this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: in london, i'm guy johnson. this is "bloomberg markets." positive results from air france klm, bucking the downward trend seen in rival carriers, reporting an increased second quarter profit line. the results boosted by long awaiting freight renewal programs, as this airline puts years of labor woes behind it. joining us from paris is the company's cfo frederic gagey. thank you for spending time with us here at bloomberg today. air france klm has had a difficult few years. these results seem to suggest it has turned a corner. ?s it sustainable frederic: yes, i think it is good news. you have seen free cash flow positive, reduction of the debt, and a slight improvement of the -- compared to last year. it is improving compared to last year, but you are member last year we had a strike air france, so we have to take it more carefully. on top of that, the fleet renewal program and also a positive vote of the pilots on the extension of the fleet, so yes, we are far from the difficulti

vonnie: in new york, i'm vonnie quinn. this is "bloomberg markets." facebook keeps rolling despite an onslaught of regulatory scrutiny. second quarter sales beat estimates. new user additions helping, and also advertising revenue. joining us from san francisco is bloomberg intelligence senior and of just -- is our bloomberg intelligence senior analyst. an effect on facebook's advertising revenue. reporter: pretty much. going into the quarter, if you look at the expectations, revenue growth was supposed to decelerate. instead, it accelerated 28%. that is showing the strength of how they are managing this transition to stories. that has been one of the worries for growth for facebook. stories pricing is lower than newsfeed. they are moving to that platform much more aggressively. they're moving to the privacy focused initiatives. what does that balance due? but they've been managing pretty well, but in light of the regulatory scrutiny and ftc fines, these results were very impressed are that's very impressive -- were very impressive. guy: is there fear

vonnie: in new york, on vonnie quinn. this is -- i am vonnie quinn. this is "bloomberg markets." jeffreyfund manager epstein appears today in court on federal sex trafficking charges for girls as young as 14. he was arrested after years of accusations of child molestation. prosecutor who agreed to a previous plea deal, alex acosta, is now secretary of labor. british prime minister theresa may is moving to contain the fallout from leaked memos regarding president trump. the investor to the u.s. referred to the president as inapt and the white house -- as house as the white nonfunctional. british lawmakers opposed to a new deal brexit want to stop the next prime minister from forcing a chaotic break from the eu without parliament's consent. boris johnson is the overwhelming favorite to defeat jeremy hunt. the new prime minister is expected to be announced during the week of july 22. the u.s. women's soccer team will celebrate their world cup victory in traditional style. there will be a tickertape parade in manhattan. -- theyt another lens beat the netherlands 2-0 and france. globa

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's catch up with those markets. here's abigail doolittle. abigail: a mildly risk off tone. take a look at the s&p 500, up 2/10 of 1%, but really outperforming the philadelphia semiconductor index. we will take a look at a few of those in the moment area that is up 1.6%. the dax in germany up modestly, similar to the s&p 500. where we saw some underperformance, the shanghai composite down 1.3%. perhaps wavering around trade tensions. we will be tying that into a broader theme, but first let's take a look at some of those chip stocks, micron in particular. you see a big pop on the day. over the last four, up almost 8%. goldman sachs upgrading the shares to a buy from a neutral, saying the overall memory trends are improving. they also upgraded applied materials and lam research. we see nice gains there. true too for halliburton. they put up a strong second quarter, beating estimates. davita health care announced to the u

from new york, i am vonnie quinn. welcome to "bloomberg markets." federal reserve policy front and center this friday. even the u.s. president weighing in. first, breaking university of michigan consumer sentiment data, disappointing slightly for the preliminary reading in july. current conditions were a little lower than expected. expectations did beat estimates, coming in at 90.1. one year and five year inflation coming in at 2.6%, stable there. this is all going to factor into the federal reserve thinking, and thaboy did we get a glance into that in the last 24 hours. this has been a big week. above 3000. some of the banks impressing investors. kbw baking index up 06%. -- schumberger down 1.9%. generationlow seeming to have investors spooked. alliance data systems the worst performing on the s&p 500. there is a little selling going on in that stock today. let's go to europe, where we are seeing some challenges in italy. the ftse moved down 1.7%, the worst performance in europe. the stoxx 600 is higher. it is up 0.2%. earnings in europe pretty str

