A soft brexit. We will speak to kenny jacobs from ryanair. And a more sustainable path that there is an urgency to accelerate reforms grade will be joined by david litan joining us live from beijing. Less than half an hour away from the european open. Take a look at how the Index Futures are trading. We have gains on the continent, not in london but Little Movement therefore ftse futures. You can take a look at bunds. Investors are buying bunds, pushing the yield down. Bund yields remain incredibly low. The imf to bring you headlines. You can see them rolling across the bottom of your screen. The imf is raising its outlook forecasts gdp growth to 6. 7 from 6. 6 . David lipton who will be with us live says that china reforms in progress need to accelerate but so far, it looks like it is enough to lifts the imf growth 6. 7 , then china to second increase the imf has put out for its china forecast this year. Very interesting stuff on the china front. You will get that live at 8 30 a. M. London time directly from david lipton. Guy i wonder what the imf makes of the credit impulses fading in china . Great greek stocks continue to be well bid. A fascinating read, that was the story yesterday of 1. 6 . The aussie market well bid overnight. T is happening is what is interesting is what is happening overnight. The bloomberg dollar index down by. 1 of 1 . The pound has got traction which seeing ftsee futures indicating a lower start later on. Ndon market lets find out what is happening in west london. Lets get a bloomberg first word news update. Heres juliette saly. Juliette thank you. In london, 30 people have been hospitalized after a huge blaze engulfed the tower block in the west of the city. The fire started at 1 00 a. M. U. K. Time and emergency crews were at the scene six hours later. It is not clear if residents were trapped but people at the scene spoke of not being will to reach friends and family who had been inside. Still in the u. K. , Prime Minister theresa may is under pressure to abandon her plan for hard brexit. That comes as she tries to stitch together a deal with the Democratic Unionist Party that will keep her tories and power. Emmanuel acheron echoed the german finance minister who said it would not be too late for the u. K. To change its mind and stay in the eu. The u. S. Attorney general has denied any suggestion that he colluded with russia to interfere with last years president ial election. Jeff sessions was speaking during his appearance in front of the senate cant Intelligence Community committee. To suggest i which is abated in any collusion, that i was aware of any collusion with the russian government to hurt this country which i have served with honor for 35 years or to undermine the integrity of our democratic process is an appalling and detestable light. Related, there is the assertion not answer senator frankens question honestly at my confirmation hearing. Colleagues, that is false. Jeffrey good lock has said the washington establishment is trying to undermine donald trump by distraction. He called the u. S. Political conflict a sideshow or entertainment that was being used to obstruct the president s agenda. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Guy thank you. Decision day, decisionmaking for the fed. Yellen has an opportunity to clarify the outlook. The inflation story definitely interesting. The Balance Sheet absolutely interesting. Lets bring in mark cudmore. Are we going to get any close as feds path is for reducing its Balance Sheet . Mark i hope we would get some kind of direction. The market is looking, this is one of the more important things that we need to get further is theyhe expectation will start reducing at the start of next year but we expect to go more down. It seems like the plan will be very gradual Balance Sheet reduction. I wonder where does that take us, does the Balance Sheet take us to where we were precrisis . Mark i do not think it is near there. Will reduce very slowly but the Balance Sheet will stay elevated for many years to come. It is a situation that will evolve slowly. Indication ofsome what their plans are because that says how they see the path of inflation going, i do not think we should get to settle on what they say. As they start reducing the Balance Sheet that will realize it is harder than they thought and it will go slowly. Going to make it difficult to reduce the Balance Sheet . Mark theres so much it liquidity in the system, not because of centralbank Balance Sheets, they must next their Balance Sheets around the world. The only way the Balance Sheet is if ranks like the doj boj and [indiscernible] you have to assume that the world is roughly correlated to some extent. It is unlikely the u. S. Will get runaway inflation wild the ecb and boj need to bump in liquidity drastically. If the u. S. Is getting inflation, there are some inflationary pressures which mean they are more likely to taper there programs which make it hard for the fed to reduce the Balance Sheet. Fed at what point does the a attention to will happen later on the summer which is a big debate over the debt ceiling, there is a debate coming up on the budget, on health care. The debt ceiling is front and center in all this. That has not featured in the commentary surrounding the decisionmaking process but at some point if the debt ceiling becomes an issue, it will have to. Need to start keeping and i on it. It has not been part of the conversation but that is because they havent have a bigger problem. They are not generating enough inflation or inflationary pressures. While the debt ceiling is a concern it is a secondary issue. Since the primary issue is something they have not solved yet they do not need to get too distracted on that secondary issue. Had uphat chart that you