other houses were fake it. the people are willing to move downtown afford to buy the home and repair it. they needed more mortgage help than what a bank could legally give them on a first mortgage. the mayor talked about it. i have a real interest in detroit and wanted to help. i have a real interest in detroit and wanted to help. some were from out of town. they just put their heads together for three days and they came up with the site via of how a second mortgage could be issued that would enable the homeowner to make the home habitable and the repayment could be structured in a way that would not cripple them financially. that's what we did.

it put 1000 people more in homes. it's the beginning of something that will have applications in other distressed areas in the united states. i hope so. it that hadwas failed? it wouldn't have happened without the cgi america. well-meaning people could not have gotten together. what was the failure in that? : it's not sonton much the failure. it's difficult in a complex society to set up a system that looks at every potential problem. if we had not had the financial banks that there was enough slack from regulators clearlymething they should not have done.

now they could do it. we figured out how to close a gap in the fabric of our housing market. that is really what i was trying to do when i started my foundation 15 years ago. i wanted to figure out how to solve problems at lower cost than they would otherwise be solved. i saw this a lot. there is a great deal of difference between passing law and changing lives. villa ofa great difference between appropriating money and changing lives. more complex and interdependent are society gets, the more premium we put on people who can answer the how question. have people with diverse experience and expertise. if they want to get a job done, if they don't care about what

the politics are and they're just trying to get a job done, you find a way to do it faster and at lower cost. david: you have a body of work now. what have you learned over those years? what can be addressed and solved by this sort of cooperative effort? which don't fit so well? resident button: -- president clinton: let's start with the second category. there are some things that require a threshold level of investment from the private sector or government. without that, you can't do it you would like to do. let me give you an example. you are from flint. flint is not the only city in the country where children have elevated levels of lead in their

blood. done what we could to help flint. it would take a national commitment to serious infrastructure to take out all the rusty pipes in america and give the kids a healthy future. gooduld be a very investment and create a lot of jobs. there would still be problems in particular places. that's a threshold thing. now because solar and wind power are cheap than they were -- cheaper than they were, we can put together a coalition to accelerate the income benefits in the climate and fits of solar and wind power -- benefits of solar and wind power. example, you want to

help the poorest americans living on indian land without casinos, a lot of them could be making a fortune out of this. they can't afford the transmission lines to carry the power to any place that can receive it. those are the things you can't do. the things you can do involve getting people to rethink what they are doing. see if they can be faithful to their responsibilities with their assets and do it in a way with more social benefit. i will give you an example. this is one quick one. i was having a conversation five years ago with the president of the afl-cio.

labor is under a lot of stress. considere should taking your well-funded pension fund and investing money in the infrastructure projects, especially in your -- energy retrofits. that would a lot of union workers to work in the private sector. it would help the pension fund it. and got mewed on it in touch with some people. got $10 billion in commitments. $14the commitment is billion. that has been allocated. and of it has been spent 100,000 jobs a been created

doing these building retrofit projects. it created a lot of jobs. it's done a world of good. the pension funds have been returned. that's the kind of thing i do. how can you do something differently? coca-cola is one of the hosts of this cgi america. they joined with pepsico. that? how about clinton: they agreed to change what they were putting in the drinks going to children in our schools. agreements, they reduced the calories going to kids in school by 90%. that's the stuff i try to get people to do.

record,iven that track looking forward to what you expect and hope will happen next november, what happens to your initiative if your wife is president? president clinton: i want to say what she did. if she wins, we will have to think about it. things thatearly are different. to get partners together and make something good happen. the president has tried to involve more people from the private sector and a lot of his decision-making. you have to be careful to avoid actual potential conflicts. raiseddonald trump has that. it gets dicier. president clinton: we will think very clearly about it and we

will do the right thing. we will explain it to the american people. i will have to wait. --on't believe in chickens counting your chickens before they hatch. we will see how the election unfolds. be somell clearly changes and what the clinton foundation doesn't how we do it. we will have to cross that bridge when we come to it. david: you served as president for eight years. there was some heated rhetoric back-and-forth and up and down. what we see in this election strikes me of having a level of personal attack. it's not uniquely on the republican side. there have been some candidates on the democratic side as well. is this a permanent change in the political discourse in this country? clinton: i don't know.

it's easier to say things that don't make a lick of sense now. are silentour people in their information. time, weople all the are less sexist, racist, and than we usedhobic to be. our bigotry is we don't want to be around 70 disagrees with us. someone who disagrees with us. if you're in that silo, you believe anything your prejudice will allow. that's not good for us. one of the reasons i like these events is because people here come from there he political perspectives. they make a living different ways.

they find it stimulating to be with people who are different. they find that what we know is diverse groups make better decisions than loan geniuses. totallys a group of like thinking people. i think we have to be sensitive to that. people are looking for ways to break out of our silos. fundamentally, people are decent. a lot of these campaigns have gotten harsher and harsher because of the long drag after the crash. in many places, there is a combination of stagnant incomes and disruptive threats to identity. biggest refugee crisis since world war ii. austria. contest and it's a close contest.