vonnie: i'm vonnie quinn in new york. amber: one of the big stories in trustana, the ceo of can is out following a scandal over a regulatory breach and reports of unlicensed cannabis growing. shares climbing after the board fired the chief executive .fficer peter aceto joining us for the legal implications is eric foster. thank you so much for being with talk about the impact trust is having on the sector. basically, accused of growing marijuana but not having federal license to do so. >> it's been a tough week for the industry. very much in the industry, there is this mentality that a rising tide lives all boats. in an industry that is still trying to gain social acceptance , and the level of legitimacy, it's been a challenging couple of weeks. vonnie: is this an isolated incident or will we see other layoffs, firings? >> i think we are going to see -- it will be interesting to see what ultimately happens. regulatorsent and are still doing their due till review. canntrust is completing their internal examinations. i thin

vonnie: in new york, i'm vonnie quinn. this is "bloomberg markets." let's get a check on first word news with kailey leinz. >> boris johnson will be the next prime minister of great britain. he defeated jeremy hunt in a battle of the conservative party's members. johnson will take over a country in crisis and a government on the brink of breaking apart. he will have 100 days to negotiate a divorce tear with the european union before the u.k. is due to leave. a senate committee is questioning fbi director christopher wray today, and maybe asked about russian election interference. theaid there is no evidence fbi illegally monitor the trump campaign. meanwhile, president trump has agreed to make more timely decisions on whether american companies can resume sales to huawei. larry kudlow says companies are seeking waivers only when there are no national security implications. that could move the u.s. and china closer to talks on trade. former vice president joe biden is proposing changes to a crime bill that he helped write. in new orleans today, the dem

this is bloomberg. ♪ ♪ vonnie: live from new york, on vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets. was go to our" is -- this is "bloomberg markets." let's go to our stock of the hour now. emma chandra is here with more. today, very nice pop cisco paying $70 a share, a 46% premium on acacia's closing price as of monday. cisco known for the hardware that powers the internet and corporate networks, but really pushing into the software and services sector as a way to fuel further growth. it wants 50% of their revenues to come from software and services by 2020. they are currently at around 30% of revenue, so acacia is the latest in the line of billion-dollar acquisitions that is helping them get there. they are saying that their circuit business, which is heavily focused on the cloud and data centers, is really going to help them get there. cisco is already a big customer. one potential fly in the ointment is china. cisco has been left out of the china market. they don't get a lot of revenues there, but acacia does. this de

in london. 30 minutes in the trading day, i am taylor riggs, in for vonnie quinn. guy: i am guy johnson. welcome to "bloomberg markets." taylor: let me start with consumer confidence. a little bit higher than expected, guy. it is feeding the sterling number, -- beating the sterling never and higher for higher than what it was prior. humor confidence coming in better-than-expected. beating estimates. let me take you over to pending home sales. month over month, year-over-year, pending home sales coming in higher, 2.8%. survey estimate of .5%. pending home sales on the seasonally adjusted year-over-year basis declining .6% drop.

vonnie: i'm vonnie quinn in new york. it is a move hoping to be a major step forward in the industry disruptive transformation. volkswagen and ford are teaming up to make electronic and self driving technology. the ceos of both companies spoke to david westin. >> we are in close relationship some of our chinese partners, but we are big enough to have economies of scale. one is to come in the automotive industry is big investment in autonomous, electric vehicles. it just makes sense even for two big companies to share the efforts, which will make both companies faster and more efficient. >> how does this fit with your restructuring in europe? >> it helps the renaissance. came in parallel as we were working on the autonomous problem. the past year in november, i was watching one of my favorite football games, the ohio state-michigan game. at halftime, i called herbert. as we are working through this technology, it occurs to both of us, there is opportunity to expand the nature of this. he said, look, you have to take a look

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: this is "bloomberg markets." time for a bloomberg business flash, a look at the biggest business stories right now. , fighting ahnson lawsuit asking for a warning to be put on its baby powder products. the company is pushing back on a texas law firm. the law firm calling for it now wants to dismiss the case. the new jersey-based health care conglomerate faces more than 40,000 lawsuits accused the company of hiding the health risk of baby powder. down a group is winding credit business -- and energy credit business. bloomberg has learned the will manage out the rest of the portfolio. investing inostly energy and power companies. -- is in talks to acquire genomic health heard --. the exact sciences focuses on early detection of cancer, genomic health business is in commercializing clinical oncology tests. that is your bloomberg business flash. vonnie: time for another highlight from a conversation with mike pompeo. he spoke with david rubenstein today at the economic club of d.c. t

call now to learn more. ♪ vonnie: live from new york, i'm vonnie quinn. this is "bloomberg markets." let's check in on the bloomberg first word news. here's reddick took up death -- here's ritika gupta. ritika: here's france's finance minister. >> i think that digital taxation is a key issue because you have a new business model based on the use and sale of data. in the 21st-century it is not taxed at the right level, so i think it is in the interest of all countries, including the u.s., to have fair and efficient taxation of this new model. ritika: u.s. treasury secretary steven mnuchin was less enthusiastic. he says the trump administration still has big issues with the approach. democratic presidential candidate elizabeth warren has declared war on what she calls private equity vampires. her plan would make private equity firms responsible for debt and pension obligations of the companies they buy, plus their profits would be contingent on the company's success. the u.s. and china are struggling to find a path forward in trade talks. it has been slow p

