We have a lot of news to go through and we are looking at the 10 year treasury yield, of course, the markets, and the implications of a divided u. K. , brexit talks, and the macron win. First, lets quickly get onto your data. It is one thing that markets are looking at to see whether there are any tensions or not. Global equities are rising and that is filtering through to europe. We saw stocks in hong kong gaining, as Technology Stocks are beginning after their biggest weekly selloff last week. The yen is falling. Oil is down, and we see little bit of pressure on gold. More on that, but first the bloomberg first word news. Nejra theresa may is to chair an emergency meeting of the countrys Security Response team this morning, as police are investigating a potential terrorist attack after a van plowed into pedestrians outside i a north London Mosque. At least one person died and eight people were injured when a van was driven into Finsbury Park. A forest fire triggered by thunderstorms in the north of portugal killed more than 60 people. At least 30 people died in their vehicles, with more bodies found near cars on the side of the road and others in rural areas. More than 800 firefighters were still working yesterday to contain the blaze, which are rapid saturday. Which errupted saturday. The u. K. Government has decided timeve lawmakers more to deal with the brexit talks. The next parliamentary session, due to start this wednesday. Talks between britain and the European Union finally get underway today. In france, there was no public celebration from president macrons government last night as his party claimed a historic majority in the legislature. As a public on the move and the thees won 350 seats in national assembly, giving them the biggest majority in 15 years. But turnout was less than 43 , the lowest ever for a french election. The u. S. Navy has identified the seven sailors who died when their destroyer collided with a container ship off of japan on saturday. Seven crew members had been unaccounted for after the collision flooded with sea water. Divers recovered the bodies after the uss fitzgerald returned to a navy base in japan, aided by tugboats. Global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. This is bloomberg. Francine thank you. Voted to leave the European Union, brexit talks finally get underway in brussels. David davis sits down with the opposite chief eu negotiator, there is confusion over exactly what the British Government wants from his divorce. Now speaking exclusively to bloomberg, the central bank manager wade in on brexit. Bank manager weighed in on brexit. I think it is very unfortunate. The outcome cannot be something very good, neither for the u. K. , nor for the euro area. It seems that the impact is much more important a thing for the u. K. Francine lets get more on all of this with bloombergs john hoeven in brussels. What is each side hoping to get out of todays talks . This is the first day of talks. I think both sides now, almost one year after the referendum, they are happy to be sitting down finally. Finally, the talks are getting started. Unfortunately because of everything happening in london, the u. K. Position is still up in the air. They will have preliminary talks and put a good face on it, barnier and david davis will meet face to face for the first time and they are hoping to have a good start to these negotiations. Francine theresa may is facing a host of domestic problems. I will this play into the discussions . The main thinge is they will be uncertainty in terms of what the u. K. Position is. That is why today they will focus on the early stuff, the structure of the talks and what the eu is calling the separation issues. Is the bill and citizens rights. Today it will be more about Citizen Rights because the bill is very detailed and it will have to be done by the teams of negotiators in the next weeks and months. Francine thank you, our bureau chief in brussels. By loic fery. Ned also with us is Holger Schmieding. Thank you both for joining us. Loic, lets start with you. You lift in london you live in london. How will brexit play out . Are we looking at a soft brexit or hard brexit . What should Hedge Fund Managers look at . The results from the government on the recent election have put back the question of you know, the soft versus hard brexit discussion. We believe eventually, europe is driving the process and despite the words and it think, eventually, the u. K. Will have to either accept a softer nonbrexit, and go into a very soft and light separation agreement, which may actually make the bill much more acceptable for the u. K. , or go the hard route, in which case there will be a very longterm and i think Significant Impact on the british economy. We view that as a factor of uncertainty. As any such situation, that creates opportunities. Some assets are starting to see weaknesses. , in particular, on the paris regional and the u. K. Real estate. We follow very closely the developments over the next few days. Francine is there too much of a believe that this will lead to a soft brexit or no brexit . If you look across all political parties, even labour, they still wanted a brexit, just a brexit of a different kind. It probably will be a soft brexit in the end, but we will not know for quite a while and the risk is high it could be a hard brexit. It is not easy to see how the current British Government with a still badly divided conservative party could actually agree to make the decision for either the soft