whohave a lot of people think they can make their tomorrow's -- can't make their tomorrow's better. they feel consciously or subconsciously that the world disrespects or disregards them or doesn't see them. offended ifs somebody else is in the treatment. i think we all need to be a lot more sensitive. we need to be more sensitive to what our neighbors are going through. that, we wouldid change the culture back to where our politics is more humane. david: i want to talk about growing the economy. it strikes me that one of the things injected this time is questioning the qualifications to serve. disagree, it'sto

one thing to say i would be better, it's different to say you shouldn't be considered for the office. what should be the qualifications we are looking for? clinton: that's a decision the voters make every election. i was well-suited to be president when i was elected because i was a governor and my state had a fast-growing economy and a big improvement in the things america needed to improve on. because i knew what people were up against. minimum, you want somebody

who believes that we are not , we are ane where -- idea. we are born to welcome people from every place who love freedom and believe in the rule of law and respect other people's rights. someone with a proven record of being able to do that. rules thatother develop over time. the voters decide that. they decide who is qualified. think my job is to support one particular candidate who i think is the most qualified person in america to serve at this particular time.

understandsone who how the government can add some economic growth and can make prosperity more widely shared to reduce inequality and increase upward mobility. they can break political gridlock in washington. up economic fate is tied with what happens in the rest of the world. reportlast economic there was a piece of good news. more than $.61 of a dollar on corporate dollars went to wages. a piece of bad news was in spite had droppedrowth back due entirely to what's

happening around the world. brazil, china slowing down, southeast asia, all of these things that are going on. it's not an easy job right now. it's a doable one. it's not difficult to determine what we should do. david: -- interrupting our conversation with bill clinton. president obama is set to speak on terrorism. he is at the treasury department. we have been following this story today. given the events in orlando and what happened last night outside paris, a man who had allegiance to islamic state was responsible

for the death of a police official and his wife. what can the president say today that will allay people's fears? : he is meeting with his national security team. this meeting was previously scheduled. the tenor of the meeting has taken a different tone. what we expect to hear the president say is he is doing everything he can to be aware and tracking a potential attack, lone wolves like we saw in orlando. his gun control to be in -- enacted. he would like to see some measures as part of his legacy. not giving up on ways to make some of those changes. mark: you talk about the lone saidattacks, congress has this is the thing that gives them pause, the thing that keeps

them awake and night. if one has not pledged allegiance, they may become self radicalized. are there steps that can be taken to prevent or identify this problem #angela: that's what the president has been talking about today. advisers he is meeting with. >> is everybody all set? obama: i just met with my security team. beforeting was planned .he terrible attack in orlando that tragedy, the awful loss of life, shaped much of our work today. in all of our efforts, foremost loss and theis the

grief of the people of orlando people -- orlando. families of seeing loved ones , the friends of ours who are lesbian and gay and bisexual and transgender who were targeted. i want to remind them that they are not alone. the american people and our allies and friends all over the world stand with you. they are thinking about you and praying for you. said -- fbikomi has director komi has said, we have a foreigngence that group directed it. it is clear that the shooter

took in information over the internet. he appears to have been an angry, disturbed, unstable young man who became radicalized. groups have called on people around the world to attack innocent civilians. those postings are pervasive. they are more easily accessible than we want. this individual appears to have absorbed some of that. the shooter in orlando pledged allegiance to isil. actors are very hard to detect and very hard to prevent. we areour government,

doing everything in her power to stop these kinds of attacks. succeed 100% of the time. an attacker only has to succeed once. our personnel and our intelligence and a military and our law enforcement have prevented many attacks and saved many lives. we can never thank them enough. we are all sobered by the fact that despite the extraordinary hard work, something like orlando can occur. in -- updatedor us. -- the fbi director updated us. carter reviewed the military campaign against isis. i want to thank treasury for

hosting us. their efforts to cut off the money that funds isis. i want to reiterate our objective. our mission is to destroy isis. the difficult fight. we are making significant progress. authorized steps to ratchet up our fight against isis. special forces are in syria. additional advisers are working with the iraqi security forces. additional assets have been provided. our aircraft continued to launch now ine uss harry truman the mediterranean. our b-52 bombers are hitting

isil with precision strikes. targets are being identified and hit even more quickly. 13,000 airstrikes of been carried out so far. we are firing on all cylinders. isil is under more pressure than ever before. they lose key leaders. this includes the senior military leader in moz oh. oh.oz so far, we've taken out 120 top isil leaders and commanders. our message is clear. if you target america, you will not be safe. you will never be safe. isil continues to lose ground in iraq. in the past two months, local

forces have liberated a western town and pushed up the euphrates river valley. they have break in the siege. -- broken the siege. they have surrounded falluja and started to move into the city. tigris riverthe valley. they are preparing to tighten the noose in moz oh. they have lost half of the territory it once controlled and it will lose more. isis loses ground in syria as well. the news is tightening around them as well. our coalition is on offense. year since a full as they continue to

lose territory, it loses the money that is its lifeblood. we believe we have cut the revenue by millions of dollars per month. the storageroyed sites where they keep their cash. thanks to the great work of many others here today and working with nations and financial institutions around the world, they are cut off from the international financial system. cutting off their money may not be as dramatic, it is critically important area their cash reserves are down. they have had to cut salaries. they are relating to more extortion. some of the leaders have been

caught stealing cash and gold. their true nature has been revealed. these are not religious leaders. they are thugs and thieves. i want to mention that it is critical for our friends in the forte to confirm i nominee undersecretary of terrorism and financial intelligence. adam has served in both administrations. everyone agrees he is qualified. he has been working on these kinds of issues for years. it's now been it more than a year since i nominated him. he still has not been given a vote. there is no good reason for it. it is inexcusable. it's time for the senate to do its job and put our national security first and have a vote. he can help keep our country safe.

