A driver in a van drove into a crowded shortly after midnight. They say he shouted he wanted to kill muslims. The 577 feet. The u. S. Navy is promising a full investigation. The uss fitzgerald is back in port after being struck over the weekend. Powered 24 hours a day. A year after britains vote. O leave the European Union today, talks will how they are going to get that done. If at times like these, we are a reminder of the values and resolve we share with our closest allies. Why there will be challenging imes ahead of us david joining us now, bloombergs euro chief. How does the big problem for the negotiators is that this is all a big distraction. Since they voted to leave, lets get on with the talks. Moreower fire and distractions for theresa may. It is probably going to be little difficult to focus as , saying we arent going to try to get something done today. For some time now, we do have 7 we had the outline of their position. Waiting for the u. K. What is the timeline over the next week and a half . The chief negotiator is going to report to the leaders and he will like to say we had a positive and constructive start. In and they talk going looks like they will have that. If they dont do anything else today, they have to make sure they get that nailed down. Melissa about 10 will be independent. Turnalley still trying to its way around. What more could you want . E will continue to your base case when it comes to exit . We will start to see what the negotiations will look like. The town will be sensitive to. He profits take a look at the bloomberg. We have not releasing that till late. Range, theto see the highest in almost three years. Aboutoing to be the whether or not they can push through. Nothing can breed, but it was set out by the European Union. Ted is a big initial bill and done, done, once that is when you talk about a soft brexit, it is a cauchy term. What the country needs is a. Alm thesa is leading to government. Most people in a the country will think. He started emphasizing jobs shift which seems like a. Currently, the u. K. In u. K. Economy class retail sales falling. Everloyment is at itsalso in four years. Governorficult for the trying to make a decision. If you are theresa may are, can you afford to make a tradeoff. That is really been the tradeoff. Is a difficult negotiation would suggest you continue to. Ead however, the vast majority of people believe they were doing their 16 million native american the attack. That may mean a slightly softer position going forward. This is the first day of negotiations. Comes the queens speech wednesday. . Hat is the market lists monthsink in about six they should be able to to parties share quite common values. They continue to be southern in. Strong and him coming up, we will talk to elaine chao. Coming up next, next breaking his want to fall for you. Directors on the void. 11 seat all this has to do about. Nwinding their bet they move from john paulson to offset it. T has your the Hedge Fund Loves it. In france, Emmanuel Macron has. On 350 seat sundays turnout was lackluster, below 43 . John even that, you had the left and far right both gaining. It is an achievement to manage in one years. , as you were is there for the first time gaining seats and of course, the downside is you is who political mps missinglad alas stored. Including of course, this label labor reform. The government will have to face proteststable wave of industry. Now take a look at what it may mean for developments. A year ago, europe was nowhere and there was a lot of uncertainty. Now, we have a growing europe. We havent france that is stable and center. T year was the worst year the u. K. In germany, countries in 2017,ing elections but look at what has happened. The pure number popped up to 57. Ht if you are an investor, ive been moving around the last month or so. That is the question i keep since the lows 500 has nine, the s p 500 outperformed by over 100 . Vonnie part of that has to do with earnings. You can see how much europe has outpaced across the low. What regions can benefit . By setting the area we want to look at is going to benefit from the eurozone. In they have certainly nonjury cash italy is the , trying to get the other factor we think that be important with the decades continuing to uncover. European patient is up and. Ow walking is a macron trade similar to how long will it take . The training time. That may lead to a little bit of a delay. Weve is like to start seeing. Ome market reform they are the background of the french economy. What is the trade in europe . If you are feeling nturous, will be sticking with the spirit coming up later, an exclusive interview with Sheryl Sandberg. Do not want to miss that. This is bloomberg. ; this is bloomberg daybreak. Jet ints first new nearly four years. Once amazon takes over, it plans to change the image. To lower expected prices. And in japan, a newspaper reports that toshiba is in the final stages of companies conducted. Buyers may pay about 18 billion. That is your Bloomberg Business flash. David the term which can is with thesynonymous election of last year. President trump tweeted about it again yesterday. New and infrastructure are in the works. Keep us up today, kevin cirilli. Kevin i think a lot of people are scratching their heads this morning. You have one of his attorneys say he is not under investigations. There is an Economic Strategy to push back and put the allegations behind them. David lets move on to other things. One of the things is the tech ceo summit. Also, Sheryl Sandberg speaking at 5 00 p. M. This was something put together by Jared Kushner. He has deep ties to Silicon Valley. They are really going to be david g the opening lets put to capitol hill. How are they coming on the deadline . There is frustration among several republicans that this closeds been done behind doors. Mitch mcconnell would like to this. If they do, this would be a big clinical victory for the white house. The handsome thank you, so much. Live. Ing up, we will be we will be joined by u. S. Congress secretary. In the market, futures pointing to a higher opening. In the currency market, allies start inbrexit talks brussels. