10 billion a month, ramping that up to 50 billion a month in quarterly increments. They could not agree. Several Committee Members favored starting in a couple of months. That. Preferred to do for er that. Fer to def it could be argued that some of the dots would prefer to get more time before taking any action related to the Balance Sheet. Some of the doves would prefer. More hawkish members may prefer to move ahead with another Interest Rate increase before the Balance Sheet is taken on next. ,n the question of inflation the official message from the committee is still viewing inflation of the recent dip in inflation as something that is transitory. Committeembers of the doesnt several participants expressed concern that progress toward the committee to present longer run inflation objective to present longer run inflation objective might have longer run inflation objective might have slowed. There were some senior fed officials, including janet yellen come who talk about high equity valuations in these minutes. Exactly an alarm, but another not to that idea. Scarlet thank you for that synopsis. Lets get you a check on the Market Reaction to the fed minutes with abigail doolittle. Abigail not a lot of reaction to the major averages. The dow down slightly. The s p 500 up slightly. The nasdaq still the big winner on the day. A bit of a reversal there the dow higher on monday. The nasdaq dropping from the highs, down 5 . Down. 5 . Now, the nasdaq is higher. We see a bit of volatility in the morning. The 10 minutes not having too much of a reaction on stocks right now. Slightly dovish tone. The fed minutes not having too much of a reaction on stocks right now. These are the top scores. Behind the tech pullback. Perhaps we have found some sort of a bottom for those tech shares. Lets now take a look at the 10 year yield on an intraday basis. A bit of a reaction. Basis by down by one point. Haven bonds are rallying on the day. A bit of a selloff on those fed minutes. Much of a hawkish or dovish reaction right now from the financial markets. That fits a chart we have in the chart, a, a great longterm chart. This is the Merrill Lynch market risk indicator across market for most ofated 2016, but now dipping. Right background for the fed to progress in a steady manner. Not a lot of reaction in the market right now. For more analysis, lets bring in ian lyngen. Hes been raided a top u. S. Rate strategist multiple times by institutional investors. A top u. S. Rate strategist multiple times by institutional investors. Consensus is still for september. Anything in this that you think perhaps gives a shift to that . N the consensus is still for a september tapering. The more divided the committee appears to be, the more dovish the minutes will ultimately be interpreted as. Build consensus internally, and will be much harder to deliver the combination of a taper and a rate hike by the end of the year. Julia the optionality makes sense. We have a debt ceiling debate coming come a budget debate coming. Who knows what happens with health care. The fed is leaving the option open. Ian that makes a great deal of sense. Theyve done a masterful job of pricing in a tapering later this year. They will want to take advantage of that. Barring any catastrophe in terms of the economic at akamai think they will go through with that. In terms of the Economic Data , i think they will go through that. Scarlet the it hasnt changed all that much. Just the Economic Data hasnt changed all that much. Are we in a state where inflation is transitory or are going back to that path where 2 is normal . Ian you see the curve flattening the way it has been. Saying its not transitory were the fed seems to be saying they will push forward with normalization at all cost. We will get more clarity on that over the coming months. Scarlet also in the next couple of days and weeks, we also get a lot of fed speakers as well. You have the Monetary Policy report due on friday. Thato you position for ahead of those key meetings, key announcements . Ian right now, we are trading the market very technically. Everyone is playing for a flattener. We tend to want to be on the other side. We would be looking for a modest steepener before a push back towards the flattening trend as the fed followthrough. Scarlet we got a lot of fed speak that mentioned valuations. They talk about elements of positioning in markets. Do you think that is important . Fed officials noticing financial conditions have eased despite their highs. As much as they are trying to be very clear about this policy here come at the same time, markets arent really responding. Ian they are certainly not responding in a way the fed would want them to. Part of the story becomes a real rate story. What happens when inflation drops the way that it has . The player rate hikes become that much more powerful and risk slowing the economy scarlet is the fed to trying to talk down rate prices . I think they want to prepare the market for the fact that they are going to let the Balance Sheet roll off. That would be a much larger impact on risk assets. They want to give a narrative that allows them to present a narrative that allows them to follow through with their rate hike campaign. Julia its consistent with their view that this is transitory. Thate not hearing anything this court in here in the message. Discordant here in the message. W rlet we dont know the hen yet. Ian lyngen, thank you so much. Lets get a check on the other headlines. Leader vowedoreas to never put the Weapons Program up for negotiation. Thats after successfully testing the countrys first intercontinental plastic metal desk Ballistic Missile yesterday intercontinental Ballistic Missile yesterday. The United NationsSecurity Council at the request of the u. S. Is scheduled to discuss s missile test in an emergency session this afternoon. President trump discussed the dispute that egypt is part of the Saudi Led Coalition that is isolating qatar. President trump told the president both sides should negotiate constructively and follow through on pledges to curb extremis him. To curb extra miss him. German corbyn and theresa may went headtohead in Parliament Today over the continued cap on publicsector pay. Repeatedlyyn challenged the Prime Minister over her austerity program. Country inthe only which wages have not recovered since the Global Financial crash. More people are using food banks. 