-- their ranksre are shrinking as well. morale is sinking. as one defector said, they are not bringing islam to the world and people need to know that. the flow of foreign fighters including from america has plummeted. our intelligence community says the ranks has been lose to the lowest levels in more than 2.5 years. we are addressing the larger forces that have allowed the terrorist to grain -- gain traction. iraqisans helping stabilize communities and promote so the isil cannot return. this means our continued support for the fragile end of

hostilities in syria. this has not stopped all or even most of the hardship on the syrian people. the assigned regime has been the principal culprit. isil and its affiliate in syria continues to terrorize syrians. as fragile and incomplete as it is, it has saved lives and it has allowed the delivery of some life-saving aid to syrians who are in desperate need. and thecontinue to civil war and result in a sod.ition away from a isil is losing ground in libya. forces of the unity government are going after isil in a

stronghold. it will resist the new libyan government as it works to secure its country. home, if we at really want to help law enforcement protect americans extremists, the kind of tragedies that occurred at san bernardino and now have , there is aorlando meaningful way to do that. we have to make it harder for people who want to kill americans to get their hands on weapons of war that let them kill dozens of innocents. he cannot prevent every tragedy. we know that. consistent with the second amendment, there are steps that

could reduce gun violence and ofld reduce the legality somebody who intends to do other people harm. resourcesgive atf the people with possible ties to terrorism who are not allowed on the plane should not be allowed to buy a gun. being tough onut terrorism. actually be tough. make it harder to get weapons that kill us. otherwise, just despite extraordinary eforts by

law enforcement, the military, and all the sacrifices that people make, these events will keep on happening. the weapons are only going to get more powerful. final point. for a while now, the main contribution from people on the other side of the i'll is to criticize the administration and me for not using the phrase, "radical islam," that is the key, they tell us. we cannot beat them unless we call them radical islamist. -- what exactly would using this label accomplish or change? would it make them less committed to trying to kill

americans? would it bring in more allies? is there a military strategy served by this? is none of the above. threat by different name does not make it go away. this is a political distraction. since before i was president, i -- ibeen clear about how have called on muslims around the world to reject this interpretation of one of the world's great religions. moment in myen a

7.5 years as president where we have not been able to pursue a strategy because we did not use "radicalis islam." not once has an advisor said, if we use that phrase, we will turn this all around. not once. someone seriously thinks that we do not know who we are anyone outf there's there who thinks we are confused that who our enemies are, would come as a surprise to the thousands of terrorists we have taken off the battlefield. if the implication is that those of us up here and the thousands

of people around the country and world that are working to defeat isil are not taking the fight seriously, that would come as a surprise to those who have spent the last 7.5 years dismantling them, including the men and women in uniform who put their life at risk and the special forces that are now on the ground in iraq and syria. they know full well who the enemy is. so do the intelligence and law enforcement officers who spend countless hours disrupting plots and protecting all americans. tweeting politicians who and appear on cable news shows. they know who the nature of the enemy is.

phrase, no magic to the islam," it is a political talking point, not a strategy. the reason i am careful about the way i described this threat has nothing to do with political correctness and everything to do with actually defeating extremism. groups like isil and al qaeda war to make this a between america and islam were islam and the west. they want to claim that they are of over aeaders billion muslims around the world .ho reject the crazy notions they want us to validate them by

saying that they speak for those billion plus people. that is their propaganda, healthy recruit. if we fall into the trap of painting all muslims with a broad brush and imply that we are at war with an entire religion, then we are doing the terrorist work for them. up until this point, this argument about labels has mostly to spend rhetoric. sadly, we have all become accustomed to that kind of partisanship, even when it involves the fight against these extremist groups. that kind of yapping has not

invented folks across government from doing their jobs. from sacrificing working really hard to protect the american are we are now seeing how dangerous this mindset and thinking can be. we are starting to see where this rhetoric and loose talk and sloppiness about who exactly we are fighting, where this can lead us. have proposals from the presumptive republican nominee for president of the united all muslims from emigrating to america. we hear language that singles suggestsrants and anti-religious communities are complicit in violence.

where does this stop? , one of theiller san bernardino killers, the ft. hood killer, they were all u.s. citizens. to treat all muslim americans differently? to we going to subject them surveillance? are we going to discriminate them because of their faith? we have heard the suggestions during the course of the to republican officials actually agree with us? that is not the america we want. it does not reflect our democratic ideals.

it will not make us more safe. it will make us less safe, feeling the notion that the west making young, muslims in this country and around the world feel like no matter what they do, they are going to be under suspicion and attack. it makes muslim americans feel like their government is the betraying them. it betrays the very values that america stands for. we have gone through moments in our history before when we acted out of fear, and we came to regret it. we have seen our government

citizens.ur fellow part ofeen a shameful our history. this is a country founded on basic freedoms, including freedom of religion. we do not have religious tests here. our founders, our constitution, our bill of rights are clear about that. ,f we ever abandon those values we would not only make it a lot easier to radicalize people here and around the world, but we would have the trade the very things we are trying to protect, the pluralism and openness, rule of law, civil liberties, the very things that make this country great and make us

exceptional. then, the terrorist would have won. i will not let that happen. at theks ago, i was commencement ceremony at the air force academy. it could not have been more inspiring to see these young people stepping up, dedicated to serve and protect this country. part of what was inspiring was the incredible diversity of these cadets. cadets applauding classmates who are openly gay. we saw cadets applauding classmates who were immigrants and loved this country so much they decided they wanted to be part of our armed forces.

