Just under 30 minutes to the close. I wouldnt equities in a second. I want to look at sterling volatility. We have seen the pound spiking after in pc member said after mbc members that he could vote for a rate increase as early as this month. Sterling set for the biggest decline in a week. Usually on the mpc. Dovish side of the you can see it rising at the end of the chart, hitting a ties level since april. Action at gilt, more on the front end. We have seen the front end of the twoyear get yield rising eight basis points with a 10 year yield rising for basis points. Here i have shown the curve of two verses 10, you can see the flattening off. It is certainly at its flattest level of the year since november. We will talk about the gilt Market Reaction in a moment. Talking that equities with the close coming in 30 minutes. We are seeing losses on the stoxx 600. This is the second day of decline for the stoxx 600. In fact, the stoxx 600 headed for the biggest twoday drop in a month. Most areas ine western europe are declining. If you look at some of the big markets were seeing decline in the u. K. , we are seeing germany down, the dax in germany, and also the cac 40 in france of by 5 10 of a percent. We are seeing it down today, this is showing dwindling hedges. Moreac 40, it put falling with optimism growing after the election of emmanuel macron. With themixed picture now on the nasdaq to virgin more. The nasdaq gaining. 5 . The middle, not much has changed. I want to bring you headlines that are just coming out from an Investor Conference in which investors where the owner of Dunkin Donuts is speaking. The commentary coming out. There talking about competition from mcdonalds, burger king, hurting afternoon sales at. Unkin the company says that it will perhaps introduce more valueoriented pricing. Nigel travis, the ceo, is speaking at this conference. He said theyre looking at bolstering the on the go is as well. Theyre taking curbside delivery larger testnto a phase. It seems like the competition commentary is what is affecting these shares. Elsewhere in the market, a rally in health care shares. That is the best performing group in the s p. As a group it is a pointer percent. A lot of the out performers have been within biotech, and large are gaining. On monday, dillman sex ed biotech would be the best performing subsector of the second half. That health care, on monday, Goldman Sachs said biotech a the best performing subsector of the second half. Lets talk nike this morning. According to Goldman Sachs analyst nike could be close to beginning a direct relationship to sell products on amazon. Com. Citing channel checks. Right now, nike does not sell directly on amazon. It does sell directly on zappo and through third parties, but this is sending down joseph retailers that sell nike shoes like foot locker and dicks sporting goods. Section turn of oil prices, just to get perspective. We are seeing a bounce in the days session. 6. 5 in the down by last six sessions. Crude Oil Inventory drew down more than estimated. Gasoline unexpectedly fell in terms of supply. Crude inventories at the lowest level since february. Nejra Queen Elizabeth ii unveiled Theresa Mays Brexit dominated agenda for the government marking the formal opening of parliament today. Governments priority is to secure the best possible deal as the u. K. Leaves the european union. Nejra Prime Minister may is taking questions from mps right now. Anna edwards joins us from westminster. What are we learning about brexit . Anna partly about substance and partly about tone. The Prime Minister theresa may saying she will work with anyone in any party in the national interest. An extendingike other hand to other members of the house of commons to work with the government rather than against them on the subject of brexit. Is it a tone change or something more material . We will wait and see. Brexit dominated the queens speech. The queen talked about the special relationship with europe, the tone again. The government was setting out 8 bills around immigration and trade. All of that could be pretentious next week when we get a vote and beyond. I will quickly interject. Theres something obviously missing. Maybe you can explain what that was. Nna thank you a couple of things missing on the domestic front and international side. On the domestic front, some policies were a contentious during the Election Campaign around social care. It lost its majority, therefore does not confident it can get those policies the parliament. The other thing is perhaps in the queens speech there was no mention of a state visit by President Donald Trump have a that has been called ritual in the ukip reach you did mention a visit by the Spanish Royal family. President donald trump. That has been controversial in the u. K. She did mention a visit by the Spanish Royal family. The speaker said there would be a place for him to address the house. We did hear other things about the queens speech, electric cars, commitment around counterterrorism, and what towered in the grenfell in london last week. Nejra thank you so much. The pound gaining strength off the bank of englands chief economist calling for raising Interest Rates this year on account of the growing risk of leaving policy tightening too late. For more, lets bring in bloomberg gadfly columnist marcus ashworth. This is a bit of a surprise, clearly, given the reaction. Repricing in the money market in terms of rate hike expectations. How long do you think this reaction will last . Quickly, because in essence the comments that mark carney made yesterday made sense , the chief economists comments do not make sense. He has always been on a dovish side. He used his speech in the first part of his comments about how Wage Inflation