Conversation, lets talk about where the pound has gone today. Initially it fell this morning, that was on the bank of england, one of the hawks turning more dovish. The pound then rose on the news coming through that Boris Johnson had won the leadership conference. Since then we have seen a small fate in that initial rally. The pound is now trading down against the dollar on the day, trading at 1. 24. Lets talk about what we have seen in the markets. For equity markets around the world today. What we are also interesting is quite a strong rally for the sector around europe. Good news coming through from the supply chain. Chinesealso seen the taking a big stake in daimler overnight. Bmw rising on an upgrade as well from morgan stanley. We are seeing weakness in the single currency ahead of the ecb thursday. Down by. 4 . Lets get back to our top story, Boris Johnson is going to succeed theresa may as the u. K. s next Prime Minister. This after a beat jeremy hunt in a landslide victory. He will take the reins of the country at home and abroad. In his speech following the announcement, this is what he had to say about the most pressing issues facing britain right now. I say to all the doubters, we are going to energize the country, we are going to get brexit done, take advantage of all the opportunities and do this in a spirit of can do. We will believe in ourselves and like a slumbering giant, we will selfoff the negativity and doubt. Guy Boris Johnson from a little while ago. We are joined now by the joint executive secretary of the 1992 committee, which ran the process , putting Boris Johnson where he is now. 100 days until halloween. Johnsonsntil boris selfimposed deadline for the britain to exit the eu. Will it be with a deal or without a deal . Byhe has to get us out october 31, that was his main promise. That is why i believe you got two thirds of the conservative member party voting for him. I know a lot of people that voted him because he was definite about when we would leave. Jeremy hunt, it could be october or longer than that. We have had three years of dithering. I also believe he wants to get us out with a deal. If you think we have a 95 billion pound deficit with the European Union we love buying german cars, french champagne, food and all sorts of stuff that deficit is in their interest to do a deal. I know they have played hardball up to now but they have to learn, theresa mays Withdrawal Agreement is dead. She will be replaced around 5 00 u. K. Time with Boris Johnson as our new Prime Minister. Today, theis Said Campaign is over, the work begins. Guy if im looking at the other side of the channel, what do we do with the irish backstop . In order for it to happen from the u. K. Perspective, the irish backstop has to go. The eu says that will not happen. How do we resolve the crisis . Backdropis right, the backstop has to go. 50 years ago, we put a person on the moon. Are you saying that in that poem two of time, technology is not sufficient that there could be other ways to facilitate the flow of goods between Northern Ireland and ireland using technology, using camera technology, manifests, trusted trading schemes. Up till now there was no interest in the European Union to buy into any of that because they thought they were wedded to the Withdrawal Agreement that theresa had signed up to. Three times to try to get it through the house of commons. Three times she failed. It cost her her job. There is not a chance boris will go over those old mistakes that cost to reason her job. They just have to be imaginative about it. Onmay be multiple deals things like eu Citizens Rights in the united kingdom, eu Citizens Rights, making sure they can go back and forth. All of this can be done in the meantime. The only thing that did pass parliament was the compromise which was basically, we leave and Start Talking about the future trading agreement with the European Union. Part of that is the phone conversation that boris will have either tonight or tomorrow with donald trump. Donald trump want to do a deal with the united kingdom, and that could be greatly rich for boris when he starts to talk about the future trading relationship with the European Union. Vonnie europe says it has already painstakingly negotiated a Withdrawal Agreement and will not renegotiate. Why would it be in europes interest to agree to Boris Johnsons request . It is not just agreeing to his request, but it is taking part in negotiations. Ry times brussels says no teresa came back and said brussels says no, so we cannot do that. We cannot get rid of the backstop. That is not a negotiation. That cost theresa her job in the end. I believe the change between theresa may and Boris Johnson, is gores campaign for brexit, believe in the mission. Theresa never did. She saw brexit as an absolute catastrophe that needed mitigating. That is why we are where we are. Boris believes in brexit and he wants to get on with the job. As soon as the European Union realizes how determined he is, and is prepared to walk away without a deal, i think they will want to do a deal. Vonnie facing the sun defiant leaders in brussels and proeu members in parliament, will he have to call a general election . What makes you so sure he can get it done . Nigel because he believes in the mission. Interest its in the of the European Union and us to get a deal. A 95 billion pound deficit with the European Union. You asked if there would be an early general election. Under the fixed Term Parliament in, the next election is due two years. I believe that we will be here in 12 months talking about the prospect of the conservatives winning the next election. We