with i'm mark crumpton bloomberg first word news. consolidated edison says rolling blackouts are not expected to happen during the sweltering heat wave. the new york utility provider has been facing the heat since last week's blackout the left many without power. earlier this week, they mourned much of the city is on the verge of some isolated power failures. in california, oil producers are racing for a crackdown on drilling. governor gavin newsom has far the chief regulator in charge of issuing permits. two environmental organizations accuse the regulator of boosting the number of drilling and fracking permits this year. in lebanon, protesters are rally against proposed austerity budgets. demonstrators broke through a security brigade in parliament. was met with criticism for failing to address structural problems. the budget is expected to pass despite the criticisms. the kenyan president has launched what officials call africa's largest wind farm, a project that is producing electricity

. ♪ mark: i'm mark crumpton with bloomberg first word news. nancy pelosi has weighed in on a report that u.s. second-quarter gdp growth slowed. think that our gdp will when we raise the minimum wage and people have more purchasing power. these are people who will spend and inject demand into the our gdp and therefore, will rise. the speaker also says democrats will be pitching a message to constituents on the need for lower health care costs, bigger paychecks, and more ethical government during the august recess. the house return for legislative business september 4 -- ninth. the trump administration has unveiled a federal aid for farmers. the administration is set to allocate an additional $16 billion in funds to help the agricultural industry. payments are set to begin next month with a $500,000 per person limit. the move comes after last year's $12 billion package. agriculture

i'm mark crumpton. this is bloomberg. between the trade truce the u.s. and china announced during this weekend's g20 giving huawei a little bit of a reprieve, but it is seen as only temporary. joining us is ian king, technology and network reporter. we saw a rally of stocks not only in the u.s. but some of the asian suppliers as well. what do we know about the deal or what we call a deal right now with regards to how businesses will be able to do business with huawei? ian: that is a good question. we have a tweet, explanation, and a little bit more of an explanation. any we don't have is concrete policy or guidelines. at the moment, u.s. companies that want to do business with huawei have to go to the commerce department and say, can we send them this? is this ok. really, nothing has on the ground changed right now. huawei is still cut off and we still have this situation whereby there are still some exports coming onto huawei through this so-called loophole. joe: there is still a fair amount of ambiguity or maybe nothing has legally changed, but was tha

i'm mark crumpton. this is bloomberg. ♪ >> starbucks surging, the coffee chain reporting its best sales growth in three years. ceo kevin johnson spoke to david westin about why he is bullish on china growth and the company's partnership in europe. china, i am son bullish on it for the long term. it is a large and growing addressable market. it is primarily 18 drinking culture -- 18 drinking culture -- a tea-drinking culture. same threehe drivers, creating great customer experiences, beverage innovation and our digital mobile relationships all contributed to that growth in china. the same formula that has driven the success in the united states, our team in china -- we build starbucks in china, for china. we have a great team driving that. the results were phenomenal. >> you are saying a different approach when it comes to nerve -- come to your. you are teaming with nestle. nestle came out with their earnings. tell us where that stands right now. how fast is it growing? >> the global coffee alliance wi

i'm mark crumpton, this is bloomberg. ♪ ship -- fork for jay powell. globaldly citing slower economic expansion and laying out the case for easier u.s. monetary policy. let's welcome a fellow at the roosevelt institute, where he works on the financial's asian project, and also an assistant professor of economics at john jay college, focusing on the economy of political credit. you seem to be the person to ask about the phillips curve. we are talking about this more and more, more than i thought we ever would. i guess what i don't understand is why there seems to be so much agreement that the curve is either irrelevant or needs to be tweaked in some way. is becauseous reason we have had this big falling on unemployment with no change in inflation. if you think there is a strong stable relationship between -- i think there is an argument that the relationship is never as strong as we thought. brought us a chart. one reason perhaps the inflation rate hasn't picked up along with the drop in unemployment rate is the number of an implement rate. >> the labor

i'm mark crumpton. this is bloomberg. ♪ caroline: oil had its worst reaction to an opec meeting in more than four years. prices sliding just after the intel --let's bring bloomberg economist. is it almost as if saudi arabia's restraint is signaling things will get worse than anyone expected. >> they were a couple of factors behind the reaction. one was short-term, how badly mean -- how badly managed the meeting was. caroline: opec, never. >> particularly this time given that the main decision had been made at the weekend g20 meeting anyway. the very fact that you have opec plus where you have all these countries involved, if you think about the way opec is set up, it is really set up for a world in which demand only ever goes up. when prices drop, investment drops, and it takes a long time for rival supply to come back on. none of those things really hold true anymore. shale comes back quickly in regard to prices. demand is less certain than it used to be. joe: u.s. oil production now topping 12 milli

i am mark crumpton. this is numbered. -- this is bloomberg. romaine: boeing says it will take a $5 billion charge regarding the grounding of the boeing 737. there are additional costs of costs to beillion, taken for the second quarter. this was largely expected, but now we have a number. the north american burger chain red robin is rallying after hours. that after a formal offer from vintage capital buying for $40 per share. we knew that this was potentially coming back in june. on the 13th, they said they would be willing to take this did, it will be its third-largest shareholder. >> u.s. home sales to foreigners tradenking, increasing tensions. economists are pointing to concerns ranging from ryan -- rising prices to foreign cars and sees rising against the dollar. we are joined by the managing director at -- first, how much of this is just slowing global macro economic trends and how much is this distinctly related to politics here in the u.s.? >> it's a great question. when you look at the mindset of a foreign investor, they are coming her

i'm mark crumpton. this is bloomberg. >> representative jayapal just wrapped up his testimony on capitol hill. we are turning to our correspondent in idaho covering the rocky mountains economic summit. essentially signed sealed and delivered we are going to have a cut in july. >> he did not say that the way he explained what the fed it is thinking and he suggested that the fed may attack the economy left no doubt in the minds of investors that the fed is going to cut and ratify that now. the real question becomes do they do it to five or 50 basis points? we will wait to see what the data tells us. we got a little more on core inflation today so maybe the data will argue for 25. >> he basically said there is going to be a cut. the markets, it feels like they are saying let's -- we would like some more. is the fed paying attention to the markets? -- anre is a new york argument out there that they are being led by the markets and forced into a rate cut when the economy doesn't need one. jay powell pushback