At 12 45, dallas fed president Robert Kaplan speaks. At 1 10, President Trump will be in miami to discuss changes he is making on the u. S. Restrictions to travel to cuba. He is tapping off quite a week for his administration. Here is kevin cirilli. I do not know where to start, cabinet. Why dont we start with the investigations . What is the latest . Should we be focused on it quite as much as we are . Kevin the white house will say no and a democrats will say yes and i think that answers lie in the middle. Isht now, the administration pushing back hard against the notion that a shoe is about to drop in terms of the investigation with the russian probe and they feel adamant there is not enough evidence for that part the president s personal attorney, Marc Kasowitz , is pushing back. There are allegations. The fact of the matter is until the investigation and the probes are put forward and made public month they will keep having these types of problems. Keep havinghey will these types of problems. At 1600 pennsylvania were ceos were gathered, i spoke to them and got their feel on all that was going on with the investigation and impacting their ability to get through their initiatives. Privately, they concede theres frustration that this type of focus on the russia probes and investigations is hurting their ability to use the bully pulpit for initiatives they want. The president s bully pulpit is his twitter feed and is primarily focused on criticizing several folks in regarding the investigation. David exactly. We want to get to tax reform and health care but meanwhile, now he is in miami and addressing the cuba issue. What is it about . Why is that not that high up on his priorities . Kevin first, conservative cubanamericans, they particularly were very much against former president Barack Obamas rolling back or easing of diplomatic ties with cuba. This was something on the campaign trail President Trump said he would do. He will not go as far as they asked on the campaign trail, but it is a fulfillment of source to conservative club you get cubanamericans, an important contingency in florida which is a key to ground. The second thing that i would raise is not all republicans are on board with this especially moderate republicans like the and more the tourism libertarian folks like rand paul have problems very david thank you. We will check in with you later. Jonathan is that what the Global Markets really want . David not traveling to cuba. Jonathan trying to cut through the noise from d. C. , but his voice their concerns over the administrations agenda on tax reform. This one disney ceo bob iger told Bloomberg Television earlier. As a is a priority for us company that there is a high Corporate Tax rate that america gets competitive with the rest of the world and right now, we are not jonathan joining us is bianco. Hanson and john lets begin with you. The prospect of the things of bob iger would like given the amount of noise we are having in d. C. , where are we now . If you look at the trump agenda that has the market excited, it has three legs, full business friendly and that would fall under things idabel would would like iger to see and tax reforms that seem to go nowhere. Relief, are we getting that in spades, the federal register, a log of activity in the United States will follow i almost half and has never done anything like that. The oneef seems to be thing we have going for us in the Business Community that can look at and lose positively. The other two legs of the stool are stuck in the mud. When will it bite . When will i see the relief see through to the general economy . Jim bianco it is starting at least in the financial markets. Weakness of the last few days notwithstanding, it is starting to come to. Regulatory relief is an long tail and more of a 2018 story but we are putting it into place that we should see more relief in that respect. David i picked this out of your notes. You want to the federal register which is the way the regulation have to show up and you tracked the rate of growth in the pages and showed tapering it is easing off. it goes to 1936. When the federal government have to do that, it goes it to the federal register as a number of pages is how active the government is is. Its pace is half of last year. It used to fall 3 or 4 in Previous Year and that was a big deal and now it is down feet percent. It shows you how much relief has come to businesses. Jonathan is it because they do not have the staff . Michael hanson it is some of a both. In the long run process and getting it into the economy. My reading, if you look of what his gotten the most traction is protectionist front and love action on that front. The tax agenda seems to be stuck in the mud and basically because amongst republicans on a lot of of disagreement on how to move forward. David in the debt ceiling and the budget which is coming up that could affect very directly. Michael hanson and the fed. They are not at the end of the world but they can create a fair amount of volatility and undermine the confidence. It is the feeling we will get health care before the recess and that is looking like a challenge. And we will start tax reform sometimes this fall but you have to get past the debt limit your double filled vote before you get it through you have to have a failed vote before you get it through. I do not think you got the clean, early resolution. David if you get a clean later resolution, that we do not shut down the government or default, lets assume that. We may end up kicking the can down the road so the president does not get to make the changes and increase to defense spending and will not get his agenda through. Jim bianco that is true. That would be another problem. Under the Trump Administration, we can introduce payment per organization and that has come up prioritization that have come up. If they shut down the government, they still have money as they can