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Speaker 1: Global business news twenty four hours a day. If Bloomberg

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Speaker 1: dot com, the radio plus mobile app and on your radio,

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Speaker 1: this is a Bloomberg Business Flash and I'm Cameron Mostow.

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Speaker 1: US dock Index future is a lower following a decline

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Speaker 1: in oil. Let's go to the First Word Breaking news

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Speaker 1: desk for today's morning call, and here's Bill Maloney. Good

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Speaker 1: morning Bill, Good morning Karen. That's right. US futures are

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Speaker 1: under pressure today. Doufure is currently lowered by fifty two points,

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Speaker 1: says to the Futures drop six and NASZAK futures fall

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Speaker 1: by thirteen US ten yel at one point seven four percent,

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Speaker 1: and in Europe Spain is lower by one point five percent.

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Speaker 1: Italy drops one point one percent. On the US Economic

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Speaker 1: Frinday thirty cp I and after the bellas night, Applied

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Speaker 1: Materials beat and North from seventeen adjusted EPs views trailed

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Speaker 1: estimates regarding earnings this morning, d r Q and EPs

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Speaker 1: eighty cents beat estimates of seventy one, but cut its forecast. Finally,

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Speaker 1: some your wallsheet upgrades and downgrades at Bank of America,

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Speaker 1: Reliance Steel cut to neutral, steal their and Crown Holdings

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Speaker 1: raised to buy Boise Cascade raised out perform at BMO,

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Speaker 1: Best Buy, cutting neutral at Goldman Sachs Applied Materials raised

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Speaker 1: to buy a need Um spirit Our Systems cut the

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Speaker 1: neutral at UBS, and finally Sentinel cut to market perform

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Speaker 1: over at Wells far Ago Live from the First Breaking

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Speaker 1: News Desk on Bill Maloney, Karen all right, thanks bail

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Speaker 1: to hear live breaking news. Over your Bloomberg type squawk

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Speaker 1: and go on your terminal. Let's ask you you a

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Speaker 1: w k go. That's a Bloomberg business flash. Tom and Mike, Karen,

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Speaker 1: thanks so much Bloomberg surveillance this morning. But you by Investco,

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Speaker 1: Investing isn't about meeting benchmarks, It's about achieving goals. Find

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Speaker 1: out how invest goes high conviction approach can help visit

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Speaker 1: investco dot com slash high conviction on a Friday. We

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Speaker 1: think Investco for their support. We spoke to him a

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Speaker 1: few days ago. We drive the discussion forward and we're

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Speaker 1: gonna do this today, particularly for America. Can listeners and

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Speaker 1: Brex said it was this phrase that came up, but yeah, yeah,

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Speaker 1: back and forth and everybody in the United Kingdom wound up.

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Speaker 1: Thomas rains Is at Chatham House where they do international

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Speaker 1: relations at the highest level. He joins US for the

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Speaker 1: second time this week. Thomas, wonderful to speak to you again.

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Speaker 1: What is the significance that David Cameron's a soare and

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Speaker 1: Brussels is extended. Cameron is trying, he's locked in negotiations

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Speaker 1: at the moment. We've we were sort of awaiting white

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Speaker 1: smoke to come from the exactly Russels and nothing has

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Speaker 1: come through so far. Basically, I think that the deal

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Speaker 1: has been harder. It's been harder to get people to

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Speaker 1: give way. There are a few particular sticking points on

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Speaker 1: the issues that he's trying to address. One is around

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Speaker 1: the access for EU migrants in Britain to the UK

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Speaker 1: welfare system, particularly around child benefits, and then another around

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Speaker 1: the relationship between countries, which is the Euro the single

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Speaker 1: currency in much of the EU, and those current and

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Speaker 1: those countries like the UK which still have their own currency.

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Speaker 1: You now, the whites, of course, we've got the whole

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Speaker 1: Polpe Trump backstory here, the white smoke in Russells, except

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Speaker 1: there's no pulp. That's the fundamental issue. There's no pope.

