matt: u.s. stocks hitting a record high. the dow gaining 133 points. missedstion is, what you -- what'd you miss? we have a big rally in equities. jpmorgan beating estimates and the banks is healthy u.s. consumers. joe: you take prime minister theresa may's moving on from the camera era. our guest says she will be a tough negotiator. oliver: could receiver battle bonds -- could we see perpetual ones in japan? former fed chief ben bernanke floats idea to one of the shinzo abe's aides. matt: let's kick it off with our market minutes. we're looking at a number of different assets for equities.

how many does it make in a row, oliver? five records in a row? oliver: we hit the record this week so this is going on the entire week -- matt: fourth record. oliver: we will close five days in a row with a record. but yeah, there's a lot of stuff going on, particularly i like to look at a few things happening in the u.s. stock market. jpmorgan kicked things off with not the best earnings but they beat estimates and that is what matters. financials of almost 2%. -- almost a presented thanks as well specifically doing even better. thething interesting in financial services metlife had a really big move, led to the market up higher and had bullish activity, five times more on volume. doingto brazil, bogus but really well, just -- bovespa

doing really well, just killing it there. joe: remarkable. something to look at in the government bond market, u.k.'s to year, see them shooting up at 7:00 a.m. story of the day in the global macro world was the boe's decision not to cut rates. almost all economists had foreseen a cut. saw similar action in the u.k. 10-year. you see that jump. higher rates in the u.k. today. spike for you, in the british plan could almost 135, as soon as the non-decision -- well, decision not to cut rates came about. we finally close the day around 1333 but still huge surge in the pound. and even the thought, the whisper of helicopter money, is

enough to weaken the yen against the dollar. look at the last few sessions. it has just gotten weaker and weaker and weaker the last few benions after he heard bernanke was over there -- did he actually fly a helicopter? no, he was just talking about a way to drop money from one. joe: quickly on the commodities front, oil today of 1.5%. gold, amid all this risk-on exuberance, has not been doing all that well. it is at about a two-we glow. -- two-we glow. -- two-week low. matt: time to dive into the market minutes using the function on the bottom of your screen from using this command on the bottom of your screen. i will kick it off with the joe. yen and ientioned the

wanted to drive back to talk about this remarkable yet move. red linek to 2006, the is dollar-yen itself of the white line is the weekly move. huge jump up at the end. biggest week for the yen in a very long time over the last 10 years. we didn't have any week bigger. earlier this year, when they were talking about when doj went to negative rates from that did not have much effect until the end actually rallied after that. -- and the yen actually rallied after that. on the idf fiscal stimulus, that seems to be doing the trick. the story this week is the weakening of the yen and the rally of nikkei. matt: you at a study, right? joe: you add a field. matt: because oliver brought up brazil and scarlet was talking to us about brazil today, you see the real has rallied and the vespa has rallied,

the cost to insure brazilian debt. that is in white. the cost to ensure portuguese debt is in yellow. even of portugal won the european cup and is the best soccer team on the entire continent, and including still the u.k., it costs more to ensure their debt than it does to ensure the date of the former colony. i like it when that happens. it feels like brazil is just throwing off the chains and rising up like a phoenix from the ash. joe: comeback is pretty remarkable. matt: my hyperbole aside. oliver: there is so much signs in brazil that people are willing to take risks and feel good despite a fair amount of turmoil. i will keep it with equities and look at my favorite chart of the day. this is looking at flows, which has told such an incredible story. you are looking at the white line here, the aggregated bond

fund plus the minimum volatility etf. those of the total flows combined and the bars of the total flows combined for the s t q, and what you can see in the green box is a big move over the past mother were all these investors are going into the stock market and it is very interesting because that obviously is a big divergence from what we have seen from the start of the year and just this post-brexit, once we got over the uncertainty and we bounced back from the initial selloff, the shift in risk appetite has -- reallyulting else been something else and the funds for what's are backing of the hirings and equities. joe: amazing. the new u.k. government may be taking shape under prime minister theresa may put our next guest says investors would be well seeking safer havens outside european equities. is the hsbc global equity strategist joins us now in the studio. where should investors be going

to find safety? ben: i mean, if you are looking for a safer haven, it is the u.s. very close equity market, exposed to the global risks. and we think we have seen short-term in earnings expectations. if you want the binary trade, i think it is emerging markets. we think the scariest words in finance from even though the global cycle is cooling down a bit, em can do very well. oliver: i want to ask you about that em proposition but first the original point that we can think of equities as a safe haven. we talk about 20 times trailing 12-month earnings. how do you measure that? ben: it is really short-term versus long-term. long-term, clearly the top of the earnings cycle. earnings expectations for next year are far too high.

