What will macron deliver on brexit . Really enominated derivatives from london postbrexit, but can chicago come out the winner . Interesting question, guy, one we will talk about today. I will put that to Wolfgang Schaeuble a little later this afternoon. Stocks,f, a look at futures, gains across the board after drops yesterday. Then a look at ones. Investors selling off the german debt. Only to a lowlevel. The zero. 253 is what we are looking at. At theump in the yield beginning of the session this morning, about a half hour ago. Now, that yield has come down to almost unchanged. On your screen, it is showing as unchanged because it only goes two decimal places. 0. 253 in the german bund trade right now as investors look to get more risk in their portfolios this morning. Guy matt always taking the extra step. Lets talk about the gmm and walk you around the world. Energy stocks have done well in asia overnight. You are seeing this tech story fading and little. Intow a big selloff friday monday, beginning to fade into tuesday. He saw how badly hit european markets were yesterday. This morning, the dollar is off, the kiwi is up a little higher. Singapore dollar trading a little higher, the pound trading a little higher against the dollar. Plenty of going on in british politics, the fed. The first, lets get a first word news update. U. K. Prime minister theresa may is due to meet the Northern Ireland democratic unionists in order to prop up her own minority government. She told conservative mps she takes full responsibility for the disastrous election result which cost a parliamentary majority. She signaled she is willing to rethink her approach to brexit. Euro denominated derivatives may be forced to relocate from london to the eu after brexit. A person with knowledge also said under the proposal to be rolled out today, the systemically important for the eu Financial System could be required to accept direct oversight by eu authorities. In the u. S. , the Trump Administration has laid out its plan for overhauling bank rules. The changes urged federal agencies to rewrite regulations that bankers have complained about since the passage of the dodd frank act. They include adjusting stress test, loosening some trading rules and powers of the watchdog. Planning to is scale back efforts to open trade with cuba. The president s advisers are preparing options including new limits on American Travel to the island and restricting partnership between u. S. Companies and those with ties to the cuban military. Is expected before he visits miami on friday. Mike rogers met behind closed doors last night with the Senate Intelligence committee. Senators want him to answer questions about possible interference by donald trump in the fbi investigation into russias role in the investigation. Ist came as Jeff Sessions expected to appear publicly today before a panel to explain his role in the firing of james comey and contacts he and associates of trump had with russian officials. Tone has struck a defiant in the second week with no sign of diplomatic resolutions. The foreign minister has expressed his Government Wash frustration at not receiving demands from the saudi alliance. The finance minister and central bank said they can defend the currency and economy while the head of Qatar Airways accused the u. S. Exasperated intention. The Golden State Warriors have defeated the cavaliers to win the nba championship. , who joined the warriors in a controversial move last summer, was named the series m. V. P. After leading the californiabased team to a 4 41 game victory. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more , this iscountries bloomberg. Guy thank you. Bought herself a stay of execution by apologizing to conservative mps for the debacle, promising she will get them out of this mess. Today, she meets Northern Irelands democratic unions to secure the votes she needs to prop up her of minority government. Anna edwards is outside the horses houses of parliament. Lets start with the upa. What can we expect from this . Anna good morning to you. As we have been saying, the du p it was a prebrexit party during the referendum last year. At the same time it has been campaigning to keep open the border between the north and the republic of ireland. That is going to be crucial and a way of doing that might he staying in the customs union, which has many wondering if the party will soften its stance, but that would be a big change in policy compared to what the conservative party have been going for. To tom with the university of liverpool and he suggested this was an important matter. One of the things threatening the good friday agreement. That gives you an idea of the scale of challenges faced by trying to bring these parties together and get the kind of brexit they want to see. Corporation tax, could that be a focus . By europeanlow standards and Northern Ireland wants to compete with that. Could they be allowed . Or flowd be investment into money into belfast and beyond, could that be at stake . P wasought that the du drinking at a free bar. They hold all the cards. Heads toresa may another meeting with the french president. What are her objectives for that meeting . Mark anna optically, it could look more different. Macron buoyed by his success in the election and now with the Assembly Votes underway, he has been lifted by all of that. Majorityay losing her in these complex conversation to get a collaborative deal with another partner. Just to get through the policies she wants to see. There will be talk about frexit, but the u. K. Administration seems keen to move the conversation on. Technology companies, both Company Countries have the threat of terrorism in common. In france, the attacks in paris and nice, left 200 people dead. Leaders see these two try to take on the internet giants and make them do more to bring down, take down extreme