welcome to "balance of power," where the world of politics meets the world of business. on the brief today, michael mckee on fed policy in an uncertain trade world. from brussels, maria tadeo on what comes next in the eu leadership rankling, and from washington kevin cirilli on president trump's plans for the fbi which include troops and tanks and f-15. let's go to two michael mckee. we got trade numbers today. they were not encouraging. michael: the trade numbers widened which shows the president's trade policies are having the opposite effect. what appears to be happening is our exports are depressed, but as companies worry about import restrictions, they bring in more goods, and we had the threatened raise in tariffs for may ron mexico and china. the president till talking about additional tariffs. we are seeing companies bringing goods and that is widening the trade deficit.

david: he thinks he is bringing in reinforcement in the fed. we will talk you about that in a few moments. meantime in brussels, where reporting over the rankling over the leadership. we got the nominations you predicted. what comes next? maria: we have the nominations in place. this will have to be put to a vote for the european parliament. we know the nominee for the next commission president, ursula von der leyen is someone not many outside of brussels or germany would know who this is an she did not participate in the european elections. that could be a problem. the point of the european elections was to bring more democracy into the institutions. this was another backdoor deal done in the early hours. we know parliament could see scrutiny but the convention here is that political leaders in the eu would not what this to a vote if they were not sure this would clear.

there will be pushed back and criticism but the idea is ultimately she should be approved in about two weeks. david: that is the question. can they count the votes well enough in parliament. the european parliament is changing its basic complexion. it is getting more assertive. you said they would not of put it forward, but the of confidence we could put the boat -- they could get the votes in parliament? maria: that is a good point because the parliament has become more fragmented. it is not a two party agreement. before it used to be about the center-right and the socialists. now we are seeing more fragmentation. the idea is european leaders have to be mindful that if it does not go through, if this does not go through, it would be something that would make everyone look bad. there is no guarantee, but what ice year is it is unlikely they would reject or. in the case of christine

lagarde, that is a different story. there is no question she will place mario draghi, but the question is whether there is a certain level of to much politics at the central bank and the fact that she is not a central banker, she is not an economist, that has raised a few eyebrows. david: thank you for the continued terrific reporting from brussels. now we go to the white house and kevin cirilli. new plans down there that involved tanks and f-15s and troops. kevin: in what is being known as a slew to america president trump is set to convene the largest fourth of july political gathering on the national mall. it will feature flyovers from air force one and f-15s, blue angel flyovers, and two fireworks displays that will also feature a televised address from president trump himself. all saying this is a sign of support from the administration as well as united states to broadcast just how strong and

powerful united states military and economy has become. democrats are saying it is a giant waste of taxpayer money. the washington post reporting this will cost 2.5 million additional dollars for the national park service to hold this. just for an illustration, typically the mall is flanked with souvenir stores, make america great again hats, there is already a small gathering of trump supporters here to take it in. this is something the president has wanted, this is something the president is getting. david: i suspect there might be a few cameras that will shoot some video that might be used in campaign commercial. they are putting this together on short notice. logistics are pretty elaborate. you have the blue angels, you have tanks, are we sure they can pull this off? kevin: we will have to wait and see. in addition to all of the

theatrics happening on the national mall, the president is also using this as an opportunity to have politicians, showcase hiss, to administration. last fourth of july, when rob rosenstein was at the white house for a barbecue on the front lawn of the white house, and out and even bigger scale. david: i hope the weather holds up for you down there. thanks so much for the reporting from kevin cirilli. let's get back to michael mckee. the president has new nominees for the fed, one of whom is judy shelton, american director for the ebit and we talked to her about what her attitudes toward monetary policy work. this is part of what she said. : i welcome this newfound humility on the part of the fed, the watchful waiting, and i think it is an admission that central bankers are not always omniscient in knowing exactly

where interest rate should be. i think it would be healthier if we had a more organically determine interest rate that reflected market thinking. david: that is interesting. it is not the fomc determining, it is organic. what does that mean? michael: in other interviews she said that that should not substitute its view for the market view. one presumes she would be suggesting we look at what market interest rates are where we use some other measure. she has argued we should go back to the gold standard. david: i am literally confused. ratesrket sets interest according to what they think the fed is doing or will do. who is following home? -- who is following whom? michael: that is the question. you also have distortion based on the fact that a lot of the world has been buying treasuries because there is a flight to safety during the trade war and there is also a disappearance of the term premium.