i think all of that is irrelevant right now. i would argue that in this world where uncertainty is going higher and will stay high and maybe we are mispricing it somewhat here, which maybe we will talk about in a minute, the shorter term safe haven characteristics trump those . oliver: the end of your target is one of the lowest with survey. but if it's a short-term safe haven you must see a big doctrine coming in the next six months -- downturn coming in the next six month. ben: we see a lot more downside elsewhere in the world would be my point. i think it is a little bit downside in the u.s., a bit of downside in the emerging markets. i would just -- matt: a lot of people are talking about how precarious the arerecords we breached here , globally in the u.s. indices and especially because of the earnings outlook, it looks easy to beat, right? 5.7% decline in earnings this

quarter. if we don't looking much of it from that is got to be -- if we don't beat it, that is got to be tougher stocks. ben: this quarter the ice and dances -- the isn bounces back of it. just what happened when we came into this year, we cut it and cut it and cut it. on the earnings inside i think margins are going to be compressed but that is a slightly longer-term story and investors should be ready to pay for the relatives of heaven, the closed equity market, the big by backfield. in this world where policy uncertainty is high and will stay high, we should put extra value on that. joe: i remember at the beginning of the year, the very popular call to rotate out of the u.s., go into europe, on the idea that there is policy divergence. i have a one-year chart on the bloomberg comparing the s&p to the stocks 50. the s&p has we outperformed the rep already. anyone who was in europe at this

point as to medically outperformed. what is wrong with applying that logic now? now we have seen there's is this huge gap that is opened up over the last year. the u.s. economy is looking fairly solid. maybe set expectations will have to be repressed back up again. take advantage of the turmoil we see in europe and this huge gulf that is open between the markets? ben: we don't think european equities are particularly mispriced. i think you make the case for european equities, you have to make the case that there is a price on the upside. you could have made that case pre-brexit. i don't think you can make the case right now. policy uncertainty in the u.k., that is going to come down a bit. we obviously got a really big rally in japan and part of it was on this idea that maybe if we give up on trying to do it with monterey policy, do

you think we could see anything like that in europe, where they are pretty strict on fiscal policy, but where it loosens up of it and this is where we really need? ben: yes, if there is a silver lining to brexit is that fiscal policy is beginning to respond is not all being held. we have seen that in japan. we cut our gdp number. more?dn't we cut it we think there will be a moderate fiscal response and we are beginning to see that already. joe: ben laidler, hsbc global equity strategist, thank you very much. up, monetary policy. we will break it all down for you. this is bloomberg. ♪

mark: i'm mark crumpton.

let's get to "first word" news. conflicting reports today about donald trump's selection of a running mate. "the new york times" and cbs news say he has selected indiana governor mike pence, but "the times" says he could change his mind and his campaign manager says no decision has been made. "the indiana star" reports that mike pence has dropped his reelection campaign for governor. atwill announce tomorrow 11:00 in new york and we will bring it to you live on the bloomberg. newt gingrich said during a facebook chat that trump wanted tax returns dating back to 2004. the campaign wanted copies of everything yet written along with answers to more than 100 questions. a united nations report strongly criticizing both sides in ukraine's conflict for the killing of innocents in indiscriminate shelling. the report says nearly 2000

civilians have been killed in the two-year conflict. nearly 90% of them from shelling in residential areas. china isn't backing down in its dispute over the south china sea. chinese passenger planes made a test flights to new airports in one of the places in question. this weekend international tribunal ruled china has no historic claim on the south china sea, a ruling which china promptly rejected. at the british open, phil mickelson became the 26th player in temperature history to shoot a 63 and he has reason to be disappointed. rode theot birdie putt edge of the cup without dropping. as a small publishing company gets to settle for the course record as a small consolation, he gets to settle for the course record. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. joe, back to you. joe: what'd you miss?

