committee with a full unredacted version of special counsel robert mueller's russia report. the panel had given him until 9:00 local time this morning to comply. in the u.k. k, prime minister theresa may is hoping to break the deadlock that has paralyzed the country's split from the european union. bloomberg has learned her officials are drafting a new customs law that would guarantee there are no checks on goods crossing the u.k.-eu border. the prime minister is trying to get the opposition labour party to sign on to the plan. the former italian premier silvio berlusconi left a milan hospital promising to get back on the campaign trail. the 82-year-old had intestinal surgery last week. he is running for the european parliament. he blasted the italian populist government, saying its partners can only do one thing, squabble. officials in india say they need at least $14 billion to rebuild damaged homes and public

infrastructure: last week's powerful cyclone. half a million people lost their homes. 35 were killed. the cyclone packing winds of 127 miles per hour. the strongest storm to hit the country in 20 years. officials say they want the repairs completed before the beginning of monsoon season. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. it is 1:00 in new york, 6:00 in london, 1:00 in hong kong. i'm vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories on the bloomberg and around the world we are going.

president trump threatens chinesed tariffs on goods into the bureau tweets, changing the tone in the markets. harvard university is doubling down on investments that have fallen out of favor, hedge funds. we have that story. honeywell making a big bet on logistics. seems to be paying off so far. all that in the next 30 minutes. taylor riggs has a look at what is happening in the market today. taylor: it is all trading hitting this risk off feeling that we are getting today. we knew that tech overnight in china was off 8%. certainly seeing that in the u.s. ngs, semiconductors, chipmakers have the most exposure to china, clearly getting the brunt of the selloff. come into my terminal. volume early on this morning between 9:00 and 11:00.

above average volume starting to taper off but what really caught my eye was energy and tech clearly getting the biggest selloff. above average volume of about 9%. staples very risk off, save havens seeing above average volume, up 6%. you are seeing a classic defensive sector. what does that mean cross asset? 60 for the first time since march. you are seeing classic dollar strength, crude weakness, 10-year yields falling five basis points, falling below 2.48. commodities, you had corn, soybeans all trading lower. i wanted to look at soybeans. you have it going to the lowest since september. at one point this morning, the lowest going back to 2008. it looks like it's improving a

little bit but all the grains and soft commodities across the board certainly getting the brunt of the selloff as well. vonnie: taylor, thank you. now to the inside story on those tweets on trade from president trump. bloomberg has learned that his top negotiators were told that beijing was backtracking on trade results. this anger the president and let him to raise tariffs on chinese goods. here with some back is the person who cowrote the story from washington, d.c. we know more about what led to these tweets, which is always the interesting part. >> absolutely. looks like the trip that secretary mnuchin and robert ,ighthizer, the head of ustr made to beijing last week was not as successful as they had expected it to be. they got there and saw that the chinese negotiators had backtracked on a few of the

issues they expected to be nailed down. out president trump found that the talks were going slower than expected, that a deal was looking further and further out on the horizon, he got angry and decided to pull out a page from his book "art of the deal" and tried to back the chinese into a quarter to strike a deal. it remains to be seen what will happen next. vonnie: it would seem this is backing china into a corner. there was a trip planned later this week. does that take place? we are hearing different things. plan they are coming as on wednesday, they would be leaving soon. the initial plan was for the vice premier to travel with about 100 chinese officials to washington as the deal was expected to be at a moment of pencils down, time to see what we have got from the talks. right now, the administration looks like, the less we have heard is they are planning and

expecting the chinese to arrive, unclear how large the delegation would be. it remains to be seen whether they will actually touch ground on wednesday. markets are easily -- it really awaiting word on what happens next with tariffs and what china's next move is. vonnie: even if they do come, it is not exactly getting the talks off on the right foot. saleha: absolutely. if the two presidents are to be in the same room next month sometime to put a finishing flare on these talks, they want it to be in good stead. both sides want to save face, be a parent to their constituents as the winner. the difference is, here, president trump has conservatives and folks on the left, chuck schumer has been one of the most vocal people on capitol hill, telling president trump he has been doing the right thing, being tough on china, but also cautioning him not to back down on the promises he said he would get. vonnie: it's interesting because