what is the market telling you the rate should be? that is a difficult question. you were very polite and she was polite to you, but she went on to talk to the financial times and likened the fed to the central planners in the soviet union and suggested maybe we do not need something like that. interesting to see how members of the senate react. david: let 1000 flowers bloom is the expression. thanks a much to michael mckee. now let's get a check on the markets with abigail doolittle. sensel: we have a risk on for markets on this wednesday. looking at all-time highs for the s&p 500, third day of that in a row. high,day a record closing the dow jones industrial average closed, the nasdaq up for the six-day in the row. you and mike were talking about rates being lowered. here's the 10 year yield down 1.5%. the market doing the work for the fed, now confirmed for lower

levels. , i mention the nasdaq is up several days in a row. that is true for the s&p 500, up 2.6% after the trade truce, the fomc decision a couple weeks ago. charge, bulls in assessing stocks will go higher, but the technical levels have been taken out of the upside suggesting the bulls may continue to charge. the composition of the rally is not the strongest. the strongest sectors on the day are the falling yields that are influencing the sectors. real estate and utilities are the top sectors for the s&p 500. real estate up for the second day in a row. the best two days of the year. as yields fall, the dividends look much more attractive. that is true for consumer staples. some investors not liking the fact that the composition of the more recent part of the rally is

facing some of these defensive sectors. we have a growth stock on the rise. , it now has aec market cap of $15.5 billion. we had a bloomberg scoop out talking about the idea that broadcom is in advanced talks to buy symantec, the struggling cybersecurity firm. tideis providing a rising for many of the other cybersecurity firms. finally, speaking of a rising tide, this is an interesting chart. what we are looking at is an index of the comfort and confidence of those who have an income of $100,000 or greater. going back to november of last year, there was a dip in the volatility of the fourth quarter. in the new set of all-time highs, we are back that confidence level. those you make $100,000 or more are feeling good about their situation and probably the stock market, considering again we are at all-time highs. david: they have a little bit of

money in the stock market. coming up, a different kind of ecb president. we talk about christine lagarde with jacob kierkegaard of the peterson institute. that is next and this is bloomberg. ♪

guy: this is "balance of power" on bloomberg television. i am david westin. we turn to mark crumpton for bloomberg first word news. mark: iran has a warning for europe. if it does not comply with the terms of the nuclear agreement by sunday, iran will enhance its uranium enrichment.

increasing uranium enrichment could eventually give iran enough to produce a nuclear weapon. china made by u.s. farm products out of a gesture of goodwill. bloomberg has learned the volume is likely to be smaller than before. purchases could include soybeans, corn, and pork. how much will depend on the progress of the trade talks. -- isis depending defending its decision to impose restrictions on exports of semiconductor related material to south korea. shinzo abe says japan cannot give the exports preferential treatment because the country is not abiding by an agreement regarding wartime issues. japan is a major supplier of materials used to make the computer chips used to run most smartphones and laptops. as kevin cirilli told us a few months ago, the tanks are ready to go and the fighter jets are set for the flyover. they are all part of president trump's changes to the traditional fourth of july celebration on the national mall.

