Can i think you and your team at the conservative Central Office for doing a fantastic job . Its been a team effort and shown the conservative family at its best. If i could make one plea as a backbencher, can we be kinder to the next Prime Minister then weve been to the current Prime Minister . [applause] without further delay, im going to hand you over to the one for cochair to the wonderful cochair of the committee. [applause] thank you very much, charles. On the 24th of may, the Prime Minister, the right honorable theresa may, announced that she would be standing down as leader of our party on the seventh of june. Over the past 46 days, the 1922 committee organized five ballots of members in parliament, and then worked with the Party Chairmen and Electoral Reform services to present the final two candidates. They are qualifying nubbers of the conservative and unionist parties that can vote for our new leader. I want to echo charles thanks to brandon, the party board, and the party staff for all their sterling work, and also the ers, who have conducted a very professional operation collecting and counting the , and from home and abroad also the 1922 executives, especially my cochairmen charles walker, with whom it has been a pleasure to work, and at least we have brought equality to the top of the 1922 committee. [laughter] gender balance is important. And the officers of the 1922 all together here today, and our own parliamentary staff who have given up their spare time to help conduct what i believe has been a very successful election. Finally, i would like to thank all those Party Members who voted, and those who stood in the election, and particularly my colleagues jeremy hunt and Boris Johnson, who, despite the challenges of the contest, run in the glare of press comment and public scrutiny, have emerged as worthy candidates for the position of leader of our party. I think youve all been waiting long enough. [laughter] but in the honored tradition, im going to ask my beautiful assistant to handmade the envelope before the announcement to hand me the envelope before the announcement. [laughter] its called teamwork. I, the joint returning officer for the conservative and Unionist Party leadership election, declare that the total waser of eligible electors 159,320. The turnout in the election was 87. 4 . The total number of ballot papers rejected was 509. The total number of votes given to each candidate was as follows. ,656. Y hunt, 46 ,153. Johnson, 92 therefore, i give notice that Boris Johnson is elected as the leader of the conservative and Unionist Party. [applause] [cheering] mp johnson thank you very much. Thank you very much. Good morning, everybody. Thank you. Thank you. Thank you, everybody. Good morning. Thank you so much. For a fantastic, wellorganized campaign. Is a lot of credit to our party, our values, and our ideals. I want to begin by thanking my opponent, jeremy. An absolutely formidable campaigner, a great leader, and a great politician. In the course of 20 events, more about 7000iles, miles crisscrossing the country, youve been friendly, ofdnatured, a font excellent ideas, all of which i propose to steal. [laughter] above all, i want to thank our outgoing leader, theresa may, for her extreme their service to this party her Extraordinary Service to this party in this country. It was a privilege. Mp johnson it was a privilege. [applause] it was a privilege to serve in her cabinet and see the passion and determination that she brought to the many causes that are her legacy, from equal pay for women to tackling the problems of Mental Health and Racial Discrimination in the criminal justice system. Thank you, teresa. Thank you. I want to thank all of you here today and everybody in the conservative party for your hard work, for your campaigning, for your public spirit, and obviously for the extra narrate honor and privilege the extraordinary honor that the extraordinary honor and privilege youve just conferred on me. I know there will be people around the place who will question the wisdom of your decision. [laughter] mp johnson there may even be some people here who still wonder quite what they have done. I would just point out to you that, of course, no one party, no one person has a monopoly of wisdom. But if you look at the history of the last 200 years of this partys existence, you will see that it is we conservatives who have had the best insights, i , and, into human nature into how to manage the jostling sets of instincts in the human heart. Thatand again, it is to us the people of this country have turned to get that balance right, between the instincts to own your own house, your own home, to earn and spend your own money, to look after your own families. Good instincts, proper instincts, noble instincts. The equally noble instinct to share and to give everyone a fair chance in life, and to like after the poorest and neediest, and to build a great society. In the last 200 years, it is we conservatives who have understood best how to encourage those instincts to Work Together in harmony to promote the good of the whole country. And today, at this Pivotal Moment in our history, we again have to reconcile two noble sets of instincts between the deep desire for friendship, free trade, mutual support and security and defense in britain and our european partners, and the simultaneous desire, equally deep and heartfelt, for democratic selfgovernance in this country. And of course, as some people say, they are very near irreconcilable and it just cant be done. And indeed, i read in my Financial Times this morning, devoted