of all the tweets we have read the past few weeks, these two in particular scent markets into a tailspin. china markets, u.s. grain markets, semiconductors in the u.s. there is a fear out there that this will lead to something that may deteriorate. what was behind the dollar amounts and the percentages? the president was very specific. saleha: absolutely. we are told no one in the administration was taken by surprise from those tweets. lighthizer, who is heading the u.s. side of the talks, gave china a clear message that the time had come to make a decision. i honestly don't know what is behind the dollar figure, how they came up with that, whether that is something that's been in the works for a while. that was completely new from the president, so we will have to find out for you. vonnie: you are doing a great investigative job so far.

thank you. the president's latest tariff threats jumpstarted some bets on interest-rate cuts. traders weighing escalating tension against the u.s. inflation path. joining us now is a guest from barclays. explain to us the dynamics in tips and the broader treasury market since friday? >> the risk off tone that you described in other markets, equities, commodities, is certainly flowing into rates and the inflation market as well. while the knee-jerk assumption could bethat tariffs inflationary, as they are passed on to consumers, there is much more concern about the negative growth impact on the economy, which could cause inflation to go lower rather than higher. thus, we are seeing investors go into nominal rates instead of tips, as a sign that inflation

may go lower instead of higher. bet,e: if that is the currently, that would also be a bet that the fed would consider cutting again this year. >> may be. it is not clear what the fed's reaction function might be. commentspowell's caused considerable volatility in the markets with regard to the uncertainty of their reaction function. in the spring, they spent time saying they would focus on realize inflation. realized inflation has come in lower than most. wednesday, chair powell dismissed the decline as simply due to transitory factors. so installation -- so it inflation slips, we may not get a reaction from the fed, even on the market would like to see one. vonnie: with the fed act proactively on trade talks, any trade tariffs put in place, or would it have to wait to see the data?

that strikes me as a little dangerous. >> the fed is certainly in a wait and see mode, patient tone. what they are doing is watching the data as it comes in. what they want to have his confidence that any signs of weakness or acceleration in the data that they see is going to be sustained. what they don't want to do is cut now or hike and then all of a sudden all the day they been getting in starts to reverse and they look like they made a policy error. vonnie: true. if the talks do not go so well, if tariffs are up on china, china retaliates, certainly better to get in front of something like that. michael: there is a point to be made about that, indeed. the fed signaled that it would continue with hikes this year, and the markets got a little bit mad, if you will. the fed responded to that decline in equities and other markets. the fed says maybe we should be

a little more patient care. down asarkets really go a result of the tariff or trade war, then the fed could respond. unless financial market conditions are telling the fed it needs to respond now, we expect the course will be a patient one. vonnie: what is smart move -- money doing these days? michael: if you look at where the market is priced for inflation, the front and is priced for inflation to stay low, whereas we expected to come in around the trend we've been seeing so far this year and last year. we actually think the front end of the tips market offers value here. you in michael, what did particular make of the productivity data, unit labor cost that we got, generally the payrolls report as well, where wages are there?

do you see better wages on the horizon? michael: on the productivity number specifically, a great example of you don't react to one number. veryroductivity number was positive relative to the trend we've been seeing over the past several years. but we really need to see a couple quarters more to believe it, if you will. almost too good to be true on a one quarter print. employment report that we got on friday morning, again, the headline, payrolls were quite strong, but still not seeing that upward ejector rate, that true upward pressure on wages that one would expect given the on appointment rate is .t 3.6% the fed is certainly struggling with this. the real economic data may tell them to tighten, but the inflation data is telling them they may actually need to ease. that is why there is a holding pattern right now. the markets right now are saying