esther george out today saying interest rates are too low given the performance of the economy. our next guest may agree. he says the fed is looking for excuses not to raise rates and may have found a big excuse in brexit. joseph dan jan is a senior fellow at the peterson institute answered on the federal reserve board and treasury department. he joins us from washington. thank you for joining us. all year there has been discussion between domestic conditions of the u.s. economy, which don't seem too bad, and all these global risks, brexit, china. are we at the point where the global risks aren't really panning out as an issue, in part due to it seems the market is shrugging them off, and the fed will be forced to justify why it is not raising rates? joseph: well, i guess i don't think so. i think the brexit vote will probably lead to a mild recession in the u.k. and a slowdown in europe. i think the fed can point to

that and not raise rates. i think they are looking for them not to raise rates because they feel -- regret some of the things they said earlier and would rather take the time. oliver: how many ppi numbers, how many jobless claim numbers, are they going to need to change the tone, or have it essentially just decided that, hey, this gives us a clear path to hold off until the end of the year? think, you well, i could imagine, if brexit is it as damaging as people think -- is not as damaging as people think, and if the jobs numbers stay as good as they were this past time, you could imagine they will hike rates this year. i actually do think brexit will cause a recession in the u.k. and i think that will keep the dollar strong and probably encourage them to wait a bit longer. matt: i mean, the u.k. is not exactly a massive economy, right? why does the fed look for excuses to keep from raising

rates rather than looking for excuses to raise, from 25 to 50 basis points, it is not like the economy couldn't withstand a couple of increases, especially with unemployment at less than 5% and inflation at 2%. joseph: i think the reason is that the fed has been reassessing the asymmetries of the cost. if they make a mistake and inflation gets too high, they have plenty of room to tighten and fight it and they know exactly how to do that. if they make a mistake in the other direction and inflation gets too low, they are worried. they are not sure what they could do. they don't want to be in that position. the story that has really stuck out to me this week has been the reaction in japan to hopes for fiscal stimulus, coordinated action. but it is not just a pan. it seems that the limits of reached policy has been

-- at least people perceive that to be the case. would the u.s. benefit for more aggressive physical action -- physical action -- fiscal action? given currency was, would the u.s. benefit or is that a story from two years ago? joseph: i don't think we need fiscal stimulus right now in the u.s. japan has got to get back to the inflation charter. they're going backwards in the past few months. i hope japan steps up to the plate and does something to stimulate their economy. that would help them and help the whole world. matt: his helicopter money the answer there? i agree, it has been the most fascinating story from a monetary policy perspective. perpetual bonds directly to the boj commodities they just printing money, is that the way to go? joseph: i think so. the issues that 10- and even 20-year bonds in japan have a negative interest rate. buying more of them and doing nothing else probably is not a

big bang for the buck. they need to do some thing else. they could buy equities big time or two helicopter money and perhaps helicopter money is better because the effects are felt more widely. joseph, you said attending a potential inflation would be a better scenario -- tapping a potential inflation would be a better scenario that the opposite. bonds stronger and stronger and soccer, lower yield on the 10-year, higher and higher stocks. i think a lot of people would argue as a result. at what point does that have to consider asset inflation as opposed to just economic numbers? joseph: oh, i don't think they will -- i can't imagine them thinking that way for a long time. not unless the assets are leveraged. i think if they thought there was a lot of risky borrowing backing the asset prices can that would be an issue. but even then they would probably try to use of the regularly measures if they could

-- other regulatory measures if they could. i don't see them thinking that way. i think they are warm -- they are more worried about deflation, still. joe: going back on the 10-year chart all of her bright, people have scratched their heads, what is the cause? is this about presence in, low rates, structural factors causing everyone in the world to want to scarf of these assets? what is the main signal to take way from these rates around the world? joseph: i think they are a sign of a number of things that are converging to push rates down. population growth is slower. fewer workers coming in the worker force. less need to build houses, factories to hire these workers. less need to invest. people are getting closer to retirement and they want to save and beef up their 401(k) plans. also, emerging markets, which used to borrow from advanced economies, are not.