reader that i am seriously, it is great but is press. Great british press. [laughter] nojohnson i read that incoming leader has ever faced such a daunting set of circumstances. I look at you this morning and ask myself, do you looked on to . Do you do you look daunted . Do you feel daunted . I dont think you look remotely daunted to me. I think that we can do it, and the people of this country are trusting us to do it, and we know that we will do it. We know that the mantra of the campaign that has just gone by, in case youve forgotten it you probably have it is deliver brexit, unite the country, and defeat jeremy corbyn, and that is what we are going to do. [applause] mp johnson we are going to defeat jeremy corbyn. And i know some have already pointed out that deliver, unite, and defeat was not the perfect acronym for an Election Campaign since unfortunately it spells dud, but they forgot the final e for energize. I say to all the doubters, dude, we are going to energize the country. We are going to get brexit done on october 31. We will take advantage of all of the opportunities in a spirit of cando. We are going to believe in ourselves and what we can achieve. Like some slumbering giant, we are going to rise and ping off the ribs of selfdoubt with full hyper broadbrimmed spiting full Fiber Broadband sprouting in every household. I thank you very much for the incredible honor youve just done me. I will work flatout from now on with my team that i will build in the next few days to repay your confidence, but in the meantime, the campaign is over and the work begins. Thank you all very much. [applause] david we have been listening to and watching the announcement of the next leader the new leader of the conservative party and the u. K. , Boris Johnson, by a margin of Something Like 21. Welcome to bloomberg daybreak. Im david westin, alongside alix steel. He definitely has a flair. Alix he does, as does the entire conservative party. David it was a bit like miss america. You could feel the suspense building, but in the end it wasnt really close. He says he will deliver brexit and unite the country. Those are two tall orders. Alix the cable rate is off the lows of the session, mixed in with Michael Saunders of the boe talking about that he may not advocate a hike, but maybe take a rethink. That shift from dovish to hawkish also playing out in the currency market as well. David the remarks were interesting, saying maybe we shouldnt Pay Attention to the data right now, but what is coming down the pike. To go through the procedure here, we now have Boris Johnson as the head of the conservative party, but he is not Prime Minister. Theresa may first has to go to the palace tomorrow and tender the seals to the queen, and then Boris Johnson goes over and accepts the seals, and then he will become premised or. Alix looking forward become Prime Minister. Alix looking forward to that in what it means for the market. What has now is bloombergs francine lacqua. Painted picture of what the next 48 hours looks like, and what is on Boris Johnsons agenda. Francine first of all, the Boris Johnson you were hearing here is a classic Boris Johnson on great form, but really speaking to the conservative party. He had some jokes. If you look at the live blog on the bloomberg terminal, one of our editors mix a very good point. He now needs to be leader of the country. He is not yet Prime Minister. He is leader of the conservative party. Tomorrow, theresa may will have andender her resignation, he becomes officially the next Prime Minister. Then he has a long list of things he needs to do. It was interesting to hear his speech to say, look, this was my mantra. Deliver brexit, unite the country, and defeat jeremy corbyn. By him saying defeating jeremy corbyn, is he actually campaigning for a general election . David at the same time, he said the conservative party for 200 years has really understood people better. It was a blend of taking care of your own family and things like that, but also sharing and having a larger call to progress. Is that part of the way he hopes to unite a country that seems to be very divided over the question of brexit . He has a country that is very divided and a party that is very divided. They have different factions within the tory party that still dont want frexit, those that will vote for a no deal brexit, those that want a mild brexit. The person he hasnt mentioned that he will have to contend with, especially if he calls for dinner elections, for general elections, is nigel for raj is nigel farage. He was a force for brexit to contend with. It depends on whether Boris Johnson will decide to give him something to form some kind of agreement. Going back to what Boris Johnson very clearly laid out, his number one challenge in the coming days will be to form his , and it depends on whether he feels Strong Enough to have a pro brexit chancellor, or whether he feels like he will give way to any program a chancellors to balance that any pro remain chancellors to balance that. Alix thank you for that. In the market, you are seeing s p futures up about 3 10 of 1 . We have a earnings coming in sales onrong, seeing the back half of the year. Michael saunders turning a little bit more dovish. That is really the key to the currency market today. A tiny bit of selling in the bond market on the long end. 2year notes coming down the pike later today. We are looking at oil, also dealing with the geopolitical risk to continue, but down 6 10 of 1 on brent. Time now for bloomberg first take. The first is Boris Johnson, winning that race to be the next u. K. Prime