Speaker, i had meetings this morning. Other than one meeting with her metastudent queen, the diary for the rest of my day is remarkably light. Other than one meeting with her majesty the queen. Thank you very much, mr. Speaker. The Prime Ministers congratulations to Andrew Murray and all the other winners. May we thank the Prime Minister for all his hard work and his leadership. And particularly his commitment to the union and to Northern Ireland visiting in auckland and swimming to working with the next Prime Minister. Im told there are lots of leadership roles out there at the moment, at the english football team. Top gear. [laughter] even across the big pond a role that needs filling. But if i can go to my pet subject, brexit really threatens Prime Minister cameron in your own time. Brexit threatens the unions. Will the Prime Minister work with his successes to ensure we have somebody that is going to pull together all the countries of the union and the overseas territories and make it all so that we all work and thrive together . Prime minister cameron let me thank the Prime Minister for fascinating suggestions for future jobs, most of which are harder than this one. I do believe northern is stronger than it was. The full people leash and of justice and home affairs delivered under this government, the sample report, and a record investment in creating jobs in Northern Ireland. And the saville report. I care passionately about Northern Ireland. We do need to make sure that as we leave the European Union we work out how to keep the benefits of the common travel area. Withwork is being done Civil Servants in whitehall and and the republic of ireland and that pace needs to quicken. Mr. Speaker. To pay tributeke to my friend the hard work he did leading this country. My honorable friend will include supporting the kurds bravely fighting daesh. Front nine,ed the amid our airstrikes and weapons and training are crucial but reduced with additional equipment like body armor, respirators and frontline medical facilities. We could possibly provide some beds in our hospital in birmingham for the most seriously injured. A small investment that will make a huge different to our allies and our fight to defeat the people of terrorism. Thankminister cameron you for this kind remarks but he is absolutely right the kurds are brave fighters and are doing viable work in iraq and syria. I will look at his suggestion of using the birmingham hospital. It has excellent facilities for battlefield cashel disappeared our army is providing medical instruction to help them deal with the situation. Lets be frank. 45 of thes lost territory at once held. Its finances have been hit. 25,000 fighters have been killed. Desertion has increased and the flow of foreign fighters has fallen by 90 . This will take a long time to work in iraq and syria but we must stay the course. Jeremy corbyn. You, mr. N thank speaker. Could i start by joining the Prime Minister in paying tribute to the british winners, andy murray, Joanna Watson . And i think it would be nice if we congratulated Serena Williams on her achievement as well. That is only right that after six years as Prime Minister we thank the right honorable member for whitney for his service. I have often disagreed with him but there are some of his achievements i want to pay recognition to today. One is helping to secure the release of from. Guantanamo bay. And legislating to receive equal marriage. Im sure he would like to a knowledge that it was labour votes that help to get it through. Expressalso let me for a moment expressed some concern at the way that for theness is written past six years and looks like it is going to continue to rise in this county. Prime minister cameron ill in paying tribute to Serena Williams who has now not steffi grafs amazing records of 22 grand slams. I thank him for what he said about that was a case the government raised with the u. S. Government and we are pleased it has been resolved. Id thank him for what he said about equal marriage. There are 30,000 gay people in our country who have been able to get married. I think that is real progress. Ill never forget the day at number 10 when one of the people who worked close to the front door sentiment, im not that interested in politics but because of something your lot have done im able to marry the person i loved all my life this weekend. There are many amazing moments in this job but that was one of my favorites. Aass for homelessness, it is 10 below the peak we saw under labour. The key is building homes. We have built 700,000 homes. Now we need to quicken the pace. The key is yes, programs like help to buy, but they new key is a strong economy. Rbyn i have been listening to what the home secretary has been saying, and she said it is harder than ever for young people to buy their first house. So, does the Prime Minister think this because of a record low House Building or his governments apparent belief that 450,000 pounds is an affordable starter home . Prime minister cameron let me say at the dispatch box how warmly i congratulate them home secretary on becoming the Prime Minister. To women Prime Minister, i am pleased to say pretty soon it will be 20. Not a pink bus in sight. Of housing and homelessness, as i said, 700,000 homes. He asked about this issue of affordability which is absolutely keuy. When i became prey minister because of what it happened to the mortgage market, firsttime buyer needed to have as much as 30,000 pounds to put a deposit down when i became Prime Minister. Some people are now able to get on the housing ladder with a deposit of as little of 2000 pounds. The new houses where building, we are making progress. That was the Prime