talk about the 100 days. Boris will want to prove it is not just about delivering brexit but also about delivering extra police on the streets of the u. K. , delivering on the economy. On the public services, education, health, to make sure money is going into those areas. Is what everyone is focusing on at the moment. Will want to get brexit sorted so that he can focus on the domestic agenda which is absolutely necessary for the united kingdom. Guy we will leave it there, thank you, nigel evans. Joint executive secretary of the 1922 committee. Lets carry on the conversation, we are joined now by mark garnett. Lets get your take on this. Ubs thinks there is a 50 50 chance we get a new deal brexit. Does that number sound about right to you . That sounds about right. Obviously, mr. Johnson is determined it should be passed as a negotiating stance of britain. The big problem is whether parliament will allow him to show the eu that that negotiating tactic is going to remain on the table. Parliament could try to fort him thwart him. Not really a betting proposition, but even so, given there are so many possible scenarios, that one has become because of mr. Johnson becoming leader of the party, Prime Minister tomorrow. Just hearing an expectation among some mps that we will see a general election within the next 12 months. Does that come before or after october 31 . Again, this is a question on how parliament reacts to mr. Johnson and his approach to negotiations. There is always the possibility under the fixed Term Parliament act that mr. Evans mentioned, that the house of commons will vote no confidence in mr. Johnson. If a new government cannot be formed, there will be a general election forced on mr. Johnson. The other possibility is, if mr. Johnson embarks on his negotiations and finds the eu is completely immovable, his final card the people have been resisted by parliament it is time to change parliament. That would be a desperate gamble. Even so, it is likely that he will find the present parliament very obstructive, therefore, upon a solution is to change the parliament. The conservative party has final mr. Johnson on that card in the long game of brexit. They think he is popular enough outside of their party to deliver them in certain circumstances a general election victory. It could be that, rather than a no deal brexit without a general election, that that is the scenario britain faces. Libdems now play a role that could be an important one . If i was joe swensen, i would be taking my own election as leader of the party, celebrating the circumstances of the victory rather more than mr. Johnson would be celebrating his. If things go as they are, you could certainly see the libdems to be wellplaced to take votes from disillusioned conservatives, of whom there will be a lot. Mr. Johnson got 66 of the voters. That is an electorate in which he is the most popular in the country. If that fan club of mr. Johnson is still divided, and that means mr. Johnsons position is nowhere near as strong as his supporters are trying to make up. Flirting with the liberal democrats but also labor is in such a mess, lots of people thinking that a vote for the libdems is the best way to prevent brexit. Rseir world even be some leave who would vote for the libdems. Libdems are in a position that happens to them once in a decade, where they may even be wondering if they could become the Majority Party in britain. Everything is so uncertain. A party that looked dead five years ago is now rising from the ashes and potentially has an awful lot of games to pick up. Vonnie resignations already coming in, promises of more in the tory party. Apparently Boris Johnson only has a working majority of two. Parliament leaves or vacation in two days. What do the likes of Jeremy Corbyn do in the weeks before september 3 when parliament returns, while Boris Johnson is in europe trying to get an agreement from various leaders . The focus has to be at home for the other party leaders. Mr. Corbyn at the moment has difficulties within his own party, even before he starts to try to persuade the British Public that he has a workable position on brexit. To temptation for the tories call an early general election is much greater because mr. Corbyn, in the party, a certain amount of turmoil, seats are vulnerable in the north. Comes out even more strongly for remain. Conservatives should be worried about the liberal democrats. They are normally good at picking up disillusioned tories, but the conservative party, the less worried they have right now is the labour party, unless they decide to turn to a more moderate figure and asked mr. Corbyn to stand down in the interest of the party. When this everchanging situation could take a twist. Corbyns stand, mr. Brexit policy is lasting on his mind. Guy we are going to leave it there, mark. Thank you. From Lancaster University where he is a professor of politics. Lets speak to another professor of politics here in westminster. A wellknown pollster here in the u. K. What does the arrival of Boris Johnson actually change . Immediately, frankly, nothing. He faces the same problem as theresa may which is how to find a deal that is acceptable to the European Union and the house of commons behind us. Eluded something that the current Prime Minister. Given the house of commons behind us does not seem to be keen on the idea of no deal, but ideas about how hard or soft the brexit should be, and given the European Union in public is reluctant to reopen the withdrawal treaty that mrs. May negotiated, to that extent it does not change much. Haveot the conservatives about mr. Johnson is that he is