on the Balance Sheet, it is striking in that the ecb has boosted its Balance Sheet so , it is this last year Pretty Amazing to see that climb. You can see highlighted in green. As we talk about normalization of the ecb policy much they are adding to the Balance Sheet. What i want to get to with you is the bitcoin story. You talk about it on the mliv blog today. Amazing climb for bitcoin, touching up against 3000 for a moment. You say now it is time for a top. Mark it might be time for a shortterm top. This is an asset that has no fundamental anchor in terms of how you can value it. It is how much people want to buy it for. We saw it rise over 200 in the last 11 weeks to hit 3000 on monday and it fell off more than 15 after one of the exchanges went down. That kind of volatility after a may cause rise hesitation. That is increasing the option Value Holding cash of having a money on deposit. Those two factors probably means bitcoin could pull back. That might mean a 30 drop or a 10 drop. Yearll get up to 5000 this again probably. It is not possible to define an exact value. You cannot say this is the alltime top. Matt youre talking about gold or bitcoin . Mark bitcoin. About the was a joke anchor and the fact that the fed will raise Interest Rates and goal does not pay any interest, either. You can follow his insights and. Am on mliv the want to point out tv. It is another function that you can use to watch us but not only to watch us, you hit see the video stream and the conversation with mark. You can see the functions we are talking about as well as the charts that we use. You can pull up those charts and use them throughout the day and you can talk to us by clicking on the link below and send a question in for our guests or for guy or myself. The eu says it hasnt opened a policy to the u. K. To change itscome mind on brexit. Emmanuel macron express the same sentiment. We will continue to discuss this next. This is bloomberg. Guy lets get an update on the london fire with juliette saly. U. K. , 30 people have been hospitalized after a huge blaze engulfed a tower west london. The fire started at 1 00 a. M. U. K. Time and Emergency Services were at the scene six hours later. It is not clear if residents were trapped what people at the scene spoke of not being up to reach friends and family who had been inside. Ber reeling from its ceo taking a leave of absence has been hit with the resignation of the cofounder from its board. The exit comes after he made a sexist comment during a meeting intended to address their rampant gender bias. The company will be run by a Management Committee as it tries to navigate away from scandals. Reporting Quarterly Earnings that rose at the fastest pace in two years. The threened in months or april. That is as online sales bolstered growth at the spanish clothing retailer. Business disney is ending a 27 year run as a independent company. It struggled to match the popularity of its u. S. Counterpart and had to be bailed out by its parent at least three times. Disney holds more than 97 of the capital of euro disney after it [inaudible] last year. That is your Bloomberg Business flash. Matt thanks for a much. With the help of an Incredible Team i spoke exclusively with the german finance minister yesterday. One of the things we discussed was brexit. He said the u. K. Would be welcome back to the European Union if the british decide they no longer want to leave. He also mentioned last weeks Election Results. Colleague told me that they are thinking about what does it mean that a lot of voted for labor, not for the conservative party. The idea that, the reason they , [inaudible] it is what they are thinking. There are some parallels. If you look at the french election. Generation [inaudible] very much favor in favor. There is an opportunity to bring europe forward. The first day that brexit is a decision we have to accept by the british voters but we will minimize the potential damage and maximize the benefit. Think these young voters, do you think that britain has the ability to turn isround, is that is there a possibility that brexit does not happen . It wouldnt would not be helpful if we started speculation. If they wanted to change they would find open doors it i think it is not very likely. More what if they wanted time to negotiate. They said the eu is ready but the u. K. Needs to sort some things out before they come to the table. It has been three months since article 50 and they have not started. Can they have more time . The negotiations will now start and they have agreed before that in the first round the terms ofotiate brexit and as soon as it is done we can [inaudible] and what will be the further relations between the u. K. After brexit and the Single Market and the European Union and so on. And therefore lets start the negotiation. We will always come to reasonable decisions create it is too early. Guy and Emmanuel Macron echoing those comments following a meeting with theresa may. He said the doors always open until brexit talks are concluded. Where are the french in terms of their view on the way that brexit will progress from here and how does that fit in with the british . Is worthing that noting is after the comments, they said once talks have started it is hard to go back. This idea that could be a reversal, it is very much in its infancy. The french now are sitting there with Emmanuel Macron enjoying a huge majority which will be confirmed in the next few days and then theresa may who was supposed to be on her victory the big having gained majority she was expecting now leading a government that is hanging by a thread. That is the thing that we need to stress here with any talk of brexit negotiations. At the moment, we still do not have an alliance with the dup. This will be