we saw cadets and families of all religions applied cadets who are proud patriotic muslim americans, serving their country in uniform, ready to put their lives on the line to protect you and me. we saw mill cadets applauding female classmates who can now serve in combat positions. that is the american military. that is america. one nation. those are the values that isil is trying to destroy. we should not help them do it. r diversity and respect -- ou diversity and respect for one another, drawing on the talents of everybody in this country, making sure that we treat , that we arerly

not judging people on the basis of what faith they are, or race, or ethnicity, or sexual orientation. that is what makes this country great. that is the spirit we see in orlando, the unity and resolve that will allow us to defeat isil. that is what will preserve our values and ideals that define us as americans. that is how we are going to defend this nation and how we will defend her way of life. thank you very much.

mark c.: live on bloomberg television, the president of the united states from the u.s. treasury department in washington. the president making remarks, theowing a meetingmark c.: with national security council, describing the fight against the islamic state, the massacre this weekend in orlando, florida, and giving harsh criticism to the presumptive republican nominee, donald trump. colleague aty my the white house. ae president touching on number of points. angela: the intent of the to talk totially was his top advisers about the islamic state. the national securityhe did that. the message is the same as what we heard from the president two months ago when he last spoke on this topic. he says that they're making progress on this, but it is an effort to address the lone wolf people like the shooter in florida this past weekend. the president acknowledged that

it is a difficult task ahead of them. mark c.: the assault weapons ban came up. he was joined by some of his democratic colleagues over the weekend suggesting that it is time to reinstate the assault weapons ban, and make it harder to get weapons that should be used in war. given that this is his last term in office, is a likely that there is any movement on this issue? angela: given that it is an election year, it is very move on this they measure. he did call for renewal on the assault weapons ban and called for congress to address gun comprehensively. he could find some ways to make inroads on gun control via executive orders. he said yesterday that it is

something that is still on the table and being considered. mark c.: i was intrigued when the president started discussing radical islamism. donald trump has criticize, and even mocked him, for not using that phrase. the president took him to task and also those who believe he should be using that phrase by saying that calling a threat by different name does not make it go away. hillary clinton has said, in a hasnt interview, that she no problem using the term. what is the political strategy behind this, particularly for the democrats? angela: the president really minced no words. he talked for nearly 30 minutes and probably devoted nearly half of that time in addressing this question of the rhetoric here the strategy from the white house is that using the words radical islam would not change what the threat is or how it is

addressed. in fact, he said it could be dangerous to use those words and insights the other side. it can inspire the islamic state and its followers to view themselves as fighting a holy war when president obama says it really is the west versus terrorists, not a religious institution. mark c.: thank you so much. again, wrapping up with the president said. he did speak at the u.s. treasury department following a meeting with the national security council. the president saying that progress is being made. he said that isis has lost more than half of its territory that and thein iraq coalition is on offense, isis is on defense. the president also calling for reinstatement of the assault weapons ban saying that the killer this weekend in orlando,

even though he was suspected of having radical ties and radical thoughts, he was allowed to get of weapon -- that weapon mass destruction and war. the president saying that there is no way these weapons should eat in the hands of people. that is the latest from bloomberg world headquarters in new york. you are watching bloomberg markets. scarlet: i am scarlet fu. we are halfway through the trading day. we will send it over to the desk . shery: investors have a lot to think about ahead of the brexit vote next week. we have some positive data from retail sales showing better-than-expected data there. a lot of caution out there. falling for the

fourth consecutive day. more than level for three weeks. the s&p 500 also falling -- if if function on the bloomberg, you can see that most sectors are in the red. we see traders now pricing and 0% chance on a rate hike tomorrow. take a look at the financials, taking a hit. one bright spot. look at at&t shares. they are up to date, reversing guest at his losses. upholding net neutrality regulations, bring in some certainty to that issue. we also have breaking news out ppg will, showing that

be among the three buyer groups to make a final offer for yahoo! yahoo! gaining 2.3% now. scarlet: take you so much. we will stay with this story and bring in alex sherman, who .elped to break the news is this unusual? alex: definitely. ppg is not a usual name. one of them has not been reported. one of them is a company that you maybe have not heard of before. they are called sycamore. really a middle-market economy.

from what i'm told, they are unlikely to win. they tell me that all of the dates came in the high three billion.and 6 vistaand bain and th -- the last one is notable because they were working with some x yahoo! people. they are not in it anymore. they paired up with verizon and at&t. oliver: at this point, how is there still so much variation among the sooners. aren't they vastly different

types of buyers? alex: not only that, but what they are buying is different. typically, you would have a much lower delta. what they are buying differs from buyer to buyer. a private equity firm once to .uy the ip ppg, they bid on everything. ipizon did not bid on the and also not under the state, lower.s why the bid is get more money that way, it would make sense for them to sell separately. scarlet: thank you so much.

we want to turn now to economic data that came out today. economic cells rising better than expected. let's bring in the u.s. chief square the details for us. job growth slowed down radically in may. where does this leave us in terms of propelling growth in the second half? propelehold will not growth in the second half. 3%-4%, agenerate savingsamount goes to and another percent drives the rest of the economy. what it can add is only about 2%. that is why we have been stuck. where you come up with the rest of the components to get you the 2%-two .25% where most people think the trend is.

