Plan be derailed if wages do not pick up . There is the president ial pro. Robert mueller is said to be looking into whether trump obstructed justice. His policymaking possible in this environment . Really matchplan the complexity . Why are you in switzerland . Ere for the Swiss National bank meeting. They have a biannual meeting. Last night they even had a big dinner where we heard, showed speak. Ke tomas boden we are expecting a move as far as rates. Theyre expected to stay until 2018 including according to a Credit Suisse report that came out earlier. 33 of the economists surveyed said there could be a change in the language. The buzz word or phrase is significantly overvalued talking about the swiss franc. Compared to the euro, it has been climbing at a somewhat steady pace over the last two and half years going from 90 centimes to 109. They have been intervening and currency markets although that intervention has slowed down. I will talk about that in a few hours time and bring that interview to you here on bloomberg television. Are front andanks center. The s p, matt is covering that and we have the bank of england coming up. Account in terms of rates and what happens with the qa program. More interesting will be the commentary, the political backdrop to what is happening. The main event today from a u. K. Point of view on a fiscal and Monetary Policy front comes later, it is the Mansion House speech. Well hear from Governor Carney and from the chancellor, the recently reinvigorated chancellor of the exchequer to my Philip Hammond. What is he going to the out in terms of his aspirations for brexit and what will he say about fiscal policy . The gilt market will be paying attention to that. Where thinking about the fed and the boj coming up, Central Banks front and center. They do not necessarily have the same kind of force they used to have a couple years ago but we are still thing attention. This is what we found in the markets this morning. I would argue no clear sense of direction and delivered by this at the moment. Looks like were going to open fairly flat in europe. Lets take a look at the gmm and focus on what is happening there and give us with the heads up his. This is the picture at the moment. The aussie dollar this morning. The british pound is neutral. Agree markets were generally negative in the american session. Australia down 1. 21. The paying attention to minus. That could be an interesting story we need to focus on. Lets get a bloomberg first word news update with juliette saly. Juliette donald trump and his wife melania have visited House Majority whip steve kerr scully see in hospital after he and four others were you were wounded. Ranked publican. He was shot and the hip. He remains in Critical Condition after the attack in alexandria, virginia. In the u. K. , fire crews have worked through the night to dampen the deadly blaze near of a west london tower block that killed 12 people. The number of the counties will almost certainly rise. The fire that broke out in the early hours of yesterday morning injured 74 others and left an unknown number missing. The cause of the blaze remains unknown. The u. K. Has slipped further into political limbo as Prime Minister theresa mays talks with the democratic unionists drag on. Calls are mounting for across Party Consensus on brexit. Talks could further delay the opening of the new session of parliament. Currently scheduled for monday. U. K. Chancellor of the exchequer Philip Hammond will make the case for a new path to brexit. According to a treasury official he will give his annual Mansion House to the city of london to push for a socalled pragmatic brexit. It will focus on jobs and Economic Growth. Coming after the disastrous general election result. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Guy and matt. Guy thank you. 24 minutes until the European Market open. Janet yellen pressed ahead with plans to normalize Monetary Policy. The ongoing strength of the liver market will prevail over the recent weakness of inflation. The bullish curve is going to work. She spoke following the decision. With employment near its maximum sustainable level and the labor market strengthening, the committee expects inflation to move up and stabilize around 2 in the next couple of years. In line with our longer run objective. Nonetheless, in light of this softer recent inflation reading, the committee is monitoring inflation developments closely. Provided the economy evolves broadly as the committee anticipates, we currently expect to begin incrementing a Balance SheetNormalization Program this year. Is plan is one that consciously intended to avoid creating market strains. And to allow the market to adjust to a gradual and predictable plan. I fully intend to serve out my term as chair which ends in early february. I have not had conversations with the president about future plans. Guy lets get more details on what was said, what we can expect. Mark cranfield joins us from our mliv team. Talk about where u. S. Yields go in waiting host is and can we expect a flatter curve . Pointing thate is way. The market does not seem to believe that the fed is going to be be able to hike rates too many times although the fed is saying theres one more hike. The market is pricing for that to happen. We have quite a bit of time to go. It is only halfway through the year and the fed has