vonnie: in new york, i'm vonnie quinn. this is the european close on "bloomberg markets." guy: clearly deutsche bank a big factor in what we've been watching today. focus is what is happening with deutsche bank. that continues to be the story. initially popping up this morning. it is finishing towards the bottom end of the daily range, trading down by 5.31% at this point. the stock really getting knocked as we approach the afternoon. a big movement to the downside. the market voting, and it is not a vote of confidence. the greek 10 year one to focus on. the new democracy party winning the election over the weekend. on,ie: as we heard earlier that may not be so easy. the s&p 500 down 0.5%. chip stocks playing a part, which has the nasdaq down even more than that. 10 year yield bouncing up a basis point 02. 2.01 earlier. apple got a downgrade at , now with sell ratings at five analysts. lira moving since resident erdogan this mist the turkish central bank governor. guy: we are going to talk about that later on. let's talk no

vonnie: and i'm vonnie quinn in new york. time for the latest bloomberg business. nissan reportedly cutting at least 5200 more jobs around the world according to kyoto news. it comes on top of a project unveiled in may 2 shed 4800 jobs . recent car models and poor sales in the u.s. are blamed. united technologies rated its again off it forecast, the company continues to show strength in the aerospace markets and that is seen as an of the ceos plan to reorganize around aviation and defense. that is your latest bloomberg business flash. checking markets now we are seeing gains for the three major averages, the s&p 500 is up 3/10 of 1%, but lying all of the earnings reports, some of which are wonderful, like hasbro and sherman williams. thethen of course we had high frequency data out at 10 a.m. eastern and that manufacturing index saying that it disappointingly came in at -12 with economists looking at plus five. interesting home sales as you probably know by now, disappointing a little bit coming in at five point two 7 million in june short of 5.3 2 million that the

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets." let's get an update on the first word news with courtney donohoe. courtney: the trump administration is working on a americans import cheaper pharmaceuticals from canada. the pharmaceutical industry is facing complaints about drug prices from consumers and the government. for the second time in a week, north korea testfired two short range ballistic missiles. conducted as u.s. secretary of state mike pompeo headed to asia. he will be in bangkok for a conference of the association of southeast asian nations. he had hoped to meet with a north korean delegation there, but that meeting won't happen. the crowded field of democratic candidates went at it again last night. 10 of them squared off in a debate in detroit. bernie and elizabeth warren had to defend their progressive politics against attacks from low polling moderates. sen. warren: i know how to fight, and i know how to win. i took on giant banks

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." let's get the first word news with cory donahoe. -- with courtney donohoe. courtney: the treasury department has said that unless congress acts, the government could run out of money to meet their payment obligations this september. inkyoto, 33 people died suspected arson at an animation studio. three dozen others were injured. a man burst into the studio yelling, "you die," and then set a fire. the trump administration is sending more troops to the border with mexico. they will have a number of duties that include being stationed at ports of entry and working at migrant holding camps. president trump is deciding whether to intervene in the pentagon's giant cloud computing contract. amazon is the favorite to be awarded the deal, which could be worth about $10 billion. republican lawmakers have complained that some companies such as oracle have been frozen out of the competition. global news 24 hours a day, on air and at tictoc on twit

: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets." let's get an update on what we need to know. here's the bloomberg first word news with courtney donohoe. courtney: tehran says it has arrested 17 people accused of being part of a cia trained spy would network -- trained spy network. a number have been sentenced to death. this comes days after iran seized a british tanker in the strait of hormuz. president trump taking aim at the federal reserve again. on twitter today, the resident called the fed "misguided," and said it should move to cut interest rates. in puerto rico, hundreds of thousands of people will take to to protest thein governor, under fire after a leak of obscenity filled online chats he had with allies. plus, federal corruption charges have been leveled against is an instruction. india has launched its second unmanned mission to the moon, trying to become the first country to land on the south pole of earth's closest neighbor. the indi

vonnie: in new york, i am vonnie quinn. this is bloomberg markets. sales,e is higher on it but amazon, under pressure as the company warns that growth will come at a cost. joining us is bloomberg's dave wilson. the story of two groups of tech companies. what can we say about the sector in general? is amazon now not just a tech company but a growth company? there is a common thread. dave: companies are doing what they are known for. amazon over the years has been known for investing a whole lot and its business. it has been that way in the past few quarters so much but it is coming back to before. alphabet, the owner of google, it is all about growth and advertising. growth and advertising is picking up. then you think about twitter, it is all about users. what is interesting as they got away from the monthly average user statistics, the one that had shown that they had been struggling the last few quarters. on daily active users where there has been growth all along but it is picking up now and that is working and benefits of twitter in terms of resu