they are lending to advanced economies. less demand for investment. all these things increased sitting and reduce demand for borrowing the intensive push interest rates down. senior joseph gagnon, fellow at the peterson institute. matt: coming up, former fed chairman ben bernanke floats the idea of perpetual bonds for japan's economy, only the boj can buy. the reaction to mere helicopter money. this is bloomberg. ♪

oliver: i am oliver renick. what'd you miss? could japan be getting perpetual bonds?

a really cool function that i use a lot, almost a meta- function for me as a journalist. it is searching news results. this is what i have set up here. instances of the word " helicopter money," your white line, and the instances of ben bernanke in the orange line. kind of a fun thing to look at. clearly this idea is very much at the forefront of the conversation here after bernanke made his trip over to japan and aidesd talking to abe there about how to get their economy john started. there love how it shows are these bursts of this idea as people get excited about this new thing, this technique that could come, and maybe we could see fiscal monetary coordination in japan. matt: the bloomberg story was amazing. i don't know if you tweeted that out. somebody tweeted this morning

about ben bernanke's first trip over there, talking to one of abe's advises, and that is when people start talking a lot more about helicopter money. honestly, you see the yen weakening. joe: and bernanke over his career has written a lot about avoiding the inflationary traps. the significance of bernanke going to japan at the time they are trying to pursue invigorated stimulus is not lost on people. oliver: you mentioned the biggest story this week has been the yen. i was meeting with support for the manager today and he said we are still watching brexit but we are also looking at japan and seeing what type of tools they consumersn to give certificates. maybe that will have the impact. a lot of options there. joe: you look at europe, you look at the u.k., they might want to look at japan for the next frontier of economic policy

tools to get their economy status. matt: i was just looking around at the money supply for japan, , the measure of all money supply, shows a massive climb in white. it doesn't seem to be enough to weaken the currency. joe: speaking of printing, there is printing that is going to go on in japan but it has nothing to do with this. shares of actual printing companies searched on the news that the emperor of japan might abdicate the throne in the near future. apparently when this happens they have to reprint all kinds of calendars and business cards and their documents -- and other documents to the calendar is based on the emperor's time. such a big deal that random renting companies searched today, 15% sort of a very amusing -- matt: we will all have to buy new calendars. i will buy one as well. very fascinating stuff. coming up, u.k. prime minister

theresa may hits the ground running. i don't know if they are pretty new calendars for her but she is shaking up the cabinet will

mark: i am mark crumpton. time for "first word" news. donald trump is closing in on his running mate selection. is indiana saying it governor mike pence. a last-minute change of heart by mr. trump still possible. a spokesman says trump has not made his decision yet. the campaign is planning an announcement in new york city tomorrow morning could "the indianapolis star" reports that governor pence has dropped his reelection bid for governor. we will bring the announcement to you live tomorrow on bloomberg at 11:00 a.m. new york time.

national security officials say they are worried about possible violence at next week's republican convention in cleveland, and at the democratic convention in philadelphia the following week. among those exposing unease, homeless three secretary jeh -- homeland security secretary jeh johnson. secretary johnson: i'm concerned about the getting out of hand, i'm concerned about the possibility of violence. 3000ve within dhs personnel dedicated to the security of the republican national convention and the democratic national convention each. mark: secretary johnson says he will inspect the cleveland site tomorrow and will travel to philadelphia next week. a close political ally of new jersey governor chris christie has pleaded guilty to a federal charge of soliciting a bright. prosecutors have been looking to david samson, a christie appointee, who is chair of the port authority of new york and new jersey from 2011 to 2014.

officials say he threatened to withhold funding unless united airlines agreed to provide direct air service to make it easier for him to get to his vacation home in south carolina. the money-losing flight was ended three days after samson resigned. the united ceo also resigned after an investigation into the service. saysin's new brexit czar the country will probably end up leaving the european union by december 2018. david davis says the negotiations could begin by the end of this year. prime minister theresa may named davis secretary of state for exiting the bloc. alledge saudi arabian ties to the 9/11 hijackers could be cnnaled tomorrow morning to . the so-called 28 pages were part of a congressional investigation into the terror attacks. global news 24 hours a day powered by more than 2600 journalists and analysts in more