keep the government shut it down before they get stuff that would impact financial markets. Usually, we shut down the government and we default on treasuries and a Nuclear Scenario which is why it never comes to that. They could play that game and really drag it into 2018. David going back to your point it is probusiness, does it make a difference of whether they have none in place or the policy . As long as there are not regulations, does it help us . Us and the it helps short term as in the next couple of years pretty in the long term, if were shutting down because we do not have people in place and saying we are not going to do this or that, it could be detrimental in 2019 or a 2020 story. Right now, theyre looking at the idea of relief unless compliance bills. And that is viewed as a positive. Jonathan and i do not see the legal issues in d. C. Jonathan david everybodys lawyer up. Jonathan coming up, this is Vincent Reinhart and he set the data may be inconvenienced for the fed to do what they want to do. We will speak to him. You are watching bloomberg dubbed the bank divorce talks jonathan divorce talks between the United Kingdom and the eu is so start on may. Theresa may is facing criticism for not engaging with survivors of the fire and other local residents. Simon kennedy joins us from london. Lets begin with you. The heart of europe, where a lot of finance ministers are meeting for what are we learning about the negotiations so far . In terms of these negotiations, i have been here in luxembourg covering the group in terms of greeces a lot. We had Philip Hammond arrived early and i spoke to him on the doorstep and what he was talking about what having a pragmatic negotiation and he talked about cooperation and it was a much softer tone and what has come from. Uk in the past and he was question on the Single Market and if the eu would remain. He said i will not give a blowbyblow account and i asked him given he has been seen as the advocate for a softer brexit whether he thought it would prevail especially with regard to safeguarding jobs. We are about to start a negotiation. We set up a clearly our desire in the speech and the article 50 letter that we sent that it is a negotiation. As we going to the negotiation, my clearview and i view and i believe the majority of british is we should proud torres protecting jobs prioritize protecting jobs and prosperity for jonathan that was Philip Hammond. Simon kennedy, the sequencing of negotiations that began this monday. We understand from the eu that the divorce settlement of eu citizens and how long will it take to get the issue sorted . They arenedy optimistic thinking it will be october and that is what an official said will be the likely date if everything goes to plan. Moving on to trade talks that theresa may wants to focus on would require a unanimity that sufficient progress has been made on those topics such as brexit. Theyd need to deal with those first. Jonathan the bank of england and westminster as well, the dreadful tragedy that occurred on your this week in North Kensington earlier this week and North Kensington and the political divide and has been politicized very quickly. We spent a lot of time of how distracted europe would be going into negotiations. How distracted will the u. K. Be going in . Simon kennedy it is pretty distracting and that is a concern for the eu negotiator who has warned against more time being wasted. It has been a year since the referendum and we only have until the end of next year to sort out a plan for delivering their breakup. Otherwise, it will sneak into 2019 and that is when the european and british problem is need to be rectifying it parliament be to be rectifying it. On a softernd brexit push within the cabinet telling us about a pragmatic brexit. That kind of camp has built momentum in the wake of the botched election. Will it continue . Or will european skepticism rise up again . It will couple kate things and the destruction it will couple kate things in the destruction it will complicate things and the distraction. Does the bank nejra cehic and simon kennedy. A year ago, did you think this . They said it was either brexit or not. Davidagmatic brexit for pragmatic brexit. The european side, saying lets do it. Now, midjune no progress. David cameron made a semiit would happen and negotiations with made it seem like it would happen. I what to bring in jim bianco and Michael Hanson. What have we learned about brexit . Jim bianco we dont know what to do next. It has been such a difficult process that has taken a year to process. Financial markets has largely taken it in stride. Yes, the pound is down over the last year but sonatas crossed off it as one would have predicted. But not as catastrophic as one would have rejected. One would have predicted. David what is going on with the european economy . You have seen a boost from the weak payout, but it is nearterm you have seen a boost from the weak pound, but it is nearterm. It is an and inflationary shock. A little bit of concern about that. David if youre worried about the eu economy, at what point do you take all of the hit you will take and Start Building . We have inflation going up and not growth. It seems to be expressing its way and when to use that we are there now . Michael hanson i think it will take quite a while. It is a lot of lingering. Until he got more certainty, you are looking at a slow deceleration as both businesses and consumers pull back. Jonathan the past 12 months, how stable europe seems to be politically and economically as well. Do you think its the story that continue to diverge, this stability is that Gains Traction . The italianon election is the wildcard in i think the german election is a nonstarter. It has been politics. I would argue, most of the Political Risk has faded for the u. K. And we do not know how long theresa may will stay on as Prime Minister given the discussions ended