vonnie: thank you. was a beat ford city banks second-quarter earnings and we will have the numbers next. this is bloomberg. ♪ ♪ ♪ york, i'mve from new vonnie quinn and this is bloomberg markets. let's check on global markets. abigail: we have relatively small moves around the world. the s&p 500 is down fractionally. last week am a down week but the dax is a different story as it was up last week and it's up today as well and the german taxes up half a percent. the shanghai composite is up 4/10 of 1% despite missing the mark. the shanghai composite is higher net net. helping the emerging markets this would seem more risk on however, another aspect of the risk asset, we see a pretty sharp plunge, down about 4/10 of 1% which is not huge but not confirming what we are seeing in stocks. we are seeing another bid for bonds starting with the german bund. this is year to date, losing 50 basis points on the year, the most going back to 1990 on record. investors are seeking some safety and extraordinary abo

vonnie: thanks. still ahead, the iconic 1950's corvette sports car gets a 21st-century makeover. we are joined by general motors president mark reuss a little later. this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. this is "bloomberg markets." abigail doolittle is with us. abigail: we are ending the trading week with an up day. the s&p 500 and the nasdaq modestly higher. in germany, the dax also higher. the shanghai composite was also higher. if we take a look at what is going on on a weekly basis, a little different story. investors cheering earnings reports. when we go into the bloomberg and see what is happening on a weekly basis, this is a year-to-date chart. we see on a weekly basis, the dax,l indexes in white the in yellow the s&p 500, in blue the shanghai composite, higher on the year, but now a down week for each of these averages. the second for both the dax and the shanghai composite. let's take a look at microsoft trading higher on a very strong quarter. offng up on it

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: right. after this round of earnings, is there a possibility that we will see more deals, particularly among the smaller players? will there be another round of bank consolidation? hannah: that's been a big question all year. we saw bb&t and suntrust earlier this year in the biggest deal since the crisis. everyone has been waiting to the answer to that question, so i guess we will see. the leaders of these banks have been pretty cautious on saying anything about it. they've said they are happy with their current market share, etc. vonnie: i woke up this morning and one of the first stories i read was this great story that wells fargo is in its ceo hunt day 106. what is the problem? hannah: the former ceo steps down in march after political and regulatory scrutiny. at the time, the bank set out to find it external ceo. the chair of the board said that would help complete the transformation. they've been dealing with scandals that started with fake accounts in 2016. they've been conducting this

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. guy: and from london, i'm guy johnson. this is "european close." german manufacturing fell into its deepest slump in seven years as trade tension we can demand along. lower water levels on the right river all taking their toll. the ecb tomorrow. we are back with citigroup's lead european economist. good afternoon. will today's german pmi manufacturing data tip the balance when it comes to the ecb tomorrow? will it to the balance towards action? >> one data point is not enough. certainly, it makes the case for additional easing, more likely when september comes around. -- been telling you for months that they think the second half will be weaker, and there is persistence and disappointment with respect to soft data and hard data. germany is weak, the manufacturing sector globally is going through a -- that will need -- that will be conducive to more volatility action. it will be a signal of lower crude measuresan to be announced tomorrow. guy: why wait? policy works with a lag, assumin

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

this is bloomberg. ♪ vonnie: live from new york, i am vonnie. this is the european close on "bloomberg markets." here is courtney donohoe. nancyey: house speaker pelosi will not accept the latest white house demands for $150 billion in spending cuts. bloomberg has learned that democrats see those cuts as a starting point for negotiations. the white house says it does not expect a deal today. iran insists a u.s. warship did not down one of its drones new the strait of hormuz. president trump said the unmanned aircraft was destroyed when it approached uss boxer. iran says the president's remarks were delusional and imaginary. president trump plans to nominate eugene scalia to be the next labor secretary. antonin the son ofa scalia a. alia has represented a number of companies that have battled unions and tougher labor laws. bloomberg has learned u.s. regulators are investigating a crypto exchange, wildly popular in asia. the investigation is focused on whether they broke the rules by allowing americans to trade on the platform. global news 24 hour

