., why would you be bullish starling when

from london, from your -- from new york. ♪ tom: "bloomberg surveillance" from london and new york. good morning, everyone. let's get to first word news with taylor riggs. taylor: hillary clinton is scoffing at donald trump's claim that he is the only one who can fix the economy. hillary clinton is the first female ever nominated for president by a major party. she accepted the nomination last night at the democratic convention in philadelphia. she said his message is based on fear. ms. clinton: now, you did not hear anything about this, did you, from donald trump at his convention? minutes, and70 odd i do mean "odd." above] and -- [cheers and applause] mrs. clinton: and he offered no solution. taylor: clinton and senator tim kaine will be on a bus visiting pennsylvania and ohio. the bank of japan will purchase more etf's and double the size of its dollar lending program, but it is not increasing the pace of government bond purchases. in an unexpected development, the bank will assess the effectiveness of its policy in september. france's economy stalled in the second quarter. gdp f

with the london school of economics. in our next hour, a conversation with a leading authority of the united kingdom on intelligence and terror. from london and new york, this is bloomberg. ♪ good morning. this is "bloomberg surveillance ." i'm scarlet fu in london with tom keene in new york. we are back with kit juckes. when you look at this left that haslifted -- lift that lifted risky assets, what is the japanese distinction of printing larger money and distributing it to the public? kit: the thing you notice with japan is that when you've got a negative yield curve after 17 years, everything is below zero, when you've got a central bank that has a third of all the government debt, it is not a big helicopter, superduper, spectacular move. you blur the lines. central-bank -- it is paying money to hold the government debt. government and say, can you extend the maturity? with these terribly blurred lines come you don't need these big events. it has put fuel on markets. scarlet: thank you so much. here in london. we ha

he managed to put london on the world stage as mayor. he speaks several languages, is extremely charismatic. i think he is ready for the job. correspondent: boris johnson hugs of the political limelight. his role as the london mayor gave him a big job in the big stage. it was not without controversy. last year he cut short a trip to the palestinian territories after making remarks judged by his host as offensive and two pro-israel. mayor street johnson -- mr. johnson has pulled in business for london on trade trips. the honda britain, they may not know much about voice johnson other than his neck for -- other than his nack return of a phrase, but the man is now britain's top diplomat. the world will find out who he is. bbc news, westminster. ,atty: i spoke with jon sopel who has just returned from london. i expect many viewers did not know who the last british foreign secretary was. jon: forest johnson --boris johnson, no one need to worry about knowing who he is. whether he is seen as a figure of seriousness is another question. of all

has set all working group to look at relocating its european base from london to another city in the region. they also say britain's barclay's bankk is looking at dublin as a possible relocation site. >>> the lord mayor of the city of london is trying to put people's minds at ease. jeffrey evans says the financial district will stay competitive. >> the width and depth of london's offer is vevery considerable. it's not so easy to move activities and businesses to other centers. it's one of these areas of uncertainty. but we are very clear we have ambition and intention to remain in a leading international financial center. >> evans will visit japan next week to explain the effects of brexit. he'll be meeting top executives of japanese financial institutions and corporations. >>> japanese automakers are rorolling o out new models of ss cars to take advantage of their renewed popularity. toyota motor has remodeled its 86 for the first time in four years. company officials say it has bebeer engine e performance and body that reduces air resista e resistance. fuji heavy industries introdu

in london, tom keene in new york. tom: what a movable feast this morning. tick by tic as we went into this opening, francine and i were going back-and-forth over the dynamics, and i have to say this, we do note -- we do not know why deutsche bank is south but it is south. francine: i think there are concerns that the brexit shows investors are very nervous and it goes into the weak spots so i think we will see many more spots like this. there may be something more underlying. let's get straight to the bloomberg first word news. nejra: the field is down to three and the race to become the next british prime minister. theresa may took the lead in the battle to succeed david cameron, winning 165 votes in the first round. she was followed by andrea leadsom and michael gove. stephen crabb has dropped out and liam fox desk liam fox was eliminated. the next vote is tomorrow. report is likely to revive recriminations over the iraq war. it will probably pile criticism on politicians, officials, and the military. led to thet po