. ♪ vonnie: live from new york, i am finding quinn. -- vonnie quinn. this is the european close. let us get a check on the markets. abigail: a lot is going on but relatively small moves. down .5%, being dragged down by boeing and caterpillar. or exemplifying what we are seeing, that nasdaq up just frack -- the nasdaq up just fractionally. in the u.k., boris johnson is the new p.m. not a lot of distinct trading action. trading sharply higher on a better than expected inventory report. at this point up .7%. not much of a rally. that is influencing the sector composition for the s&p 500. we will see that energy is the top sector here, split between the second verse, there is a neutral risk appetite. energy and industrials up top. industrials being helped out by ups. utilities, consumer staples and health care on the bottom. a neutral risk tone. not much happening for the markets. there are a number of movers. vonnie: thank you for that. another mover is facebook. will pay a record $5 billion -- to repay a privacy -- this is interesting because this is a big slap in the face, but doe

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn and this is bloomberg markets. shares of symantec are plunging broadcom has broken off deal negotiations together. symantec would not accept more than 28 dollars per share. is it possible these talks restart? >> i think it's very possible. they are on hold at the moment and the deal was pretty much done going into the weekend and as recently as yesterday, people were expecting to get this thing over the line with an announcement scheduled for tuesday. down at thely fell last hubble. from conversation last hour, it broke down over price. betweens a price agreed $25-20 eight dollars. -- $28. broadcom found something they thought was maybe not quite right in the due diligence of the price was cut a little bit. symantec felt that cut was not something they could live with. they walked away. we often see these things happen at the last minute but what itsn't usually happen is doesn't get leaks to the press like this did. vonnie: exactly, it was reported that talks were called off. do we have any indication of what the d

i'm vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories we are following. more fighting words for the fed. president trump -- on the central bank, calling it misguided. steven oh joins us in a few minutes. not falling far from the tree. jeff williams is more similar to tim cook than steve jobs. critics wonder if williams is up to the task of ceo, especially when it comes to iconic designs. women and we. the growing marijuana industry is increasingly dominated by men. jordyn holman joins us. first, to the markets. abigail doolittle has been watching tech shares. abigail: you are right, today is all about tech and chips. slightly, slipping between small gains and losses. up .3%.500, the nasdaq, 50% of its waiting coming from technology, so some nice outperformance there. the philadelphia semiconductor index, up 1.8%. on pace for its best day since the beginning of july. one of the best performers for that sector and tech, micron. micron is up four days in a row today, ge

i am vonnie quinn, welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories around the world we are following. all eyes on fed chair jerome powell as the fomc is poised to cut rates, even as the economy shows signs of strength. pfizer and mylan's drug deal. theer will combine with generic drug business which could trigger more movement in the pharmaceutical space. the cat is out of the bag and victoria's secret. the lingerie retailer is struggling with its image now with ties to jeffrey epstein. abigail doolittle is here. halfway into the trading day. >> we are off the lows to some degree, ahead of the fed on wednesday. investors eagerly awaiting to rate cutthe potential decision will yield. right now, the dow up 1.25%. the nasdaq down half a percent. a bit of a reversal from last and nasdaq&p 500 retreating from all-time highs. the vix popping ever so slightly, but very small moves. waiting for the fed. this is what we saw last summer. we had three months, greater than that in fact, of m

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." let's check in on the bloomberg first word news with courtney donohoe. courtney: treasury secretary steven mnuchin told nancy pelosi the government may run out of cash in early september if congress doesn't increase the debt ceiling. he wants lawmakers to act before they take their six week recess starting on july 26, but it is not clear that the white house can reach a deal by then. a tropical storm racing through the gulf of mexico to louisiana could hit the coast as a hurricane tomorrow. the national hurricane center says two feet of rain could fall in some places, and that is likely to increase flooding in new orleans and cost up to $1 billion in damage. the storm has already shut down about half of its global oil output in the gulf. china promising to impose sanctions on u.s. companies involved in arms sales to taiwan. the foreign ministry says those will hurt china's sovereignty and national security. the state department has ap