content that in their view, inspires terrorist acts. Passing legislation about encrypted messages as the gs g7 has talked about an industry led forum. Companies like facebook, google, and twitter should be listening carefully to the messaging coming out of paris. I understand they will be going to a foot all match later on. England versus france. Wonder what the result will be . Maybe the headline writers will be watching that closely. Matt im sure they will. Anna edwards in westminster. A lot of goingson following theresa mays schedule. Derivatives may be forced to relocate to the eu after brexit, at least that is what one person with knowledge tells us. The eu proposal will be rolled out today. Joining us from brussels is alexander weber. Which problem is the European Commission here trying movelve by suggesting that into the eu . Alexander at the moment, the majority of euro dominated thevatives is done by London Stock Exchange. The European Central banks already tried to move euro clearing to the euro area in 2011. A legal battle with the u. K. Which the u. K. One in 2015. Then brexit happened, after the u. K. Leaves the eu, it will take place out of the eu. It is a special situation that this will take place outside of the eu. It is not exactly surprising the commission tried to solve the issue. We understand that they are mostly trying to more directly supervise the business in london , but also they would keep the shift to inside the eu what does this actually mean in reality for companies that have to work with . This costs, etc. Roll me through the details on the ground. Meansder definitely this more complexity for u. K. Based firms. Not only will he have to engage with u. K. Authorities and u. S. Authorities, but also with eu authorities. Means isly, what this finally we have something concrete to talk about. The elephant in the room in brussels for some time. We have seen predictions of job losses in the u. K. And what this means for customers in terms of cost, that has been all over the map. It is good we have this proposal we can talk about. Going forward, it still means uncertainty because this goes through the whole process of legislation here in brussels. Through parliament, the council, and what this means concretely, we will see once the commission unveils its full proposal in the afternoon. You about thesk bundesbank board member suggesting chicago would be a good place to do you clearing postbrexit. How does that come into the conversation . Alexander the idea behind this clearing houses in the u. S. Are already allowed to serve eu customers. This is kind of a response to a call that said we have to move this business to inside the eu to beef up paris or frankfurt. Just to point out the market isnt quite as predictable as some think it is. Clearing usually takes place where you have the biggest pool of liquidity. Uring such matters customer such as banks get the most cost there. It is conceivable the business would move to the eu. If you make it harder for u. K. Firms to clearly zero direct euro derivatives but the u. S. Already have programs licensed to serve eu programs. At this point, it is hard to predict how this will pan out. Guy we will watch with interest. This is big business. Alexander weber, bloomberg reporter for the eu Financial Regulation beat. Up next, we are all waiting for the fed. The central bank is expected to raise rates. It is important. We will bring you an exclusive interview. It is with Wolfgang Schaeuble. That is at midday u. K. Time. That is all coming up. This is bloomberg. Guy welcome back. Lets get a business bloomberg flash with juliette saly. Three former currency traders in britain accused by u. S. Proxy curators of conspiring to manipulate markets have reached an agreement to surrender to american officials. Berkeley nd barclays employees have agreed to be arraigned in a manhattan court. The Irish Government is to sell ofres in Allied Irish Banks between 390 and 490 euros each. A marketd give aib capitalization of 13. 3 billion euros in londons largest ipo this year. The final offer price will be announced around june 23 with shares starting unconditional trading on the irish and London Stock Exchange four days later. Has cleared aic second major antitrust hurdle in their effort to create the worlds secondbiggest Oil Field Services provider. Theas won approval from Justice Department to combine oil and gas business with baker hughes. This comes two weeks after similar decisions by european regulators and hours after ge deals architect will step down as ceo. The ceo of Christian Dior has told bloomberg he is optimistic about the new french president. Was speaking exclusively to rachel chang in shanghai. French market is important. And this new president will be a positive for the economy. In france. Reforms and working rules and things like that. Juliette that is your Bloomberg Business flash. Guy and met . Matt thank you. Todays day one of the feds june meeting and the market is expecting a height. For as high 90s decision, signaling the market thinks it will happen. But what will we learn about the rate path . Cudmore, we go to mark from our mliv team in singapore. A seems an increase is foregone conclusion but there are Big Questions left. Not just about the path, but how the Balance Sheet will be unwound. Mark absolutely. This is a potential for a dovish hike. A real shock if they dont raise rates tomorrow. It will be crazy for the fed not to take the opportunity when the market has given them this free pass. It wont be a shock to the market. You will expect they will be mourning the fact that inflation is not running away. There is a sign of slowdown in growth. Nothing major, they expect to be transitory, with no major inflation pressures, they will warn the Downside Risks i think we will start having a maybe the fed doesnt think there will be three more hikes. Guy