election did not go her way. I think theres a lot of Political Uncertainty in terms of what type of deal and we do not know what the parties want in terms of hard or soft brexit and there is a lot of uncertainty. In the u. S. , so many people overweight on europe and they want to buy europe. The current reality is you have a new phrase in a place like france and he made turns out to be a Prime Minister renzi, hope is right here. The capacity for change in a country like france, where is the ability to execute on some of the agenda . Jim bianco gave there is ever going to be change in france, this is it. For 70 years, they had one of two parties and they would take turns leading the party. We have invented a new party and the last 12 months and they have elected a president in a majority in the assembly. It has come out of the blue. Can you imagine if the u. S. Created a new party and buchholz president and the vast majority of the house of representatives . If theres ever going to be a change, now is the chance for them to have a change and hope is a powerful drug that can keep markets going and probably will as they think something will turn the corner in france. Jonathan until unions, out. David until they take to the streets. Jim bianco and Michael Hanson will stay with out for it later, we will be joined by Carlos Gutierrez and he will talk about how the president will be change our relationship with cuba and where the trade policy is headed over wall. Live in new york, this is bloomberg. Jonathan from new york city, a quick check on sterling, very quickly. In the fx market, rolling over a touch. Still up 0. 1 . Learned brexit negotiations will start on monday. The sequencing was already important. Andto talk on the one side talks about the divorce settlement on the other. The European Union said that would like to start with Divorce Proceedings first, how do you negotiate that split . It was i the eu side has won. They have thought of the following. We understand the u. K. Has two except to accept the brexit talks. U. K. in england what the is doing, it is different break in greece, its those like deja vu. The creditors have agreed to release new loans for athens. Loans come due next month. Needs not the question, it is a very good deal and a much better deal than what we decided what he your ago the what we decided one year ago. David is it just kicking the can down the road and will we do it next year . It is completely kicking and what it does not do is put greece on a sustainable path. Until to love a situation where you but debt writedown, youre not with have a solution for jonathan the greek debt and you get an idea of how close we are to another doing this all again and in other deal. One maturity to another maturity. David maybe, that is ok . The spreads have come in and not doing too bad and maybe it is not the worst approach. Jim bianco they are Holding Together because greece is small. They are an eu member and cannot the default and set that president. Precedent. There will always be that deal and not having them default and go through pain because they did not meet some target and then that will set what about france, what about germany, why dont they go through the same thing . Jonathan why did it take six years . Has a walkaway option, you cannot walk away. They keep talking and talking. Threatened to throw a fit, here is some money and we will calm you down. Jonathan will it matter eventually . The whole term of the debt, the ecb, the likes on the table, does it matter that they cannot deal with the debt sustainability issue . Only greece, it will not matter. They have been in technical default for the last 200 years but if it is other countries or the threat, it will matter. Jonathan jim bianco will not to be in greece this summer. Michael hanson sticking with us as well. Deutsche bank chief global strategist is part of the diehard bond said who said treasuries have become unhinged from reality. From new york, this is bloomberg. Jon this is bloomberg daybreak. 20 seconds from the cache or. Futures are positive. So far,t over the week with the exception of the nasdaq. The text section rolling over through the week. Treasuries, the year to date low on 10 year. We are up about a basis point on the day so far. In the fx market, the eurodollar, a stronger euro. Tory area that is the story lets get you up to speed with what is making news outside the Business World. Elizabeth andeen sitee william went to a near the disaster, where Community Groups have been gathering supplies. Police say they hope the death toll does not reach triple figures. Russia crane russia claims in may have killed the isis leader. If it is true, killing him would be a Major Military success for russia. The pentagon is taking steps to in afghanistan. Hastop american commander said he does not have enough forces to help afghan troops fight the taliban and. The bait of japan the bank of japan cannot get 02 central level. They will maintain a negative Interest Rate and keep buying trillions of yen. Jon thank you. We are joined by michael hansen. What is the song . All by myself . Is that what janet yellen is singing now . She is pushing a more hawkish tone. How much longer, depending on how much longer she will stay. They are going down that road now. We look at chair yellen. She might not be there that long. There is a bit of uncertainty. There is an an open question there are a lot of questions on that front. I dont think that is what is moving the markets. The candidates we have heard thinkmost people would would not go the other way with rates. Maybe it doesnt make a difference in the long term. Leans a little more hawkish. He has been a backer of negative rates. People have run with that. It is probably misleading. I dont think he is in a rush to stick and go to three or 4 . To what extent is the ecb driving the ship at this point . In terms that they are easing his health in the