that has been the problem. we have been stuck on this glide pads. -- 2016 will probably be the lowest year for gdp since 2012. oliver: can we still bank on improvements for the rest of the year? >> there will be an improvement between q1 and q2. a maximum height of 2.5%, more likely closer to 2%. that is where we are relative to income generation and what we will see. there is no reason for corporate fixed investment to come on. housing is a function of affordability and prices have been going up in europe. affordability has not been going up as much. you wind up with affordability not adding much. .ou get stuck

this is where we have been, and where we will be. scarlet: how does this for into projections? bloomberg andthe what the fed is predicting in terms of interest rates. do these provide value to you? >> no, they don't, actually. when you looked at what they were talking about originally raising rates, we would be much higher than we have been. i don't think the growth forecast going forward will pan out. i do think the statement that comes out tomorrow, you will get some lowering of the dots, but nothing of the magnitude that i think is justified by the economy. , corporatel quick margins, what is your reading on the economy their? no pricing power.

they have increased employment growth in the net result is they thought they would get a pickup in overall global demand and domestic demand. they have not gotten it. they will do share buybacks for a while, and now they will have to go back to cutting employment. scarlet: thank you so much for giving us a valuable outlook on what happens next. don't miss bloomberg's coverage of the decision tomorrow. we have an all-star lineup of guests. it kicks off at 1:00 eastern time on bloomberg television, radio, and bloomberg.com. ♪

>> it is 1:00 p.m. in new york. >> welcome to bloomberg markets. ♪

scarlet: good afternoon. oliver: here is what we're watching this hour. nearer andvote draws the chief investment officer says his firm has raised risk s commits as the odds of something big have gone up. wall street prepares for the possibility of a trump presidency. one is getting popularity. plus, evaluation being cut by firms. we will bring you an exclusive interview with the company's cofounder and ceo live from the tech conference. first, we want to head to the markets desk. we're looking at a fourth straight.

the dow jones declining for the fourth consecutive day. same for the nasdaq. the s&p 500 down .4% with financials leading the gains. the big news, government by the yield strapping to the record lows across most -- much of the world. germany olds are joining japan in the negative currently at 0%. yields at 1.6%, i want to talk about volatility you cancause the index see on the chart we are about to bring up, we will see they are at a three-month high. there is a lot of volatility. >> stocks moving in the market right now? >> we're seeing the grocery ship -- sales have disappointed. incrementally negative for

retailers. rectify unsanitary conditions. at some ofng a look the industry movers. we are also seeing they could have a very negative impact in philadelphia. now finalizing some taxes and sugary -- on sugary beverages. let's check in with mark crumpton who has more from the newsroom. mark: president obama met with his national security council today to discuss the campaign against the islamic state. also received an update on the investigation into the orlando massacre and whether shooter omar mateen was inspired by the group.

president obama: we do not have anything to indicate the foreign terrorist group directed the attack in orlando. it is increasingly clear that the killer took in extremist information and propaganda over the internet. have been an angry, disturbed, unstable young man who became radicalized. mark: the president was briefed on the effort to prevent what the white house describes as lone wolf attacks. a federal judge says he will not publicly release details of an immunity deal between ryan pagliaro, the former state department staffer who oversaw the operations of hillary clinton's private e-mail server and government prosecutors. a conservative at sea group sued the deal. the court ruled in upcoming deposition by lawyers for the conservative legal judicial watch, will be videotaped but remain temporarily sealed.

authorities in france called it another terror attack linked to the islamic state. a man claiming allegiance to the stamped two police officials to death at their home and the attacker was killed after a standoff with authorities. he was sentenced to prison three years ago in a terrorist case but was released immediately after the trial. nine days before the u.k. votes whether to leave the yorkie -- european union. the lead campaign is running ahead. the survey says the lead leads anywhere from 1-7 points. another blow to supporters are the biggest selling newspaper of the u.k. is acting the grexit. global news 24 hours a day our 24 hundred journalists in more than 150 news bureaus around the world. back to you. oliver: thanks. timing of the markets. vote andgrexit decisions and continuing

the oddsy, cliff says of something big have gone way up. >> we spoke with vonnie quinn earlier today. firm, we are explicit wimps. not make it as heroic but risk as i think anyone would. no matter what you have on, you might expect it to be more volatile and have larger outcomes. i will not be able to tell people which way to bet but that carefully because someone will win and lose it. >> the federal reserve u.s. election coming up? inthe odds of something big the face of a grexit go up and volatility goes up.

if your conviction does not go with it, you should take smaller conditions. fundamental indexing. weighted,in an index a lot of money has in flowing in. overcrowded and you disagree. that debate has raged for a little bit. shoutinghy you say fire in a theater? disagree much more on that man directions. if someone wants to make small tilts based on current evaluations, no problem. he is proposing timing factors. profitability factor, low data factor, based on how

expensive or cheap they are on history. levels,t to tech bubble i big all bets are off and perhaps you have to consider that. i hear the stories and we checked the numbers. the prices are what counts. some look cheaper than average and some look more expensive than average. normalcy, ande one subtlety is we see the flow into smart data and faster investing. thatnd i fought for years smart data is just investing applied to traditional investing. we have seen those but where they come out of, we have seen active management and traditional stock tickers lose. it does not have to change the price. it is just a different group betting on them. we believe much more in diversification and good factors.