brexit, which will have a few people rather unhappy, or the hard brexit. It will probably need some significant political searching in the u. K. Next year to make the final decisions. Initially, we will probably get some evening news on citizens rights. Francine holger, what does that mean, a soft brexit . And does that come from the eu . Well, the eu has a menu of options, as the u. K. In the end has to choose. One would be the stages of norway, the minors, and the minors would pay a special part for the access to the eu financial market. Or, there is the hard brexit. The eu has various options and in the end, the uk. K. Has to choose. Francine have you see it playing out . For me, there is a red line. Said,hink it will, as we a soft stance on brexit from the u. K. Government will possibly make you know, the man in the streets in the u. K. Quite unhappy. I believe the Financial Sector and the rights of the Financial Sector are going to be a key point into the negotiation. You know citizens rights, i believe that will end up to be relatively soft. The u. K. Cannot afford to have a tough stance on citizens rights. Has a key carde, with the financial regulation, and with the Financial Services of the u. K. Francine holger, let me bring it over to our Bloomberg Brexit barometer. This is a custom index, which basically shows the impact of the separation process on the u. K. It is made up of indicators such as employment, inflation, growth, and uncertainty. It has gone down a touch. Will the markets even react to negotiations, or will they go into a summer lull and refocus on it in september . Of course, we will get some news in the coming weeks and months, but that news is more likely to be good than bad. The initial focus will be on the easy bit, an agenda, citizens rights. It will probably be late in the year that we really get to work on the tough issue, number one, the brexit, and afterwards, the future relationship. U. K. Willature is the eventually have a status in europe, in the major market, which is significantly worse than its current status and much of what the brexiteers said during the campaign will be exposed as what it was all the time, not true. Francine holger and luic will stay with us. Loic fery of chenavari and berenberg. Ieding of reporter theresa may will chair an emergency meeting of the emergency Response Team as they investigate a potential terrorist attack as a van plowed into pedestrians outside a north London Mosque. At least one person died and eight people were injured as the van was driven into Finsbury Park. Chinas home prices increased in fewer cities last month in the wake of cooling measures. Prices new home prices, gained in 66 of the cities. Prices fell in nine cities and were unchanged in five. London home sellers cut asking prices for the second time in three months. The slowdown might continue. That is according to rightmove, which is the prices dropped 2. 4 since june, leaving them down 1. 4 from a year earlier. Nationally, asking prices slipped 0. 4 . Boeing is to offer its first ne w jet at the Paris Air Show in almost four years. This counters airbus head start. The u. S. Playmaker is confident the model can carve out sales and stem customer defections to the a321 neo. Macrons president party has won 350 seats in the national assembly, a commanding majority of the 577 seats, the biggest in 15 years. But sundays turnout was below 43 , the lowest ever for the french. Now for more, we are joined by Bloomberg News reporter. Caroline, what does this mean for reforms in france . Of course, with this large majority, that should mean he will be able to push the reforms. How it is not as big as we may have expected just a week ago. The opposition from the rightwing Republican Party remains strong. They still have nearly 140 seats. Then, you get the National Party in the far left wing leader. They are still put out by the political landscape. Political leaders say tension was good news because it meant it was the beginning of a general trife of the french people. Francine thank you. Reporting from paris. Still with us, loic fery and Holger Schmieding. Loic, first of all, i know in the past you said a macron win would be good for the country because finally, it means there is an appetite for the french to move forward. There is a lot of talk about the fact that because there was a low voter turnout, he doesnt really have a white card, a carte blanche. Is there any truth in that . Just a few months ago, the election to the presidency with the challenger without party, as a president. Securing the largest majority ever in parliament, it has happened and i think it is a strong signal. It is a game changer for friends. I think it will be a game changer for europe. I dont read i dont think people were on strike. I think people were on the beach. People understood also that the conclusion of the election was that there were people tired with all parties. It is a big defeat for the socialist party. I think we should not read more than contrary to other countries, france has shown that change is possible. Key statement. A it will probably inflows the other countries in europe and i dont see that as a danger for populists. To the contrary, they will be constrictive actions in the coming weeks. Francine holger, president macrons program is mainly on liberalizing frances labor markets, but also integrating europe more. Will he achieve both . He probably will achieve both. The critical point is the labor market. Europe is interesting and important, but its not