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

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

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

vonnie: thank you. prime minister theresa may is leading a meeting to discuss shipping security in the persian gulf after iran seized british oil tanker in the strait of hormuz last week. we also have reports of 17 people young held and potentially executed by the regime. bloomberg'sd by correspondent on international security coverage. what do we know about how many people are being held by iran, and what is proposed to be done with them? reporter: largely what we know is what we heard from the iranian side. there are 17 people they are accusing of being linked to some sort of cia spy ring, and that they have all been scheduled for capital punishment. the u.s. is of course denying it and will never really admit to any sort of espionage activity, so we are not going to have a lot from this side on that. it is the latest sign after a very tense end of the week last week that tensions continue to rise. theresa may and her national security team meeting this morning in what is effectively her last 48 hours

this is bloomberg. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. time for the latest bloomberg business flash. it has been a while since wall street has the in this pessimistic about apple. a company downgraded them to a sell bringing the total number of bearish analysts to five, among the 57 tracked by bloomberg. nevertheless, the highest number of sell ratings they have had since 1997. british airways faces a fine over computer hacks that exposed customer data. it is the first time british regulators have applied eu rules to tighten hacking measures. bloomberg has learned broadcom has secured financing for its acquisition of symantec. it could value the firm at $22 billion. broadcom estimates the synergy would allow the combined companies to say $1.5 billion. shaking up itss equities division with plans to cut 18,000 jobs across sales and trading in asia, new york, and london in particular. a german bank is restructuring in hopes to achieve profitability targets. the chief financial officer had this to say about the retrenching. >> we are taking

vonnie: thank you. it is time to check global markets, and for that we will go to abigail doolittle. >> looking at small moves around the world. take a look at the s&p 500 down fractionally. earlier, putting in another all-time high. in europe, the stoxx 600 gaining by 4/10 of 1%. in the asian session, we were up about pretense of 1%. small moves ahead of the earnings season for the second quarter in the u.s., really getting off to a start here with the big banks. interestingly, yields are lower, bonds are higher. there is a move to safety to some degree with investors bidding bonds up. that is influencing the sector come position for the s&p 500. it may be a small decline, but this is more risk off. we have more sectors lower than higher. high dividends looking more attractive. this is sector is higher. that is true for utilities. health care and consumer staples on bottom. energy and industrials included. on the year, a bit of a different story, more of a risk on picture on the year. the top four sect

vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." guy: we are clearly waiting for the fed a little later on. european volumes are like today. the stoxx 600 trading at session up 3/10 of 1%.-- market trading now three basis points lower. prices rising as we anticipate the fomc. vonnie: the dow has turned very fractionally negative, just down a point on the s&p 500 now. we have advanced micro devices on forecast for game console sales that didn't really please the street. it is down more than 7%. maker,nic arts, the game higher by almost 8% because order"ars jedi: fallen is looking to perform, so that has the stock nice and higher today. of most him course -- of molson coors brewing is leaving, the ceo be replaced by of miller coors. we want to know if the fomc can thread the needle? what does he need to get done today? guest: the first thing is 25 basis points. everybody knows that if he doesn't cut 25, he's got a credibility problem in the markets. 25 is done. i think you'd like to do 50. he and others have given indication that if y

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: and a new yorker, i am vonnie quinn. this is the european close on bloomberg markets. guy: stocks close up by 2% -- the dollar is stronger. the euro is trading down by two times of 1%. the rand also trading lower this afternoon. this troubled power utility in south africa that is causing the government so many problems. u.s., there in the s&p 500 and the indices broadly on earnings up .5%. two of the best performers, alphabet up over 10% after a great quarter, and universal health services is another company that has boosted dividends and buyback program. performer the worst in the s&p 500, fundamentals deteriorating for the store maker. guy: let's get to our top story. u.s. growth is slowing in the first quarter but not as much as analysts anticipated. consumer spending plus gdp growth to over 2% despite a drop in investments and exports which will probably worry the fed. joining us now on set. >> afternoon. guy: the dollar up six days in a row. it seems to be a tough trade right now. how will that change? >> as things stand, there is little to change it. when you thi