i think he believes more in the timing of factors. >> is that too expensive? where do you go? we have been talking about this since 15 years ago. measuring the price of a stock market. slow-moving earnings. bond market just put looking at yields. quite expensive versus long-term history. expensive, bad. >> are they even more expensive now? >> thank god i never told people to rush to the exit. always tell people, valuation, it ties in with what i was weighing about arguments or not, valuation is a poor market timing indicator.

you get it wrong almost as often as you get it right. what i said applies to the markets. i would lower my expectations. >> where would you go? more into currencies? >> you threw me a softball. forill sound like what i do a living. i think we agree on this, he prefers some factors and i prefer the others. but the smart data against a are getting onu value, what you are getting on profitability, on momentum. it looks relatively normal. we will dosaying much better than history, but we have a better chance over the next 10 years than the expensive markets. cliff talking

earlier with vonnie quinn on bloomberg markets. scarlet: coming up next, how to hedge against a trump presidency. ♪

oliver: we have got the function here him showing you just how much it is surging. what exactly is the pays of classes problem? certainly trump is one of them. we're joined now from us the with more.

walk us through the different factors driving the swings over the past year. reasons i'm tony fall in the mexican peso. specific onet to a and that is the rise of donald trump as a presidential candidate. point to ted cruz six weeks ago. implied volatility for the currency, emerging market currency of the world, it has also spiked. to trump as one of the drivers among the fall. oliver: is this strictly about trump's resident -- rhetoric at large? what is it we are concerned about? >> trump is anti-free trade and

anti-. this is why citigroup and indisputable it is it was hardly hit if trump is elected president. more proposals to the table to be detrimental to the economy. callsuld expect further on the peso. scarlet: when you talk to strategist and analysts, how often does trump come up in a mexicans, thebout mexican economy, the trade agreement, the currencies move? >> it is interesting. for investors at the moment, it is too early to figure out what strategy they will take. for analysts and market people in general, they have been telling me they have been getting calls from clients and people just asking what they from histo protect

victory and how this would affect mexican assets especially denominated assets. for citigroup, it is very clear, the way to go, considering the , but also the s&p, for example. scarlet: this is the one trait that surfaced for now and everyone is waiting to see what else happens in the trump victory. oliver: thanks a lot. we are bringing in the strategist of citigroup. great to see you. do you see any evidence that trump's rhetoric or even the prospect of him winning, his success in the campaign, is mpacting the peso? >> it is a good question. typically, the market tends to react between three months and six months prior.

i have not talked to a lot of investors right now. a couple of issues to get out of the way but i think it will be an important driver. >> people are trading before hand. you did say one thing is certain if trump wins, it will be weaker. >> exactly. aboutare a lot of things the trump potential for presidency that are very uncertain. a fiscal there will be policy and trade wars. aggressive policy means a stronger dollar. you do not really know how to trade it. some people think it will rise a lot because of a fiscal stimulus to we do not know what to do with this event, but yes, the in thewill be higher

event of a trump victory. it is extremely likely. scarlet: looking at a chart of the peso, depreciating in late april, earlier this year, trading around 19.5, would you consider the peso weak or strong given the fundamentals? >> it could have been weaker given what the fundamentals are. an innocent bystander who happens to be shot, other emerging markets get stressed while fundamentals are find here there, we disagree little bit. you cannot say it is extremely weak for fundamentals. >> we have seen a lot of volatility emerge.

dirk: we cannot comment on the grexit at this stage. it is hard to say. risk aversion will rise. scarlet: we have seen how the peso gets caught up in the trade. dirk: i think that is the official story, nothing wrong with mexico. you dig aink if little deeper to fundamentals -- scarlet: thank you for joining us today. this is bloomberg markets. ♪

scarlet: you are watching bloomberg. oliver: this is your global business report. scarlet: here's what we're watching. ceo of standard chartered tells

us why he's getting out of the business. oliver: microsoft paying a premium for linkedin. why the social network is worth it. scarlet: we look at the expanding obesity epidemic and what the country is doing about it. nearly bmw is recalling 200,000 bmw's. child seat anchors can be damaged when people use european-style child seats. them in the u.s. scarlet: diamonds are not a banker's best friend. itsbank is getting out of business because it does not comply with stricter lending standards. standard chartered had been asking for more loan reduction from clients. microsoft is betting $26 billion that can put itself at the center of business lives.

that is how much the software company is paying for linkedin. great move for linkedin. he spoke to erik schatzker at the bloomberg technology conference. >> might even take bigger risk as opposed to being a public company which needs to report quarterly. i think linked in, -- scarlet: it is borrowing on lincoln and this is a move that will save it on taxes. general electric opening in r&d sector in paris. they will hire 250 people by 2018. the work on the operating system predicts ge trading 1000 jobs

after the energy commission call the french company awesome. we provide context and backgrounds on issues of interest. on the planet are already overweight or obese. more of joining the ranks every day. are 114 countries in which half of the adult population was overweight, including much of the americas, europe, and the middle east. the average american weighs 166 pounds, roughly equal what the average american man weighed in the 1960's. in china, 1/5 of all children were overweight. deaths.ion premature easy access to processed foods. the amount of food now is more

than sufficient in many countries to provide the energy people need. how muchgh to estimate people eat but the number of calories has estimated -- risen steadily. many people are less physically active than their ancestors were. a lack of exercise and diet located -- loaded with sugar and fat and salt led to bulging waistlines. the united nations has called for a global effort to end the rise of obesity. the chances of meeting the target are virtually zero. there have been successes in the u.s.. employers recognize the costs of obesity through health care budgets and have rushed to offer programs intended to help workers get fit. way to drop pounds is eating less. that is your global business report. had to bloomberg.com.