live from new york, i am vonnie quinn. guy: from london, i'm guy johnson. this is "the european close" on bloomberg markets. let's get a news update. here's courtney donohoe. courtney: the ecb is sending it strongest signal it is ready to step up monetary support for the economy. investors say they expect -- current costs or lower for the first half of 2020 and that leaves room for a rate cut in the first half of september. the ecb says it would resume its bond buying program would continue -- orders placed with american factories posted the biggest gain in more than a year. plus shipments unexpectedly increased and that indicate second-quarter gdp due tomorrow may be better than expected. nearly three years after hurricane matthew cause massive damage across the southeastern u.s., some victims are still waiting on the promise of government assistance. some suffered more damage to their homes during hurricane florence. the federal government awarded north carolina $237 million for matthew recovery. officials say that after

this is bloomberg. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. investors are becoming increasingly skeptical that the deutsche bank chief christian sewing can pull up the biggest overhaul in the bank's history. that pessimism being reflected in the stock price. another selloff today. christian sewing must be saying, what do you want from me? : he has had since sunday night, have patience. it will be until 2022 that we see real results. it will be costly and painful. that said, remember the initial reaction. people like the plant because it was drastic, but now they are saying it is too drastic. it is a tough thing to swallow. saying, this is better for the long term. the hard thing about swallowing the long term for these investors is you don't know what will happen between now and then, especially with the state of the german economy, where yields are right now. vonnie: is it that there is not beugh visibility that may the number of years it will take two and a this plan, maybe too long for shareholders? is that a problem, or is the plan on bibl

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets." let's get a market update. here's abigail doolittle. abigail: a bit of a mixed tone for equity indexes. the s&p 500 and the nasdaq in the u.s., very small moves. the s&p 500 slightly lower, the nasdaq slightly higher. fromtors waiting for cues fed chair jay powell tomorrow during his congressional testimony, especially concerning be better than report last friday that have moved interest rates in a big way. off.n stocks are selling in the asian session, also lower, down about 8/10 of 1%. let's take a look at the 10 year yield over the last four days. three days, excuse me. we have a pretty big backup in rates, at one point the most since january. right now up 10 basis points, the most since the beginning of april. in anticipation the fed might not be quite as dovish as previously thought, some now think that a july rate cut is off the table. whatever does come, there is reason to think that rates wil

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: and in london, i'm guy johnson. this is the european close on bloomberg markets. let's get to the top of the tough week for the oil sector. lowering its sales for the four year. dismal results from his partner. bloombergo exclusively. operation, it is working very strongly. it is an investor project. all of the new cars that we are preparing, all of the new technologies that we are 2020, ad delivery 12 and -- >> it is dragging earnings down. we have been sharing entry tickets. we are sharing as well the cost of all of these elements. otherwise, our results would not be the one that we are expecting for the future. we should never forget the termsce is a reality in of operation and in terms of industry, and that is why we are so strong and resistant. is visibility of what happening and that is our experience. it is very positive. it is very important that for us, the concern because we are, we have all of the necessary conditions to make project -- progress. it is not yet the case

. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. this is "bloomberg markets." labor secretary alex acosta is resigning, effective a week from today. bloomberg investigative reporter greg farrell joins us now. he's been covering all things money related around jeffrey epstein, how he made his money and so on. first, this is one of the first concrete pieces of fallout from the epstein scandal that doesn't have to do with it seemed -- with epstein himself. greg: yes. so much attention has been focused on him and his conduct, but this shows the first real repercussion in government at a very high level. the secretary of out as a direct result of this. depending on what comes out from the federal investigation here in manhattan, this could have repercussions elsewhere as well, well beyond epstein and into the world of wall street or business. vonnie: is it possible to know yet from all we've gleaned, and more will come out as the case proceeds, who else or what other department's might be impacted by this? greg: in terms of the administration, no. but in terms of hi

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. this is "the european close" on bloomberg markets. let's check in with first word news. here is courtney donohoe. courtney: senior officials from the u.s. and china have spoken by phone. no details on what was discussed and no word when negotiators will meet face-to-face. there are still big differences. the u.s. wants china to buy more farm goods, china wants the u.s. to ease restrictions on wall way -- on huawei. and germany, chancellor angela merkel so she has been feeling good and plans to serve out her term. there has been concerns about her health. she has been seeing trembling at public events. in california, oil producers are bracing for a crackdown on drilling. kevin newsom has fired the cheap right -- the chief regulator. mexican drug lord known as el chapo has banished from his jail cell in manhattan and no one is saying where he is two days after he has been given a life sentence. his lawyers say they do not know. the marshals service will only say he is in custody. he is

