Transcripts For BLOOMBERG Bloomberg Go 20160629 : vimarsana.

Scher. Alix and David Cameron is about to be questioned by Parliament Members over the future of britain. First, we want to take a look at the second day of relief rally. It seems like the cat is still dead and bouncing. Jon it is a day of gains, but the Prime Minister has started to speak. Lets take a listen to Prime Minister David Cameron. Cameron iter expressed the you ks condolences and to offer assistance. Details are emerging, but we stand as one in our defiance against these barbaric acts. This week marks the centenary of the battle, and there will be a moment of silence on tuesday morning. I will be speaking at a memorial near the battlefield. It is right that the country pauses for the sacrifices of those who lost their lives during that conflict. I shall have further such meetings later today. Mr. Carmichael . May i associate myself with the condolences to all those who have been affected by these dreadful attacks in istanbul . He has served this country. It alone, not done and it is right we should acknowledge the support that he has had, as we all have had, for the families. He attendgoes, will to one matter that when he was in opposition he described as doing enormous damage to the model of the country, and that is the involvement of the Security Services at rendition . Sir mark allen will not be prosecuted for what he did. Will he reinstitute, so that wehe can ignore what was done in our name . Cameron may i think the general the gentleman for his remarks. Important point about the libya rendition issue. The government cooperated fully with the Police Investigation into these cases. Show that there was significant evidence to prosecute or there are very few countries in the world that would have had such an independent and thorough investigation into an issue like this. , asink the right approach peter gibson the finished the report he was able to do, i think they should continue to do so. Thank you, mr. Speaker. Said, andnd has putting Current Events into perspective come at 7 30 this friday, we will start the process of remembering the battle. There has so much been done to ensure that our young people will learn the lessons of the past. And forgetting our current challenges, with the join me in encouraging everyone to remember, salute, and commemorate those who made the ultimate sacrifice . Prime minister cameron i join my honorable friend enjoining all those who organize these honorable events. There are events up and down the country, and i think it is important. 57,000 people were killed or wounded on the first day of this battle. But also so many people are learning about their own families involvement, and there is a link between the Current Events we are discussing, the importance of keeping peace and stability on our continent. It was noticeable at last nights European Union dinner that the french president actually mentioned the commemorations, and how proud he was that we would be standing together and remembering their sacrifices all those years ago. Corbyn . Y thank you, mr. Speaker. I would like to echo the Prime Minister in commemorating the people who died at the attack on the istanbul airport. I would also like to thank him for referring to the memorial on friday and i look forward to being with him there at a Memorial Service of those who died in that dreadful battle. It would also be appropriate if we paid tribute to patrick mayhew, who died last weekend. He was the driving force behind executiveg street that led to the ceasefire. The piece that we have in Northern Ireland is in part because of him and all that we have achieved. Mr. Speaker, what people in the country are worried about is the extra insecurity to their Living Standards jobs, wages, and pensions following the eu referendum. We have heard uncertain words about the future of some of the Major Companies in europe, like siemens. What meetings has the chancellor had between those companies and others to try to stabilize the situation . He is absolutely right to hatin chen to mention trick mayhew. He was also a brilliant attorney mention patrick mayhew. He was also a brilliant attorney general, and was a kind and goodly man. I was very sad to hear of his passing. To him by hisge wife shortly before he died, and i know many people in this house want to send good wishes to his family. The leadership rightly asks what progress we are making to do with the economic challenges we face. We are in a strong position to meet these challenges because we have paid down so much of our deficit. We have had strong growth and job creation. But i do not belittle at all the consequences will be difficult. There are going to be some very choppy waters ahead. We have got to find the best way through this and one of the things we must do is talk with businesses and reassure them about the stability there is today and the strength of the british economy. The business secretary has met with a whole range of businesses already. Tomorrow i have the meeting with my Business Advisory group, and i am inviting other business to that, including siemens. We want to talk about the reassurances of stability we can give now. Circumstancesour do not change until we leave the European Union. And i want to hear from them about what they think will be the right course of action. Jeremy corbyn . Corbyn the chancellor pledged to keep a aaa rating. Made of the government this downgrade in terms of borrowing costs, and are there risks to Pension Funds . Prime minister cameron the Credit Rating by one agency has