we will have much more coming up. , beginning at 1:00 p.m. eastern on bloomberg television, bloomberg radio, and bloomberg.com. ♪ get ready for the rio olympic games

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bloomberg markets. scarlet: let's begin with the headlines this afternoon. mark crumpton has more from the newsroom. the shooting in the orlando, florida, massacre was not on a no-fly list even though he had been investigated twice by the fbi for links to terrorism. james comey says omar mateen was taken off a watchlist because agents had no evidence he was a danger. the team called 911 -- omar mateen called 911 and swirly just -- swore allegiance to be islamic state -- to the islamic state. there were reports protesters through projector the -- projectiles at police, who responded with tear gas. any demonstration so far during a campaign. the most vocal opponent of president francois hollande's plan to makes -- make it more

flexible. a -- hand hillary clinton today. clinton is expected to do well in d.c., 49 present african-american. donald trump with -- will meet with house republicans next month. representatives cathy mcmorris rodgers, head of the gop conference, amounts of the meeting at the closed-door house gop caucus this morning that will be held on july 7. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. back to you. let's head to the markets desk. movers beginning with chipotle.

>> we are taking a look at a guess movers today. for six consecutive days, losing ground. we have that food safety scandal last year still haunting those brito chance. now at the lowest level since july of 2013. fitbit is losing ground today, following the most since the beginning of may. updates to the apple watch. , since may 5. we are also seeing some decliners in the steel energy. deliver early -- delivery

following. down more than 2.5%. of the bigger movers there and we had better than expected retail sales data this morning. easing some of the concerns out there on the u.s. economy. department store sales fell in that data so we are's being them all losing ground. scarlet: turning now to canada, the country is facing significant risks. seeing stronger growth with gdp rising 3% next year. amanda lang joins us now from toronto with highlights. considered togely be a manufacturing backbone. what do they say about that?

>> the real key is can a manufacturing sector in ontario the scene because of the week oil prices. backed up by the conference board of canada, while all of canada will show lackluster , ontario will be a big standout on annual basis. can it sustain it? one thing problem, we have not seen the investment we want to see. this sector has lost 300,000 jobs in 10 years. you're talking about 10 million jobs. on the need to attract the investment in autumn. sector,rms of the auto we now have an investing more in some of our plant. the inclusion of yet another auto manufacturer from italy and

from europe coming to town. that is boosting the overall support for the auto sector. >> the official announcement is tomorrow. investing inrysler an existing plant. reportedly $80 million to make that happen. , a wonderfuls high-tech kind of food were jobs. to attract$1 billion 12 billion and auto investment. is this the right way for government to be attracting investment? incredibly high listed environment with mexico. scarlet: did he have anything to say about how canada is faring in the low yield environment? >> he did.

the rates on the bonds are more attractive and you get a better return. say into what he had to the marketplace. >> we are sensitive around the world. our yields, we have better returns in other parts of the world long-term maturities as well. liquidity is strong and that helps. the bank ofwhat canada and the fence do in the u.s. in the coming months. it appears to me it is a low interest rate environment and the bonds will have, i suspect, in the end, with fiscal policies germinatewe try to this. >> ontario is running a deficit. the only way to finance that, at these low rates, that is an attractive thing to do. they are promising to balance

the books by next year. you talk about how healthy the economy is. debt burden is incredibly high. a budget watchdog said even if we can balance the books next year, they will continue past that and we are tracking to $350 .illion of debt if you look at the debt to gdp ratio, it is just shy of 40%. you are not looking at healthy economies. the concern is if we do not see strong growth, we will actually see a real drag from the debt situation in ontario. in new york talking to investors, that is what we need to attract investors to keep financing the government. thank you, amanda. scarlet: coming up, we will take you to the e3 expo in los angeles. we will hear from the ceo of electronic arts. interviewen common

about the unicorn evaluation. former chairman of president obama's's economic council will join us from the conference in chicago. look at the november election. all that coming up. this is bloomberg markets. ♪

oliver: electronic arts quite the curtain raiser for its outline for strategy, largely about star wars.

the company's ceo joins us from los angeles. excited to have you on the show. i'm a big gamer myself. tell us what is going on at e3 and what you are presenting to gamers. >> thank you for having me. i will do my best to project through the noise. e3 kicks off yesterday. we will invite players in an key influences. the festivities kick off, it has been a great show so far. a great press conference. we showed more battlefield one and announced story mode in fifa, a sneak peek that mass effect, and rolling on, sony had a great conference. the industry overall is in really good shape. scarlet: i recognized may be one of those titles.