than 120 countries. i am mark crumpton. this is bloomberg. matt, back over to you. matt: mark thanks very much. fascinating day in the markets, starting off with equities. a new record high for the s&p 500 and it was the day. every day this week we have made a record high on the s&p 500. oliver: pretty wild stuff. i'm looking at one measure a lot of traders look at, the number of stocks above or below the rsi levels. oversold were over by could 11% of the s&p is being registered as overbought. 0% oversold. that is a pretty low number for how far we have come. joe: all right, what'd you miss? theresa may has cleaned out many of her predecessor's senior team as she took the helm as you kate prime minister. -- u.k. prime minister could she fired josh was born and replaced him with phil hammond, former

foreign secretary. former london mayor boris johnson was named foreign secretary. david davis was assigned to oversee brexit negotiations. joining us is nina schick, director of medications at the eu policy think tank open europe. i remember right after the brexit go there were some pundits saying we are not sure that triggering article 50 is ever going to happen. now that the new government is essentially totally in place, is there any ambiguity about that anymore? theresa may has said brexit means brexit. is it pretty clear this is going to happen? is no ambiguity at all and anything otherwise is instantly wishful thinking. that was always going to be case no matter who is prime minister because usually cannot ignore referendum like this when you have said that this is the will of the people, whichever way it goes. the only uncertainty now is one is that actually going to be triggered, because the ball right now is in the u.k.'s court. it is the only -- it is only the

u.k. that has the right to trigger article 50. once you do that, you have a two-year period to start negotiating. what theresa may is doing right now is being very smart in putting together a routine and also trying to find out -- putting together her team and trying to figure out what kind of relationship we have with the eu. the indication seems to be given that none of the models outside the eu -- norway or switzerland -- work for the u.k., because those countries have to accept free movement of people and make a significant eu budget contribution, we might be moving towards an entirely new model based on one rather saluted the deal canada negotiates with you. -- with the eu. oliver: obviously, money managers we are sticking with on the stocking our focus on what is happening in england but when i talk about the cabinet choices, a lot of them don't know who these people are. as theresa may continues to make these choices from should money

managers be paying attention? is there going to be certain outcomes based on who is chosen, or has theresa may wind up and we don't have to worry about individual names? nina: no, we do have to worry -- we have to take note. the most interesting thing is that those who are charged with alltiating brexit are leading brexit mps -- boris johnson, david davis. to some extent they might be windowdressing and we might see theresa may and hammond playing bigger roles. johnson from his appointment as a foreign secretary went down not very well across the eu. watch david davis. he used to be the candidate to be the conservative leader and he was taken out of power by david cameron. he has been a backbencher for a long time and now he is making his return. also worth noting that theresa may, when she was standing outside downing street, she made

an almost left-leaning speech about future policies on the economy but now we have a very far right government so it will be interesting to see how that dynamic plays out once the cabinet is actually in place and things start kicking off. course, her tagline is "not just for the privileged few" and she is talking about putting labor leaders on corporate boards, which will not go down very well all with her constituency, especially in parliament. but she did say she is going to trigger article 50 around christmas time, or the beginning of next year. , nina, eu leaders were angry and wanted the u.k. to trigger article 50 immediately. now they seem to have softened up a little bit. you heard angela merkel a few days later saying, ok, they can take their time about it. you think the longer they wait, the better the conditions are that they will get in negotiations? nina: well, let's not forget

that the eu isn't a single entity and there are many different opinions as to how they should proceed. we have heard lots of tough talk from european institutions, european parliament, and certainly france. it isnger the u.k. ways, not going to become more favorable for them because let's remember, for the rest of the eu, they don't want to spend the next five to six years discussing the terms of britain's exit from the eu. they have enough going on within the euro zone and in the remainder of the eu. i think merkel, of course, she is always a pragmatist. but britain has made a mistake during david cameron's renegotiations and reform of the eu of relying far too heavily on merkel and i'm afraid that is the mistake that may be made again now, because let's be clear, the eu certainly does not want to give the u.k. a better deal than what it had because that is a threat to the eu, existential threat to the eu itself, at a time when populism is on the rise and you have all these far-right parties pulling for their own referenda.

