You have heard about that ongoing investigation. Police in london urging the media not to talk about the perpetrator because of the ongoing nature of what is happening. Tom what will the nation listen for from Prime Minister may . Guy stability. She is the right person in the right job. Her previous job was in the home office, its responsibility this kind of incident. She knows her way around these events. One thing people will be taken away from this is how did such an attack happen so close in central london. How did this man gain entry to the palace of westminster . That is a question that will need answering. Taylor we are starting with developments in londons worst terror attack in a decade. Detectives have been working through the night. During that time, we have searched 6 addresses and made seven arrests in birmingham, london, and other parts of the country. It is our belief that this attacker acted alone and was inspired by international terrorism. People were killed in the attack, including the attacker. 29 others were injured. It began when a car crashed into a fence at parliament after running down pedestrians at Westminster Bridge. U. S. , thek to the Republican House of the Intelligence Committee is offering support for trumps claim he was wiretapped. They nunes said that collected President Trump said he feels somewhat vindicated. The white house lobbied into the night to win passage of the Republican Health care bill. Lawmakers discuss lastminute changes to try to attract house conservatives. A vote is set for today, but republicans have delayed a key procedural step before the bill gets to the floor. Japans government denying allegations linking Prime Ministers shinzo abes wife to a real estate scandal. For weeks lawmakers have been discussing how a group was able to buy publicly owned land for a fraction of the value. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. I am taylor riggs. This is bloomberg. Tom thank you. This is the data out of the bloomberg. Then we will go to london. 114curve is flattening at basis points. Oil with a 47 handle, 47. 17. There is a weight to oil. Will join us on the equity markets. A cell, 19. 03. The peso, 19. 03. Guy any to think about how markets are set up. We have been talking about what is happening on the hill and how health care will affect the future of this administration. Waiting and watching, trying to get a clear idea. In terms of the cable rates, sales data will have a bigger effect beyond yesterdays terror attack. The muscle memory is you do not trade terror attacks. It did ripple possibly into what is happening in france. It is interesting how mr. Macron reacted. Tom heres the polls of the american confidence. The optimism of the 1990s, the Bloomberg Consumer comfort index. Here is the challenge, the great recovery, you wonder where this will be in three months or six months given the legislation and distraction the president faces in 10. Guy i want to talk about ireland. About iron or. Iron ore. Barclays is talking about this significantlyng broken, taking us down in the short term to 70 and possibly dropping to 50. Two things could be affected. Formining sector, look stocks like rios sent out to react significantly. The other is the aussie dollar which moved south. A attention to that one. Westminster, parliament returning to work after londons worst terror attack in a decade that left 4 people dead. Prime minister may is expected to speak at 10 30. Nejra we heard from the police. They have made seven arrests. They know that the attacker was influenced by international terrorism. Alone. Lieve he acted we heard from Michael Fallon speaking on bbc radio. He said we have no specific information about other possible attacks, and parliament is looking into security. It is business as usual, full parliament. Theresa may said that parliament would sit as normal. We are expecting her to address the house of commons as well. Guy the scottish are saying they will do for the vote on independence for a few days. That is something the think about as the situation is normal. How will this ripple into the political story in the u. K. . Is it really business as normal . Nejra on the south side of west in sturbridge, it doesnt feel like business as normal. Polices a stepped up presence. There are men and women on the street and police vans. I have seen three or four in the close vicinity. ,his attack came just one week exactly, before article 50 is due to be triggered on march 29. Questions may be raised as to how this could affect the brexit negotiations in terms of security. We have heard from the french president ial candidate already saying making comments about intelligence sharing between the u. K. And eu. Low priority shift . It comes at a difficult time for the u. K. , politically and economically. Wolftell me about the lone here this seems to be a reaction, this time is different. A lone wolf terrorist attack. How will that change your london . Nejra as you talk about the lone wolf, what we understand is that this attacker drove in a vehicle along this bridge behind me. Knocking in two pedestrians as he did so. The vehicle then rammed into a fence outside parliament. He managed to run through the gate, which was open because mps were going in and out to vote on a bill. The police are saying that this attacker acted alone. They are asking the media not to reveal his identity, though they do know who he is, while the investigation is ongoing. Guy thank you very much. Joining us from the south side of Westminster Bridge. Joining us now, good morning. Muscle memory for markets is short reaction and move on quickly. Does this change anything from an allocation point of view . Kindskind of tragic of tragic events from a market perspective are not very relevant. An awful event, but not something that will have a big impact on Financial Markets. Read,s there any kind of what kind of metrics are you looking for for the u. K. To determine how you position yourself . Andrew who knows. This is experience is not something that usually expect a Significant Impact on market data. A tragic event, but not something that will move markets. , you have pretty good economic underlying data and you have great uncertainty in terms of the outlook. T is an interesting case you have to be pretty humbled because no one is going to have Historical Data to guide in this term. So far, so good in terms of the data. Tom help me with the continent of europe. You have a wonderful heritage working with the United Kingdom and germany. Help the with the benefit of immigration and migration, the core of the debate in the french election. Terror attacks, we dont know. Is it a net benefit to Economic Prosperity for europe . Andrew yes. There is tons of data on this for europe, the u. S. , about the benefits from immigration. In financial services, the London Financial Services industry, International Industry not a u. K. One. You have distributional impacts. If you look at the pattern in the brexit vote, a very different pattern of london voting compared to other parts, the northern part of the u. K. I do not think that anyone is in that much doubt about the benefits from an economics perspective of immigration. Tom thank you so much. Andrew balls with pimco. We will continue from london. Ach coverage, including parliament that is open for business and working. We will perhaps hear from the Prime Minister of the United Kingdom. Kevin cirilli is with us twice join us. Ny dwyer will an update on the reticence about the great bull market. From london and new york, this is bloomberg. Guy flags flying at half mast. You are looking at a live shot from the south side of Westminster Bridge, the waterloo end, looking back at the parliament. The bridge is closed as they continue their investigations into what happened. Nine 30, retail sales data, 10 30 we will get theresa may making a statement to parliament. Global audience, we will do everything we can to keep you uptodate on these moving events in the United Kingdom. We need to go to an exceptionally busy washington. Kevin cirilli, thank you for joining us. I know that politicians are late into the night. What were they doing on health care at 10 00, 11 00, at midnight . The negotiations continued last night, and will continue this morning as President Trump and paul ryan are trying to lobby the House Freedom caucus, led by representative meadows and representative jordan. These are 2 conservatives who trump has singled out. They cannot lose any more than 21 house members. Right now they dont have the vote. You is this the same whip have seen for years and have read about in the history books, or is there something unique . Kevin this is different than operation in the past. Our sources tell us President Trump and speaker ryan have dangled everything from Committee Positions to political promises in an effort to get folks to back this bill. The negotiations at the white house will continue. House Freedom Caucus members will meet personally with President Trump. This will come down to the wire. Guy good morning. If they are struggling with this, how tough are the battles to come going to be . Kevin that is where this gets interesting. If they cannot pass a Health Care Reform in the house of representatives, and with the russia question continuing to be raised, a Bipartisan Committee focusing on that, that would significantly weaken this administration as it looks to accomplish other legislative items on its to do list. They could not get the tax reform unless they pass health care. The pitchrt of according to sources i am speaking with. Want to weaken this president on the first major legislative priority of his administration . Guy thank you. Ballsget back to andrew from pimco. If the president fails here, what about reflation trade . Andrew a lot of us talked about fiscal policy. You know they devoted a huge. Ffort to Health Care Health care is a quagmire. We have scaled back our expectations in terms of fiscal policy in the u. S. Reflecting and push back the timing reflecting this initial focus. A little about infrastructure spending, they have ambitions in we have taxes, but scaled down our expectations and pushed it back into the future. It is an issue when equities were priced at an optimistic interpretation. Guy what is that mean for the portfolio . There was a lot of good news priced and in the u. S. In terms of expectations, in terms of reflation. It seems likely you will have less fiscal policy. Balanced against that, we have too crazy oning the traits i. I put on the trade side. I think we have a slightly more on thetic view possibility of a trade war with china, for example. Developmentositive as well. The focus on health care is something that will make us scale back the broad fiscal package expectation. Investment,world of help me with the idea im supposed to own bonds. The textbooks say im supposed to own bonds, but rates are going up and prices of bonds are going down. Why should i own bonds . Andrew you say the textbook will show you the benefits of diversification in terms of your portfolio. For surprises is in bonds. Hopefully we will be on a better track in terms of the u. S. , equities current valuations have been underpinned. If you have a big surprise, an awful event in london yesterday, clearly, there are benefits in terms of diversification of the portfolio. We at pimco