been taken down by several points, and another has put us on watch. To answer the question directly, the cost to the exchequer and the taxpayer will depend on what happens to the Interest Rates in the market at which britain can borrow, and he is right to draw attention to that. Draghi conrmsio this last night all of the warnings were that if we voted to leave the eu, there would be difficulties in terms of our own , andmy and growth rates instability in markets. We are seeing those things. We are well prepared for them in terms of the reaction of the bank of england and the treasury. But there is no doubt in my mind these are going to be difficult Economic Times. We must maintain our Strong Economy so we can cope with them, but we should not belittle those challenges. We are going to have to meet them. Jeremy corbyn . Jeremy corbyn everyone across his house should be concerned. From businesses and investors are that the u. K. Is less attractive, putting jobs at risk. Will the Prime Minister consider suspending the chancellors role . Prime minister cameron i do not believe that would be the right approach. Hear,usiness needs to what consumers and investors and people concerned about our economy want to hear is that we have taken huge steps over the last six years to get the budget deficit down, to make the british economy more competitive, to make it attractive for investment. They want those things to continue. If we see economic difficulties, one of the ways we have to react to that is to make sure our public finances in the economy remains strong. We should not have taken all of the steps in the last six years to get the deficit down in order to see us get in to a more a morelt pass to difficult path. There are three phases to this. The first is the volatility we see. The second is the uncertainty about britains future status, which we need to bring to an end as fast as possible by examining the alternative models. And then choosing which one we should go for. Then we need to bear in mind the longterm damage to the british economy is based on how good our trading relationship will be with the European Union. For my part, i think we want the closest possible relationship in terms of trading with the European Union. That is something that can be discussed and debated in this house, as well as by the next government. Jeremy corbyn . Jeremy corbyn this week there the lastvidence that alone, there days have been attacks. Reports has he received from the police and what extra resources are going to communities that have been targeted in these vile racist attacks that have been taking place . Prime minister cameron these attacks are appalling and they need to stop, but it is right that everyone in this house and everyone on all sides of the referendum debate utterly condemn them. That is not what we do in britain. We do monitor these attacks, but i can tell the house that we will be publishing a new action plan on tackling hate crimes shortly, to step up our response and we want new steps to boost reporting of hate crimes and supporting victims, new cps guides to prosecutors on racially aggregated crime, new protective security measures, and additional funding to Community Organizations so they can tackle hate crimes. Whatever we can do, we will do to drive these appalling hate crimes out of our country. Thank you, Prime Minister, for that answer. The rejection of a status quo that clearly is not deliberate, there are now 13. 5 Million People living in poverty in the lastup 300,000 in year. 4. 5 Million People in england alone are in insecure work, and two thirds of children in poverty are living in households where at least one adult is in work. The Prime Minister has two months left. Will he lead a onenation legacy, and will that one hyphenation legacy be the scrubbing of the bedroom tax, the banning of zero out contracts, and canceling of the cut to universal credit . Prime minister cameron where i would agree with the gentleman is of course we need to do more to tackle poverty, we need to do more to spread wealth and opportunity. But to try and pretend that last thursdays vote was a result of the state of the british economy is complete nonsense. The british economy is incomparably stronger than six years ago. We all have to reflect on our role in the Referendum Campaign. I know the honorable gentleman not back into it, but i would hate to see when he is not trying. Mr. Speaker, government figures released yesterday show the number of children living in poverty has jumped by 200,000 in one year. This disgraceful total of 3. 9 million children in this Country Living in poverty does he not think he should at the least apologized to them and the parents that have been failed by his government, and do something about it so that we do reduce the level of Child Poverty in this country . Prime minister cameron if he wants to do with the figures, let me give them to him. He asks about poverty. There are 300,000 fewer people in relative poverty since 2010. Half a million fewer people in absolute poverty since 2010. If he is looking for excuses about besides he and i were on about the referendum, frankly, he should look somewhere else. I have to say he talks about job insecurity, and my two months to go, it is not in the for heavens sake, man, go. Mr. Corbyn thank you, mr. Speaker. Thank you, mr. Speaker. All of us have constituents then need to be addressed in for weeks and weeks, my constituents have been struggling with the impact of unofficial industrial action on our railways per not over jobs, not over wages, but over who gets to press the button. Jon oh, the quirks of british politics. This is a weekly opportunity for mps and the Opposition Party to grill Prime Minister David Cameron. We will be keeping an eye on this and listening to it for any comments potentially on brexit and the british exit from eu. Statement from the Prime Minister on the summit he attended in brussels yesterday evening. Let me get you up to speed quickly on what is happening with global markets. We would like to continue to follow the Prime Ministers questions or you can do that on 134. 