Mike Gallagher, managing director of macro and strategy at Continuum Economics, and Marilyn Watson, head of global fundamental fixed income strategy at BlackRock, discuss Brexit, the Conservative Party leadership race and the U.K. economy. Bloomberg's David Merritt also speaks on "Bloomberg Surveillance."

SNP Westminster leader Ian Blackford says Brexit is now starting to harm the UK economy. He asked if the government would negotiate an economic agreement with the EU, or if he would "wilfully push the UK into recession".