Minister addressing the cabinet for the fight the parliament for the final time. He will hand in his formal resignation to the queen in several hours time, to be replaced by the conservative leader teresa may. Number 10ng in at downing street. You can continue to watch the Prime Ministers questions on life go. Outside of downing street, the theater is in the house of parliament. The formal arrangement for the next Prime Minister will roll on for the coming hours. Talk us through the process to begin with. Anna absolutely. You get to see the questions, a regular weekly event, the last one being hosted by David Cameron. It usually last half an hour. That seemed to be more jovial and politer and funnier than normal. But as far as things go, as things unfold today, David Cameron is busy at westminster. He heads later on today to see the queen. His intention to resign as Prime Minister. Then, within the hour, we have may, might see her in the pictures behind David Cameron in the house of commons. Over as primeke minister, the second u. K. Female Prime Minister. Queenll go to the see between 5 00 and 6 00 in the afternoon. She is asked by the going to form a government which is called the kissing of hands, which i am hearing involves a handshake. Jonathan this is the theater of british politics but the real story is going to develop in the coming weeks. If you are global investor, you want to know what the british Team Looks Like and where the negotiations begin with the rest of europe. To have any idea what theresa mays team is going to look like . Guy critical is who is going to be the next chancellor and who is going to be the brexit czar. Maybe even in the shortterm, it is more likely that people will focus on who will be the next chancellor. The authority had word from theresa may indicating she wasnt pleased with the austerity driven all smart approach. That whoever takes over from her may be slightly loosening the fiscal that have hung on the u. K. That will be one of the more interesting stories and how that new chancellor will also work with the man down the road, the governor of the bank of england, who has a meeting today and tomorrow and see exactly which way Interest Rates go. We have already heard from theresa may that she has been not as over joyed with the way that q. E. Has gone, some of the unintended consequences of that. It is going to be interesting to see how the financial relationship works between westminster and the bank of finland. Then how the brexit negotiation story is going to work out. The market is pricing in 25 basis points for mark carney tomorrow. What will happen on the fiscal front will be as interesting over the coming weeks. Jonathan to conservative parting getting its Team Together. The labour party seems to be falling apart in the views of many people. Can you update us on what is happening . Anna yeah, falling apart, it could very well be. Jeremy corbyn is fighting for his political life. We will hear more details about the process to carry out another vote for leadership in the labour party. Jeremy corbyn found out last night he will qualify to be on the ballot. He does not need to get the support of 61 labor mps. That could have been a challenge for him given the noconfidence vote he face. All of this could be crucial, if we see the u. K. Heading towards another general election. Thats not perhaps necessary. It is not in the script right now. Theresa may talked about how plan. Asnt in her she wants to go on until 2020. If for some reason that is triggered late this year, then party would labour be able to fight the governing conservative party and gain p ower . I spoke to one prominent political commentator in the u. K. This morning. Many have been saying that we could see the breakup of the labour party. And that could make it very difficult for them to take power once again in the united kingdom. Jonathan a special thanks to the team in london. Enjoy the quirks of british politics, you can continue to enjoy it on the bloomberg terminal at live go. P alix what happened if congress is that feisty . We have a historic day in u. S. Politics. Wane joining us on set. Ok, so we have may saying brexit means brexit. Sterling 1. 32 against the dollar. Does the market believe that . At the moment, it has to. Even the British Population would not accept that the referendum could be renegotiated. Knows it isyone going to take two years when we hit article 50. Theresa may will be in no rush. The british do not have currently the technology or the Team Involved to look through all the trade issues that we will face. So, we may take potentially, we can take six months to a year before we are ready to hit it. And that will frustrate your. Whathan you talked about could happen in the u. K. Before we get to eruope. The worries were that we could have a constitutional crisis. Some companies reference that when they downgraded outlooks. Neil i was in the camp that theresa may or somebody should have been in place last week are there should not been this till october, David Cameron sort of hand to hand government. I think the fact we are done. In place. I disagree with guy. They should keep George Osborne in place. We are already relying on the favor of the international if we couldhat 9 or 10, have a sterling crisis. I think the u. K. Has had post rather than austerity. I think we need to focus on the fact we need to need to go within living within our means. I do think a lot of corporate end investors are going, i lik u. K. Assess because sterling has fallen but im not sure about the u. K. Economy. David we have one piece of uncertainty behind this, you say, but a lot ahead of us. How do marcus discount that . How do they crunch all the numbers how do markets discount that . what you have seen on your screen is the market has priced in a recession into the domestic u. K. Investments. Even in the u. K. , the flight to safety in gitlslts. But i think we have seen is the International Earnings are seeing sterling we can. In the short term, i think the lens is sterling. What is difference between greece or the u. K. Is sterling can take the strain. The consensus in the markets is it going to 1. 