39. At 1. 3439. I want to bring in Francine Lacqua and guy johnson. Francine, the quirks of british politics. It, it wasot to funny. Francine the problem is there is a resounding movement in the country that this is funny, David Cameron retorting to Jeremy Corbyn is funny, but underlying, it is not. We have Jeremy Corbyn, the opposition, his leadership going nowhere. So we do not have an opposition. This is probably not as funny as they make it out to be in parliament. Guy we will see exactly what happens as it carries on. Alixjon i am getting a big red headline, and there was some suspicion that we reported that was injecting funds into the Financial System in italy on the back of what they suspected was systemic risk. Germany set to oppose shielding investors in italy bank planning. It shows you the ramifications from brexit across europe, the concern about the banks. Guy not everybody is on the same page here. Of thee a quick comment italian banks they have been a mess. Puts theit does, it focus and the spotlight on the weak spots. Expect more bad news for a lot of the banks. Guy germany is saying this is not a systemic event that allows you to get around the rules and you are not allowed to do this. This needs to be a private sector involvement story. I would not terribly rulebook because britain has done what they have done. Jon we have a political vacuum in the United Kingdom. We have an incredibly fragmented eurozone and European Union. It appears to me we have two crises. Potentially quite strongly, but clearly he is trying to do something about the banks. President draghi is saying it was time to fix it, and he was talking about the banks. The whole of europe has not got its act together. They have had problems for a long time and they have been slow in taking it. Matteo renzi is facing the consequences with a referendum on voting in september. Problem is that political turmoil, if you do not have someone who can start negotiating, banks in the u k and the city of london will start freaking out because you do not know what you are looking at. Guy Angela Merkel is trying to stamp her authority back on the european space, and she is doing it with brexit and with the italian banks as well. Jon fascinating news coming out of europe. A special thanks to Francine Lacqua in london, and of course guy johnson. Live to the bloomberg terminal. We will be going back into that conference over in parliament when we expect Prime Minister David Cameron to make a statement on the eu summit yesterday in brussels. David . David alix and i are remarking how Different Parliament is from the u. S. Congress. We cannot imagine that type of Exchange Going on here in washington. Welcome back, charles. Lets pick up on what Prime Minister cameron was saying. He said the british economy is in in comparably better shape than when he took over, but they have some very difficult Economic Times ahead of them. What does that mean for your the foryou are advising the people you are advising in terms of general investments . Theles we do not think bear market will end until the incks are down 50 , sometime 2017. We are underweight the second session on a shortterm trading basis. We are facing an earnings recession certainly in the United States and europe on the banking industry. David does Brexit Change that climate at all . Germanyheard that reportedly is resisting the effort for italy to inject capital into the banks. Charles it accelerates the probability of the risk of a global recession. But you mentioned italy. If you look at the debt spread of the italian bonds versus booms, the debt spreads have been spacing for two years. They are starting to get wider, and it is starting to show market concern about the governments need to rescue the italian Banking System. Alix does it show enough concern . Charles not yet, no. We are not even close to where we were back in 2011, when we had the last european debt crisis. I think we will get back to those levels. Alix we have talked about the destruction we have seen of the u. K. Bank stocks. Stops re u. K. Bank bank stocks you are noticing some kind of the virgins. You can see what we are talking some kind of diversions some kind of divergence. Bank of america is the white line. There is so much more risk in those european banks, and bank of america is one of the riskier u. S. Banks. Charles the credit default swap spreads for bank of america and citigroup, which is your money center banks, is tight. They are not back to the levels they were in february of this year when people were worried about a recession. We are seeing a lot more concerned about european banks because they are undercapitalized and they have big credit issues from the 20082009 financial crisis. David the way we had it in the red states do you think we can get back to the way it was in 2008, 2009 . Follow thedo not european banks specifically, but i would not be surprised if the governments had to inject capital as an interim bridge step. Jon wish that alix which they have not. That is one of the reaso