concluded in the next 24 hours and her future is for a much in the balance. We do not know who will be leading the negotiations in a few months time. Matt where do we go from here and i am thinking of the timeline for negotiations. I asked yesterday if that britons could have more time, surely they are going to need it, no . I would be amazed if they were not needed. Theresa may said talks will start next week as planned. She is putting up a good show. The fact is it is pretty likely that we may get another election in the next few months. We have a very weak government that even once it gets the alliance with the dup would be foldable to any opposition from its own party and this is the that istive party absolutely fractured especially over brexit. You have all these proremain mps who have that feel they have this new strength and voice. We are in for an interesting run here to say the least. Reporting live from paris on the meeting that took place between the french president and the current british Prime Minister. We are minutes away from the market open. Well take a look at todays movers including the Worlds Largest clothing retailer. Income missed expectations. We will deal with the numbers one we come back. This is bloomberg. Guy youre looking at live pictures of the tower in west london. 30 people have been taken to hospital. This highrise caught fire overnight. The we are now learning and london fire commissioner has been talking to reporters to provide an update. There have been a number of site. Ties at the tower it is difficult to be any more specific. We understand a number of fatalities have resulted from this fire. Details remain limited at this stage. Are oneures obviously of a massive tower block that is up in flames overnight. It is smoldering now but the pictures from overnight absolutely catastrophic. We will provide you with more details as we come through the morning, as we get more details emerging from the Emergency Services. If you know the geography of london, North Kensington along exit enters, the london in terms of the main road. We have learned from the london fire brigade that a number of fatalities have resulted. An incredibly sad morning for london. This is bloomberg. Guy minutes until the cash open in europe. Fairly mixed, not a clear sense of direction. U. S. Markets on the front foot. Yesterday we saw a new height may be made. The pound is a bit stronger this morning which means the ftse a little lower. The cac and the dax both tracking a little higher as well. In market open that lacks a sense of direction. But considering what we have seen of late, maybe not such a bad thing. Plenty of political volatility to talk about what the markets remain as calm as ever. Matt . Matt later on, we get the fed decision and that is something the market proudly wont react to because they have already priced in an increase. I have a chart, this is headline pce. They had turned down recently and that is why people expect more of a dovish hike from the fed. The market opening story right now, lets shake you what is happening. London on the 75 level, not much movement. London opening a little firmer, maybe. 5 out of the dax and the cac. Probably more in line where the fair value was. 7496 was where we were trading. Only one stock going ex dividend. European markets giving a slight different direction. Ftse 100 down less than. 1 . Manus cranny . Manus volatility is at a fouryear low in the bond market. Government formation for theresa may and the democratic unionists, what price is that going to be in terms of money and in terms of politics . Trump the dove . The dovish complexion a mario draghi last week. That is the debate. Coming in, a on centralbank policy, financials dropping. 2 . Macron holding out the all of france. They may have beaten england in football, but they are friendly in terms of coming back. This is sterling. This is the 50 retracement line with the tough part to the pound last year. When we tried to get above the 134 level. Now it looks as if the benchmark level is 38. 2 on the downside. 38. 2 feek at this fibonacci level. The wagers are as long as they can be. He said he was updating his 12 month view on the euro to around 117. You may see nearterm tips because of the time and risk. That could take us back a little bit and also because a clearer may openifferentials up with the Federal Reserve and European Central bank in the mediumterm. Lets get rid of my conversation. Nobody wants to know what is in my ib check. There, china. Stocks market down by. 7 . Raising their growth view on china for the second time in as many months from 6. 5 at the start of the year, 6. 6, now 6. 7 . But you need reform. If the progress is going to continue. But nearterm risks have receded. Where have we heard that kind of rhetoric before . Mario draghi. The china stock market down. 7 . The market for you on an has the market expects. Theyberg intelligence say cant go lockstep in terms of moving the rate higher because of risk growth from the second half. Guy enjoy yourself, manus cranny. Lets look at where the market is in terms of the movers. , making up the story on the upside. I want to talk about the downside. Been chen and bnp have selling stock at around the 45 level. Gkn, who to compel outokumpo making up the downside. We will talk to ryanair later. Lets talk about the fed and what is going on in the treasury market. Here really important regarding volatility and the treasury market. It continues to tumble as traders and investors are well prepared for the Federal Reserve to hike. It is very much priced in today. If the Central Bank Provides details on any plans to turn the bauman sheet, this could help wake the treasury market up. Chart, one ofis the first ones our producer, hillary clark, put together. Vol