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

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: 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

vonnie: thanks, kailey. ford ceo jim hackett says the company's joint venture with volkswagen will help capitalize on new technologies. he spoke with bloomberg's david westin. >> you know, we are in close relationship with some of our but whatpartners, is to come to the automotive industry is really big investments in autonomous, big investment into electric vehicles, and it just makes sense, even for two big companies, to share some of their efforts to make them faster and more efficient. david: how does this fit with your restructuring in europe? >> it helps the renaissance. in fact, this idea came in parallel as we work working on the thomas problem last year. in november, i was watching one of my favorite football games. i picked up the phone and called herbert and said, as we were working through this technology, it occurs to both of us that there is opportunity to expand the nature of this. he said, look, you've got to take a look at this architecture. it is quite humble, but it is really extraordinary

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

vonnie: correct. prince al-faisal: well, i assume that the government sees some potential profit in that. whatare probably aware of is happening in the u.s. economy , and it is an economy that is booming, so investing in an economy that is booming seems to be a good choice to make. your highness, let me ask you a question that relates to the murder of jamal khashoggi. what changes have you seen in saudi arabia? thatchanges have you seen ashore the world that something like this will never happen again -- that assures the world that something like this will never happen again? prince al-faisal: that is a horrific crime, and all of saudi arabia, from the king, the crown prince down to the average citizen, have all condemned that crime. the people presumably responsible for it are under trial right now. our foreign minister has stated that foreign observers have been allowed to come into the courts to observe the proceedings, and it will take its course. justice is not something that can be done overnigh

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: thank you. from new york and toronto, this is bloomberg. ♪ mark: i'm mark crumpton with bloomberg's first word news. much of the midwest and northeastern united states facing heat wave this weekend. more than 185 million people in 30 states are under he watches. nearly 100 cities across the country will break record temperatures. here in new york, the high temperatures have even forced organizers to cancel the city's triathlon. the trump administration can now expand the sale of short-term health insurance policies that don't meet the standards of the affordable care act. ineral judge richard leon washington rejected claims that the policies sold under a government regulation unlawfully undermine the aca. the judge says he based his ruling partly on the elimination of the individual mandate tax penalty in the gop's 2017 tax law. president trump has weighed in on the british election. he has thrown his support behind boris johnson. president trump: i think he is going to do a good job. i think

vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." guy: as we head towards the end of trading in europe, the equity market is going nowhere. it has been going nowhere from the last 10 days, trading in a range of 1.2%. most of it has been in a much tighter range than that. the next 24 to 48 hours really key when it comes to the british political story as we await the conservative party election and what boris johnson is going to do if he becomes the next prime minister. brent trading up at the moment by 1.06%. you would think that with what we seen in the streets of hormuz, we would get a bigger reaction -- the strait of hormuz, we would get a bigger reaction. vonnie: here in the u.s., a little more movement perhaps, at least for the nasdaq. we have the semiconductor equipment index up on upgrades from the street. upertheless, the s&p is only 1/10 of 1%. the 10 year yield at 2.03%. i know we are going to be sticking with markets. a lot to talk about today because we are smack bang in the middle of a earnings season, but there is the wh

vonnie: thank you. as robert mueller continues to testify on capitol hill, we are watching number 10 downing street at the palace with the queen have inviting boris johnson to the palace, he is inside right now, it appointing him prime minister today, he will emerge at some point and a limousine was taken to downing street to take office and he will make his first speech outside number 10 at that point and new members of his cabinet will be invited to downing street. there is a little movement outside the palace. this is bloomberg. ♪ vonnie: from new york, i am vonnie quinn and this is bloomberg markets. time for a bloomberg inclusive, alan greenspan spoke to david westin. here they are talking about the impacts of the trade war. tax not onare tax, a your opponent but on your own people. they pay the tax. always, taxess are inflationary. true that somebody won a trade war. to be sure there was a win or lose her but from the point of view of how much economic activity got changed, they both lost. the o