the president will speak from the steps of the lincoln memorial. 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 am mark crumpton. bloomberg. david? david: imf chief christine lagarde is the nominee to be the new head of the ecb. even before it was official, people were talking about what she would bring to the position other than economics. >> she is very political, she is wise, and i would assume she has the best economists that can help her with this. she is not known as one of the leading economic minds. she is a political person. >> certainly, from a communication point of view, she would be up to the job and probably doing an excellent job in the future. jacob: we would -- david: we welcome jacob kierkegaard, peterson institute senior fellow. you heard, and it was not meant

as a criticism, that we know christine lagarde is not a trained economist. she was trained as a lawyer and than she was finance minister in a critical time for france. an ecb president more political and more involved in communications? .acob: honestly, yes we need to recognize that mario draghi is going to launch another monetary stimulus package in the coming months and in doing so, in my opinion, more or less emptied the toolkit for the incoming president. this means the most important political -- the most important goal for the next ecb president is communication and a political ability to convince other euro area politicians to be more aggressive on fiscal stimulus. when or if -- when the next downturn in the euro area arrives. i think resting lagarde is among

the best feasible candidates for that job. david: for those of is not as steep as you are in the structure of the government of the eu, help us. is it a done deal that she will be president? it is part of a package to deal with the president of the commission and the parliament has to prove that. what if they do not? they may not. i would regard it as 80 percent or 85% likely they will. if they do not we will have a scorched earth, everything thrown up in the air again, europe will be paralyzed over the summer, potentially into the fall, where a lot of other issues are coming to a head. brexit and other things. the parliament is very split, which means it is difficult to find a majority against something, just at is it is difficult to find a majority in favor of something. given the weight in the importance of this, ultimately

over the coming weeks, i think especially the social democrats in germany and elsewhere will swing around and support the deal. asid: as we have followed closely as we could what is going on in brussels, many are struck by how complicated the structure is. we will put up a simple chart to indicate how the council interacts with the commission, parliament interacts with the ecb. it looks a little bit like spaghetti. i count four presidents. how do they interact with each other? what is christine lagarde get to do, what is the president of the commission get to do, what does the president of the council get to do? the most important person for the economy is christine lagarde at the ecb. she gets to have her important voice on the governing council in terms of where interest rates go, asset purchases, and traditional monetary policy tools. the head of the commission is a person that has the monopoly on

,nitiating new regulations whereas the head of the eu council is the person tasked with creating compromises among the 28 or soon 27 members of the eu and that role is predominantly important at a time of acute political and economic crisis in the eu. in many ways, the most important job for our financial markets and the economy is without a doubt christine lagarde's new job. david: let's come back to that. you referred to the fact that mario draghi had taken steps and indicated steps. let's put a chart up where the markets are now and pricing in future rate cuts by the ecb. what this shows, the purple line shows that by september the markets think there will be at least one cut of 10 basis points. more is what they are pricing in. by year from now there will be two.

does this hem in christine lagarde and she takes her the ecb? there is a lot of room for disappointment if she is not aggressive in easing monetary policy. jacob: basically, in the same way you can argue ben bernanke teed it up for janet yellen and she for jay powell sets the ecb on a further monetary stimulus path. at the end of the day, a credible central bank does not do a major policy u-turn after just a few months. when a president changes, it takes longer than that. i think, clearly, christine lagarde's path is late for her, but it is also a path she will willingly tread. -- as a continuity take continuity pick in terms of her monetary policy relative to mario draghi.

david: if the path is set out, is it likely to be successful? i will put up another chart that indicates pmi's in europe. manufacturing pmi continues to decline. will monetary policy be sufficient to address that question? is it within her purview? jacob: no. i believe that the era of superstar central bankers, at least in the euro area, is over. whoever takes over from mario draghi will not have the tools available and will not be the person or the institution delivering the predominantly important macro economic stimulus in the euro area going forward. that has to be fiscal authorities or governments, which is precisely why i believe christine lagarde is a smart choice. i think she is able to go more credibly to places like berlin or the hague and argue that the

, we need tof arrows do something more, and it is going to be a fiscal work was i quasi-fiscal -- or nature and the ecb is willing to help but it has to be -- where the euro area will grow is some -- whereversion central banks and governments are collaborating more closely to generate the economic growth the euro area will need. david: that was very helpful. jacob kierkegaard, peterson institute senior fellow. live from new york, this is bloomberg. ♪

david: you are watching "balance of power."