we will be entering a very, very tough negotiation and i think britain has to be under no illusions about how difficult it is going to be going forward. real quickly, you mentioned theresa may's speech, she sounded some left-leaning notes. i also noticed similar tones gove in his speech about curbing the excesses of capitalism. is this going through the political elite on the right where people got sent a message from the referendum that there needs to be some fundamental changes to the economic model? nina: tremendously, and if you look at those people who swung the referendum to brexit, these are people who don't usually vote in general elections because they feel the political system doesn't work for them, they feel left behind, they feel that globalization has changed their life and nothing is getting better for them. it would be political suicide for the next prime minister not to take note of that.

but it would also be very interesting to see how that dynamic between the liberal leaders, those who wanted britain to seize the opportunities that are available to them in the world, including striking free-trade deals, how do they reconcile that with the very large majority of people who voted to leave because they wanted a more protectionist, closed-down britain? that is hoping that domestically will be very interesting. we don't know how that is going to fall in the end. oliver: very interesting stuff. nina schick, director of communication at open europe. matt: i wanted to quickly point out a chart on the bloomberg terminal. it shows london housing prices. for me this is fascinating because i couldn't believe how much it cost to buy a flat in central london. thati see from this chart housing prices have fallen to a seven-year low. the lowest level since 2009. my only question is, who is selling at these levels?

we see price indications there but i wonder how much action there is at the red line. joe: chance to pick up on a fire sale. what is sohink interesting, obviously, this line is coming out pretty sharply after brexit. , whatked a good question are the actual data points that will be affected by brexit? i don't know if this is an actual data point. i guess to a certain degree it is but this will create a wealth effect where people don't feel the sort of wealth from the price of their home that ties in with the sentiment. i'm not sure if it is necessarily -- matt: or if you just bought your one-bedroom flat in chelsea last year for 2 million pounds from are you going to turn around and sell it for 1.8 million this year even if it is priced at that level? you will probably hold out for more. joe: probably. coming up, a legal victory for microsoft. the company won't be forced to turn over e-mails stored in ireland to the u.s. government. we will get details next with

the microsoft chief legal counsel. ♪

oliver: microsoft will not be forced to turn over e-mails stored in ireland to the u.s. government for a drug investigation. that is the word from an appeals court in a decision that may affect data security throughout the u.s. technology industry. the ruling overturns a 2014 decision ordering microsoft to turn over messages of the suspected drug trafficker. emily chang has an interview with chief legal counsel brad smith. emily: thank you, oliver, and thanks, brad, for joining us. does this verdict all your concerns about u.s. overreach abroad, or is this a fight that

you and other technology companies are going to continue to have? i think today's decision is very important. it sends a message that when the u.s. government wants to obtain e-mails that belonged to people who live in other countries, in other nationalities, it needs to work with other governments. it needs to respect international law. it is very important for the u.s. tech sector because we have long recognized that people will only use technology that they trust. they can trust u.s. technology today in a way that they didn't like trusted yesterday. now we can focus on crafting the right laws for the future. emily: now, the doj has said they are considering their options. they can appeal this. is this something you think will be decided in the supreme court? brad: well my will have to see. i think fundamentally the question is this -- do we want to spend the next two years arguing about a lot when guess

past 30 years ago, or do we want to come together and -- that congress past 30 years ago, or do we want to come together and write the right law for the 21st century? we need to go to congress and write the right kind of law for the future. emily: now, microsoft is backing something called the international communications privacy act. how would that resolve this issue? bill i think it is a good that is supported by republicans and democrats alike. it would basically focus on the nationality of people. if there is an american in europe, the u.s. government could use a search warrant to obtain that person's e-mail. but if there is an irish citizen in ireland, if that person is not living in the united states, then the u.s. government would have to work with the irish government and use either an existing treaty or we put in place a renewed tree. -- new treaty.