would argue in the current environment u. S. Bonds look attractive compared with the rest of the world. The higher level of fields in the u. S. When you compare it to the u. K. , europe, japan, you actually do have some real hedge in terms of your risk assets if you have the u. S. Fixed income. Tom thank you, so much, for being with us. It is a somber london. We will hear from Prime Minister may through the morning. Vicechairman, a professor and expert on regulation from harvard law. Hal scott will join us. Widely considered a candidate for the regulatory position under chair yellen. From new york and london, this is bloomberg. Guy johnson in london, tom keene in new york. We are joined in london by. Ndrew balls from pimco i want to talk about the wider picture. You were talking about the gravitational effect of the zero Interest Rate arena that we found ourselves and for so long. The fed, remarkably being successful in getting away from that. Andrew the u. S. Outlook looks pretty good, as long as it is looked at for a long time. The fed has gone away from zero bound expectations for rate year, maybe this for next year. Normalization there. Two big uncertainties. The rest of the world is not doing as well. How can the u. S. Normalize when the rest of the world is dragging them down . Then the trump administration, the impact in terms of the dollar and the u. S. Administration attitude towards the dollar. The natural way this happens, stronger u. S. , normalization, stronger dollar. Uncertainties in the rest of the World Holding the u. S. Back, and how the u. S. Administration would react. Have aalth me that we divergence in Interest Rates. Helped me that we have a divergence in Interest Rates. The great transatlantic diversion will continue . Andrew when you look at the european government bonds, look the spread is historic. The u. K. Has brexit uncertainty, but the growth path looks ok. Europe, by low european standards, is growing above trend. The ecb will want to go normalize. From our perspective, u. S. Interest rate risk looks attractive versus the rest of the world. You will see that reflected in our portfolios, long the u. S. Underweight everywhere else. Over time normalization policy in europe, possibly by the boj, another issue the Global Financial markets will have to deal with. Normalization of Monetary Policy conditions after seven years of or eight years of extraordinary support. Guy thank you for spending your precious time with us, andrew balls of pimco here and we will be talking stocks in deutsche bank. That conversation, coming up. Tom good morning from new york and a somber london. Tom keene in new york, guy johnson in london. If you go from parliament with Westminster Abbey on your left, you go to new scotland yard. They will have a moment of silence at 9 33 . Guy absolutely. They will be thinking about their fallen colleagues, thinking about what his and his familys loss. Taking about how security will work Going Forward from here. This is an emotional and personal experience. It is going to be something we will focus on a lot as we think about the story Going Forward, how parliament will react. About whatving event is happening in london as we wait for the minute of silence. We have u. K. Retail sales, the pound is moving on the back of this number. We have a beat on retail sales that have come through at a 1. 4 number versus a point for expected. There is concern about what is going to happen. The pound continues to sink, or has stabilized. We will continue to watch this. Politics is front and center. Tom lets go back to our moments of silence with the economic data, the officer of the metropolitan police, overlooking they been as well overlooking big ben as well. Ladies and gentlemen, as we minute ofhave our silence. This morning, we gather to join our thoughts and prayers for all victims of yesterdays incident. We give thanks as we remember and honor of sites being held by the metropolitan police as they remember their fallen beinggue of silence held by the metropolitan police as they remember their fallen colleague. Active business, that is the message that needs to be sent. Tom it is a Different Police force. Back to 1899. We will continue a moment of silence in the house of commons. Order, order. The house of commons, the pageantry of a somber moment in london. We have seen moments of silence or the metropolitan police for the three dead and 29 when did, including their officer. Then to the house of commons, which i believe will hear from Prime Minister may this morning. Johnson, an extraordinarily different culture of policing in the United Kingdom. It is not new york, it is not paris, there is a unique culture of the Police Officers back to 1899 and robert peel. Guy largely an unarmed one. That will resonate. The officer that was killed was not armed. He died defending and securing the palace of westminster without a firearm on his hip or in his hand. That is something that will be taken seriously. The nature of the lone wolf attacks taking place in london, the basic but Little Nature of the attacks is some thing that the police will be thinking about carefully in how they secure the british capital and britain more largely throughout the nation as a result of likely have learned over the past 24 hours. More on the london attack, theng us on the phone professor and chair of International Relations focusing on at risk civilians and radicalization. Good morning. What lessons can we learn from yesterday . I think the most important one, which the Prime Minister spelled out outside downing street, the importance of returning to normality as quickly as possible. Housecorrect to put the into lockdown for a sho