4 million children living in poverty. Mark the Prime Minister has been under pressure, some of it from her own party, to end the 1 cap on publicsector pay increases. Prime minister may said recommendations would be considered but stressed the need to live within our means. Was u. S. Army soldier killed and two others wounded after an attack in southern afghanistan. A pentagon Spokesman Says the soldiers were working with their afghan partners outside their base when they were hit by a mortar. The wounded are being treated at a coalition medical facility. A group of government supporters entered venezuelas Opposition Controlled National Assembly by force today. Several lawmakers were reported injured during the melee. President was at a military parade marking the anniversary of venezuelas independence from spain. Criticizedaduro opposition lawmakers sang the National Assembly should defend the flag and call out those who betray the countrys ideals. The National Assembly should defend the flag and call out those who betray the countrys ideals. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I mark barton. This is bloomberg. Julia weve got details on Deutsche Banks plans for a postbrexit world. From your, this is bloomberg. From new york, this is bloomberg. Julia this is bloomberg markets. Global banks are preparing to move operations as britain prepares to leave the eu. We got details on Deutsche Banks plans for a postbrexit financial landscape. Joining us with more is Michael Moore from a leading the u. S. Finance team for bloomberg news. Great to have you on. Another win for frankfurt. Here . Re we talking about front office, back office, a mix of the two . You could get 2000 and the front office and 2000 and the back office. That is the highend. It will depend on how the negotiations unfold and how hard brexit appears to be. You have Deutsche Bank not only looking for the people side, but on the asset side as well. Making plans to set up a book ing center in their Frankfurt Office to route Trading Assets through there. Scarlet what gets included in the asset side . Its more than just people, obviously. It could be worth a book the loans. Where trading aspects are cleared through. It could encompass a variety of things come as our reporting show comment could be the majority of the assets they currently booked for london. It could encompass a variety of things, as our reporting shows, it could be the majority of the assets they currently book through london. Advantage in that you have a lot of banks already there come including Deutsche Bank. A number of banks have offices there. The ecb is little more experienced with the bigger banks and their operations. Julia they said it would take place over an 18 month period. It will be reviewed of the situation around brexit changes. We talking more brexit or more positive signs no brexit or more positive signs . Is it that sensitive . It is pretty sensitive. All the banks are trying to keep some optionality in their plan when delaying the people moves as much as possible. So that they can adjust those ner numbers if need be. Theres a difference between a hard brexit and something much that changes plans quite a bit. Scarlet Deutsche Bank literally means german bank. Up until recently, it is very much a multinational bank. It did and do many of its operations in germany. Lately, there is more of a tilt to rediscovering its roots. Definitely. London was the third biggest top for it. Biggest hub for it. It has recommitted to becoming a german bank. They couldnt find a buyer for postbank. They may be able to use those deposits to help the investment banks. As part of that, you are seeing a commitment to the german corporate space. They missed out on some of the german deals in recent years. They dont want to see that happen again. They are recommitting to germany. Scarlet thank you so much. Still ahead, we have more from the banking world monte paschi one 6 billion in state aid and announced a Restructuring Plan. Explains why this is a turning point for the embattled lender. Julia this is bloomberg markets. Has laidmonte paschi out a Restructuring Plan that includes cutting jobs and selling assets. This announcement comes after the eu approved 6 billion in state aid for the embattled lender. Earlier today, jon ferro spoke with Marco Morelli. He explained why this is a turning point. Wevenger i waited been negotiating with a number of european regulators since the beginning of january. Time thise first applied to european institutional lenders. A lot of attention has been paid. O restructure the plan this would allow the bank to start working again in a stable and normal commercial framework. I think we did get there. In europey investors at the moment, they are confused by eu regulation and the spirit of the rules. We talked about the recapitalization plan. Theyve asked you about whether is circumventing their own rulebook to help banks like monte paschi. I can talk for monte paschi and only on what we experienced in the last six months. The rules we were bound to comply with, the precautionary cap scheme, we did play by the role. Us is what the negotiation took so long. We played by the rule. This is why the negotiation took so long. There will be