particularly popular amongst brexit party supporters. At the moment he inherits a party that is in deep trouble in the polls. Labour is in trouble but so are the conservatives. Are breathingats down their neck. What we will be looking for now is whether there is any evidence in the polls in early august that with mr. Johnson the leader of the conservative party, those who are voting for brexit now will go over to the conservatives. That he will not a, we are not ,a, going to switch back to the conservatives until you deliver brexit, past the difficult European Union, as we just said. And it may also be the case that mr. Johnson as the conservative leader is priced into the polls. We have already seen some movement to the conservative party, so maybe more to come. Vonnie we just spoke with nigel evans and he seems to suggest or say outright that Boris Johnson believes in brexit more than theresa may did and that is why he will succeed by october 31. What does believing in something actually translate to in europe, whoou are a european mep, has over the years helped to negotiate a Withdrawal Agreement . Is believed will have a amongn amount of cache the hard brexiteers, the European Research group, the group that was responsible for mrs. Mays inability to get the deal through the house of commons. Given that mr. Johnson is one of them, incoming and saying i know this is not perfect but we have to take what we have got in order to get brexit over the line, that is where it could make a difference. Is it going to make a difference to the stance taken by the European Union . Unless mr. Johnson can demonstrate he has managed to get his party behind him. Then maybe the European Union might be willing to give him an inch to get things across the line. Will it help him with the opposition parties in the house of commons . No, not at all. To that extent at least, yes, the fact that he is a leaver helps, but will not help them. Ith the Opposition Party above all, it may not help him with the remainders inside the conservative party who are opposed to him. Guy does Boris Johnson had to pick sides . Does he have to pick a side that is United States on trade, iran, huawei, or the European Union . Is this binary . John mr. Johnson will want to avoid that binary choice. The vision of brexiteers is they want to negotiate free trade with the u. S. And have a freetrade deal with the European Union. You might say they want to have their cake and eat it. The choice mr. Johnson may will be facing in the next few weeks is whether he will risk going for a no deal, or if you cannot get a deal pass the European Union, or will he have to ask for an extension . If mr. Johnson manages to negotiate a deal by the end of october, we are not leaving. We have to get legislation through the house of commons. His determination that he is a leaver will not speed up the timetable. Guy thank you for coming to see us, Professor John curtice. Vonnie some breaking news on the song. Cutting more than 10,000 jobs globally. It cites identified sources. Wassun was not nissan not everyon available for inter. Cutting 10,000 jobs globally. 10,000 out of 140,000. Adrs in the u. S. Up half a percent. This is bloomberg. Vonnie lets get a check on the markets on this tuesday session. We have been looking at up markets but now we have mixed markets. The s p 500 up slightly on the news of the debt deal. In london, in europe, bigger gains. The ftse 100 up. 7 . As borislso up, this johnson is set to become the next Prime Minister. Volatility swinging to the downside as Boris Johnson promises to renegotiate a new brexit deal. Helping the s p 500, lots of earnings winners, cocacola, hasbro. Both of those Companies Beat bank of america, being held by higher yields. Stanley black decker also putting up a strong quarter. Vonnie President Trump announcing that bipartisan deal to suspend the debt ceiling and boost spending levels for two years, averting a payment default. The president is calling the deal a real compromise and is urging congress to pass it before both chambers go on recess. To take us through the bill, we are joined by our congressional reporter anna edgerton. Both sides are claiming this is a win. What did each side get . Anna a lot of for both sides you like. Democrats like that there will be more domestic spending for their priorities. Republicans are happy about increased military spending and also getting that spending nail down on time, so the pentagon has more certainty to plan for the year ahead. All sides excited about raising the debt limit, putting a closed payment that was due in september, the first risk of missing a payment for the u. S. Treasury. There is some relief that the deal looks like it will get done. It does still need to be passed by congress. We have heard some skirmishes of dissatisfaction from a few lawmakers but it looks like everyone is ready to vote or the deal, make sure we get the situation resolved. Vonnie how to get the fiscal hawks on board . Are they necessary . At about a trillion dollars. Anna there are not many fiscal hawks left. There have been a few points where we have seen that, one was the this massive tax bill republicans passed in 2017, which will ultimately cost the United States more than the spending increases have thus far. When it comes to the deficit, we have seen both democrats and republicans push off those concerns in the interest of getting some other immediate shortterm priorities. Fiscal expect any of the hawks to vote for it, but they dont need to, as long as we dont have much pushback from Nancy Pelosis progressive members. She will be able to has in the house mostly with