.a is old school digital games are driving growth and not just revenue growth but profit margin growth across the industry. ea targeting the opportunity and how much further the growth can extend? >> again, i am not sure we are old school. i take your point that consuls are a meeting will part of that business. we have got games, madden, mobile went to number one on the chart. charter has consistently been in the top 10 and the top 20. a launch recently, need for speed, real racing, a tremendously broad and deep portfolio of games. for us as a company, it is actually about delivering games

around the world regardless of where they play and how they play and what business model they play through. we are pushing games to consul and pc and mobile. streaming and at premium pricing, subscription pricing. we want every single person on the planet to experience what we know to be true. the best form of entertainment and we will not rest until we have achieve that objective. producing star wars game spirit i know you have announced the franchise. drivee about how we will business going forward. collects star wars, i heard in the lead up, star wars, one of the biggest brands in geography, we

partnered with disney and lucasfilms on this. we could reimagine was star wars means for a new generation and give people the opportunity to pursue star wars fantasies not just through watching films but actually immerse themselves in star wars. vadersaber, take on darth or fight along han solo. it is what star wars is about. we have launched star wars battlefront last year. we invigorated our pc subscriptions, and it was a great driver of revenue for us. expected to do so throughout the life, a long-term deal for us. scarlet: you recently outlined your strategy for east boards competitive gaming.

is there any way to quantify it? >> when you think about what we do, we seek out games for a whole bunch of different situations. competitionvator is . ea sports has been one about key brands for 25 years. e sports or competitive gaming is really the key to that. the can be with each other or against each other. and what we are to do is provide a mechanism to do that. a million-dollar price for the challenge this year.

this is the first time they will compete for $1 million and we will take that across fifa and battlefield and the portfolio. it really is what playing games is about for many people. >> the stock market reporter in me also asked about strategies here. of buybacks. why is that the most advantageous use of your company's's cash right now? you expect to keep that high? to returnective is value for shareholders. what we do is grow our company both topline and bottom line. to the top billion line and to the bottom line. different of

mechanisms that we can use, any number of mechanisms we may use in the future. buybacks right now feel like the right strategy for us. it is something we can do to deliver shareholder return -- shareholder return. scarlet: how to return your cash flow? what are your priorities in terms of cost cuts. much better position now that a few years ago with margins. >> what we have done is really focused the organization, challenge ourselves to do what we do better, more efficiently, deliver amazing games to players without overspending in areas that did not make sense. it is not about cost-cutting but about cost control, cost

management, establishing a world where we believe we will invest in new technology or new devices that will provide interactive entertainment, but doing that always so we do not find ourselves in the place we were a few years ago. thank you for joining, andrew. scarlet: still ahead, an exclusive interview with the dropbox. and ceo of that is next. ♪

this is bloomberg markets. global business leaders and tech influences are gathering in sand at cisco for the annual bloomberg tech conference. scarlet: emily chang is there with an exclusive interview with ston.houston -- drew hou

you and not -- emily: you announced saying you are a cash flow -- means we are funded by our customers and not investors and we control our destiny heard it isn't written in this environment. the market has shifted from focusing on growth at all costs to going back to fundamentals. emily: what does that include? drew: free cash for positive. money entering the bank. emily: how far away from profitability are you? towarde are managing profitability. this is an important step. emily: a year or two years? drew: moore to share on that front but we are on our way. emily: this is your business. are you surprised by it? drew: i think everybody was surprised to i thought it was great.

a fan of both companies. i think both are amazing. it makes sense. does it change strategic balance of power for you and others like you? i cannot see an immediate impact. it will depend on a lot of the details. i see it as an opportunity to expand what it is working on. emily: the idea was maybe twitter is also in play. maybe other company like yours would be open to the idea. anything there for you? are you still on the path? it creates a lot of excitement on the market and focused on companies, whether it is linkedin or anyone else, there are not many companies that build networks of hundreds of millions of people the way linkedin has and the way we have and the way a small number of

others have. the thing about this is -- we can go public on this timeline. emily: how is the market influencing that? now prioritized a lot more things and getting the positive in staying there because the scorecard is changed. i call it the post unicorn era. you want to be a category leader. we created our space and we continue to lead in a huge market hundreds of billions of dollars when you look in the cloud. and control your destiny, being funded by your customers. emily: the post unicorn era. raising billion-dollar funds, raising billions of dollars.

still -- dow: there are things that not change. in the long-term, great businesses generate cash and lead in big markets. that is always where we looked on the horizon. there is other behavior that happens in the interim. how do we make our customers happy? emily: you were on stage with meg whitman last week. how is that going? into a you transforming truly consumer company? drew: we are all on the spectrum. dropbox, a tipping point with much larger customers buying dropbox. hpe is now a big customer. the reason we have been taking

off in the enterprise is for the first time, we are making it so we do not have to compromise. they can either let people use easy tools or choose secure tools and lock everything down. is a bad choice. both easy and secure and that is why it has taken off. emily: the theme of the conference is invention. you started something from scratch here at how are you cultivating a culture of innovation at dropbox to keep employees excited? and you focus on the core business. people love working at dropbox bid we have interesting technical challenges. pocket, whichagic was really about going from zero to creating one of the largest infrastructures in the world in just a few years. that is one example. we just announced project infinite, and infinite dropbox.

the engineers are keeping busy. so much for you coming today and sharing that bit of news. i will send it back to you. scarlet: thank you, emily chang. an exclusive interview. morer: we will have much from the bloomberg tech conference including a conversation with an investor. scarlet: this is "bloomberg markets." ♪

david: it is 2:00 p.m. in new york and 2 a.m. in hong kong -- 2:00 a.m. in hong kong. ."lcome to "bloomberg markets

from bloomberg world headquarters in new york, here's what we're watching this hour. stocks falling for a fourth consecutive day as brexit concerns heat up. our guests include austan goolsbee oil also pulling today -- austan goolsbee. oil also falling today. we are live at the bloomberg technology conference. among our guests this hour. markets close in about two hours time. ramy: fear is definitely in the air today. markets at session lows right now. down on the order of abo