a monitoring aspect to check and engage to what extent the bank is complying with commitments agreed upon with the european commission. We did apply all existing rules and regulations. Some say the eu is being more lenient come a little more flexible with a total loss. Thing that the european regulator is being a bit more flexible . Terms, rules need to be crafted and then implemented. We must have a checkpoint to see actually rules do function properly and where the rules need adjustments going forward. This will be a good case to see to what extent the overall scheme of the camp works. As far as the bank is concerned, for us, for me, for my management team, for all the employees of monte paschi, this is clearly a turning point. The dust has settled and theres no clarity and transparency on what the capital structure of the bank is and will be going forward. What is the impact of the final disposal of 26. 1 billion of . Ross npl whether the rules work, we need more time to see how these are forced. Julia that was Marco Morelli speaking earlier on bloomberg daybreak americas. Julia time for the Bloomberg Business last. According to people familiar with the matter, the private equity firm is considering purchasing the bank shares on the market. The bankers cut thousands of jobs and stream line operations to improve profitability. Announcedrways union 40 more days of strikes starting july 19. Ways they will operate some flights during the strike. United plans on challenging the tish approval of that theis lawyer said defendant responded im not admitting to something i didnt do. Still ahead, the commodities close. While ending its winning streak in a big way today. Crude plunging as comments from russia rattled the market. This is bloomberg. Julia this is bloomberg markets. Im julia chatterley. Commodity markets are closing in new york. Oil getting hit hard today, snapping an eight day winning streak. We are closing at the lows of the session, down 4. 2 at this moment. Russia is set to oppose any proposal to deepen opec led production cuts. We will get more data tomorrow when the u. S. Releases its latest inventory report. Natural gas futures led to a that isth low today driving down demand for powerplant fuel. 75 . Ome thre no clear direction for gold futures, despite the tension over the north Korean Missile test. Yenks rising and the slipping for now. Scarlet a major shift for volvo. The swedish automaker is now owned by a chinese billionaire every new model launched in 2019 and beyond will have an electric motor. Tesla says deliveries have flat lined this quarter joining us with coverage on both of these stories from detroit is jamie butters. Lets start with whats going on with volvo. Shift to hybrid and electric cars, there will be some compromise when it comes to margin. What kind of cost compromises will the company needed to accept . It definitely adds cost. You have a slightly smaller engine, you are paying for two systems and the customer pays for that. Add a few thousand dollars, you are adding to the payments and you are less competitive against the tesla or mercedes or whoever else. Or, they can just eat the difference. That is a real challenge for a smaller brand like volvo. Julia following in the footsteps of the likes of bmw and volkswagen and audi, who are they planning to hear . E chinese audience . Who are they playing to here . You did point at the right markets, china and europe. Its not a big part of the market yet, but the indications are it will be a bigger piece, especially in europe where they really turned against diesel. They know it takes time to change over the factories and car lineups. Europe is cracking down on diesel. Hybrids enter electrics will play a bigger role. We see demands from the government for more and more pure batterypowered vehicles in china. They are trying to be ready, even if the u. S. Is not going down that route as aggressively as we work under the previous and ministration. Were under the previous administration. Julia d you think the window for this will be pretty narrow where you have to make the investment theres a cost problem here when you are creating a car that can do both. There is a cost problem in gasoline thats when gasoline is so cheap. Forline has been affordable two or three years and the outlook has been pretty bullish that it will stay cheap and that makes hybrids and electric cars much less attractive. There is some possibility having the whole portfolio of powertrains gives you flex ability to adapt to the market, but committing to electric and hybrid and more electric than hybrid takes away from your flex ability your flex ability if you are dealing with cheap oil and gasoline. Ultimately, hybrids are a stepping stone to electric vehicles and some automakers like toyota will tell you electrics themselves are just a stepping stone to Hydrogen Powered cars. Julia President Trump saying he wants gasoline prices lower. Scarlet im wondering to what extent volvo is trying to compete with tesla. Tesla shares are sinking today because they are reporting flattening sales. Is this part of the story line behind what volvo is doing . A little bit, yes. Although isnt that much bigger than tesla. Voalthough lvo isnt that much bigger than tesla. If they are going to chase tesla, they are playing teslas game. So far, with electric cars from a tesla is the only one that has really caught on that has made people get excited about electric cars. The same way that we would prius is the only hybrid that has a result in large numbers that have sold in large numbers. When it comes to tesla, talk more about what happened with the latest sales report. We saw a plateauing of sales. Does not typically happen before doesnt that typically happen before a big launch . If iphone sales and ipad sales fell before the launch of the apple