democratic votes. Vonnie thank you for that, anna edgerton. Still ahead, cocacola profits Beat Estimates as the beverage giant gets boosts from drinks with less sugar. The company Ceo James Quincey joins us next. This is bloomberg. Guy from westminster, im guy johnson. Vonnie in new york, im vonnie quinn. This is bloomberg markets. Lets get a check on first word news with kailey leinz. Boris johnson will be the next Prime Minister of great britain. He defeated jeremy hunt in a battle of the conservative partys members. Johnson will take over a country in crisis and a government on the brink of breaking apart. He will have 100 days to negotiate a divorce tear with the European Union before the u. K. Is due to leave. A Senate Committee is questioning fbi director Christopher Wray today, and maybe asked about Russian Election interference. Theaid there is no evidence fbi illegally monitor the trump campaign. Meanwhile, President Trump has agreed to make more timely decisions on whether American Companies can resume sales to huawei. Larry kudlow says companies are seeking waivers only when there are no National Security implications. That could move the u. S. And china closer to talks on trade. Former Vice President joe biden is proposing changes to a crime bill that he helped write. In new orleans today, the democratic candidate is expected sentencingend to the terms on certain drug offenses. He will also propose an end to the federal debt and on tape. Several of his rivals have blamed the crime bill on the unequal jailing of racial minorities. Global news 24 hours a day, onair, and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Vonnie shares of cocacola are up 5 , their biggest gains in four years, pushing to a record after profits Beat Estimates. The beverage giant got another boost with the drinks from. Rom drinks with less sugar joining us now is the ceo of the company, james quincey. Im sure you are pleased with the results and the performance of the stock. I do want to ask about the north america unit. Some weakness there. To raise prices but are you losing sales in north america, and what to do about that . James when you look at our north american business, we have a Clear Strategy we have been pursuing, which is to drive engagement with consumers. One of the legs of that is to use smaller packages, so we are looking for transaction growth, even if it means a little less volume. Of course we would like to see in future quarters the volume to increase but the strategy in north america is about expanding the portfolio, growing the revenues, seeing the volume flat to positive, growing transactions. A sign of that strategy is working, you are seeing more households buying more of our products. The penetration of households in the u. S. Is going up. It is a sign of our strategy working. Combine with the Great Success sugar and the other options, we see the business growing, yet the calorie footprint going down. Vonnie wells fargo talked about a bigger sandbox, so several players can play in it and win. That said, pepsi is starting to bite at your heels in terms of energy drinks. How are you looking at competition in that area . James if competitors are investing in innovation, marketing, trying to create value in the categories we compete in, ultimately, it will help those industries grow. Of course it means that we need to up our game, and then competition is a good thing. We need to be at our best every day. We see there are competitors looking at the Beverage Industry and wanting to invest in the longterm attractive opportunity that is the Beverage Industry. Ultimately positive for the industry and positive for us. Let me ask you a couple out of thebout u. K. Where will be be with this in the u. S. In the next year . Globalas we look at rollout, coming to the u. S. , we are focusing on three things as the main starting points. The express vending machine you are familiar with in the u. K. , they do great coffee with fresh milk. Really high value. Being in the ready to drink business. Third, being a beverage provider across the full line including beans and machines to the food service channels, on premise channels. U. S. , time we get to the the first point of entry is likely to be the vending machines. ,e have a fantastic business being a partner to food service and on premise here in the u. S. I think that will be a great complement and make us a stronger total direct solution for those locations. Time we spoke, we talked about the effort you are making in terms of reducing your plastic footprint. I see within your company, you talk extensively about the shift to more pet bottles. Here in the u k, the environment secretary talking about a deposit scheme for plastic bottles and other packaging as well. What kind of impact would that have were those schemes are rolled on more broadly, is that something you anticipate . Firstly, we have been super clear on our objective. We set ourselves a goal of being part of a World Without waste. That means making sure our packaging is recyclable, that we get the packaging that, and reuse them in our own bottles. Pet is a fantastic packaging material in that sense. The key cap is generally collection as it relates to plastic bottles. Other challenges, but pet bottles which we use, the key challenges collection. They are industry schemes around the world. Deposit schemes can work, too. The key is to set up a scheme so that it drives the highest level of collection with the greatest cost of efficiency. We are in conversation with the u. K. Government on how we can bring that into being. We are committed to making sure we can help get collection to