financial conditions in the u. S. Are getting easier. From an economy point of view, this is a nonevent. Think that is true but financial conditions a lot of times they are influenced by financial assets. It is deceptive. But you are right, there are 25 basis points changed, it doesnt make any difference in controlling inflation. Low notflip side, generating. Thee are forces in inflation picture. One is commodities, the other is to elegy. Guy the other is technology. Guy do you think the selloff is over . Theas interesting to see philadelphia index staying above the trendline last night. Mark it made a good recovery and the fact it closed the above the trendline is important. What happens in tech stocks is important to focus on, but you need to put it in the context of the moves we have seen. Most socks are doing well. They have had two days of correction, but they did rally off the lows. We need them to selloff a lot more than this for it to generate a broader panic and a worry about the u. S. Stock market rally. It could be a bit of rotation. We have heard of fund closing, it could be overall, but traders will keep an eye on it still. Matt mark, thank you. Our mliv market strategist. Macro strategist. We are minutes away from the open. Up next, a look at the movers in todays trading. Individual stocks include which could be relocating to the eu after brexit. This is bloomberg. The open is eight minutes away. Matt we are minutes from the open. Lets get to your stocks to watch. Deutsche borse is one you will want to keep an eye on, as well as lsk. Those stocks very interesting because of the eu plan to move into the euivatives postbrexit. ,nteresting for Deutsche Borse that would give them extra business if you consider business coming to them. Chief is saying this would be bad for customers that would boost their collateral requirements by as much as 20 , meaning clearing would be more costly. However, it seems a lot of clients disagree. There is an open question as to how good or bad it would be for the market. Nonetheless, you will want to watch Deutsche Borse stock to see it as well. It has this year. Coming up, the market open. Four minutes and 18 seconds to go. Gains forinting to european stocks after drops in the cash trade yesterday. This is bloomberg. Guy one minute to go until cash opens. Lets take a look at where we sit in terms of the fair value calculations. You can see it on the wb ice cream. A marginal pop. Stronger overnight, tech fade o n. Europe looks like it will come back more strongly, but not by much. We were off yesterday, down 1 for the continent in london, but nevertheless, looks like we will see a more positive start. Matt . Matt i am looking at tech stocks, specifically European Tech stocks. This is the percent change we see on the stocks 600 the stoxx 600. We had the biggest drop yesterday we have had all year. The question is, is this part of the gains we see today . Bounce . Dead cat guy going to watch that with interest. Were watching gilt as well with a great deal of interest, ftse 100 expected on the upside. 7518 is where we are trading. London continuing to climb. We will work our way through the market open as we get the numbers. Plenty of other things to be talking about. Manus we have had this reprieve in the tech space, and an interesting conversation on daybreak about what might come from theresa may. Commits, they probably will make a very strong that fellow. Of course, the proof is in the political voting pudding. Industrials are up, and as europe looks stronger, politically more robust, where do you want to put your money on a relative basis . The ubs chief Investment Officer making the point, relatively underweight in the u. K. For what is a good news story. But technology, buyer beware. Do you want to pay up for protection . See it is climbing eigher, the question is th money worth being spent . A temporary moment in terms of the trajectory. Do you want to spend money on volatility . Relatively speaking, im going to update this life. This was the drop yesterday, down over 1 in terms of european stock market. On air, a data, live big blip up. Sense, you can see the shape. This one i love. This is hedging. Its so easy for me to remember, three is the magic number. Hugeyouve got here, a ,evel of interest in shorting Short Interest on the three Biggest Exchange rate funds. It holds together about 6. 1 billion in assets. Its all climbed since hitting their lows in march. Theyre all on the way up. Is that something which is much more foreboding than a shakedown in capital . In apple . Radio, we will get more stock advice. Guy thank you very much. Interesting to see whats happening with china. You can see that data on the bloomberg. Lets take a look at whats happening with the markets. Gainer,ter is the lead edf, luxottica trading higher. I want to turn our attention to the downside. Merlin is a company that operates in areas such as the london eye. It does big tourist events, themepark type stuff. What it is saying is it has seen an effect from terrorism, and that is a cause for concern. It is warning that the terror impact is having an effect on its business. You can see this in a number of its biggest sites. That is something to Pay Attention to, because its a conversation we need to have more broadly about Consumer Confidence and spending and whether or not there is an effect that will come through for what we have seen thus far into those hard data numbers. We will keep a close eye on it, but it is an effect coming through to the real economy. Speaking of which, theresa may cried mea culpa. She has been ordered a stay of execution by apologizing for the election debacle, promising she will get them out of this mess. Anna edwards is outside the u. K. Houses of parliament. Horses . Called the is the rebellion over, or is it just old . Just on hold . Anna she seems to have called things