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Alix this is bloomberg daybreak. Two hours from the open in the u. S. With dow futures pointing to a higher open. The ftse is also seeing some gains. Brexit talks start in brussels. We will look at the impact on the currency. At euro dollar, thats moving slightly higher and sterling cable is moving higher as well. What will be the catalyst for struggling to break out of its range . Lets get an update on whats making headlines outside the business world. And not . Police and london are checking out an attack outside a mosque in london. One man died in 10 people were injured when of them go into a crowd shortly after midnight. Prime minister theresa may condemned the attack. As i said here two weeks ago, there has been far too much tolerance of extremism. In our country over many years that means extremism of any kind including islamophobia. Emma the attacker active alone and was arrested. London, the death toll in the High Reservoir been fire is likely at least a nine and the total may increase based on resident reports of who was in the building last wednesday when the fire broke out. This isrnment expects inspecting 2500 similar apartment buildings across the u. K. A white house official said Jared Kushner will push for a peace deal between israelis and palestinians. This is his third trip to the region since the president s election victory. Pka one theooks koe u. S. Open. Record and here for the seven straight firsttime winner. This is bloomberg. David we have to talk about the u. S. Open. Ka got on this difficult of course and played it like you would not believe. Alix did you watch it . I watch the highlights. David he was amazing. The guy who came in number two, harmon had a 250,000 pot on the 18th hole. Putt on the 18th hole. Amazon purchasing whole foods for 13. 7 billion dollars is the biggest ever. Ic companies that are priced for a very, very rosy future. If its a great rosy future, people will do well. Problems and its going to be difficult for investors to recover. Alix one of on the phone is a scott mushkin. Good to talk with you. Likedea is that stocks amazon are so price for growth that that is a risk. Do you feel amazon is priced for the right kind of growth questio . To a moved amazon down pair perform six weeks ago. 20 year perform six weeks ago. Peer perform six weeks ago. Stepping back and looking at what they are doing and what the merger of foods means, this is an absolute perfect match. Either take some time so so and so we have not change the rating. We have been doing this long time and thought about it a lot over the weekend and it was a that we did not see this coming in understanding the synergies here, its a very good merger for both companies. That seems consistent with what i have read over the weekend. Time we saw aast Digital Transformation merging with analog . Is this not a bridge too far for amazon . I dont think so but one of the fascinating things about is a missionoods driven company. That Mission Comes from its founder and ceo, john mackey. Been a little uncomfortable in the skin of her foods, highpriced reputation. His mission has always been to bring Healthy Eating to everybody. This is fulfilling a Lifelong Mission he has had. Perspective, they really want to become bigger and more dominant in consumables but they did not have the credibility especially in flash. When you look at our research, the whole foods brand really goes well beyond the urban elites who shop it. Its incredibly strong throughout society. Its an incredible brand. Instantaneously, amazon gets that brand and guess the credibility of fresh. We think its a very good merger for amazon. The core of it is brand and culture. Most mergers you know fail on culture more than anything else. The whole foods brand is more upscale in most peoples mind. Can they cut costs without undermining the brand . I think they can. Brands upscale to a degree but its also about quality. A funny story. When they lose when the news broke the mold my wife called me and said is this true question mark i said it is. You mean him lower prices . She was excited. Maybe a lot of people thought the same thing. They thought maybe they can shop whole foods finally. Its very synergistic. Foods prices down will clearly be part of the strategy. Brand first and foremost is about quality. M a what will this do to in general . If you look at overall m a volume, it has been very low so far this year. Does on the big negatives back . Moneyre is quite a lot of sitting on the sidelines. U. S. Companies of lot of money overseas that they would like to come home. Rates are still very low. Backdrop economic hasnt. Received out together could be conducive for more m a activity over the next 12 months. Thed what about within grocery area specifically and retail more generally . If you are a grocer today and youre not foods, do you have to merge with someone else . With retail, business trigger a lot of consolidation . Our view is a kind of faster. Competitors are should be afraid, very afraid. Arething we ask of chrome on the Conference Call thursday