it would ensure people that their privacy rights would be protected by their own laws. that is what we believe people want. emily: now, the tech industry has been under fire for not helping the government in a criminal and anti-terrorism investigations. how do you reconcile that with broader concerns about security and national defense? well, we want to see a set of laws that work for both privacy rights and law enforcement, and we want to see it work on a global basis in a way that protects people's rights around the world. we respond every day to lawful orders in the wake of the terrorist attacks in paris last november, for example, we at microsoft responded to 14 orders from the police in paris and brussels and we did that each time in an average of less than 30 minutes. but we need new laws and we need laws that respect people's borders and their rights, not

the kind of thing where we are seeing governments try to use old laws and in ways we think ignores people's local rights. emily: have you spoken with the presumptive presidential nominee's donald trump and hillary clinton about these particular issues? brad: well, i think both campaign staffs are aware of this issue. people across the country have been following it. it is too early to know what the presidential nominees will conclude, but we would say this is an opportunity. it is an opportunity to come together and really ask ourselves what kind of law do we want for the future, how can we move from a law that was passed 30 years ago to one that is designed for the technology that exists today? we would hope that both parties and both presidential nominees would embrace that opportunity. emily: in general, though, how do you feel about the candidates' views on encryption and data privacy as these issues have arisen throughout the

campaign? brad: well, i think we are living in a time where there is a lot of questions about technology. that is understandable, given how quickly technology has been changing. fundamentally, i think everyone is asking where we go in terms of protecting what i will call timeless values -- the protection of privacy, the need to keep the public safe. and what we need are not heated debates but more light, some calm thinking. and that is not necessarily come in july in a presidential election season, but we are optimistic that we as a country can come together and really fashion something that is grounded in common sense and the needs of the future. emily: all right, microsoft chief legal counsel brad smith, thank you so much for joining us today on this big court decision. guys, i will send it back to you. matt: all right, emily, thanks very much.

a japanese messaging company's shares soar. next we will hear from its top executives. this is bloomberg. ♪

matt: i'm matt miller. what'd you miss? the biggest tech ipo of the year. e sort in the trading debut. betty liu sat down with the company founder and cfo and she is back on set with us. the modern miracle of train transportation. betty: it was quite a mood at the new york stock exchange, it really was. it seems like the pipeline at least has opened up for this

tech ipo, the biggest one so far this year. as you mention, we interviewed the cofounder who is also the chief global officer and cfo. they were very excited, not only by being avenue stock exchange -- matt: making all that money. betty: you hear the cash registers ringing in their heads that a lot has been said, what are they going to do with this really dollars that they have raised, and they mentioned already that they are going to expand into some of the markets growingthat they are rapidly and, like taiwan, thailand, indonesia. but they also mentioned the u.s. about that cofounder this morning. -- a kind of advanced mode in terms of optimized service. service, andr

another chance especially in the u.s. market. betty: as if our phones already are not a one-stop service. we do everything on a phones. joe: there is so much interest in messaging apps as platforms. , facebookwns whatsapp messenger. differentiator? where did they see an opportunity to grow and gain shares? betty: geographically there seems to be an opportunity for them. they are already dominating in japan. the other parts of asia, they in wech more dominant chat, china has a good but they are still quite small. 18 million users a month. so they see an opportunity for -- matt: the key is what you can do with this, right? betty: i was going to say that.

it is more than just messaging. matt: whatsapp is only messaging. here you can order food, hail a cab, download music. betty: you can hail a taxi cap, do almost anything on this app. much more than messaging. which is why the revenue growth is actually more now in advertising than in any other stream at this point because it is really more of marketing platform . oliver: so once they come here i can download line and i won't have to download anything else. betty: pretty much. no more spotify, seamless -- betty: what can you not do on your phone anymore? you can get married on your phone --what? oliver: married on the phone? betty: well, you can find your

spouse. oliver: thanks a lot, betty. her at 7:00 p.m. in new york and some of the game in hong kong -- 7:00 a.m. in hong kong. joe: coming up, when you need to know to gear up for the trading day. ♪

joe: don't miss this -- china retail sales and gdb tonight at 10:00 p.m. eastern time. retail sales expected to be up 9.9%. matt: and then of course you are going to definitely not want to miss citigroup and wells fargo earnings, tomorrow at 8:00 a.m. eastern time. you can catch them on "bloomberg the bloomberg terminal, key to understand how the earnings season will pan out.

oliver: don't miss this, either, more retail sales from the u.s., a: 30 eastern time. for "what'ds all you miss." thanks for watching.

al: i'm al hunt. mark: i mark halperin. with all due respect connecting rich, putting him on the ticket with donald trump was a was kind of a moonshot. and with all due respect to chris christie, putting you on the ticket with donald trump was always a bridge too far. al and i are here all week. welcome to a very special vee pstakes edition. john heilemann spent the day in virginia