. ♪ jon: from london and new york, this is bloomberg, coming to you from the city of london, what a morning and what a week for politics, global bond markets, yields all-time lows. david: quite a story in the bond market, at the u.s. to the long and growing list of government bonds whose yields are at record lows. going for a fourth day of gains come a little bit less, softer and the futures market, ,ere to give his future market someone from morgan stanley. toid: later, we continue focus on farmer with the merck ceo and chairman ken frazier, two important interviews you do not want to miss. let's look at the markets. jon: futures a little bit softer , down by a 10th of 1%, the footsie with the biggest week of gains since 2011. switch onof 1%, the the board and get to the bond comet, 10 years, treasury all-time lows, down by six basis points on the session, a softer down to 10 of5, 1%, expectations that a little bit of stimulus in the pipeline from the bank of england coming this summer. alix: that was the big news from yesterday didn't around the world, in-depth coverage of our top stories

time in london is 4:40 2, 1142 in new york. coming up on the european close, prime minister is trying to build a coalition after the general election. where do things stand in the country? this is bloomberg. ♪ vonnie: live from london and new york, i'm vonnie quinn. mark: this is the european close of bloomberg markets on bloomberg television. began talks with other political parties yesterday to try and form a government. this after his conservative popular party won a repeat election last sunday but fell short of an absolute majority. he is also the socialist party, the basis for a grand coalition. will they agree? joining us to discuss it, the former spanish politician and the current chief executive. your spanish put politics hat on first. what sort of outcome will we seem? will we get a government this time or are we looking ahead to a third election? o: good morning. it is a better result than expected. i think brexit had a little bit of an effect. but it is still a perfect because it is not a clear majority. so i think

and, london could lose 80,000 jobs as a result. snapchat, the mobile app for sending vanishing photos and videos says it will let people hold onto what they receive a little longer. out ampany is rolling memories section. users can store and search photos and messages that would normally disappear. 150 millionsays its users are already saving their creations. snapchat's plan will move that activity inside the app. and that is the bloomberg business flash. joe: a lot of uncertainty and negative sentiment around the brexit, but it may not be all doom and gloom. in oneconomist weighed the impact of brexit on the economy, and white may not be so bad after all. >> you take a step back and look at the u.k., for instance. we should have seen this coming a long time ago. fromme sense, the benefit globalization over the last 20 years have been enormous. 100 million plus people at a property, lots of countries that were subpar have come out. they haveoblem is, not succeeded in redistributing those gains evenly. we see various crises emerging

and from london. this is bloomberg. ♪ ♪ .om: good morning guy johnson in for francine in london. carl weinberg with us from high-frequency economics. libby from,". and we are thrilled to bring back from cleveland, ohio, former senator johnson you who knows how to engineer a problem with his work from m.i.t. in mechanical engineering. mr. trump needs to engineer a miracle in cleveland. where does he need to be at the end of the convention? take aunu: it will not miracle, but he needs to define himself the way he needs to be defined to be understood in america. that is what election is all about in america. what skills, where does he want to take the country? if he wants to make a country great, how do we do that? jobs, economy, trade. hillary clinton's weaknesses. but he is going to be clear in specific and disciplined him driving that message to in america that will be watching. tom: can he send the message he sent for months, the battleground states. at the margin, he needs to changes rhetoric to the sununu tone. a more moderate, measured tone. mr. sununu: i don't have there is

we are going to take you from new york to london in the next hour. here's what we are watching today. global stocks rallying. earnings season kicking off on the right foot. vonnie: one layer of uncertainty removed when theresa may takes the prime minister spot tomorrow. there is a rush to get all the new leaders in place. the farmerwo of airshow. its --.ushing we are live at the event, chiefng with the executive of airasia. julie: records for the s&p and out. we have been watching these levels over the past couple of days. the nasdaq is higher year today now. that is a milestone for that index as this risk on rally comes back. let's look at what groups are on the move. it is reflective of what is doing well and not so well. screenen on the indicates the economy is doing better than economists are estimating. more defensive groups are doing more. we have traffic numbers from various airlines. american airlines -- u.s. airlines boosting stock up. this agreement will add to its pretax earnings by about $1.5 billion. we are watching natural gas producers