they are more likely to ease. we think that they will continue to be patient as the data roles and and not hike this year. vonnie: michael, thank you, always a pleasure. atd of global inflation barclays. harvard university doubling down on hedge funds. we want to you about what is now a contrarian bet, and compare the performance of other hedge funds, next. this is bloomberg. ♪

vonnie: this is "bloomberg markets." i'm vonnie quinn. saying smartrsity money is now in hedge funds. the universe are its investment in hedge funds, which now total

of $13 billion, according to university filings. joining us to talk about the investment strategy is peggy ,ollins, investing team leader and soon to be revealed as something else. harvard university has decided hedge funds are the place to be again. is that something to do with the market cycle? andhe person leading the dominant to comment on the story. since he has come on in 2016 from columbia's endowment, he has upped their investment in hedge funds, which too many is a contrarian stance. hedge funds have been beaten down for seven years for poor performance compared to the skyrocketing s&p, and for high fees as well. those 2/20 fees have come under scrutiny. on the other hand, we did speak to some people who said it looks like he is positioning the

portfolio for a downturn, as you said. this may be a proactive move to get the endowment in a place where if we see a recession come , and markets get more volatile, they will be in a better position. if we look at the bloomberg, you'll see harvard university has most assets under management, 39.2. $13 billion of that is almost a third. >> it is a big bet. it is the largest endowment with $39 billion. what much of the intention in the first couple of years as head of the endowment has been on him shutting some assets, particularly around real assets. harvard had expanded around the globe in terms of real estate and agricultural investments, and he was shutting down some of that, and this seems to be his most proactive that since coming on, in terms of expanding investment. interesting, we also don't know -- or do we --

how much he has managed from those fees. there comes to a point where hedge fund managers will accept endowment money. certainlyin bulk happens. we don't know if he was able to leverage lower fees for the investment. we can tell he is these investments on multiple fronts, goings from internal management to external ca managers. he has also invested in some of the spin outs from harvard that have opened up their own hedge of thend upped some existing portfolio managers, like deerfield capital. vonnie: is anybody else doing this? managers,r endowment the one at yell, went into -- yale, went into all sorts of things.

is he moving back to hedge funds? >> he has been known for using a lot of external managers. harvard is shifting that way. as ofe have seen of yale late is a boosting of venture capital. that is what we have seen of a lot of at yale. vonnie: that is fascinating. we will see what the returns turn out like. peggy collins, thank you. it is time for the bloomberg business flash, a look at the biggest stories in the news right now. occidental's bid for anadarko is better than chevron. it buysany says if anadarko, it will sell off a chunk of his assets in africa to france's total. kraft heinz plans to restate earnings for 2015, 2017, and part of 2018.

they say they found evidence of employee misconduct in procurement that raised the cost of goods sold. they say the impact on earnings is less than 2% in each year. apple will unveil a number of new apps, futures, and development tools at its software conference next month. among other things, apple will a great core iphone apps such as maps, reminders, and messages. that is your latest bloomberg business flash. still ahead, the company that could see big bucks thanks to amazon's plans to speed up its delivery service. this is bloomberg. ♪

vonnie: this is "bloomberg markets." i'm vonnie quinn. amazon's promise of one-day delivery for customers is

creating happy executives at honeywell international. one likely beneficiary of their plans would be honeywell's integrated automation business. brooke sullivan wrote about this. a week ors in just two ago and spoke about this. it is the jewel in the crown of honeywell to an extent. a small piece but doing phenomenally well. bought the company a few years ago for $1.5 billion, a pretty big expenditure for honeywell. typically does not do that in many large deals, but this was an example of an industrial company venturing into the digital world and paying off. plenty of examples where this has not worked out. you had ge with its internal software platform that did not come to fruition in the way they hoped. honeywell seeing double-digit revenue growth quarter after quarter, orders of more than 30% and they look well positioned to benefit from this e-commerce boom.