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: and from london, i'm guy johnson on the european close. let's get a first word news update. courtney: chinese and american negotiators will meet again this week or two days of talks in shanghai. truce reached by president donald trump and the chinese president last month at the g20. china has indicated it will buy a good with the u.s. is still waiting whether to ease the prohibition on wallprohibition a wei. hundreds of tons of lead melted at notre dame when the conceit -- when the cathedrals roof burned sending toxic levels into the air and city officials ordered a deep cleaning for the neighborhood schools and help the 30's recommend a blood test for those who live nearby. police and running california said they are not sure why do men opened fire at a popular garlic festival on sunday. one thing is clear is that he went with the intention to kill. gilroy police a was armed with a rifle and cut through a fence to avoid security. three people were killed and at least 15 were wou

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 following. radical surgery for deutsche bank. a massive revamp of the german bank, closing its equity business, cutting a fifth of its workforce and scrapping its dividend. sees theays he still need for a lot of things to go right. powell in the line of fire. president trump keeps the pressure on the federal reserve to cut rates as markets price out more rate cuts this year. focus turns to powell's testimony before the house and senate this week. insight on how hedge funds are hedging geopolitical risk, that is later in the hour when rob christian. we are halfway into the monday trading session. taylor riggs is with us. seems to be tech shares. taylor: leading the losses off, the s&p 100, down to the lows of the session. i want to throw the 10-year up here as well. the largest move in terms of a one-day loss. we are not seeing any more moves off of that, hovering right

from new york, i'm vonnie quinn, welcome to "bloomberg markets." here in the u.s. we are seeing a .it of a mixed picture the s&p 500 struggling to stay above the 3000 mark at it is down two points right now and we will see how it plays out throughout the day with anchor of america earnings up 1.1%. net interest margin pressures there that we will be talking about in a moment. you can see the 10 year yield down a few basis points following europe's lower end yields there and one of the big earnings stories of the day, csx shares could fall to levels they haven't seen in a few months. a fairly sober assessment of freight markets that could pressure union pacific and some of the other transports as well. major indicese are nowhere in the dax now, down two point tempers -- two point 1%. -- 2.1%. ericsson right now is down more than 10%. it as well giving a sober picture of asia, saying that it may be a little bit too optimistic on profitability 2020.s for back to the main story in the united states, bank of america with record second-quarter earnings on the interest in

i am vonnie quinn in new york. >> i am guy johnson. theresa may has departed and we await the arrival of prime minister boris johnson. robert mueller on capitol hill, a lot happening today, breaking economic data with new-home sales in june coming in just short of estimates, rising 646 percent month over month. the month over month percentage better than forecast bed near the year over your figure, slightly less than forecast. let's get to the markets because we have other information with goingp 500 over 3000, not anywhere but some drags comically caterpillar, down 4.5%, some drag, including kellie pickler, down 4.5 -- caterpillar, down 4.5%. boeing, that is total of more than $8.3 billion and analysts are looking whether that number will rise in coming quarters. facebook with their fine down 1.5%. let's look at where the pound is trading. a lot of economic data and political news out of london and germany today. pound is trading higher. we have a 4/10 of 1% gain. the euro is trading lower. incredible weakness out of germany in terms

. >> live from bloomberg world headquarters in new york, i'm vonnie quinn. amanda: i'm amanda lang in toronto. welcome to bloomberg markets. here are the top stories we are following from around the world. the new york fed president john williams and vice chair richard clarida says don't wait for the economy to enter a downturn before cutting rates. the new york fed walked back the comments. the latest in the great rate debate. and an interview with robert strayer, about how the u.s. is trying to win the battle for 5g. day as wetoric remember the 50th anniversary of apollo 11 landing on the moon. a look at how far we have, and how virtual-reality could help nasa kickstart new journeys. flat on the s&p 500. will we make it back to 3000? the dow is happily sitting on a quarter of a percentage point gain. the nasdaq up just four points. also looking at microsoft. it was one of those earnings reports that pleased analysts and investors. the stock was higher for the session, up 1.4%. cloud services really helping microsoft. they may have also been a pull forward

in new york, i'm vonnie quinn. welcome to "bloomberg markets." vonnie: from bloomberg world headquarters committees are the top stories on the bloomberg and from around the world. trading low, we will speak to -- and snape is hoping for an earnings beat after the bell today and investors are watching. moving from the u.s. to italy, is it the end of globalization? first let's go to abigail doolittle. we are halfway into the trading day and we are holding onto little gains. abigail: the dollar is doing better than any major averages. we are looking at another up today for the dow, s&p 500 and the nasdaq. earnings are related. we have that bipartisan debt deal helping the u.s. dollar, up for tens of 1%. up for a third day in a row. the best stretch for the dollar going back to june. the dollar is getting a bit of a bid. but that has not hurt coca-cola or united technologies, both companies are big multinational companies that receive more than 40% of the revenue from abroad. coca-cola trading at a record high of 5.9%, they beat comps in a big way. g