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: 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

vonnie: absolutely. president renewing his attack on the fed before their meeting this week, declaring that it raises rates too early and that a small rate cut is not enough. the fed is expected to lower interest rates by a quarter percentage point when they gather in washington. joining us now is carl riccadonna. was the u.s. economy able to take that type of 2018, and if it was, why do we need to walk -- lower so quickly? with monetary policy acts a lag, so the fed thought that they were being gradually slow about tightening policy, but as we rolled toward the q4 rate increase, it became apparent may be fed was a little bit too aggressive with tightening. we could see that in financial markets, certain economic indicators as well. i do tend to agree with the notion that q4 was a policy mistake on the part of the fed. there is a good case to unwind that sooner rather than later. vonnie: where do you see it? the bull market run continues. a small portion of the curve inverted for a little bit but nothing

this is bloomberg. ♪ 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

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 check in on the bloomberg first word news. here's courtney donohoe. courtney: new u.k. prime minister boris johnson has made it clear he's willing to go for a no deal brexit. earlier, he met with his new cabinet. 18 of the 29 numbers under theresa may are no longer in their jobs. north korea stepping up pressure on the u.s. over stalled nuclear disarmament talks. kim jong-un's regime has resumed missile testing. the north fired at least two missiles into the sea north of the korean peninsula, hours after u.s. national security advisor john bolton left south korea. in puerto rico, governor ricardo rosello has given into hundreds of thousands who demanded his resignation. he says he will step down next week, and that means more uncertainty for the u.s. commonwealth, still recovering from a deadly hurricane and record bankruptcy. global news 24 hours a day, on air and at tictoc on twitter, powered

vonnie: what about monetizing that? if it is better content, can they charge more or get more per user? sarah: i think the content has to be a big draw, that is where they make most of their money, on the content side. most users however are using it for messaging. they have not built out there advertising on messaging yet, but they are really depending on creativity and in this quarter we might see a boost from the gender bender filter on the snap application. i do not know if you saw that go viral, the one where you could turn yourself into a different gender, that really brought people to the app and reminded them how fun it can be. it will be interesting to see if that had an impact on the user growth, which is really what is going to be key to growing the revenue and profit. vonnie: all of these innovations, you know, the face swap filter and is so on, when they bring people, do those people stay or do they just come for the show then leave again? sarah: it is hard to keep innovating as a means of drawing in new us

vonnie: thanks. the chances of reaching her brexit deal anytime soon seem to be getting worse according to european officials. a meeting of cheap european negotiator -- of chief negotiators was one of the most challenging in the last three yields -- last three years. talks will become more hostile under the next british prime minister. joining us is bloomberg editor emeritus, his next column is how some investors are looking to beat the odds, it is about britain's savviest investors. what makes them savvy? matt: living with man-made and natural disasters, which is another way of saying since the brexit vote, what they have done is perched their holdings of u.k. equities or invested in the barest essentials, which are known as consumer staples, things like beverages and food. those have done very well since the referendum june 23, 2016. vonnie: it is not just equities. if we look at the british pound, it is up 15% since the brexit vote. matt: the pound has had the biggest shrinkage in eight years. lea

this is bloomberg. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. we are watching sprint and t-mobile pare gains. this after reports from fox business that the deal between them is being renegotiated, and the price will be based on more asset sales. dish is also moving, has been hit parents and gains. create ais dish would fourth carrier out of these asset sales. to theow, according story, they are seeking a guarantee not to resell assets. there might be an announcement wednesday or thursday. meanwhile, the core of apple's heir apparent. we take a closer look at jeff williams, who just became the second-most important person at apple, when it was announced he would take over the company's legendary design studio last month with the partridge jony ive. the question is will he be more like tim cook or steve jobs? for more, let's welcome our reporter. jeff williams? >> that is right. he is very much like tim cook, built in the same old, and he also kind of looks like him. they both come from the same operations background, both went to duke, both from