clear: they were very amazon is not their sole customer, and if amazon were to go away, spread out their business among others, that they would do just fine. really, amazon is the backbone of this part of their business. >> that is not true at all. their customers are diverse among the retail world. among the top 50 u.s. retailers, 30 are customers of honeywell. saying that amazon is an important customer, but not the only one. as you see more and more retailers trying to catch up to amazon and invest in e-commerce, a debt their businesses to meet consumer expectations of faster and faster delivery, honeywell should be well positioned to benefit. vonnie: who else is there with that kind of business? you would think that others would have cropped up. >> it has peers in other parts of the automation world.

what honeywell has been smarter about is carving out this niche of warehouse automation. these companies that it bought were not on the scale of honeywell. intelligrated was a smaller business. they also bought a german-based warehouse automation company last year for roughly $500 million. these are small, incremental bets on companies that are a lot smaller than honeywell, but they add up to be something differentiated for the company. vonnie: what are the margins on this kind of business? >> diluted to honeywell's overall margin profile, but investors are ok with that when you see double-digit growth. this is well if you degree position in a growing part of the economy. investors are willing to say we will take some margin lumps for now. down the road, once intelligrated has a days of installed equipment, they can tradition more to servicing, which is more profitable. you can see that margin equation

swinging the other way down the road. vonnie: amazon is a customer but also does this themselves. why did amazon need to go to intelligrated? could amazon have kept it in-house? >> you see this with lots of different companies, companies have a choice to make, vertically integrate their supply chains, or reach out. it comes down to a question of expertise and quality. as a company, what makes the most sense economically for you to invest in? vonnie: a great story in the current edition of bloomberg businessweek. thank you for joining. you can see all of those reporters and editors every saturday and sunday on bloomberg television and radio. markets still lower. -anadarko-chevron story next. ♪

mark: i'm mark with bloomberg first word news. president trump's former attorney michael cohen has arrived at a prison northwest of new york city to begin serving a three-year sentence before

leaving his manhattan apartment today, he told reporters there is still much to be told. he added he looks forward to the day when "i can share the truth." cohen was convicted of campaign violations related to hush money payments made on mr. trump's behalf. the trump administration may change the way it determines the national poverty threshold, putting some americans at risk of losing access to welfare programs. according to a regulatory filing today, the white house office of management and budget is considering a change in the formula used to determine whether people qualify for certain federal programs and benefits. making, a family of four no more than $25,900 was considered impoverished. erdogan saysdent his country's decision to purchase russian-made missile defense systems does not mean it is seeking alternatives in its relationship with the west. president erdogan spoke today

during a nato meeting. the comments came amid is deepening rift with the united states and which says the russian missiles pose a threat to the u.s. f-35 fighter debt or graham. -- -- jet program. the owners of the horse that finished first in the kentucky derby but disqualified plan to file an appeal. security should declare the rightful winner. stewards disqualified the race.for global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg.

shery: live from bloomberg world headquarters in new york, i'm shery ahn. amanda: live in toronto, i'm amanda lang. welcome to "bloomberg markets." our top stories that we are following from around the world. president trump shatters calm in global markets. commodities get hit, volatility jumps, and investors flee to safe havens. occidental is all in. increases the cash portion for anadarko to 70% and eggs and agreement to sell $8.8 billion in assets to total. it is all or nothing for the ceo. betting on bitcoin. ability will be offering cryptocurrency trading to customers within a few weeks. let's get a quick check on the markets. a sea of red. the s&p 500 falling the most it's march. every sector is losing ground at the moment.

we are talking about tech companies with exposure to china, not to mention machinery companies leading the decline. volatility also surging with the vix seeing the biggest increase this year. it is all to do with those tariff threats, having a major impact on the markets. also seeing the chinese yuan continue to fall against the u.s. dollar, after plunging the most since the shock evaluation in 2015. we are now seeing volatility in currency markets jumping again broadly speaking. emerging-market currencies under pressure. we also had news that the istanbul elections will be renewed in turkey. that set the lira spiraling. what a day for the markets. amanda: lots of volatility. fundamentals are actually really sound. apart from the noise of trade tweets, volatility back in the market, when you are seeing here

is a look at the actual's earning performance of the s&p 500 reporting companies. .4% gain, expected to show a drop. 75% of the s&p reporting. of those, the vast majority beating by at least 5%. pretty decent looking quarter. what could go wrong? trade could be what sets us off. that could have a material impact on businesses. we saw companies like 3m falling, chip stocks. the level of u.s. exports to china, the blue bar, 25% on the $200 billion worth of goods, could run of the market in a big way. shery: we have already seen 25% on that initial $50 billion. 10% on $200 billion, and that could rise to 25%. not just that, president trump threatening 25% on $325 billion worth of chinese goods.