for more meetings, they have plenty of time to signal if they want to do one more hike, they can ramp up at any time. September and december are possibilities in the market will have time to react. Once they are trimming their Balance Sheet. The options they could be looking at is they go for a september hike and begin tweaking the Balance Sheet in september. There is plenty of time and the market has not made its mind up yet. Matt how do you think the tweaking of Balance Sheet will proceed . Mark very gradually. If they go for this 10 billion number of month which was suggested and that is a pretty small amount considering the size of the treasury market and that Balance Sheet which is huge, 4 trillion around there. That is a small amount of money. It is not even a question of selling securities, a question of not reinvesting money which they received. It is not a dramatic stick a step for the market. The fed likes to call it like watching paint dry and it may end up being like that. Matt thank you very Mark Cranfield discussing the fed and obviously there is a packed week of centralbank news, i am here in bern, switzerland at the snb. We will hear from their governor tonight, mark carney. Lets talk about Robert Mueller and his investigation into resident donald trump. , it isow official reported that Robert Mueller is looking into the possibility that the president has obstructed justice. He will interview a couple of Senior Intelligence officials. Want to get the exact details. We switched places a little bit. Let me ask what we know so far. What has been reported . Jim what has been reported is that the investigation has now a new front has opened in the investigation by the special counsel who was named by the Deputy Attorney general after james comey was fired. Previously, we knew they were looking at links between the Trump Campaign and russian influence and it has broadened into an examination of whether the white house has obstructed justice. Sources who spoke to us and the Washington Post have told us. The interesting thing about that is that the president in his own words had made no secret about the motivations for white he fired james comey and james comey in his testimony took to Congress Said he felt as if the president was pressuring him to derail the investigation so there is a lot that is on the record and it is very straightforward. It is a very straightforward set of facts as posted the more complicated deep dive investigations that are going to have to be done to look at the financial links in the campaign. Change inis quite a direction in terms of the way this is going to proceed. How big a shift is it and how has washington reacted to it this far . Jim it is a major shift because so much information is out there publicly. Too many bones or tried to softpedal their motivations. You will recall the attorney general testified the other day and was confronted with the president s own words that originalted the rationale for the firing of james comey. Justice casesn of motivation is important comey spoke to motivation. It is a much more straightforward piece of prosecution. The political world has reacted and they have run to their artisan camps, the republicans have floated and continue to question whether Robert Mueller should be fired because there are conflicts because he is not fair. Ad that will that would be bomb. Guy thank you. Joining us from berlin. Coming up, we will talk to analysts about Deutsche Bank. Restructuring its Corporate Investment banking unit. We will get analysis on that. We will bring you an interview er on today. With the Thomas Jordan coming up right here. Minutes tost over 15 go until we open stocks in europe. Bloombergome back to markets, the european open. I am matt miller here in front of the Glorious Hotel bellevue alice for the snb meeting. We will get a statement from the Swiss National bank. We are expecting negative Interest Rates to remain at 0. 5 . And the terms overvalued and still attached to the swiss franc. The Swiss National bank does still intervene in currency markets, not as much as it did prejanuary 2015. Thats get you the Bloomberg Business flash and we go to hong kong and juliette saly. Juliette thank you. Isnas anbang insurance [inaudible] as theective came investigators began a wideranging probe into the and the chairman. A representative declined to comment on its relationship with banks. Qatar is signing a bill to buy as many as 36 f15 jets from the u. S. The pentagon said the defense minister and his american counterpart completed the agreement in washington yesterday. The move comes as the country navigate tensions over president Donald Trumps backing for Saudi Led Coalition to isolate the country for supporting terrorism. Western digital has asked according california for an order blocking the sale of the chip unit of toshiba its partner in a manufacturing joint venture. It is trying to stop disease where from toshiba. Said the could not complain because they had not they could not respond because they had not gotten the complaint. Guy Deutsche Bank has announced a new structure for its corporate and investmen banking division. According to people familiar with the matter. N email seen by bloomberg which helps. Joining me now, chris wheeler. Deutsche bank has had a fairly complicated management structure. There are few institutions that have had coceos