London. Matt i am matt miller dropping in for a couple of days to keep you company. Have you here in london. We are going to talk more about the general state of the market, what trump is doing on capitol hill and what that tells us about his ability to pass legislation. Lets rely, we saw yesterday around london and westminster and the lack of reaction in equity markets and markets in general. This is the ftse 100 standing firm, facing down against that terror threat. We saw at around 2 45 p. M. Yesterday london time the first news coming through of the attack and westminster and westminster. It took some time to regain lost ground. Facing down that terrorist threat. The equity market, the sell off easing a little bit as we work to see what President Trump can deliver. Matt congress will vote on the Health Care Bill later and investors are holding off on making any bets until they see about the mandate of President Trump on capitol hill. Lets take a look at the other asset classes. We did see some resilience yesterday and here you can see that the British Pound Sterling coming back up a little bit 124. 87. Most 21 25, the u. S. 10 year chains, we did see the yields drop for three days in a row. Yesterday a little changed, 2. 41 and nymex crude a little bit of a recovery back above 48. At 48. 41. Anna theres that sense of pausing waiting to see how the vote goes in washington reflected perhaps what we saw in currency markets and the yen having a seventh day rally. There are partial results. That is what we have got at the close of the session in japan. Of 1 . Kei to 25 up by. 2 the nymex was down. Matt a little bit of a resilience out of asia. Thats get the bloomberg first word news and for that we go to juliet solly. Juliette the European Central bank is about to give lenders a last offer of free longterm cash. Refinancing operation rates start at zero and could go lower. In return you will get a sense of any concern over the outlook for its extraordinary stimulus as the economic recovery spurred calls for in a plan. In the u. S. The fbi reportedly has information indicating President Trumps associates communicated with suspected russian operatives to possibly coordinate release of information damaging to Hillary Clintons campaign. Partly what fbi director james comey was referring to when he told congress that he his agency is investigating Trump Campaign hice russia. The white house and fbi did not comment on the report. The republican head of the House Intelligence Committee has offered support to Donald Trumps claims that trump tower was wiretapped. Saying that the Intelligence Community has collected multiple conversations involving members of trumps Transition Team during legal surveillance of foreign targets after he was elected. Trump told reporters i somewhat do feel vindicated by the latest developments. In japan, the head of an Educational Foundation is the center of a real estate scandal, telling parliament he received a donation from Prime Minister shenzhen lobbied by his wife. Speaking under oath, he said handed an envelope containing 9,000 during a visit to a kindergarten operated by the nationalist group. A spokesman has denied the allegation. Chinas permit has told a story out australian lawmakers his country wants peace and stability to boost economic growth. He says pieces chinas tradition and it does not seek to dominate. He said was countries should stand together against protectionism. Lets check in on the markets across the asia region. Seen a close out on the nikkei around. 2 of 1 . It was a bit of a choppy session coming through in that region but also the hang seng index flat in late trade giving up some of its earlier gains. The a sx 200 and will come up i. 4 of 1 as a result of rebound coming through in Commodity Prices which gave us solid boost and generally the risk aversion sentiment did fade away after that weakness that we saw across the region yesterday. You also had safe haven assets being dumped. The yen and gold lower. In terms of stocks were watching in the region, tencent coming through after the bell with its numbers, there were costs were blown up by 60 but no sales on the stock if you look at the anr function on the bloomberg. A little bit of a cell down out of the stock. Fromhaving an outperform Credit Suisse and jpmorgan. Samsung electronics is lower in the soul session in late trade ahead of its first Shareholder Meeting at agm tomorrow. The first time shareholders has met since the chair li was taken to prison. A chart that shows a much china has been importing from australia. You can see that big spike coming through in those green bars while at the same time the amount of things that australia is buying that were made in china falling. A lot of commodities and what china is importing from australia. Red wine and medicine picking up. Interesting to see the turnaround in that relationship that china is buying more us trillion goods and australia not buying so much from china. Anna well talk a lot more about print trade. We will be joined by richard baldwin. Londons worst terror attack in a decade has left more than five dead. The attacker ran down pedestrians on Westminster Bridge and stabbed an unarmed policeman outside parliament before being shot. U. K. Prime minister theresa may said today will be business as usual for london. Nehra, tell us what the mood is at once mr. Westminster. It is fairly quiet around here in terms of pedestrians been around. It is early in the morning. There are many film crews, i can see at least four police mans in the vicinity. I am standing on the south side of Westminster Bridge which is a bridge that the attacker yesterday drove down, knocking down pedestrians as he did before crashing into the gates of parliament. And running in. He was stopped by a Police Officer who did get stabbed and