work. Of course, Different Countries have different starting points in terms of the infrastructure. We have a lot of local counsel schemes in the u. K. We are very focused on making sure we can collect our bottles back, and we believe this is achievable if retailers, peers, government come together. Vonnie you are launching costa in 10 markets next year. Concerne markets, any for geopolitical factors from trade to politics that might impact the launch . James costa is already in a number of international markets, including the ones covered. I think you are referring to the announcement we made with our partner, predominantly eastern europe, russia. There, they had a. Partner that they used particularly for on premise, hotels, cafes, restaurants. We are working with them, and they will use that as part of their total beverage solution across their territories, starting with 10 countries next year. Dont think it is a Global Political issue. We have a partner that is super successful across those countries. We see this as helping them be a better total beverage partner to their customers, and we think it will be very successful. Headwinds,n with fx you delivered on sales. What do you expect those headwinds to be in the next quarter or two . James in foreign exchange, currency movement, the big change came in the last summer of 2018. Clearly, significant strengthening in the dollar which is a major headwind to our results, given we make almost 80 of our money outside of the u. S. That has been relatively stable since the Third Quarter of last year. The dollar has strengthened a little bit but relatively stable. On largely carrying through the end of the year, which means as we cycle last years changes, it will still be a headwind in the Third Quarter, starting to even out by the time we get to the fourth quarter. Vonnie james, thank you. Your stock up 5 right now. James quincey, the chairman and ceo of cocacola. One of the big earnings numbers we have been watching today. We will check out some of the winners and losers from the session. We will look at market reaction. United technologies, Harley Davidson up as well. This is bloomberg. Guy from westminster, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. Movingook at stocks lets bring in day wilson. Great results from coke, poor results from pulte. Anything we can say about the macro environment . It is hard to get your arms around it all, the Group Reporting so diverse, and you have such a mixed bag. Pultegroup in homebuilding, numbers not looking great, people not liking what they are seeing. Martin, ifockheed you just focus on the Second Quarter results, you would think they are fine. Hshares move down in contrast to United Technologies, who have moved up after their results. Anythingome away with other than the barrage of numbers. It may well be like that for a couple of weeks as results play out. Lets stay in that space, boeing. Ut goin in terms of understanding what is going on in the business, how useful are these numbers . Guidance is tricky, we dont know when the max will be back in the air. I imagine this is a subject you need to block off and leave to one side. How much do we read into what boeing said today and what does it mean for the next step . You look at what United Technologies and others have said about their business, aerospace is fine. Has problems in the commercial space with the 737 being grounded. About half of their revenue, so it is understandable that people would focus on it. 30 ofthat, you figure their business is defense. That seems to be doing fine there, given what we are hearing from the other companies. Vonnie United Technologies doing well, lockheed. It is not Company Specific but united is continuing to do the spin offs next year. Areas did not do quite as well as the aerospace side for them in the latest quarter. You can understand why they into think going much more the aerospace and defense area would make sense to them, not only through the spinoffs but also the pending purchase of raytheon. Guy the big question in the market right now is what is going to change the massive gap between the value stocks the market hates, and momentum loves . That the market is this reporting season, in any way, going to change that there is . Dave who knows what it will take at this point . More than a decade into a bull market, and throughout, value stocks have been relatively weak, the ones that you buy because of their lowerpriced earnings ratios or whatever. Of figuree to kind that something has to shift. It is hard to know exactly what. Maybe Federal Reserve cuts interest rates, economy picks up, growth is not such a premium as it is now. People look at how costly those shares are now and rethink their strategy in terms of what they want to invest in. At this point, it seems like a fairly entrenched trend. Growth stocks have kind of picked up this year, so its been more of the same. Vonnie than that we had transports which was interesting. We had a call on g. M. Which was positive, but you look at harley. Dave they lack of consistency across the group. People focusing on this new electric motorcycle they have come out with and saying maybe there is something here, even at the same time the company is cutting their shipment forecast. So you see shares higher. Goes, hard to think that maybe things are going to turn for them. Rbc talking about their plans to cut cost, looking for eight dollars a share next year, . 