we have to put this into context and explain this because it is getting hard to keep track of all of these tariffs. let's take a look at what this means for the broader economy. we are joined by peter coy. what does this mean not only for china, because all of these chineseare against the and chinese products, but what does this mean for the u.s. economy? this makes products more expensive. harmful for more china because they depend more on exports from the u.s. and the u.s. depends on exports from china. talking about 0.9% drag on chinese gdp, if all of the tariffs we are talking about into effect. for the u.s., talking about maybe .1% of gdp. possibly doubling to 0.2. not huge. the bigger impact may be on inflation because the products

will cost more coming in. that would be a temporary thing because once the price goes up, after a year income it passes out of the cpi as a factor for the increase. it bigger concern is that overall spoils the atmosphere for free trade. be both poorly for the u.s., mexico, canada agreement, usmca. it could also -- maybe trump has in mind going ahead with auto tariffs. there are many reasons to think this may not be the end for u.s.-china trade tensions. amanda: interesting to put it in a global context because the u.s. led the way on freer trade deals all over the place, including nafta. would put them up there with emerging-market countries in terms of the level of tariffs levied against other nations.

that has an immediate impact on consumers, even if it doesn't show up in gdp, human beings will feel it quickly. peter: the chart we are looking at was put together by deutsche bank. you can see the colored line at the bottom represents the u.s., if all of the threatened tariffs that trump talked about over the weekend went on, you would see the u.s. tariff rate would be up there with india almost, brazil. that would be quite the change. shery: we are seeing the chinese response. the ministry of foreign affairs saying as to the u.s. threat on the tariff increase on goods, that situation appeared many times before. china's position is always clear-cut, and the u.s. knows that. what are we expecting from here? we are hoping that the vice premier would be heading to washington next week. this wednesday, a

delegation of 100 people scheduled to come over. it could be they will hold off. that would be very plausible. the question would be, are they holding off because they want to give it a couple of days to see how things settle out, or are they breaking off the talks? [no audio] sad, we cankind of work something out here, maybe that will not happen. a lot in the air right now. amanda: great to have you, peter coy. thank you. a look at how the markets are digesting these headlines, we see them off the lows of the session but still struggling. our cross as a reporter. interesting to see which groups are suffering. -- asset reporter. perhaps that is a reaction to the fear of the tech transfer part of the agreement may be off the table. >> when you think about

technology, industrials, materials companies, these are areas of the market that got a boost, as the narrative has been that the u.s. and china trade talks were going well. you look at industrials, tech companies you to date, and they are at the top of the pack when you look at different s&p 500 sectors. it goes to show, and you would imagine this is the case. today, you look, tech, apple, semiconductors leaving the market lower. that is why we have the nasdaq lower than the s&p. industrials as well, you look at caterpillar, deere, these names which are seen as benchmarks, they are also getting hit as well. shery: at this point, we don't know what will happen with the tariffs. what happens if we see those 25%, how willto that impact the earnings picture? >> this is the interesting point. many strategists across wall

street putting out notes saying, yes, of course we will not know for certain until later on, whether or not that rate of tariffs will be lifted from 10% to 25%, whether we would get 25% tariffs on $325 billion worth of it. when you think about the earnings picture, the problem is, companies may have to do with higher input costs. ubs estimates, should trade talks fall apart, should we see that tariff rate raised to 25%, we could see profits contract by five percentage points. through this earnings season, we've been talking about how it's better than feared, the profit recession now on the back burner, but when you consider the fact that this year profits are expected to grow about 5% --5% contraction due to tariffs falling apart would be an issue. at this level, would be