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Speaker 1: There is a man named Donald Tusk. He is the

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Speaker 1: President of the EU Council, and he's working very hard

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Speaker 1: at the moment to try and broke a solution. He's

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Speaker 1: from a prime minister of Poland. He's trying to pressure

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Speaker 1: all sides. He is by all accounts keeping keeping everyone

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Speaker 1: locked in negotiations and saying we're not all getting background

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Speaker 1: the same table until i have a nod from everyone

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Speaker 1: who's taking part that we've got a deal. So at

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Speaker 1: the moment there's a lot of there's a lot of

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Speaker 1: back and force bilaterals. It comes down to particular words

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Speaker 1: in the texts, and there are some rumors apparently that

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Speaker 1: the complicate issues with with the Greek Prime Minister at

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Speaker 1: alexis cypress trying to link the two main issues being

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Speaker 1: discussed at the summit. One, of course, is is bregsit

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Speaker 1: Britain leaving the EU. The other is the issue of migration,

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Speaker 1: which is obviously a huge issue for for a number

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Speaker 1: of European countries and in many ways more important than

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Speaker 1: than what happens to Britain and more immediate. And there

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Speaker 1: are rumors at the moment that the Greek Prime Minister

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Speaker 1: is trying to get guarantees about the UK keeping the

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Speaker 1: EU rather keeping its open borders and that he will

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Speaker 1: veto a deal on on Brixit unless he can he

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Speaker 1: can secure that. So slightly dangerous and delicate moment in

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Speaker 1: the negotiations make my head spinning. You imagine David Cameron,

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Speaker 1: what's leaving a side Prime Ministers ship us. What's the

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Speaker 1: other side those who are not giving in to Cameron's demands?

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Speaker 1: What's their argument? So they have some particular concerns. If

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Speaker 1: you take the countries in Central and Eastern Europe Poland

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Speaker 1: in particular, they have a lot of citizens who are

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Speaker 1: living in the UK and they don't want their citizens

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Speaker 1: who live in the UK to be treated differently under

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Speaker 1: UK law than British citizens. So this all comes down

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Speaker 1: to this issue around discrimination and whether if the UK

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Speaker 1: changes the way that people can access benefits, whether that

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Speaker 1: counts as discrimination if it's done on the basis of nationality.

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Speaker 1: So their argument is that if a Polish person works

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Speaker 1: in Britain and pays their taxes, then they should be

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Speaker 1: able to access the same benefits that British people are.

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Speaker 1: But it gets it gets very complicated and a bit

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Speaker 1: tricky around particular issues like child benefit for migrants whose

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Speaker 1: children still live back in Poland. So at the moment,

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Speaker 1: the situation is that they can get benefits for children

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Speaker 1: who are still living back in Poland, and in the

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Speaker 1: UK that's seen as as seen as unfair. So it's

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Speaker 1: an issue of fairness for both sides. So that's one

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Speaker 1: of the reasons it's so difficult to resolve. One of

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Speaker 1: the reasons we care obviously here is the financial industry

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Speaker 1: would be significantly affective. There's something called a passport that

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Speaker 1: is at the heart of whether the British are going

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Speaker 1: to be able to whether banks are going to continue

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Speaker 1: to headquarter in London if the breaksit were to happen. Yeah,

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Speaker 1: I mean that's a there's a huge issue. And then

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Speaker 1: one of the items on the negotiation agenda is about

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Speaker 1: seeking to sort of get some special protections for the

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Speaker 1: large financial industry that's that's based in London in the UK.

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Speaker 1: The real, the real uncertainty around this is that if

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Speaker 1: the UK were to vote to leave, we don't know

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Speaker 1: what the relationship would look like afterwards. No, he's ever

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Speaker 1: left the EU. There are some countries which have a

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Speaker 1: relationship that allows for the trade in financial services, but

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Speaker 1: that would involve other trade offs that the UK might

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Speaker 1: be not willing to make so this uncertainty is obviously

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Speaker 1: not good business. In thirty seconds, what's your unexpected out

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Speaker 1: of this? What's the thing that nobody's looking for in London?

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Speaker 1: I would say, what what? What I just mentioned earlier,

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Speaker 1: which is that the the issues around Britain's membership the

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Speaker 1: EU get dragged into this, this massive, complicated issues around migration,

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Speaker 1: and I think that would if the two get bound

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Speaker 1: up together, that will make the problem. Letty to to

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Speaker 1: sober other than easy. Don't be a stranger Thomas Rains

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Speaker 1: helping him out this week with respective he is with

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Speaker 1: Chatham House. I urge their website upon you, like many

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Speaker 1: of their brethren and international relations, very smart reading and

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Speaker 1: weekend reading to make you more informed about UH these events.

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Speaker 1: Um yeah, I gotta give a major shout out Michael

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Speaker 1: Key to Francine Local Qua. It was way out front

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Speaker 1: on the urgency of brexast. Francine provided terrific leadership. Here

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Speaker 1: to the surveillance UH team futures at negative six. Next

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Speaker 1: we look at the economy, Bloomberg surveillance coming up that

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