in the way that Deutsche Bank has had. Im struggling this morning to see how this makes Deutsche Bank and easier organization to understand or run. Chris i agree. John did last year when i thought was sensible in putting together the Corporate Finance and the deflating businesses. They had been broken up by the previous management. That seemed sensible in the way that goldman thinks or Morgan Stanley was run. Theyre still under the same umbrella and it is not quite clear what is to achieve. They think they will be more efficient but what i would like to understand is is it about costsaving, more efficiency for clients or going after new segments and it is not clear what they hope to achieve. Guy who is running Deutsche Bank . Chris john is sitting at the top and letting his lieutenants get on with it. He has german and that is important to Deutsche Bank. I think john is lonely. There will be questions about the results in a few weeks time to say what they were trying to achieve, what is the core business, that is the important thing here. Matt how do you think we will see shares react if he were try to if you were to step down. Is that priced in already . Chris i have been called out here before. I have always said if james stepped down the stock would plummet. In the case of john if he went, people would be concerned. He is has done a decent job. Not a lot of visibility in what has been achieved but he has done a good job in stabilizing things. If he stepped back there next question would be who is taking over . Hes still got a couple years to complete what he started. I was keep going back to the factors. Quietly andthree efficiently. That institution was one of the finest in terms of rising financial ands tensions globally. Bet can Deutsche Bank still a Global Player . Can they still be a player on wall street and take market share . Chris that is an interesting question because of you look at the department, at the paper mr. Yesterday, wet have the head of the fence regulatory body making it tougher for International Banks to operate in Capital Markets in the states. In that document, it talked about encouraging International Banks to come into the market and that would be a positive to slip the list in the u. S. Market. This may be an opportunity for them. Guy free the quote and explain why. Chris i brought the quote with me. They were supposed to have said i was to learn later in life we can to meet any new situation by reorganizing and a wonderful method it can be for creating the illusion while reducing confusion, inefficiency, and demoralization. We will leave that. Chris wheeler joining us from atlantic equities. We are minutes away from the European Market open. Lets see how Deutsche Bank opens and how the market reacts to the latest reorganization. Confused . We will find out. We will be talking about h m as sales miss estimates. That is coming up. The market open in eight minutes time. It will be alone lovely day in london. This is bloomberg. Matt welcome back to Bloomberg Markets. European markets. Is at our European Headquarters in london. Lets get your stocks to watch this morning. The open coming up in a few minutes time. Deutsche bank could be a mover after making clear the roles for codeputy ceos and also creating a separate division for equities, derivatives, and leveraged capital. People who wanted to see some Clear StrategyGoing Forward are getting a clearer picture of how that bank will operate and shares may gain on the open. H m, outs talk about rising 4 . S, topline estimates were higher. You make it a little bit of an issue. Quickly showing you the anr. Lets show you with leave you with this. , thatis the price target line there. That is where the price is. Market is not that optimistic. Guy welcome. Stocks going exdividend in the u. K. You can find the function on your bloomberg. In terms of the main ones, persimmon is going exdividend today. Just be aware of that when you look at how london opens in a few minutes time. Talking about how london is going to open, here is the fair value calculation. Ftse down. 3 . Dax both called softer as well. The moves are not substantial, mr. Matt miller in switzerland. The s p an hour away from releasing its statement. I am in switzerland and we will interview the president. Youre getting the bank of england decision today and talk from mark carney later, and it is the firstday of a two day boj meeting, so it is a big week for central bank action. Watch currencies. Manus keep an eye on what is happening in south africa. We are expecting news in terms , the neww mining story mining charter. You can see the selloff yesterday into the close here in europe, and it does look as if we are softening up a little more. The fair value point to a kind. 1 this morning. Be aware of that. We are expecting some of the other markets as well to soften up as well. We are reacting to the fed, but thinking about the bank of england and the s p. Through that. There is a rare conflict around the European Market this morning. I want to know what a pragmatic exit is. Pragmatic brexit is. I would like to know what the resetting is for a pragmatic brexit. European stocks are lower. J. P. Morgan Asset Management , talking about what they are doing. Back of the sheet numbers, about 1 trillion will be taken up the Balance Sheet if they say at the caps they have announced. But what is the end