the key issue. Remember, the u. K. Had a labor market problem until Maggie Thatcher fixed it. Germany had a labor market problem until the agenda 2010 reforms. Labor market reforms make the crucial difference, as the former economics minister knows what the issues are. This program has been endorsed by the french voters. It was a tight election, the first round of the president ial election. There was a high turnout. His mandate is strong and his ideas are sound. He will likely deliver and it will be easier for germany to agree to a little more risk sharing if the french risk is seen as lower and everything is easier to do if the economic backdrop is good. Francine there is one train of thought that says the president macron does not succeed, what comes after him will be very extreme. That is one way of looking at it. I think, as you were saying, he is in power, he has the majority. No wonder, there will be people in the streets. I doubt he will wait long before rolling out the reforms and the labor market will be the first one to come. Its basically an essential point in freeing up france from some of the traditional blockage, but it will also be very key in the ability of france in regaining trust from germany and ensuring the fren chgerman link will act as a you know, what will make europe great again. Im very confident that macron will be elected and merkel in germany. Wen, in the later stage, start going into further integration for europe, like the budget, and potentially i see this coming in the second step of the mandate. Francine thank you, loic fery and Holger Schmieding. Both stay with us. What now for Monetary Policy in the euro area . An exclusive interview with the Ecb Governing Council member. This is bloomberg. Francine you are watching bloomberg surveillance. Im Francine Lacqua in london. We spoke exclusively to the Ecb Governing Council member. Take a listen. I think we have to see it as a riskk. In somee opportunities areas. See, fromfor lets the standpoint of macroeconomy, this is not a good day. Negotiations about something which is clearly a disintegration is sad. Its a sad day. You know, ive been witnessing the history of the European Union for decades nwow. It always has been a process of integration. Convergence. And now we will negotiate back to disintegration. Unfortunate. Very the outcome cannot be something very good for the u. K. , nor for the euro area. But id say that the impact is much more important for the u. K. Than the euro area. Within the euro area, we are showing strong, im pleased with that. I think to move forward with this, we should use the opportunity of this sad event to try to go further, to advance, and to deepen the european and monetary union. Francine still with us, loic fery of chenavari Investment Managers and Holger Schmieding of berenberg. You are just listening to the central bank governor. I also want to bring you over to my charge, which shows the ecbs financing operations in white, and the unemployment figure in blue. We think it shows mario draghi will become more of a hawk. Of course, he will become more of a hawk, but it will be a slow exit from the current policies. There simply is no way to inflate pressure. 0. 9 is where it was an average for the last four years. Though i think we are talking roughly two years from now, mid2019, that the European Central bank might be at the point of raising rates. Tapering comes first, as of january next year. Francine does the ecb come into mind at all when you look at your portfolios . Yes, of course, but we dont bet at all in any sharper form of removal of stimulus in european environment. We heard it directly from draghi recently. Was not giving any hints about the removal of stimulus. The ecb is quite happy to let it run hot this summer, and later in the year, in parts of europe, germany obviously, this chart shows. A figure of 9 unemployment across europe. If you look at the u. S. , i think the main indicator in the u. S. Being used is the job market. Growth to got of when it comes to unemployment in europe. Chenavariloic fery of tom investments and Holger Schmieding of berneberg. Investing in new, efficient planes in light of the Paris Air Show. This is bloomberg. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Francine you are watching bloomberg surveillance. Theresa may is to chair an emergency meeting of the Security Response team. Police are investigating a potential terrorist attack after a van plowed into pedestrians outside a mosque. At least one person died and eight were injured. Portugal has declared three days of National Mourning after a killed more than 60 people. At least 30 people died in their vehicles, with more bodies found in near cars and others in rural areas. More than 800 firefighters were working to contain the blaze yesterday. Britain is to observe one minute of silence as a marker of respect for those affected by the Grenfell Tower disaster. Theresa may has conceded the response to victims was not good enough. That comes as public criticism has mounted. There was no celebration from Emmanuel Macrons government last night. His republic on the move and its 350es one 350 seats won seats. Turnout of less than 43 was the lowest ever of a french election. s legal teamrump has said the president is not under investigation by robert mueller. That comes despite trump toss claims that he is the target of a witch hunt. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Francine still with us, loic. What is the number one concern you have when looking a