simon kennedy joining us from london. the headline now -- andrea leadsom withdrawing from the prime minister contest. leaving theresa may to be be sole candidate. another big twist in a big race. david: quite a drama. i wonder what this might do about the timetable. and whether this offense is the entire timetable. to say there will be a prime minister sooner and we need to act? jonathan: theresa may herself said not until the end of the year. so if she is concerned as the prime minister -- and i stressed she is not that yet -- she is just the sole candidate -- you wonder but she said not until the back end of this year. that and you could argue the pound rallying is a reflection of that kind of movement in the markets. david: we will bring in dan moss now. this is right in your area. it does this mean, globally for the market? dan it is another example of a global economy that is expanding and taking some hits. course.not knock it off at the same time, there is not a lot of momentum there. it is really a question about w

back to you in london. scarlet: we will be discussing jpmorgan earnings, julie gave us the highlights earlier. a big beach in profits and sales. the fixed income currency commodities in equities trading. ♪ >> you are watching bloomberg markets. i'm in london with shery ahn in new york. before we check in with oliver renick, i want to broaden the look at the financials. come in here as well. and you look at how european financial banks have performed since the crisis, come inside the bloomberg and the difference is stark. you see the s&p 500 index has moved higher even as it is often speak from last july. the stoxx 600 bank indexes off 46% since the end of the financial crisis. gap and it is getting wider. it is getting bigger and bigger because european banks have to contend with the issues over negative interest rate and what kind of burden that has on profitability. whereas u.s. banks have gone up a little bit further. we are seeing bank stocks plummeting but now they are beginning their footing. still,

mark: and i'm mark barton in london. it was supposed to close -- it was supposed to report after the close. the shares are 2.5% higher. --saw by anticline, because it saw costs decline. other railroads are on the rise. delta second quarter profit beating analysts. delta is higher. other airlines are also getting a boost. vonnie: still ahead, jpmorgan raising the curtain on bank earnings. this is bloomberg. ♪ live from bloomberg world headquarters in new york and london. i'm vonnie quinn. i'm: and i might are -- and mark barton. let's check in with bloomberg first word news. >> u.s. secretary of state john kerry meets with vladimir putin in moscow. carrie will layout a potential deal that could avoid an escalation. he will share information for targeting masonic states -- targeting islamic states. prime minister has tough choices to make. those tos him enough change the constitution the u.s. imposed on japan after world war ii. supporters want him to alter his pacifist article 9. meanwhile the population of japan keep s

. >> good afternoon coner johnston staff to board of supervisors supervisor president london breed and lemon apologize for the brief history of land use regulation i'll present there is a lot of back story here now that the june that election is decided and the citywide inclusionary requirements are set we can discuss 24 legislation than back in may there is a lot of back story i'll address as quickly as i said, i'll make clear the question before you today supervisor breed introduced substitutes legislation on tuesday regretting the changes we discussed in may and the outcome of prop c election so the legislation fundamentally does 3 things sets the vera derequirement to the recent do you mind 25 and 33 percent standard it requires pipeline projects in the divisadero and martin luther king's to meet the 25 and 33 inclusionary standards if taking advantage of the density decontrol and third it requires projects of 10 units or more using the nct to meet those higher affordability standards instead of the 25 it is a slightly lower threshold the basic question today do we want all project

live in new york and london for the next hour. we are covering stories in australia, france, and silicon valley. here is what we are watching today. the bank of england eases capital requirements. the bank pledges to do whatever is needed to shore up the financial stability. sinceoil has rallied hitting a 12 year low in january, but have prices hit a ceiling? ceoill hear from the vitol ian taylor. mark: and just glad you have a job, that is what financial firms plan to say to employees, as bonuses are expected to be cut 25%. we will discuss

