Work and prepared to set to step a little bit higher. That is how semiconductor will play into the chipmakers. You have job movementsm and qatar is a very strong economy. Fors theresa may braces and stocks are set for a high opening. You have Global Equities and pushback from tory lawmakers over her brexit repeal bill. Yellen fueled the investor confidence. Global equities, the longest winning streak since the middle of april. The chinese export numbers as well. Anna a very warm welcome to exports of 11. 3 in june from 8. 7 in may. Anna a couple of things to bloomberg daybreak europe. Im anna edwards. Watch, we put up details where manus janet yellen has managed we are in the market. A couple of headlines coming through. The owner of the unicode chain to poor coldwater on the uniqlo chain. Probability of a rate hike. The probability in december drops to 50 . In at ¥22. 9t coming when it comes to size and scale of the bond market, a 10 billion below the estimate of million bet, and this is what 28. 3 billion. Theyre betting on. Keep an eye on the retail space. Will yields ratchet higher or and an eye on cars. Lower, below 2. 28 . Been 10 million on out we are not over all of that story yet. We will keep an eye on that. Of money calls and this is the going to a frisky essence, the traitor whos put to trade on, we dont often see opening. Lets look at the bond markets. This is the center of gravity in terms of the softness coming these in terms of yield. From the fed. Weve only drop by more than 10 basis points four times on a we are there is a strangle in weekly basis this year. This is a big that on Something Big happening in the bond market in the next 10 days. The bond market, flat opening flat. E bund, french oats anna they are relying on some serious volatility by the 21st of july. Some drama is needed, whether macron meets merkel, macron meetingnald trump, the from inflation data, the white house, to make money on this kind of that. Of two new president is going to be closely watched in terms of that show everybody where weve what they say. Anna lets go to bloomberg been on the global stock story. See that weve first word news with juliette saly. Aliette it started with White Knuckle handshake and the rejection of the paris climate accord. French president emanuel not been this high ever. Macron and donald trump will get a chance to reset their awkward relationship with the u. S. Twoday visit to hong kong stocks at a twoyear high, the dow closing at a record. It looks kind of risk on. France. They will hold a press conference and had to the eiffel tower. Gold is higher, bonds or higher, the guinness higher. President trump is standing by his eldest son despite emails have a look at the revealing that trump, junior was dollar. Willing and eager for campaign help from moscow. The president has tried to distance himself from russian the cpi is going to matter more influence. In an interview with the to the conversation around the christian broadcasting network. Fed perhaps rather than janet hillaryu are had one yellen in front of congress. Won, energy would be her back at the lowest level since september. Weve talked about tenure Government Bond yields around more expensive. Want to see me the 3 level. Cpi will drive this agenda. Jpmorgan and others will there. Juliette unveiling the draft law that will take britain out be pouring over whats happening of the eu but it is likely to be in the bond market with those margins in focus. A lengthy battle with lawmakers from both parties plotting to here is juliette saly. Unite against parts of the bill. Juliette it started with a vince cable told bloomberg White Knuckle handshake and the government provisions could see rejection of the paris climate talks failing. Accord. I suspect we are a year down now president Emmanuel Macron and donald trump will get a chance to rethink their awkward relationship with the the track before something president s visit to france. There will be a press conference catastrophic occurs. At 5 00 p. M. U. K. Time and later unless the British Government gets its act together, this they will head to the eiffel tower for dinner with their wives. President trump is standing by on but the president [inaudible] optioning the impact of the saudi led campaign to has tried to distance himself from russia and influence in an isolate the gas rich oil state. The ceo of the biggest Bank Interview with the christian broadcasting that. Spoke to bloomberg. Had won, our it is a very well diversified institution, we have businesses and 51 countries. Energy would be much more expensive. From dayputin diversification is working and overcoming any crisis. One i want fracking and to get global news 24 hours a day, Energy Prices low and to create powered by more than 2600 journalists and analysts tremendous energy. In more than 120 countries. Theresa may will it can find more stories on the bloomberg you can find more unveil the draft law that will take britain out of the e. U. , but its likely to be a lengthy stories on the bloomberg at top. Unitingith lawmakers anna it has been a great session in the asian equity market. Against the bill. Japan losing out flat in terms of what you see in the relationship with the dollar. Have a look at the hang seng i suspect that it is a holding at a twoyear high. Kospi atsex and the plausible scenario. One at which they collapse, i dont know. I suspect we are probably a year down the track before something catastrophic occurs, but unless record highs. The British Government gets its and a fairly will is gdp rate. Act together, the show will just australia at closing out the be farcical. Juliette Qatar National bank session higher by 1. 2 . We have been watching toshiba in expansion into asia is helping impact. He the spotlight falling in tokyo. It rejected a report from asahi news. You have samsung at a record speaking to bloomberg in an exclusive interview, the ceo said it confirmed impact. Southt 1. 