i am david westin. every four years, presidential candidates flocked wall street for monetary support. it is that time again. some of the early winners might be surprising as our reporter has been reporting. there is an interesting candidate doing all right. >> there are a few people on wall street who like elizabeth warren despite all of her attacks on their industry. david: attacks puts it mildly. why is it? as you talk to be 1 wall st, why are they saying we are attracted to elizabeth warren. >> the word smart comes up a lot. even though she has policy proposals that might be against their interest, attacking the rich and powerful, it seems like people are giving her a chance which i was very surprised by. i do not find that hard to find these people on wall street in senior positions being reasonably ok with her. david: i'm also intrigued by the

issue she would go to wall street and ask for money. she has been not shy about saying what she thinks is wrong with the country and a lot of it is on wall street. she is not asking for it -- >> she is not asking for it but people might give it to her anyway. we talk to people on the street who said we have not given her money, but if she has a shot of winning, we would consider it. david: there is the point. wall street loves a winner, whether they agree with them or not. >> sometimes they do not back the right person and then they have to switch sides and give money to the next person. david: even if they back her, often candidates run on things that never get done. people say great things but washington has a tendency to slow things down. h: a couple we talked to said that if elizabeth warren does get the nomination, she will pull more towards the center.

david: known to happen in the past. getting a lot of leadership. congratulations. lananh: thank you. david: up next, the latest entry into the crowded democratic presidential race. admiralak, former vice and the most senior military officer to serve in the u.s. congress. we will talk about why he got in late and wife thinks he has a chance to win cash and why he thinks he has a chance to win. just go to tv on your terminal, you can ask is a question. live from new york, this is bloomberg. ♪ hey! i'm bill slowsky jr.,

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ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. ♪ david: this is "balance of power," i'm david westin. for first word in news we go now to mark crumpton. mark: president trump is playing

-- blaming china and europe of playing what he calls a big currency manipulation game and says the united states is actually effort, a move that directly contradicts u.s. policy not to manipulate the dollar's value. the president's own trade department in may said that the country does not meet the criteria of being labeled currency manipulator. though china was put on a watchlist. the european union is calling on libyan authorities to protect migrants after an airstrike killed people overnight. the eu says many more migrants aren't met -- at risk and should be moved to safe places. the airstrike hit near tripoli, which has seen pierce fighting between rival militias in recent . world leaders are being urged to reconsider holding the g20 summit in saudi arabia. the u.n. official who investigated the murder of jamal

khashoggi said it was a state killing carried out by the saudi's and that having the g20 there could make other nations complicit in the crime. being remembered as a master pitchman who became a corporate folk hero, he died at the age of 94 in bel air, california. he had a 32 year career at ford and chrysler and in that time he helped to launch some of detroit's best-selling and most significant vehicles. he was famous for his tv ads in which he said if you can find a better car, buy it. global news, 24 hours per day, on tictoc and twitter, powered by journalists and analysts in 120 countries. i'm mark crumpton, this is bloomberg. david? david: thanks, mark. now at update on fundraising for candidates, and i campaign says it has raised $24.5 million

since entering the race and bernie sanders has been well peted $14 million and buttigieg raised $40 million and that the other end is michael just $2.8o raised million. turning now to another democratic presidential candidate. spent a lifetime in public service. first as a naval officer who went from graduating number two in his class device admiral over 31 years and then he ran for public office. serving the congressional district in pennsylvania for two terms, he leads first global, a promoting stem education in high school. admiral sestak, welcome, good to have you with us. >> good to be back, thanks. you are in the race now, a little late, because of home,al situations back but you are in now. tell us why.

admiral sestak: the nation has upen me experience to stop -- stop our retreat from the world. a number of them were just brought up just before you him on. someone who can answer the most deep call from americans today. someone who can be accountable to them above party, above self, above any special interest and has demonstrated that. because if you don't have someone like that who is trusted to bring americans together again, we will just end up with a president once more who can only institute executive orders as the next president rips them out and puts them back in. we are to meet the challenges abroad and at home we must have someone would global experience and someone who has not only let us in war, but can lead us in the white house into is trusted to move the domestic policies into real-time and being passed.