vonnie quinn asked the ceo bob swan about the forecast for china. bob: china is a big market for us. we have been operating in the country for over 30 years. we have important customer relationships. a global supply chain. we have a really strong employee base. it is a big and important market for us. what we have seen over the last several quarters is two things. one, overall demand has slowed as our customers have digested fairly significant purchases last year. secondly, we saw a bit of an acceleration of demand heading into the second half in the second quarter because the fears of the potential of additional tariffs being imposed. those combination of factors have china, an important market for us, being a little slower this year than what we had anticipated at the beginning. guy: good morning. judging by the analysts' notes i have read, the concern seems to be that amd will put your gross margin under pressure. what is your answer to that? bob: first, we have a great lineup of products as we go into the second half of the year. for our data ce

vonnie quinn asked the ceo bob swan about the forecast for china. bob: china is a big market for us. we have been operating in the country for 30 years. we have important customer relationships. a global supply chain. we have a really strong employee base. it is a big and important market for us. what we have seen over the last several quarters is two things. one, overall, demand has slowed as our customers have digested fairly significant purchases last year. secondly, we saw a bit of an acceleration of demand heading into the second half in the second quarter because the fears of the potential of additional tariffs being imposed. those combination of factors have china, an important market for us, being a little slower this year than what we had anticipated at the beginning. guy: good morning. idging by the analysts' notes have read, the concern seems to be that amd will put your gross margin under pressure. what is your answer to that? bob: first, we have a great lineup of products as we go into the second half of the year. for our data center bu

. ♪ vonnie: live from new york, i am vonnie quinn. this is "the european close" on bloomberg markets. our stock of the hour is gilead sciences. it has paid billions of dollars to gain access to the pipeline at the luckless. taylor riggs has new details. stake in the partnership they already had a small agreement with. this expands an agreement they had in place. gilead, about 60% of the revenue comes from hiv and another from hepatitis b. 80% of their total revenue in two key areas. this partnership with galapagos well emphasize key areas. it is all about slowing growth for these key areas. sales over a quarterly basis declining or stagnant, now only 5.3 or $5.5 billion. the partnership with galapagos should be in diversification and this is a huge investment in r&d and the future pipeline to provide growth for the company. it is interesting that the ceo of gilead said 30 years. this is the same strategy where he avoids an outright m&a and focuses on some of these partnerships. you have some upside potential but you're not having to o

in london. 30 minutes in the trading day, i am taylor riggs, in for vonnie quinn. guy: i am guy johnson. welcome to "bloomberg markets." taylor: let me start with consumer confidence. a little bit higher than expected, guy. it is feeding the sterling number, -- beating the sterling never and higher for higher than what it was prior. humor confidence coming in better-than-expected. beating estimates. let me take you over to pending home sales. month over month, year-over-year, pending home sales coming in higher, 2.8%. survey estimate of .5%. pending home sales on the seasonally adjusted year-over-year basis declining .6% drop. it looks like a consumer confidence beats on the top line. coming a lot stronger as well. is ad know that the s&p little bit lower and that continues to be the case. off by .4%. the big headline number is tech. semiconductor coming in with it is sporting forecast. it is dragging down all of the tech sector. three-month, 10-year. only inverted by -1 basis points. jay powell tomorrow,, he will be happy about that. want to take a look at the fin

i'm shery ahn in for vonnie quinn. welcome to "bloomberg markets." shery: from bloomberg world headquarters in new york, here are the top stories on the bloomberg and around the world. protesters and police by lome in hong kong, a dramatic escalation of opposition efforts to force the government to withdraw controversial exhibition legislation. we will have a live up eight. .oosening the leash on huawei president trump announcing plans to relax the rules on the chinese tech giant. opec saying it will extend production cuts into 2020 as the world's leading oil exporter looks at a weakening outlook for global demand growth. halfway into the trading day. taylor riggs is with us. we saw this risk on move after the g20. seems to be caring into the u.s. back atcertainly not the highs of the day, but we are continuing to see gains. what catches my eye is it is all about tech and the stocks index, which continues to be the upper performers. if you come into my terminal, when we look at how sentiment is about trade, we look at stocks outperformance, underperf

vonnie quinn caught up with medallia ceo leslie stretch on the floor of the new york stock exchange. leslie: i'm a software guy. i'm looking at the future and how we can build better software to help our customers understand their customers. it is a great day for everyone. great start for the company in public life. vonnie: what was the investor reaction? we have seen a lot recently that might have been an option, but you did not choose that option. why not? leslie: i think people need to know the story of medallia. we are an enterprise company that has worked with the biggest brands in the world. to help them understand their customers intent. why they leave, why they stay and why they buy more. it is useful for us to do the traditional roadshow and communicate with investors, long-standing partnerships with the investor base. vonnie: what her future plans to diversify your revenue stream? right now, it is a healthy growth rate you are seeing. it is primarily subscription-based which pleases investors. is that going to continue and is there other ways you can go for different stream

. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. positive and marcus is not the only executive on capitol hill today. google, facebook, amazon will be in the hot seat this afternoon during a hearing with the house judiciary committee on antitrust. lawmakers will investigate whether the company's dominance stifles innovation and prevents entrepreneurs from starting new businesses. joining us is jennifer rie, our senior intelligence analysts for litigation. when the bigots and concrete moves on antitrust litigation? jennifer: we will be waiting for a while. there is a lot of excitement because there are these high-level executives coming to speak. it will be interesting what they have to say but this is just one of a series of a broad look at this committee is conducting in the power of big tech. it all started last month when they looked at the effect of traditional news from these companies, and then moving on to this innovation. there will be other hearings. ultimately, what they are looking at is whether there is a there isere, wh

. ♪ vonnie: live from new york, i am vonnie quinn. this is european close on bloomberg markets. let's check in on first word news. here's record group to -- here is -- >> retail sales did better than expected in june. that indicates sales were already healthy before an expected interest rate cut. , if you backdrop cars and gasoline, sales were up .7%. u.s. factory output also rose more than expected. june thanks .4% in to a solid gain in motor vehicle production. that suggests american manufacturing is rebounding despite trade tensions and a global slowdown. a high-level u.s. delegation may had to china for trade talks. if those discussions are productive, steve mnuchin says he and robert lighthizer will go to beijing. expects china to announce large-scale purchases of american farm products soon. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. vonnie: thanks. the chances of reaching her brexit deal anytime soon seem to be getting worse according to european officials. a meeti

from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. welcome to "bloomberg markets." vonnie: the bank of canada rate decision just about to come across. economists not looking for a change, and that is what we got. current rates remain appropriate in terms of accommodation, and is not changing its interest rates. of course, investors and marketers spence looking for something very different from the bank of canada than from the federal reserve. just 13 basis points of a cut from the bank of canada, and they are looking for a lot more than that from the u.s. federal reserve. let's take a look at the u.s.-dollar canada. the canadian dollar strengthened earlier on. right now we will see if that has changed postdecision. there we have it. we are recovering just a little of 131.10.s a bit ago, we crossed the 3000 fed for the s&p 500 on the chair's remarks. the 10 year yield at 2.06% right now. dq a day be interesting. q&a will be-- the interesting. we will see if that moves anything. terms of analyst action, deere is down about three quarters of 1%. it had a huge move high

in new york i'm vonnie quinn. welcome to "bloomberg markets," we have more economic data coming out. housing data. national association of homebuilders housing market index coming in at 65, one better than 64. better data according to the national association. business inventories coming in on the mark at 0.3%, just down from last month, 0.5%. june industrial production and retail sales. markets in general, another big day for bank earnings. not much movement in the s&p, above the 3000 mark. a few drags on it. banks mixed. carmax, the worst performer. 2.13%, crude up to oil below $65 a barrel. trucking index, s&p, best performer today, more than 8% up. that is relieving investors. european markets now. a better day in europe. the dax up a quarter of 1%, cac upup 6/10 of 1%, ftse 100 for tenths of 1% -- 4/10 of 1%. questions about barbary moving over. first quarter doing well in china. that stock is up 13%. thank earnings season, j.p. banks, wells fargo, -- reported earnings this morning. let's bring in our investm

i'm vonnie quinn. welcome to "bloomberg markets." a lot of action already this morning, including amazon hopping the $1 trillion capitalization mark. meantime, the dow tops 27,000. it is back below that. now just for our purposes, it is back above 27,000 once again, possibly due to pbm. after thewell as well white house said it won't intervene in that part of the drug pricing planning. however, it is still going to put pressure on drugmakers to reduce prices, according to the health and human services secretary jerry a czar -- jerry azar. it is basically the same story, all to do with drugs. the s&p 500 also higher, up about 1/4 of 1% at that 3000 mark. it did not manage to close above that yesterday after fed chair powell's testimony. we will get more of that today, and the cpi data. the two-year yield has been bouncing around, up 1.85% today. stories, bathher and beyond down 4.7%. we will see what kind of halo effect that has -- down 7.47%. we will say what kind of halo effect that has. not many analysts were looking for a great qu