inflationary, if we saw that serious level of tariffs. makes you wonder what the fed would do about that. >> there is a debate over whether or not tariffs are inflationary or deflationary. of course, at first, you see prices raise, so that is inflationary. people also worry about whether we would see growth slow. if you do, that could be deflationary. that does call into question, what does the fed do about this? on the surface, you think, there is more uncertainty, maybe that could cause the fed to pull back a little bit. maybe they go more toward the market and give a cut. clearly, the fed has said they are very data dependent, being patient. unless you see it show up in the data, they are not going to move. shery: sara, thank you for that. some breaking news. glenview's larry robbins has pitched shorting 3m citing legal liabilities. he made the comments recently.

shares have fallen on the comments. its --o sweetens occidental sweetens its anadarko bed. this is bloomberg. ♪

amanda: this is "bloomberg markets." i'm amanda lang in toronto. shery: i'm shery ahn in new york. occidental is getting closer to its acquisition of anadarko, this after sweetening its cash bid to 50%. here to talk about the latest development in oil m&a is the senior analyst at cowen.

when we first saw this narrative, it was more like david versus goliath. at this point, doesn't make sense to go with a smaller player, given the terms of the new offer? >> i stay you can throw sense around -- out the window. it is a more -- it is a more superior offering at this point. chevron's than effective did, so now we're in a waiting pattern to see, does the anadarko board confirm it as a superior bid on the part of inidental, and what happens the days that follow, does chevron respond? amanda: interesting to see chevron and occidental trading higher today. what do we read into that about what the market is betting about the outcome here? >> difficult to say but most likely the market is deciding occidental will win the prize here with anadarko.

i think you are seeing shareholders looking at occidental, that has now come off 15% from the original chevron did was -- bid was announced. a lot of the reason people own occidental is for the dividend yield. stockve seen the trade up to a pro forma dividend deal. people can see that the merger still covers the dividend going forward, so perhaps the market is just digesting it now, saying i'm ok looking forward to the arm of value. shery: total seems to have sided with occidental, buying their african assets. does this element concerns over debt, what do you think about this new alliance? >> it is very unique. you seldom see a company selling assets before they taken ownership of them. occidental arranging this $8.8 billion of venture to total for all of anadarko's african

properties, it does lower the pro forma leverage by half a turn. we were looking closer to the company occidental being three levered. this would lower you to about 2.5 times. it also lowers the execution risk around some of the more complex assets, like mozambique. ghana is a non-operated interest. these are more complicated areas where a dental does not have overlap. from a shareholder perspective, you worry less about the leverage numbers, but you also worry less about the execution going forward. amanda: may be less complicated for occidental. when we think about the doubling down on the permian for occidental, does that make sense from a strategic point of view, should investors be happy about that? >> i think so. at the end of the day, investors have to see more visibility around dividend coverage. we looked at occidental's

ability to cover dividend by 20% of their cash flows, by about 120% in 2020. this deal, you are back to about 150%. at the end of the day, whether in the permian, doubling down in other areas, you are getting high free cash generated assets in the gulf of mexico, the dj basin in colorado. obviously, hopefully leveraging some of the synergies occidental has talked about in the permian to provide this highly visible, multi-decade period of cash flow growth. shery: as we saw this corporate drama play out, we also heard obtained ihas minority stake in occidental. will the industry go back to the old ways of tons of spending and deals? >> it's a good question but i think we are this existential point where the industry cannot. come inending on deals the way of benefiting from the

scale you have an returning more capital to shareholders. but the endgame for a lot of the e&p companies, oil and gas space come is to return capital to the shareholders, start competing with others with dividend, free cash yields, deemphasizing this production growth metric that's only have chased for so long. -- that so many have chased for so long. to see anything you want from occidental to shore up its balance sheet, given they have upped the cash? >> i'm not concerned with leverage, i want to see more visibility around the synergies they discussed. on the conference call, they reiterated they see about $2 billion worth of operating synergies, another $1.5 billion in capital allocation synergies from slowing down the poor from a -- pro forma spending cadence. we want to see, can you deliver on that $2 billion? you can deliver on those