no question is about your experience in war. we have another veteran in a somewhat lower rank, chelsea gabbard, who in the debates talked about what you are talking about. this is what she said. >> it is so important to have a president, commander in chief who knows the cost of war and is ready to do the job on day one. david: that's another veteran. let me ask you a tough question. that's an important thing, but if you look at the polls over time americans tend to vote for president on domestic issues, not international ones. is this sufficient to raise you above the pack? admiral sestak: well, it's not sufficient. it's important to remember what john f. kennedy once said. the job is not to tell people what they want to hear, it's to tell people what they need to hear. let's take clad change. if we pass the new green deal,

within a decade to bring down i'm a change, david it doesn't matter. it's all of the world doing it or nothing. that's only 15%. the reduction in global omissions that are needed to be brought to zero before that catastrophic threat explodes on us. take saudi arabia. energy to power air-conditioning 10 years from now with the new greendale exporting oil today. whatations are not doing they committed to in the paris accord. you had better have somebody who can protect the american dream by understanding that america's greatest power is its power to convene, to bring together nations and people of the world for a common cause that serves us all and like i did in my nearly two to one republican district with a very progressive voting record, was able to be reelected without spending one dime of the 3 million i raised for the effort.

accountable but understanding whether it is climate change or an illiberal might makes right regime like china that is rising, as the prime minister of malaysia said, is the new colonial power, enslaving nations with predatory debt so they have to give it ports, like sri lanka and djibouti did for naval bases. someone is out there trying to contract our way of life and that's why i'm living in iowa, deployed here to make sure all americans know that. david: we have amended the oval office right now, the job you would like to take, who campaigned and many believe one by talking to people who felt disenfranchised in their jobs, their economy, the home lives. in ohio, pennsylvania, michigan, wisconsin. what particular message do you have too those people that says i will do better for you and your families economically than president trump has done? again, sestak:

accountability, doing what's right for people above party. for example, when i walked 422 miles across pennsylvania and had an open town hall each day of that 36 they walk, i made sure they understood the policies i was supporting. for example, training for a lifetime. people talk about debt for college youth and i understand that. i have two big proposals to reduce it. the federal government makes 127 billion dollars today because they put the loan rate on the wrong treasury bond. they will make that doing profit. but training for a lifetime, think about it, we spend the least, the least of any developed nation on labor trading. when a coal miner loses his job, where's the training? are not like germany and others who do what the united states military does.

when a man or woman loses their because the f-16 went away, we send them to the largest community college in the nation, the u.s. air community college learned to upgrade skill and go to the f-22. we need to do that for those workers. so, when you brought back those trillions mr. trump that were overseas for corporations that already had 5 trillion they were not investing, it went to stock dividends and buybacks. working with them its homeland defense education and training for acquiring and reacquiring a skill. 4,id: it's the eve of july celebrating the nation's birthday. we heard from the president just yesterday that there will be a big military extravaganza parade on the mall. as a veteran, has someone who served as a vice admiral in war, in the white house, what do you think of that? admiral sestak: i think there is

no one you can honor higher than a veteran but i will tell you ass, what stands in my mind i read about this over the past weeks that it was going to happen, i remember george washington. when the revolutionary war was the man who had been commander in chief, the most powerful man in the new america asked if he could come to the continental congress and hand sword, to bec his owned, kept by the congress to demonstrate that in this new america, unlike england and other places where many of us had come from, that we were to the legislative power and never again would we have a powerful man in the world taking over. that was an important symbol that the president should remember. you know what? king george of england when he heard about it said that that was the most remarkable man who

has ever existed and that's what we should of remember about the military. we are underneath, we serve, and we should not look like it is all about the military. we are servants. ford: thank you so much being with us, admiral, from iowa where he says he lives now. thank you for being with us. t-mobile says to -- they are on .he cusp of a sprint takeover people familiar with the matter tell bloomberg that the deal could get a go-ahead after they establish the general outline of asset sales to dish out what. they became a strong fourth market, up onthe the news we will bring you more headlines as they develop. this is bloomberg. ♪

