Global business news twenty four hours a day. It's Bloomberg dot Com, the Radio plus Mobile Act and on your radio. This is a Bloomberg Business flat from Bloomberg World Handwaters. I'm Charlie Pellett. Just getting word from the United Kingdom that Philip Hammond has been named a u K. Chancellor of the Exchequer and George Osborne has resigned from the government. The US economy expanded at a modest pace since midway amidst mid May, amid slight price pressures and some softening
in consumer spending. That's according to today's page book report from the Federal Reserve. Stocks are now trading mix. We've got the SMP five hundred indecks down to point at fifty, a drop there of point one percent, Dow industriels up fifteen, a gain of point one percent, and nastak is down nine, drop of two tents of one percent. Ten You're up thirteen thirty seconds. Heal there one point four or six percent. Gold up eight ninety the ounce to thirteen forty war
Hire by seven tenths of one percent. Crude big story today, down two oh six of barrel West Texas Intermediate now at forty four barrel down four point. I'm Charlie Pellett and that's a bloomberg business flash. As we leave the European Union, we will forge a forge a bold, new positive role for ourselves in the world, and we will make Britain a country that works not for a privileged few, but for every one of us. That will be the mission of the government I lead, and together we will
build a better Britain, a better Britain. That's what Theresa May is promising as she takes over as the United Kingdom's Prime Minister today, taking the reigns of power from former Prime Minister Cameron, forced out by the Brexit vote, which he opposed. We're getting some breaking news as we start this segment now. George Osborne is the first secred Terry of State in the UK. He has resigned from the government, the Prime Minister's Office says, and Philip Hammond
being named the UK Chancellor of the Exchequer. Well, it's perfect time to bring in our next guest, with Thoma Robbin. He's practiced head uh in Europe, based in London for the Eurasia Group. He, among other things, worked at the European Commission's Director at General for Economic and Financial Affairs and at the UK Treasury, so he certainly knows all sides of this story. Mid welcome back to the show. Thank you for having me. Well, let's start with George
Osborne resigning. According to the Prime Minister's Office, Philip Hammon named UK Chancellor of the Exchequer. What did these tell us about where Theresa May is taking her government? I think I think the most important individual that wes still waiting for is, of course, who is going to lead the Brexit negotiation. That's the individual thought will be critical for the trajectory of UK EU relation. Now, Philip ammons transfer from the Foreign Office to the Treasury on some
level was expected. He's competent, well placed within the Conservative Party, and I think it's seemed to be a safe pair of hands in terms of economic management. So I don't I don't really think there are many surprises from Hammond's appointment. I think most interesting is going to be which leaves candidate Thereason May appoints to lead the negotiations with Europe. That's going to be critical. Can you tell us some names of individuals who you believe will guide the ship
of state safely through the negotiations. Absolutely. I mean, of course that at the highest level Thereason May, I think, is going to be very actively involved on this issue. I already anticipate for traveling for bilaterals to meet Angela merk Or German Chancellor, the French President, as well as the institutional heads, who said in Brussels there are a number of names doing the rounds in London. I think um Chris Grailing, Speaker of the House of Commons, is
a potential name. He was a prominent leave member of the cabinet close to Treason May Andrea led them who was the obviously a competitor, let's say to Mayo, who stepped down at the weekend. She's also seen to be a potential runner for this job, although I don't think she's too close to Theresa May, and there'd be some concerns I think about her negotiating style. David Davis from your administ I think he's also in the running. Oliver let Win, who currently holds the portfolio, she could also
He could also stay in place. I think what's important for Theresa May is the internal balance of power within her cabinets. I think there's a lot of Leaves members that are likely to ultimately end up in the cabinet cabinet, and I'm sure one of those will ultimately have to lead the Brexit negotiations in order to keep the Tory Party happy with the selection of her name, She's the right person at the right time. Theresa me or and Or to what extent was she considered the safe choice,
the person everybody could agree on. I think look from a from a from a first best perspective, no, I don't think so, but from a least worst perspective, she's absolutely the right candidate. If it was a choice between her, UM, Andrea Ledson, Michael go or indeed Boris Johnson, then absolutely she's the best choice. I think Boris Johnson would have been more willing to do a dirty deal, if I can put it like that, over Europe, so essentially willing
to undo the commitments he made through the referendum on immigration. UM. But there were of course a lot of questions about Boris Johnson's disposition towards foreign policy, world leaders, his general of his general that's a fumbling approach to policy takes. So there were a lot of concerns about how suitable she would be overall as as prime ministry, even if on the narrow Europe question he'd be effective. Michael Gove
Andrea led him. Their problem for both, for both of them, frankly, is that their ideas their ideological and their ideologically opposed to Europe. So getting a deal with the Europeans when you have two ideologues at the home I think would have made things more difficult. Theresa May is pragmatic, she's deal she's a deal maker. I think she's oriented in
that way. She's well known in Europe, she's well liked and well respected, and I think for the for those reasons at this juncture, she she is the right person for the job. Do you foresee another referendum by another European country to leave the European Union. I think there's absolutely a risk. There is already a referendum in Italy in October on constitutional reform that will de fact to be a referendum on the Prime minister, uh Matteo Renzi.
There's absolutely pressure in the Netherlands ahead of elections next year to commit to a referendum. There's a far right party led by somebody known as Get World as you want the party known as the PDV and they're likely to be a powerbroker in government formation next year and they're absolutely looking for a reference, so that's definitely a risk.
Thank you very much for spending time with us. Mutaba Raman he is the practice head for Europe for the Eurasia Group based in London, speaking about Theresa May taking over as Britain's Prime Minister after her predecessor David Cameron tended his resignation to Queen Elizabeth the second you're listening to taking Stock. Coming up on taking Stock, we're going to take a look at the Fed's Beige Book and put in the context of rising rate odds, raising rate
high godds in December. That's coming up on Bloomberg Radio.