is do you have enough scale . They answered yes. I think the answer is a resounding no. I think consolidation will have to accelerate meaningfully in the space to compete. For a lot ofllenge the Traditional Companies whether it be walmart or krogers, is becoming obvious that the size of their stores is a problem. And thatst too big a hard problem to solve. Its one of the things we worry about most for some of these traditional retailers. It wasf you had told us these companies merging, who would not have believed it. What sectors does this most apply to . Techu are seeing consolidation as well as retail that historically been a laggard in m a activity. Broadly, this is another instance of Silicon Valley moving business. Will this cause other Tech Companies to think about traditional business . Or googlee a facebook saying we should get into the traditional media business. You anticipate that sort of Structural Development . It has been happening slowly. Writtens been articles this companies have tremendous amounts of cash to throw around. Whats fascinating about amazon and this merger is its much more complementary. Some of the other Tech Companies have been moving further afield. Lookingf bezos, he is to make money. Short answer is yes but what this merger, its a little different than what we have been seeing. David thank you so much for joining us today. Alex dryden will be staying with us. Coming up next, the Paris Air Show where we are joined by the u. S. Secretary transportation of transportation. This is bloomberg. Emma mrs. The hewlettpackard enterprise greenroom. Coming up soon, wilbur ross this is bloomberg. Now to your Bloomberg Business flash. There are three new business units. Incomet will cover fixed and another will focus on etfs and the third will manage regional sales. Google is promising to do more to suppress terrorist propaganda. Google instituted new policies and practices to identify terrorist of videos. People are concerned that terrorists are using videos to recruit. Signs thatore sides the housing slump and u. K. Will continue. Prices drop to 2. 4 in june. David thank you. It may be difficult to remember but there is a lot going on in washington besides the rush investigation. There is legislation on health trade policy and Bank Regulations. To talk about the other side of washington are our next to guests. Start with banks. Weve got the stress test coming up. Where are we with Bank Regulation in washington today . A slowink there has been but steady migration of expectations. That is a theme you see throughout, and managing of expectations at a minimum. With banks, there has been a shift from the legislative expectations were anything is possible to retrenching toward thats probably. Whats probable here or administrative changes. U. S. Treasuries laid out a concrete set of steps that can be taken with less of a Regulatory Burden on banks. Bank of america really quantified it. What does it take to get from that report to the ground . Its time. Time is of one variable which is oft important in terms taking these administrative steps. What you look for it next is if we can get some of the present some of the president s. Inancial regulators confirmed those the nomination of jim klinger over the weekend that the fdic. He is an eminently qualified nominee. That does not open up the end of november. To him over the weekend and there was a concern that the white house is not nominated folks for posts that are currently vacant, the most of which is the vice chair for supervision at the fed. That still has not be named as we go six months into the administration. Financials of the best performer in june. Whats placed into that . As a smalliced in amount of deregulation making its way through washington in the next 12 months. I also think a stronger u. S. And Global Economic backdrop. What will really move the data is financials just move the needle is financials. The fed will tighten Monetary Policy and as they start producing for the balance sheet. As International Central banks begin tightening Monetary Policy and International Investors are shopping in u. S. Markets come alix they will go home. Alix the spread is winding up flattening after thi the september hike. Financials do financials need a hike . I think some deregulation would help. I think the year curve is what they were made. David beyond the administrative possibilities, lets go to the hill. The senate has selfimposed deadline of july for to get a Health Care Bill through. We really make the deadline . I dont think so. I think the july for deadline is more representative of leader Mitch Mcconnells wrist and move on to tax reform that it is a sign that there is many is on legislation without care. Even if we get something out of the senate which is far from assured, it will meet a very disheartened and aggressively positioned House Freedom caucus. The likelihood of getting actual legislation done on health care remains low. In my opinion, most of the market should expect a quick death to the Health Care Act so that lawmakers can move on to tax reform. When will get to tax reform . The earliest you can expect actual legislative language would be the fall. I think you have to first get politicalonfluence of risk that is both the debt ceiling and the funding deadline at the end of september. If we follow through there, its along the lines of perhaps getting legislative language in moving november, perhaps in into the house by the end of this year and the senate beginning of next year. This will get done on the first half of 2018. Whats clear that every conversation i have had is that it will be retroactive an