eventually died and another Police Officer in civilian clothing shop the attacker. The event left five people dead including a Police Officer who tried to stop the assailant and the attacker. As more than and more than 40 people injured. Theresa may has been saying that business will continue as usual. We are expecting parliament to sit and theresa may to address the lower house this morning. Her statement of defiance comes after a lot of statements of support from leaders around the world after this awful attack yesterday. Which is being treated by the counterterrorism unit as an islamist related attack. Anna thank you. Live for us on the ground, she will bring us updates as we go through the morning. For more on yesterdays attack, lets bring in Polly Neville jones, the former chair of the. Intelligence committee joining us on the phone. Great interview on the program. Thank you very much for joining us. What are the immediate concerns that you have about what you saw yesterday . I imagine an assessment of security around westminster will be a priority. What else comes to mind . Westminsterly itself is obviously an issue. The agenciest and will be considering whether there needs to be any further reinforcement of security in that area and they are going to post more policeman for purposes of reassurance and confidence and increased security. After an attack like this you have to pursue other leads. It is very clear that this man, one of the things that is not clear is was it his own car or did he hire a car and did he have accomplices westmark there is a strong hint that police are confident that they know who the individual is so they have not released his identity. Which i think means they have a certain number of leads to follow which they will be doing. They will also ask the question, can this lead to copycat activity or will the other associates or other people who may be inspired by this kind of . Hing to take action elsewhere there will be not only concentration on the scene in london but also they will look more nationally to see whether there are any vulnerable points or areas of policy which they need to examine rather closely. Thoroughl be a very assessment of the situation and of possible consequences. Matt what do you think about the International Response because yesterday we heard from Angela Merkel and others. It brings to mind or makes one question how these corporations are going to work in a post brexit world. Confident. Pretty the sense of self interest and unity on a subject like this will mean that though the u. K. Thenot be inside institutions that are being built up within the european union, arrangements will be made to have a close relationship with the u. K. You can imagine 27 plus one organizations of the kind that make that transition fairly seamless. I hope that is the case. I am pretty confident that the common sense of those involved in the security of european populations are not going to allow institutionalists to get in the way of real security. Matt i did fly in from berlin last night around 6 p. M. And i noticed increased security already. Do you expect to see more on the borders of the u. K. . Guest i think everybody will be alert in a sense. The control will be amongst it. Apprehensions,y any leads, they may be looking for people who are trying to leave the country. One does not know. I would expect that all the systems, all the parts of the machine which are involved in security will be on extra specially alerted this morning. Anna we are seeing now change to the security level at the that the u. K. Government has assessed. Since 2004 it is at this second life highest level in can be. Do you expect that to change . Guest no. It is not a severe. Theres only one stage above that, critical. We know that something is about to happen. Arise,hat situation to the level could change. I think the problem with the next higher level is the chances of having time to engage in activity rather than dealing with the incident means it is unlikely to be used very often if at all. It remains at severe. The you mentioned questions around whether this was someone acting alone or in conjunction with others, do we know anything yet about who he might have been influenced by, that is tricky without net a name. Guest i do not have any personal knowledge. Theuld imagine that if police who have a body in their possession, it sounds to me as if they probably recognized him. Which means they will have some clue. Hash also means that he become known to the police and to the agencies as well. They will have some clue as to his associates. That is why i think the likelihood of them being able to move quickly towards being able to find his associates and his thements, how he obtained car, for instance. I would think those things could happen quite rapidly. I would expect them to be on the trail pretty fast. Anna thank you for joining us this morning. Former chair of the u. K. Joint Intelligence Community. Matt the trump trade after u. S. Equities sold off on tuesday. They closed flat yesterday. We will discuss what investors are looking for and the u. S. President s policies. This is bloomberg. Anna welcome back. From hong kong, a little bit gloomy. The hang seng falls. Equity market seems to be waiting for what President Trump can deliver. Business the bloomberg flash. Here is juliet sally. Juliet sally. Five people were left dead including the Police Officer. Police are working on the assumption that it is islamic related terrorism. The Police Officer killed in the attack has been named. A member of the parliamentary and diplomatic command. Representsiament democracy, freedom, the rule of law, commend the admiration and respect of free people everywhere. Target, forto the those who reject those values. But let me make it clear today as i have had calls to do before , any attempt to defeat those values through violence and terror is doomed to failure. Global tanks are pairing back staff. Ibs is preparing to eliminate as many as 2000 jobs. The process. According to a person familiar with the matter other lenders include ubs are taking similar steps. A hiring boom accompanied 321 billion in fines. Sent westinghouse will be deciding whether or not to file for bankruptcy. It grapples with the cost of construction delays in westinghouse projects. It willmated an need to take a writedown of 6. 