♪ david: you are watching "balance westin.." i'm david steve israel served for 16 years in congress representing districts on long island and served the democratic party as the chairman of the democratic campaign committee and communications committee. we welcome him now to bloomberg coming to us from west babylon, new york. welcome, congressman, great to have you with us. >> happy july 4. david: indeed. before we talk about what's going on in congress right now, tussle overto be a the eye word, impeachment or not. nancy pelosi seems to be trying to control the caucus. what do you make of her strategy? is it effective? what should she be doing? rep. israel: well yes, it's effective. with speakerely pelosi when i share the

democratic campaign committee. the most telling thing i can tell you about her is that in her conference room she only hung one thing on the wall and it was a portrait of abraham lincoln as a member of congress. reminding her members that lincoln once said that public sentiment is everything. that doesn't mean that she should act on it, but you have got to shape the sentiment before you plunge into it. in her view, without certain prerequisites this would badly backfire. probably it would elect a democratic majority in the house and allow donald trump to and it a new generation would help to elect democrats and state legislatures throughout america in 2020 who can start redistricting americans -- democrats out of congress.

what she wants to do is shaped the battlefield a bit and the way you do that is you have these investigations with congressman shift -- congress ship on intel and she has empowered them to exercise oversight responsibilities, secret attacks lead, and when they are incontrovertible and of the facts require republicans to join in a bipartisan effort, at that point i think she will be receptive to it. that landscape does not exist now. david: were you at all concerned message getting the country. that democrats did well in the midterm elections by saying that donald trump might take away your health care. take away your private health insurance.

is that where the democrats really want to fight this out question mark rep. israel: your assessment is correct, run now they have a strategic conundrum, they are fighting a nomination's strategy and when you fight a nominations strategy as the democrats are, you have got to shift to the base. ideological voters vote in primaries, democratic or republican. what you are seeing is a nomination strategy tugging democrats further to the left. the problem with that strategy is that at a certain point it's insufficient to win a presidential election. democrats have to steal states from donald trump and electoral college. michigan,a, florida, wisconsin, as well as others. voters in those states are not as far to the left as one would imagine based on that debate, so the democrats have that classic problem of nomination strategy forcing them further to the left with general election strategy requiring that they had more to

the right and that is going to have to be worked out over the next several months. david: and donald trump the candidate spoke for a well to ohio, michigan, wisconsin, some of those working-class middle-class people who felt left behind. do you see anyone in the field right now who is doing a particularly good job of that? the thing,: here's this election ultimately rests on seven battleground states, 20 five swing counties. lucerne, lackawanna in pennsylvania. if a democrat does ray well in those counties, they will win pennsylvania, donald trump loses it. in, democrat does very well say, hillsborough, florida and over performs in miami-dade, chances are donald trump loses that. i have not formally endorsed a candidate, though full disclosure i attended a fundraiser for joe biden because i wasn't -- invited.

as long as the hors d'oeuvres are good i will go. but the fact of the matter is that biden has a record of winning those counties. when i chaired the democratic national campaign committee and we try to figure out what candidate could most help our frontline democrats in tough republican areas that were fighting against a win, biden was the guy that could go into those counties. david: congressman, thank you very much, come visit us here have promise you we will some good hors d'oeuvres. former congressman steve israel, thank you so much. president trump says trade talks with china are ongoing and it's more important to get the right deal them to get it quickly. i spoke about this with peter navarro, assistant to the for trade and manufacturing policy earlier today. peter: actually you didn't see what happened between president trump and president she -- --sidency -- president she

president xi. great personal chemistry between the presidents. we had a frank exchange of views and a strong, strong commitment to going back to the negotiating table. robert-- imposter lighthizer is leading negotiations and as we speak, plans are being made to reengage both in chinase and here in the united states. so, what we prefer to do always is to negotiate behind closed doors in good faith and not in the newspapers. david: is it realistic to get china to make any accommodation at all on the basic way it structures its economy? that's at the core of a lot of , with itsctions subsidies and special arrangements between the government and those companies, is it realistic to have any movement on that at all?