20. The bear case with political and sterling political uncertainty, with the dollar there are lot of london assets that look attractive. London has fallen out of the world. A lot of international people, i but people will want to look at assets there. As sterling weakens, some parts will benefit, even if Corporate Investment wont happen. Alix 82 of a rate cut tomorrow by the boe. Does that actually work . Can you do it when you have sterling weaker . I personally think it is the wrong strategy. He behaved badly and the runup to the election, talking about armageddon. This is our governor of the bank of england and it sounded like he was on the other side. I think we wait to see. The economy really suffers as we run through the end of this year or next her, keep that powder dry for more q. E. Getting sterling lower, lets see what that happens. The lower sterling goes, we have bought 62 of what we eat. Inflation is going up. If we go lower, inflation will go up more. We could end up with him looking very challenged if we have 4 inflation by the end of next year and he still talking about q. E. And cutting rates. Thathan we have got playbook under governor mervyn king. Its a transitory move. You allowed to happen and focus on growth. I would argue it would take a long time to reconfigure the u. K. Economy to do more for itself. Unlike your scenario where we inflation, this could be sustained, more like the 1970s or the 1980s. A lot of investors are worried about the level of the equity market, but they are looking at their money markets and their bond markets and saying, i am not goingnot getting a return. You used the word safety when you referred to the gilt market. In u. K. Context, it is clearly safe. One message im leaving with my american clients is dont forget how attractive to Global Investors u. S. Fixed income markets are. The u. S. Treasury, 10year, 1. 4 , that is a bargain if you are swiss investor with 70 basis point on their 10year. Trade everyone is hated so far, but the world is looking at the u. S. Treasury with very very desirous eyes and rightly so. Alix historic moves. E will be with us because we will talk about where the next European Crisis could be. More up next. This is bloomberg. This is bloomberg. Youre looking at live pictures of the houses of commons to be precise in london as David Cameron faces his final questions time this wednesday. You can watch full coverage of that on live go on your bloomberg terminal. Neil dwane, he has seen it all before. The theater in the house of commons. Lets talk about the theater of europe. We face the reals profits of a French Election and a german election and may be an italian election next year as well p you think you rae more concerned about Political Risk in europe. Walk me through that. Is takeneel like it two weeks but the u. K. Political risk is settled with theresa may in the government moving forward. I think the brexit decision has rocked europe and i think the lens to International Investors now as we have the constitutional in italy in october and the austrian president ial election and the hungarian vote on the e. U. Migrant solution in october. We will go on holiday, come back and go, we have got many events before we get to 2017 when you have the dutch election, the french and the german elections. Not that i think that we are going back to the 2010, but i think they are movers in october if renzi moves. He has called a referendum on the government. We know the party are looking strong. And one of their key policies is to renegotiate their membership of the European Union. I think that become sort of where where we have been in the past in 2010 with greece. Hasd without a doubt encouraged the populist parties to speak up and talk more. Initial reactions after brexit seems to point the other way. The spanish election came out and some of the polling indicates is it possible that brexit will frighten some countries away for more radical solutions . Clear at the moment that the posture of the European Union with the germans is they are going to play hardball with the u. K. There is an element of a threat that we do not know what the prospects are. It is to an a half years down the line and the u. K. Looks like it is having a holiday on the back of leaving, that is not going to look very good. Where would lead you on spain is you have to remember, they only lost a fascist dictator in 1975. Their knowledge of the past is a very dark one. And. Therefore, anything that looks european is full of light and hope what they have in the past, the british have got 1000 years of history behind this decision. A lot of european governments like the greeks they have, to democracy in the last 50 years. Jonathan what does this mean for an investor . I look at the situation in europe and it can paint a very uncertain picture. 2 . Ian 10years 1 where do you price in risk . Where should we build in the risk premium . Because it is not happening with sovereign debt. Is it bank stocks . Neil i think you are seeing it in a bank stocks already. One of those faultlines has opened up. The Sovereign Bank link is very profound. I think no one, everyone in brexit priced in the sterling risk. They did not price in the euro or yen risk. A sensee star