5 and reports it applied for a hong kong license this year. Korea could overtake taiwan as businesses in 31 the Worlds Largest chip market. Countries. This is a sense of what youre seeing in the city market in terms of a big rally coming our aim is working to helping through in health care players. Have a look at this chart. We also had china data coming the environment overcome any prices. Global news, 24 hours a day, through today and it was very powered by more than 2600 strong. Journalists and analysts in more than 120 countries. Stories on there you can see this yellow line is exports, they rose by 11. 2 in. Loomberg at top june in dollar terms. Imports up by 17. 2 . A great rally in asian equities. The hang seng index at a the has been the talk of feel tariffs from the u. S. But a lot of analyst saying even if that twoyear high, up by about 1 . Happens it does not look like it will dent chinas export highensex is at a record momentum. As is the cost the. Thank you. Kospi. S the testimonyen delivered you have a flat nikkei in in front of congress yesterday and said the u. S. Economy should reaction to what were seeing in continue to expand over the next two years along the central ink to keep raising interest rates. Bank continuesal monitoring inflation. The fed trade from june is still in place, yellens testimony making no new ground. The u. S. Economy appears to have grown at a moderate pace so far this year, she told the house, and will continue to grow at a moderate pace in coming years. The fed is watching disinflation, i how and when prices will rise is the central question. More gradual rate increases are called for until the fed benchmark neither stimulates or constrict the economy. Yellen offered no new details on reducing the Balance Sheet saying the fed wants a treasury only portfolio and the fed plus use of excess reserve saying it is not paying banks not to lend. I do not see banks as parking at the fed and not lending. She could not avoid being asked about her own future as fed chair although she could avoid answering. A servantd to keep my term. I am very focused on trying to achieve a congressionally mandated objectives and i have not had to give further thought at this point to this question. Thursday could be her last appearance before congress when she returns to capitol hill to testify before the Senate Banking committee. Manus joining us is the head of g10 fx research at credit agricole. Listen listening to janet yellen, the probability reflecting on the probability of a hike. We overreact and we have some say we should be focusing on the cpi data. The fed will be more data dependent. We are still expecting a rate hike to come in december. Expecting the fed to start unwinding Balance Sheets this year. All of that, not much has changed on the back of the testimony. From that point of view, we may be dealing with an overreaction especially if you look at the dollar under performance across the board. Before long investors will start again betting on growing rate advantage of that currency especially against the first swiss franc and the japanese yen. The likes of the boj and the smb are in the dovish camp whereas the fed is in the hawkish camp even a bit more cautious. Market seems todow interpret her as being more dovish. The fed is not the only game in town. From that point of view investors like to buy the euro, hike to buy the cac. They ignored persistently weak inflation preferring to focus on the Growth Outlook and the need to normalize policy. The dollar has company which is fine and from that point of view, that can explain why the dollar is struggling at the moment. There it looks more attractive than the yen and the swiss franc. Manus they have spent 10 they have to ratchet one way or the other. Where are we going, two weeks she or he has two weeks to make money. Make your call. Valentin all Central Banks have to put it into the monetary accommodation. The fed is leading the way, the ecb will be joining soon. The bank of canada has joined the banks. Bond yields are solo and makes no sense. Bond yields have to go liar higher. Manus they went out of their canadae bank of governor made sure we did not run away with ourselves in terms of what comes next. This is a dangerous game to play for central bankers. Valentin when it comes to the central bank, inflation is still pretty important, delivering 2 or whatever your target. It is about that. If you fail to deliver that means your credibility is being eroded area it is taking a risk, taking their chances at the moment. Are inironment we highlights inflation is no longer the paramount driver. The most important driver of the policy is Central Banks are worrying about Financial Stability and the housing bubble. There thinking about the time when they have to deal with a cyclical downturn. The main date the ammunition of they may need the ammunition of higher rates. Financial conditions are supported. Anna when we were talking about the bond market has not been moving to that extent very often this year versus last. Where does the trauma come from, it does a confirm the white house, inflation data, the ecb and other Central Banks . Since 2005 believe we will have the top major Central Banks of the world tightening. Anna the market dove back from that a little bit. Itin the markets can believe in that theme. In terms of timing we just need more confirmation from the fed and we need to see the ecb telling us from now on, were going to be buying less. What youre going to see on the back of that, the inflow back into the eurozone on market where domestic investors are talking about a higher domestic yield and abandoning treasuries and this is where the volatility will come. The imbalance between supply and demand of treasury kicks in and pushes the premium toward morneau mole levels. Treasury yields could be 60 or 50 basis points and that is a reason to expect more volatility. Anna thank you for your thoughts. A lot coming out of russia this morning. Manus the central Bank Governor talking about the economy. Shifting in terms of the Economic Development and that Central Banks