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

vonnie: exactly. we also have the next quarter of earnings to contend with, alongside that question of whether the fed cuts a second time, assuming it cuts for the first time. given what we have heard about the trade conflict, hurting some companies already, what kind of estimates do you have for second quarter earnings? barry: we are pretty much in line with the street, almost no growth in the second quarter, but we have a much lower estimate or the back half. we think the cfos will bring back the back cap guidance. $157 using the s&p feed for s&p earnings. $164 andt is at about coming down. we have been six dollars to eight dollars below the street since last year. inyou recall a year ago, june, the consensus for 2019 was 177. as estimates come down, the fed is signaling lower rates, the market is signaling lower rates. that keeps your p/e up. that has been our call, pretty flat here. vonnie: is there an area that you are telling clients is not fully valued? barry: almost everything looks overvalued

this is bloomberg. ♪ vonnie: this is bloomberg markets. symantec and broadcom have halted discussions for a proposed merger. the two sides could not agree on a price. it is more nuanced than that, and we will get to that now. it is not quite that they could not agree on a price but according to reporting, due diligence was looked at again and was found to be lacking and therefore broadcom try to take down the price. >> this is a darned if you do, dark if you don't. had aec has not continuous ceo for the past four years. it currently does not have a ceo, cfo. there has been some accounting challenges in a business that has some structural revenue growth issues. symantec is not a power player in the business anymore. on a relative basis, not the cleanest money assets can buy. hand, they have an opportunity. if anybody can turn this around and extract synergies out of it, there is an opportunity for them to do it. vonnie: why would symantec play such hardball? apparently the price difference was not massive. would it have been so awful to tak

vonnie: u.s. growth slowing in the first quarter, but not much as expected for the headline number, at any rate. consumer spending pushing gdp growth to 2.1%, despite a drop in investments and exports. >> business investment really, i think, taking it on the chin over concerns of an escalating trade war. i would be more encouraged if we were looking at diversified growth, meaning that it was contributions from exports and business investments and a whole array of categories -- housing -- but that wasn't the case. it is consumers going it alone type of economy, which would be good enough to prop up growth at a pace that is sustainable, low 2% territory, but certainly would be more encouraging for the economic outlook if we were seeing a bunch of contributions. juliette: still ahead as we review the week on "bloomberg best," an exclusive conversation with former federal chairman alan greenspan. plus, bank of england governor mervyn king says brexit is hardly britain's only economic problem. coming u

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: that's for sure. that's a good analysis. market participants are awaiting jay powell's two day testimony on capitol hill. we are anticipating lawmakers will grill chair powell on matters young interest rates as well. joining us from washington is michael mckee. missing the tickertape parade here, but there's lots of talk in washington this morning, and there could be some fireworks from some of the committee members. what are we anticipating they will grill chair powell about? michael: it is an interesting case because there's not going to be a lot of disagreement on capitol hill with the stance the fed is taking. members of congress have to run for reelection in 2020, so they are not going to be upset but the idea the fed is cutting rates to boost the economy ahead of that. we don't see a partisan divide there. we may see it come in talk of the president and his efforts to politicize the fed, so it will be interesting to see what jerome powell says about that. with reporters, he's been very circumspect, saying that he has a

vonnie: thank you. live pictures now of the hearing room where david marks will be testifying for the second day on capitol hill this time before the house financial services committee. isresentative maxine waters seated. committee seats look half full about now, we're waiting for more representatives to enter the room and we will take you to it live when it happens. right now facebook is down about 1/10 of 1%. all told markets are just sort of finding their footing here in the first 40 minutes of trading or so in the u.s. this is bloomberg. ♪ live from new york, i'm vonnie quinn. this is "bloomberg markets." it is day two of david marcus appearing on capitol hill from facebook. talking the cryptocurrency libre and calibra. see whatatch to representatives say. it's about half full right now. maxine waters is waiting for some colleagues to enter the room. gary gensler will also be testifying today after david marcus, he's the chair of the commodity futures trading commission and he has gone up against