states of america took place in no small measure because it was a revolt against the abolitionism in london it seemed to be suggesting that slave property might be headed for the dustbin of history. and now the state known as zimbabwe revolted against british rule in 65 because they thought clinton was moving towards decolonization one-person one-vote they tried to continue their white racist minority regime but they said they were walking in the footsteps of 1776 s that was an attempt to escape the the logic of decolonization of one person one vote therefore you cannot begin to understand the tribulations of people of african descent unless you understand they fought against the formation and sided with london just like the africans did not accept the establishment of a new stage of rhodesia and when you fight a war in the loose you can expect to be penalized unless and until you can turn the tables against your oppressors and one of the way we could turn the tables was through the haitian revolution which follows quickly upon the footsteps of the first convening of congress that is why st

that's a fairly large exit is from their trading cohort in london. they are also hearing from barclays they may be moving something to dublin, which will remain inside the eu press london is looking increasingly likely to be out. we really like to see some the banks can i coach her after just having revealed the strategies in the past six months, sometimes even four months. they will have to look at not only the structure of the bank of whether they will put their people in the region. >> jamie dimon outspoken in his unhappiness with the brexit vote. the more he be relocated a few thousand of his employees in the u.k. to countries. >> this is really a story of the financial sector and london. london is the question the -- is no question the european , center of finance. it's a global one. everyone is wondering about the uncertainty about brexit does that mean you start to see relocation very soon. before we even know the details of the brexit agreement that could take and probably will take years to finalize. ♪ ♪ matt: you are watching "bloomberg

i mean, london could be the new london. if you're really looking at what people want in a foreign capital, london has it. >> the resistance to the idea is going to surrender all of this activity is regulatory and the fact that taxes are higher in europe. >> the regulatory environment which is a big factor on the continent is much tougher. it's much harder to fire people. that is the main problem. but in places like two cities where people definitely said they are moving the only two that said we have firm plans to move people, dublin and ireland and warsaw and poland have favorable policies. >> it's difficult to measure at what point you get to that group of people in a particular city that tips the balance as to why it's worth being there. any sense as to what that is and what city may benefit the most from london's missteps here? >> well, yes, you need a critical mass. you need an energy level and something i haven't thought a lot about but is obvious, you need a city that would like to have people from the city of london

london remains very attractive. there is no free trade agreement of substance between the european union and china now. and all. more can be done with china. we are seeing interest from chinese investors even now. anna: mark, thank you so much. good to see you. mark boleat from the city of london corporation. barclays reported second-quarter earnings missed analyst estimates. the market was looking for my hundred 85 million pounds. let's get more on the numbers with the ceo, jes staley. great to have you on the program. thanks for joining us. let's talk a little bit about the unit, the houses, the businesses and assets you are trying to sell or mind down. that seems to be one of the areas you missed estimates. how will the profits and losses from that part of the business develop from here? bank, ourd a core transatlantic bank that did very well in the second quarter. the second part of our strategy for this year is to accelerate the closure of non-core. these are assets like our retail banking presence in europe, w

a new tube network emerging, and it's clear -- london is shifting east. each morning, a thunderous high-tech workforce surges into a district called the docklands. once a gritty industrial harbor, then a neglected no-man's-land, today the docklands has been transformed. it fills a peninsula created by a bend in the thames with gleaming skyscrapers springing out of a futuristic people zone. canary wharf tower is one of the mightiest skyscrapers in all of europe. workers enjoy good public transit and plenty of green spaces for relaxing. the entire ensemble sits upon a vast underground shopping mall. in the 1700s, the thames riverfront was jammed up with shipping in downtown london while this end of town was an industrial zone with the stinky industries -- glue making, chemical works, and so on -- conveniently located just downwind from the rest of the city. in order to relieve all the congestion in downtown london, they decided to replace the industries out here with what became the world's ultimate port. the docklands organized shipping for the vast britis