is nonexistent, then he says he is thinking of a rate hike . Out of nowhere . He likes to be on the edge of the controversial side and he has swung to one side to the other. For what reason . We are sure. Vonnie does the election not change anyones mind . Marcus even less. It is bizarre. The conditions around what will happen, with the Governments Parliament plan, that is in the forecast into what the bank of england will look at. That is a different story. It wont like it that until they know what they are. At the moment, nothing changes as far as the fiscal policy side is concerned. While the sudden now, it is quite odd. There is push back within the committee. Clearly reiterating their views were going for a rate hike. Now, a slightly controversial character in his relationship out asrney has come well. That leaves the situation with a new member coming on board in august. We dont know which way she will vote. It is 43 at the moment. We at her and that makes either 3 or 4 all. Would be strange if he were to go back on his opinion after strong opinions cannot yesterday. That now is not the right time for a rate hike. I can think that he will change that. At the moment, and potentially there will be a second person anotherg position. We dont know how that person will vote. It might end up being 63 and he can ride this out. Vonnie explain how is after brexit attentively, and potentially less austerity would not cause more inflation, give more of a reason to be talking like this. Would cause more inflation. A softer brexit would probably see a stronger economy, which there are decent signs of overall. There is a soft patch on growth at the moment. If we see that theological response, a softer brexit. But that is too far we can be looking at that yet. We dont know how it will pan out. Policy were to relax, and there was more spending coming through, and a softer brexit, that is a logical reason why the bank of england would do something. The reason now is a little bizarre. It is 53 at the moment or 43, so it is certainly interesting. Nejra you have written a lot on gilts. Of the pricing in the gilt market at the moment, and what impact could that have on Corporate Bond . You have written a great column on Corporate Bonds in europe. Theus obviously, flattening trend is very much persisting in the states. The u. S. Treasury curve. The gilt usually follows that the most. Flattening trend is on. Longterm rates coming down, shortterm rates edging up. That is a trend i think will persist a little longer for the u. K. Market. Nejra the corporate market, any impact at all on the u. K. . That is impacted by the boe has well. Marcus that is a perfect wind of opportunities. The chance of a potential rate hike will only make them more eager to issue bonds as long as the demand is there for investors. At the moment, yields with any form of an easy return, people are lapping up. Cyprus, a fulla, opportunity. Vonnie we software for all european widen we saw proof real european widen as well. What you see the big risk . At it. The market looks now with greece looking like it i happen shortterm, to think at the moment, presupposing nothing happens over the european summer before the german elections, we will have a situation where italy will tighten on who has the greatest yeild. They are outperforming the other peripherals in the postmacron rally. At the moment, a nice calm summer in theory as long as there is no Political Risk going through. All of those things staying the swans over the horizon, i imagine that they would tighten up no black swans over the horizon. I imagine that would tighten. Nejra thank you, you can find his columns on the bloomberg. Lets get a check on the first word news. Courtney good morning. Evidence that russians targeted election systems and 21 states according to homeland security. An official at the department will not identify the states. The acting deputy undersecretary said the states that were affected are aware. Bloomberg reported last week that russia had systems in as many as 39 states. A government acted alone when he landed a top House Republican and for other people on a Northern Virginia baseball field. That is the word from the fbi who sent shooter james who said shooter James Hoskinson did not have ties to terrorism. Steve scalise was wounded in the shooting. He has undergone several surgeries and is hospitalized. Karen handel has won a special election for a house seat in georgia. She took 53 of the vote against immigrant jon ossoff. Against democrat, jon ossoff there has been a palace shakeup in saudi arabia. The 31yearold son of the king has replaced his cousin is heir to the throne. The move consolidated the princes power. He already controlled saudi arabias defense, oil, and economic policies. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. I am courtney donohoe, this is bloomberg. Nejra coming up, a shakeup at it over. Travis kalanick has stepped down from the helm of the company after facing pressure from investors. More on the future of the Ridesharing Company ahead. This is bloomberg. Vonnie live from bloomberg World Headquarters in new york, i am vonnie quinn. London im nejra cehic counting you down to the european close. Downs kalanick has stepped following growing pressure from investors. His statement responding to resignation ubers board of directors said this was a Bold Decision and a sign of his devotion and love for over. He is taking the time to heal from his personal tragedy while giving the company room to fully embrace this new chapter in ubers history. For more on the future of the company, lets bring in global tech reporter and lets bring in adam. Looking at uber and the future of the company, this is the big question. What comes next in terms of what