vonnie: marcus -- markets focused on earnings. the expectations were about 11%. does that look likely? if itf it is like -- >> is likely, it is coming in the second half. as we get to the end of this result season in the u.s. will be lucky to be flat. some of the headlines you've been writing it has been called an early recession because we will have q1 earnings down in qqq earnings down. i cannot see where the earnings improve in the second half of the year when one thinks about the risks around trade. i think when one looks at europe, expectations have been lower. i have to be honest. many of the european corporate have not surprised to the upside. the only good news we are seeing in europe is the profit warnings in the last week from daimler have been met with unchanged share prices. maybe in europe a lot of the bad news is already in the price. vonnie: what do we do with currencies given that we might be looking at a scenario where the british pound tumbles. stanleyctor of morgan saying we could be looking at parity if there is no deal brexit scenario. neil:

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 streams of revenue? leslie: absolutely. the market is huge for customer experience. we are the market leader. coming out in public helps us to expand our market. we can take our platform stories to small and large companies across the globe. that is so exciting a

vonnie: ira, thank you. that is i read jersey with bloomberg intelligence -- that is ira jersey with blumberg intelligence. federal reserve chair -- with bloomberg intelligence. federal reserve chair jay powell is now speaking in front of the senate banking committee. we will get to that now. i think we agree that libra raises a lot of serious concerns, and those would include around privacy, money laundering, consumer protection, financial stability. those are going to need to be thoroughly and publicly assessed and evaluated before this proceeds. we've set up a working group to focus on this at the fed, and we are in contact with the other regulatory agencies and central banks and governments around the world on this. we are really just getting started, and i would just stress it is a great thing that you are having a hearing on this next week. i think it is important that this process of understanding be evaluating this proposal a patient one and not a sprint to implementation. in terms of the u.s. specif

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

callers to oppose the butlins also coming up on the program dr for russian opposition leader alexina vonnie says he may.

from the hospital and sent back to jail his personal doctor opposes the move saying she believes no vonnie may have been poisoned by a chemical agent in a volley soares team before an unauthorized protest in moscow on saturday where more than 1400 people were detained. in the. beijing has condemned the ongoing unrest in hong kong and reiterated its support for the city's leader kerry lamb.

vonnie: how many customers have paid? out lookingclosed people five years ago because we had 600 customers. $80 million on deposit. since the test flight, we have had 2000 more people saying they want to come in. there isrch indicates a large number of people. chamath: incredibly capacity constrained market, the customers we have will take 2.5 years, once you convert the 2500 people, the first three years of operation, already mostly spoken for. emily: richard branson and chamath. we continued our look at the interstellar plans. >> social capital raised money from investors to basically acquire a private company and in doing so take it public. the pitch we heard from chamath was basically this would be a more efficient way to go public. he was saying, when he started talking about this a couple years ago it was the process is broken and it takes too long and there is too much regulatory oversight so this is something he could offer. it makes sense. you are talking extremely high potential, this could revolutionize air tra

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

election officials say the candidates failed to gather enough genuine signatures opposition leader alexina vonnie joined the demonstrators. and tens of thousands are marching through london in one of the biggest pro europe rallies the country has seen the march for change is calling for britain to scrap and remain a member of the european union the rally comes days before a new prime minister's due to be sworn in on wednesday the front runner boards johnson has said britain will leave the e.u. as planned on october 31st with or without a deal. w. correspondent charlotte potts is following this story for us in london and sent us this assessment the main message of the protesters here today is no to paris johnston yes to the european union the timing of this monstrous crucial in just 4 days far as johnson will most likely move and to downing street number 10 and he has promised to take britain out of the european union come what may this is what worries many protests to see a possible no deal on october 31st many protesters want their politician. to revoke the 50 and just forget about bricks and al