28 above analyst estimates. We will see if that optimistic forecast plays out. Either way, you are talking about the health of the consumer. Put that together with the numbers we saw from coke, it looks like the consumer is doing just fine at this point. That is bloombergs dave wilson. Time to look at the biggest doors in the news right now. Nissan is cutting 10,000 jobs around the world. Those cuts include early retirements. They say the move is aimed at reviewing their production system. Has almost 139,000 employees worldwide. Ubs saw a revival of fortunes in the quarter. The swiss bank that at highest income in more than a decade. A stronger performance at the investment bank. Eyeceo is keeping a close on what the fed does with interest rates. U. S. Theyly in the will watch carefully what happened in other parts of the world when rates went to zero or below zero. Something very difficult to get out from and the Collateral Damage is very high. Vonnie he says Central Banks could be creating an asset bubble. Softbank is on the verge of launching its Second Technology investment vehicle, modeled after its vision fund. The likely backers will include two investors who put money in the first fund, saudi arabias Public Investment fund, and abu dhabi. That is your latest Bloomberg Business flash. Coming up, middle east tensions continue to weigh on oil. Futures are in focused. Are in focus. This is bloomberg. Guy from westminster, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. Joining us from the cme is ted. Earnings impacting what is going on at the cme today . We are mostly talking about that and the debt agreement. We are all just waiting. Today has been quiet. We are waiting for earnings this week. Next wednesday, the fed announcement. That will dictate a lot over the commodities could be calling from here. This is a summer lull we are having at the moment. Vonnie any trade you could put on before the fed announces its decision . We all expect a rate decrease, but whether it is 25 or more, more would be the surprise. Anything that anyone is doing . Chancefunds expect a 60 of a quarter percent drop, 25 of a half percent drop. I wonder if we will be disappointed by that. If we just get a quarter point drop, i dont think it will affect markets. Certain things may selloff on that. When we look at crude oil, very interesting right now. The main reason is we have had a lot of bullish news, the uranium seizure of the iranian seizure of the british oil , it seems like this is continuing to escalate. We are waiting to see how you read will react. Iran will react. You have a lot of factors. Baker hughes rig count was down. A market that should be reacting better than it is. I am a very careful long right now. And fairly easy entry point if something does transpire and things do heat up with upside potential, speculators are long but not overly long, so there is room to run. An interesting trade to belong crude right now, but you want a shortly come in my opinion. Vonnie down . 30 today. Seifried, coming to us from the cme, thank you. Hour,or stock of the shares of ams rising 7 after the company said thirdquarter revenue forecast will be analyst estimates. This after analysts said secondquarter results were strong. Taylor riggs has more. Basically good news all around. Secondquarter revenue about 15 million. Thirdquarter looking at 640. That is already 140 million more than estimates. Margins look healthy as well. 35 gross margins. So you are seeing a lot of the other chipmakers and suppliers rise as well. Ams said they saw a lot of strength in the asian business, not being affected by trade. Perhaps other companies could highlight similar strength. Analysts also saying the consumer business looks strong, and that demand environment turn positive. Some of their key suppliers are apple, huawei, samsung. If the consumer business looks healthy, that bodes well for future strength. Ams trades on a six times debt to earning, a fairly high number, a bit of an issue. Has already made one offer. What are the chances for another one, and how crucial is it to bring that down . Taylor on the earnings call, they were talking about the net ratio which they are hoping to get down below two. They have been trading in this range since 2015. Reducing debt would be key for the takeover. They said the talks had ended with ams taking over because they did not believe that they could fund the deal. Ams says they have talked to several Financial Partners in order to make the deal financially possible. The previous bid was being talked about at bane and other partners. Getting that financial backing from other partners will be key. My eyes are all on that net debt getting thatel, below two times by the end of the year. If they can do that, how that helps to fund the deal going forward. Vonnie thank you for that. Guy what do we have coming up . We are talking more about Boris Johnson, the former mayor of london, former foreign secretary, will tomorrow become britains next Prime Minister. What does that mean for brexit, for britains place in the world . What does it mean for britains relationship with iran . Daniel morris will be joining us from bnp paribas. That is coming up. This is bloomberg. From westminster, im guy johnson. York, im vonnie quinn. This is the european close on numbered markets. Guy we have watched Boris Johnson succeed in his quest to become the next Prime Minister of the united kingdom, that will formally happen tomorrow. Today he was announced as the leader of the conservative party. The pound fell this morning, but that was more to do with the bank of england. News had it rise when it came out that morris was to replace theresa may and has subsequently 120 438 as we speak. In terms of european stocks, we have seen gains today, driven largely by the very strong bmw at nearly 2 . The euro, though,