of course it is and we had a 150 page agreement that dealt with the seven structural issues that we are trying to resolve, including forst technology transfer, ,ntellectual property theft cyber intrusion into the business networks. so on and so on, state owned enterprises. i think there is a recognition withn china, particularly certain performers leading to negotiations on their side that in order for china and the chinese economy to get to the next leg of growth and prosperity, they need to make these fundamental structural reforms. there is a will in china to move to that. we are going to the negotiating table and from the point of an investor i think that this is very bullish, it will take some time, as the president has said he, he wants to get this right and in the meantime, in the short run over the next month or two the two things i think from investors point of view that are salient are whether we passed

the u.s. mexico canada agreement and whether the fed cuts interest rates, which it should. on the usmca, if you look at what that will do, it's worth over a point of gdp growth, half of a million jobs, 75,000 jobs in the auto sector, modernizing the agreement into the digital services thatso we are very strong and. those are the kinds of things i think investors should look at as the chinese negotiations go on in relative stability. david: that was part of my david navarro.th a system to the president on manufacturing policy. from new york, this is bloomberg. ♪ bloomberg. ♪

david: we are minutes away from the close of equity markets. here to take us there is remain. take us to the new wrote -- romaine bostick.

it'sght now it looks like headed for its eighth record close in 2019. remember, the dow was lagging and the nasdaq was lagging. as of right now the nasdaq 100 and the nasdaq composite are about one point of a closing high and the dow looks like it is going to close above its record high as well, you essentially have all the major averages closing at a record high. the one big copy at that investors have told us is we are seeing a huge lag into sectors with small caps and transports. keep in mind it's still 10% below the all-time high and the dow transport is about 9% below. the david: another -- david: another copy at is how much it's getting traded. this shows the full red circle on july 4, it goes way down. >> this is typically one of the lowest volume days of the year.

it is a pretty low volume day and it is certainly having an outsized effect on the moves that you are still seeing solid buying in these areas and the right now we are down 18% below the 30 day average for volume. david: it's not just stocks, but it's bonds as well, yields. >> and it's not just in the u.s., it's globally. you are seeing it everywhere now from the fed, the ecb and central banks worldwide. david: and friday is jobs day. >> this is going to be huge. at the jobs report doesn't deliver, it's the good news and the bad news that they expect and you could see more market volatility. and again he won't have that many people in the office, i expect. that youne's saying

will see huge moves if you get a number that is far away from the defensive estimate, 162,000 jobs on the headline. higher or below that, you could see something else. news bad news. >> that's the environment right now. david: i willdavid: remember that on friday. thank you, he'll be anchoring "market" quote in a few moments from right now. global latest on politics in your inbox every single day. coming up tomorrow, the boston pops fireworks spectacular. you can catch for coverage of the event at 8 p.m. in boston this is bloomberg. ♪

>> u.s. stocks rising to new records as a shortened trading day comes to an end. i'm caroline hyde. romaine: i'm romaine bostick.

joe: and i'm joe weisenthal. up threeinging, quarters of a percent, joe, this is a significant rally. joe: we have had a lot of days like this lately weather hasn't been that much news going on or the news that we have gotten hasn't been that amazing but we have had substantial gains here. romaine: the dow jones is at a record close, s&p at a record close, the nasdaq composite and s&p 500 at a record close. caroline: wow. romaine: go ahead and say that. i'm a glass half-empty kind of person, the russell 2000, below its high. i canceling that plan, without russell 2000 how can we separate -- celebrate anything? [laughter] caroline: but that is sort of what drove this, isn't it? elvish sentiment with nominations to the fed and even