we are watching for. I know there are a number of appointments that need to be made. Who is going to take charge of a very challenging job . This is not something you can parachute into and everything will go great. Culture issues, a major lawsuit involving google, regulatory issues around the world with governments about the operation of the car service. The company is immensely unprofitable. They still have a long way to go until they are profitable enterprise. The person walking into this job is going to have a full plate. Ask thewe have to question, how well do they get along with each other . Some got in at the start. Will they all agree . Adam you can see some of the drama behind the scenes about that. This happens throughout silicon valley. You have investors in very early, then some who come in later. More than anything, you have what seems to be a pretty weak lord. The board of directors did not have a lot of power over it a pretty weak board. The board of directors did not have a lot of power over it. 40 told Travis Kalanick it was time for him to go. He could have caused a stink. He didnt have to. He controls a great deal of the company himself. But he decided he would step aside. Vonnie he is on the board of directors, is it possible he can still weigh in on decisions . Adam he is still on the board of directors and still owns a great deal of the company. In addition to the challenges the company is facing, a new ceo will have to weigh the input from Travis Kalanick who will own a great deal of the company. Nejra how unique is an event like this tech world . What does that tell us about the potential success of uber Going Forward . Adam this raises a lot of governance issues about silicon valley. The board of directors and outside investors do not have a great deal of control over the direction of the company. On aers like travis i put pedestal and given a wide birth to be able to take the company in the direction they see fit, even though they own a smaller proportion of the company. They have Voting Rights that are more outside that which gives them a wide latitude to do it they want. Investors and board do not have much control. This event is very rare. Nejra we were talking about the fact that even though travis alanick is gone, there are number of employees molded in his shadow. Move forward as easily as you might expect . Adam that is a good question and will make a great Business School case study in the future shiftompanys culture can so dramatically. They have done reviews. A fair number of employees have been fired or left, Travis Kalanicks main deputies. They are implementing things to change the companys guidelines. Whether or not that can change how the Company Operates is really an open question. Over an open question what this means for a potential ipo as well. Thank you so much for us in london. Speaking toill be the ceo of the event Stock Exchange. With greece receiving the latest round of bailout cash, what Investment Opportunities are there now . This is bloomberg. Vonnie live from bloomberg World Headquarters in new york city, i am vonnie quinn. I am live from london nejra cehic. With the european close minutes away. Prime minister may speaking in parliament. We have a couple of headlines saying she will work with anyone in any party in the national interest. She also said the government intends to take action to keep Energy Prices down, as she has also been talking about the ell fire. The biggest stories in the news right now. An unexpected increase in existing home sales. Sales rose 1. 1 . Signs the Housing Market is making progress despite a shortage of inventory sending prices to alltime highs. A shakeup at tesla. The head of itself driving unit is out six months after joined from apple. The new head of teslas Autopilot Software will be jim keller. He came last year from advanced micro devices. Nike could be close to an agreement to sell shoes and other products on amazon. Com according to an analyst note from Goldman Sachs. They currently sell through amazon subsidiaries and third parties. Selling directly would give nike more exposure. Business flash for this hour. Lets look at where european equities are trading. The stoxx 600 up 5. 2 come up by. 2 . Nejra live from london and new york, this is the european close. I am nejra cehic with vonnie quinn. Stocks finishing up in european trade. Lets take you through the market action. A second day of the kleins for european equities. We will take a look at various indices here. You can see a lot in the red. But we up more than 1 havent seen declines on the ftse 100 and the dax, 14 in the fx space. We will give a close eye on sterling, up 2 10 of 1 now. 126ps below to one earlier, and then rebounds at 127 following some hawkish comments from the usual dove of the boes Monetary Policy committee. Sterling has been reacting strongly on that ahead of the biggest decline in eight weeks. The euro is unchanged, 1. 1142. We are seeing reaction in the bond markets, specifically at the twoyear yield. We are up seven basis points, 0. 19 . The front ends have been on performing that have been underperforming. You have yields moving up a little elsewhere as well. The portugal to year almost nine basis points. Looking at the stoxx 600, we are down 2 10 of 1 . It has recouped but it is heading for its against today lost in a month. Europes equity benchmark Consumer Staples very much underperforming. Energy stocks not doing very well. We are seeing it as it climbs. Energy stocks off by 5 10 of a percent. You see more groups in the red then green. Euro, remembere the stunning dollar rally we had in 2014 . Some are saying we could see a similar thing for the euro this year. Namely hsbc and ubs saying it is the euros turn. It has risen versus ever