minister. Then, finally a debt ceiling. We got it. Then we get earnings continuing to move in. Utx raising their full sale guidance. We are joined by Brooke Sutherland and Marty Schenker. Lets kick it off with Boris Johnson. Hes got a field. Donald trump likes him. What now . Marty now comes the hard part, and that is delivering on a brexit that he has promised to deliver, and he is even threatening a no deal brexit, a hard brexit which a lot of people think would be catastrophic. , try too go to the eu construct a new deal if they even get one, and get it through parliament. David what does he have in his toolbox that theresa may didnt have . Marty a huge personality. Alix thats a tickly right. Marty i dont mean to be unkind to theresa may, but she was somewhat robotic. Boris johnson is anything but that. He may have the charisma and the goodwill of being a new Prime Minister to get a deal done. Alix i wonder, if you are a Company Operating in the u. K. , what are you thinking today . Brooke i think you are a little bit nervous because there is that threat of the no deal brexit. You talk about that charisma. He also has the ability to make a no deal brexit sound somewhat more credible than theresa may did. I think that is a worry for companies. ,f that doesnt that happen Boris Johnson think that that would not be as catastrophic as some are warning, but whether or not anyone believes that is another matter. David yesterday we heard from President Trump that theyve got a deal with the congress, a bipartisan deal that will raise the debt ceiling for two years. They will also raise the spending caps quite a bit as a practical matter, although it doesnt necessarily avoid a government shutdown. They still have to figure out how to spend that money. Marty they do. There are a lot of conservatives in the Republican Party who are not going to like this deal, spending hawks. On the same side, progressive democrats feel that some of their programs are not going to get funded. None of this is written down. It is sort of a handshake agreement. They will probably get it through, but the real issue is going to come two years from now when this deal expires. Who will be president when that happens . David but it takes the issue off the table for the election because it moves it passed that point, which is important for both parties. Marty i think the leadership of democrats ande republicans feel this is a good way to take it off the table for 2020. Alix i have to wonder if you oh,a company, you are like, we get some extra stimulus right now . Brooke we did get a bit of an uptick from that house spending bill put forward. There was always an opportunity for a bit of compromise there from the senate. It looks like we settled somewhere in the middle. That is great for defense companies. I thing about the United Technologiesraytheon merger. They see a lot of that money will go towards research end of element. They want a bigger budget so they get a bigger slice of this. This is a big deal for companies, and it goes back to the certainty of having a deal being a good thing. We are already hearing those is out of the 2020 democratic president ial candidates that this caps the ability to do some of their projects if they become the leader of the United States. Whether or not they can push forward some of these agenda items or they will still be stuck in this fight, 21 he won this fight in 2021. Alix lets talk about earnings. We were talking about how bad these earnings were going to be, and these on the surface were really good. Look at coke, organic revenue up 5 . Sherwinwilliams, fullyear adjusted earnings higher than originally estimated. United technologies raising adjusted earnings and organic sales. The one that is off is Harley Davidson. They actually had to cut their motorcycle shipments. Is it all good news, or do we need to read a little deeper . Brooke i would read a little deeper. United technologies is really aerospace. The numbers that stood out for me were warriors of carrier, their hvac unit, down organically in the quarter. The Elevator Division down 6 . Those are troubling. If you look at the industrial economy writ large, that makes me nervous. Monitoring black decker also moderately lowering. Aero safe remains a very safe space to hide. It is very robust despite the 737 max crisis. Elsewhere, it is getting shakier. David a slow down, except when it comes to the federal government. That is the one thing keeping it going. Is it disturbing the fact that the rest of the economy keep up the rest of the economy cant keep up . Marty it is disturbing, and dont forget the fact that a potential breakup will keep that going potential rate cut will keep that going. The other thing to keep in mind is Capital Spending. We will have to see whether or not there is in fact a slowdown that the fed is trying to prevent. Alix when you have these earnings, some of them still does it take away the juice that the fed needs to actually cut . Brooke it seems like they are focusing on a not necessarily right now type of slowdowns, but the prospects of a slowdown accelerating through the course of the year. That i would tend to agree with, but on the Capital Spending front, i dont think it 25 basis point cut really does much for me if im an industrial company. The cost of debt has been low for a very long time. Theyve also got that influx of overhaul. The tax if you are going to make new investment because of that Interest Rate cut, i dont think so. Im not sure if that stops the slowdown in its tracks. David on the other hand, keeping Interest Rates low helps cocacola and