2 billion. That is your Bloomberg Business flash. Matt thank you. Market sentiment steady yesterday. Into the morning after a dive on tuesday. U. S. Equity markets closed fairly flat after their worst loss since donald trump was elected. That trickled into asia, the u. S. 10 year yield also steady after four days of declines. Thanks for joining us, great to get your time. Let me ask you about something mliv. Traders will posit and wait to see what is done with Health Care Legislation . We should not focus on the legislation itself. Two weeks ago this was not even on the radar. Been assuming that there will be substantial changes that trump can deliver that he can push through congress. This will be the first major test. That is why we have a bit of a wobble if he is not able to get this through. What else can he get through . Not health care in itself but it sets the direction for his fiscal policies for the entire presidency. Anna the extent to which you might be concerned about a feeding in the rally might depend on the extent to what you think trump was responsible for in the first place. How much has the rally been about trump and his policies and how much about the underlying threat to the u. S. Economy . Guest both of it should be about the data, about the underlying strength of the u. S. Economy. Have beeny would wellplaced and 17 markets. Theepends on how much question toward earnings and expectations which could be in the high single digits. That was just as important. That will be the test it at the same time, we have generated so much more momentum. Lift should not be discounted. Matt were not going to Pay Attention to closely to the actual Health Care Legislation. It the power and the mandate that donald trump has on capitol hill, which policies are you most concerned about for which he could use that power . Do you want to see the regulation most importantly, do want to see tax reform, do you want to see Infrastructure Spending most importantly . Guest in terms of what can sustain this rally and expectations, that links into infrastructure, probably the most important aspect of this is how you can combine the two. Can you change taxation or incentivize corporate profits overseas to be repatriated used to fund the structure. Matt this is a much more difficult task than reforming the Health Care Legislation. This is something that hits the politicians strictly in their wallet. Guest one other concern is the Health Care Administration will bolt things down. And the taxation issues as well. That is less a wave of concern. Lets not forget the underlying u. S. Economy as well and the global economy. Look at europe and asia and emerging markets. Those things put together even if we get a wobble today should get out of markets. The shocking allegation. What does this mean for the dollar question mark you are talking about policies that could he enacted by trump. Overvalued is the dollar overvalued . Guest i think it would threaten the u. S. Growth story which could feed into the Global Growth story in a negative way. We are dependent on u. S. Demand. Theink for the fed and dollar compared to medium and longterm fiscal changes that the government could bring emerging markets will be quite flat as well. Two things that the fed will take into account, how the dollar feeds in and it does want strong dollars to tighten them. Chart function that i am sure you go to often as well. How do you think this represents your expectations . Is the fed lowballing us on what theyre going to do . The feds most recent reports are in line with our expectations. Validatewant to excessive expectations. The dollar fed into that story. Last allocation change going longer in the u. S. And 10 year. A defensive position. Some people suggest that the fed is behind the curtain. Guest where is the curve and what kind of a terminal structure, what kind of economic table rule . Es the i do not think you could we were not asked acting the Balance Sheet ratios to be as high as they are right now. We have to take that into context. Anna thank you very much. Matt next, the rise of protectionism. Nd how did we get here . Our next guest will explain. This is bloomberg. Livestream your favorite sport at the airport. Binge dvrd shows while painting your toes. On demand laughs during long bubble baths. Tv everywhere is awesome. The allnew Xfinity Stream app. Xfinity. The future of awesome. Anna welcome back. This is bloomberg daybreak europe. Pretty stable. Quite a lot of stability over the last 12 hours in markets as we wait to see what can be the legislative agenda in the united states. We have the market closing. Kospi closing. Not a lot of stability. We were down on monday, upon tuesday, upon wednesday. Up on wednesday. Financials gained as gain hoping to hold that index above water and you see the msci asiapacific index unchanged. Anna the new edition of daybreak is available on your bloomberg and mobile. Lets look at the top stories that have made it into todays edition. The cover story is terror in london. World order World Leaders offered support after the attack left five people dead including a policeman and the attacker himself and wounded 40. Speaking outside her home in downing street, theresa may said today will be business as usual for london. Tomorrow morni