are worried about growth remains unstable. , high debt and low inflation are a drag on the worlds economy. Central banks are worried about growth remains unstable and low but in regards to the russian economy, the russian economy is at the start of a new cycle. That is predicated on the price of oil. Anna just when we were talking about the willingness of the aal banks to talk about warning about asset bubbles. One central bank picking up on that theme. It is 7 18 a. M. In london. Lets get a number business flash. Juliette thank you. Offering the top role at the pharmaceutical firm according to an israeli calculation without saying where they got the information. Salaryd get double the of the previous uso ceo. A panel of and visors to the. Salaryfood drug and administran in a clinical child patients who had run out of treatment options, 83 saw the disease going to remission. It causes collateral damage. Every patient whose cancer was wiped out contracted a condition ceb celle cell t aplasia. Visit is the second biggest the agency has struck and settled claims that rbs sell and sold bonds. They must do with the investigations before it is a return to the private sector. Toshiba is looking to fetch 2. 5 billion through an ipo with their swiss energy unit. In needs to cover multibilliondollar losses. The Company Expects to train in zurich july 21. That is your bloomberg is this flash. Mass teresas make theresa expected toment is release a bill. The latest Sticking Point is over nuclear regulation. Op. Treaty is called eurot six tory mps have indicated opposition saying it could affect jobs, research, and investment. The government said it will seek an agreement with minimal disruption. Lets bring in a former Shadow Energy minister. Great to have you on the program. Lets explore this from a number of angles. What do you make of the analysis that it is impossible legally to remain in the eurozone while [inaudible] Richard Harrington was saying it is not that they object, they do not leave the can stay in. Theres different legal advice to whether or not that is the case. It is also related to other european treaties so there is a point of legal dispute about whether or not this is something you have to come out of. Anna you think the government should have tested that. Seen legal advice about the opposite. This is more about politics than law. This is about the European Union institutions and the u. K. Government finding a way to ensure that there is the maintenance of standards and relations and safeguarding inspections that the free market of trading nuclear goods and services continues. We have world leading researchers, all those things are maintained because the u. K. Government and the Commission Said that is what they want at the end of this and our argument is to explore that there are ways in which with goodwill you could find a way to ensure that continues. Manus to and is this achievable is this what and achievable because nuclear corporations that could replace the current deal, is that feasible and it takes quite a time to negotiate a trade deal. I can only imagine the nuances of the nuclear cooperation. Is that a pragmatic and possible response . Tom it is what you would need to do if you are to replicate a series of arrangement including the safeguarding arrangements which it currently does and you the to put in place welcome back. There is more than 1 and thank corporation. You, janet yellen. Domestic law means they cannot trade at all on anything to do with nuclear and that includes passing information unless there seemed to have sparked some sort is a corporation in place. Of rally. That they take a long time to do lets talk about what is happening with donald trump. And most of this is sequential, you cannot do it in parallel. You cannot have agreements he is attending the annual seriously discussed until you know your safeguarding regime. Conference and there is a it cannot have your safeguard regime in place all of those controversial meeting between his son. Things take time and the clock is ticking. We have 21 months, 21 20 and this is meeting months last left. Anna this was mentioned in the the core of the euro area. Icle that triggered you thisat to see document that triggered article morning. 50. We see politicians having a vote on this whether, commenting on this is a moment to become global again. This and many objecting to leaving what is it possible to is the 100th university and go back on that path of the bigger without opening up what many would see as a can of worms about the triggering of article both have a lot to gain here. 50 . Tom this first emerged when the government pushed the bill to trump is not popular in leave. It was in the legislation, and france. The explanatory note and that was article replicated in the article 50 notice. There is no protest plan. This is my we are in uncharted territory. No one is trying to leave the union before going through that there is nothing major and it is riskfree. Process, no one sought to understand what you would do. The ability to say we want to risk for trump. Look again, can we find a way of he will be asked about the having associate membership emails. Theyre going to throw the focus which the current treaty enables, there are two different ways you can do it, a range of on. Different ways this can be dealt with. It is about all of these things. What is important for us and there are things they disagree they are not afraid to important for our Nuclear Sector and research and trading is to ensure we do not have the cliff show away. Edge and point with nothing else in its place and the issue is it how do we judge the relationship takes a lot of time to get those between these men . Things in place because they are what about the personalities reliant on a series of negotiations with different states. Behind it . They have their processes to agree with those arrangements and contracts and agreements. They could not be more having a transitional time that different. Is long enough to ensure th