synergies, easy to let people go, rationalize certain things, but can you get to this performance gap? if you can get there, you can see a more visible path to this free cash wedge that occidental is looking at. on top of that, we need to see plans on how they will be operating in the gulf of mexico. a new area of operations for occidental. it was one where a lot of people saw the merits of the chevron deal, being one of the largest operators in the gulf of mexico, and point to a lot of those synergies in their deal, coming out of the gulf. amanda: we appreciate it. thank you. fidelity is feeding a new appetite on the street for cryptocurrencies. why the asset manager is offering cryptocurrency trading to its clients. this is bloomberg. ♪

shery: this is "bloomberg

markets." i'm shery on in new york. amanda line in toronto. fidelity investments will begin buying and selling bitcoin in the next few weeks. hope to stay ahead of some other top competitors who are so far staying on the sidelines. to talk about the story is matt in seattle. it lends credibility to a space that desperately needs it. many of fidelity's rivals are on the sidelines because there are great concerns about trading crypto. what does this say about the maturation of the market? >> probably for the price of bitcoin, probably the best news it has had in a year. it's been a rough ride. what it tells the broader street is that somebody with decades of relationship and trust on wall street, fidelity, is throwing its weight behind this, saying we can work with it, you can work with it, too. shery: this would only be open

to institutional companies -- customers at first. what do we know about the progress of this new project? >> a couple other companies, we reported that you trade will begin offering bitcoin trading to its customers. that is more focused on the retail side. there is robin hood as well. agility is going for institutional investors, pensions, family offices, hedge funds, sophisticated investors with money to spend. the other thing to keep in mind is, a few months ago, fidelity started a custody service for bitcoin, meaning if you are an investor and hold bitcoin, you can have fidelity take over it is aou, custody, and it lot more secure probably with fidelity. a lot of ways that you could lose bitcoin still. couple that news with the trading, it seemed like they are putting a sweeter product together to ease people into the

market. in the beginning, big institutional clients. big the appetite is, a sense of the amount of trading that may go on here? >> that's a good question. i don't know that anybody has put a finger on it. it is still incredibly volatile. when we saw some bad news in the market last week, it fell by 5%. the risk appetite here is pretty high for people. i am not sure we can put a number on it at this point. do we know at this point what is the latest on the regulatory front or cryptocurrency, especially bitcoin? not necessarily bitcoin, they are in the clear, at least in the u.s. obviously, using it for fraud, money laundering are not, never will be. in the broader cryptocurrency

market, the sec is still working to whether certain digital assets are securities or not, which means they would have to register with the sec and trade on an sec, approved then you. -- sec-approved venue. in terms of bitcoin, that is pretty much free and clear, as long as you are not using it for fraud. shery: thank you for that, matthew, the latest on cryptocurrency, bitcoin, and fidelity. don't miss bloomberg television's exclusive chat with a jamie dimon on tuesday evening from the jpmorgan global china summit in beijing. thisnew york and toronto, is bloomberg. ♪

mark: i'm mark crumpton. this is bloomberg first word news. thata's newsagency reports sergey lavrov is describing his meeting with the secretary of state today as constructive.

had ad reporters, "we've good and constructive conversation and have considered a number of situations on the agenda now, and international relations in general, and discussed matters concerning strategic stability." he continued, "i'm of the viewing of made a step forward to follow up on discussions of that putin and trump had on the phone a couple days ago." investigators want to find out more about a fiery emergency landing of an aeroflot jet that killed 41 people. officials say it made a hard landing, then a fire broke out. the jet returned to the airport after the crew reported a mid air malfunction. the president has set a new deadline in the trade war with china. he said there will be tariffs on chinese g