vindicated by james comey's congressional testimony yesterday. in the president's words, "no collusion, no obstruction, he's a leader, but we want to get back to running our country." when asked if tapes exist of his conversation, the president told reporters he would answer sometime in the near future. mr. trump's son-in-law and it buys or jared kushner is scheduled to meet with staff from the senate -- advisor jared kushner is a elected to meet with staff from the senate intelligence committee in the coming days and be asked about his meetings with ambassador sleak.y act -- ky confirms five top cabinet positions are staying the same. the chancellor of the at checker as does the home secretary. boris johnson and michael fallon remain on as orin and defense secretaries.

the labor secretary will retain his position as well. talks to exit the eu are scheduled to begin in less than two weeks. people, mostly civilians, are dead after soldiers clashed over food aid in somalia. fighting erected at a distribution site after some soldiers tried to steal food meant for refugees and soldiers to stop and others try them. many refugees have been streaming into somalia searching for food and support from international aid agencies. global news 24 hours a day powered by more than 2700 overalists and analysts in 120 countries. i am mark crumpton. this is bloomberg.

julia: live from bloomberg headquarters in new york, im julia chatterley. scarlett: i am scarlet fu. joe: i am joe weisenthal. first news, what did you miss? : tech stocks getting slammed on heavy volume. have we seen the top in big cap tech shares? learning to expect the unexpected. u.k. election results leave investors with few clues on how the pound will trade in the near term. . deadly drug epidemic the fda is taking its first steps to address the opioid problem. what this means for drugmakers, coming up. julia: welcome once again. where the a look at major averages stand as we head toward the close.

abigail doolittle is standing by. abigail: after several days of not really having big moves, today we have very big moves and lots to talk about. first, the nasdaq down in a big way. all of these averages had intraday highs. dow on track for a record close, but the nasdaq down sharply, on pace for the worst day since the record of last year. the turn lower started around noon, and it appears there is a momentum shift out of tech into financials. we will be getting more on that in a moment. all500, nasdaq, nasdaq 100 on pace for weekly declines. a bit of a diversions for the nasdaq and nasdaq 100, worst weekly declines of the year. this is what's behind it, apple, microsoft,'s -- facebook.

slicing through its 50 day moving average, apple will be taking control. a number of buy ciders and sells ciders and they believe there is a rotation out into financials. we of course have had tech on last many months, certainly this year, so taking a little bit of a breather here. forlso have take selling the chip sector. this has really been on fire. monster move over the last 12 months. now, look at nvidia. this has been one of those jet fuel stocks, up in a big way over the last year. trigger does seem to be the short seller at citroen research saying this is a casino stock. we need to see what happens in getnext quarter to really behind it.

really taking the entire sector lower. finally, taking a look at what might the happening sector rotation-wise, have a look at the bloomberg. is a chart out of the inauguration, since president takenhas been elected or office. s&p 500 up about 5.6%. the tech sector has really helped out. leg lower.g that since the inauguration, the financials have really been negative, that now up 2%. you can really see that sector rotation. as far as if it last, i did just ask someone at oppenheimer if he thought it would. he thinks near-term there could be more selling, but over the long term, both tech and financials will climb higher. but today, serious settling in the tech sector. what did you miss?

the u.k. is still grappling with brexit after an election that has thrown negotiations into question. in thecheck out eu go bloomberg -- this is great. you can look at all the different stories, depending on where they are coming from. thehave a map that shows translation from votes to what that means in terms of seats. there is the map expanding for you there. the blue is conservatives, red labour. joining us is eric nelson, great to have you on. how exciting. what does this mean for brexit? we saw a selloff in sterling,

but it looks like investors are thinking may be this would not be so bad. difficult toays get a softer brexit. i do not see a good outcome from this. was ever theresa may wanted , but to do what she wanted now she has to navigate three fractions in the conservative party. outcome.fficult she said no deal is better than a bad deal. the internal dynamics of her coalition, both within the party

and the minority party, does that increase the odds of a no deal? >> yes, definitely. and no deal is not better than a bad deal. it's one of these wonderful one-liners that you say, but the picture is bess. the train is leaving the station. nothing is stationary. you just got off the bus. the question is whether you want to get back on the bus. big ayou have to pay too ticket, but do you stay on the bus or get left behind? as the u.k. tries to sort itself out, how does this change the eu's stance? don't think it changes anything. that said, i think it is fair to that before they start negotiating the trade relationship, they need to agree

to a negative it feel. and they need to do about northern ireland. need to decide what to do about northern ireland. the europeans have dealt are an impossible hand. no prime minister could come back and a couple of months and say we are now going to talk trade and i just signed a commitment to pay 40 billion. it's politically impossible. the problem i have is this. , in the campaign, displayed a complete lack of knowledge of things outside of her own turf on the home office. so she will not be in position to negotiate something sensible and go through a process instead of a number. cornered and has to say no deal is better than a bad deal. and that's a disaster. perfect timing because we

see a banner saying may faces calls to resign. she has the hard-liners in her own party who wanted a hard brexit and she has the guys in the middle. she's struggling to get any kind of deal here. what, guys?you know we have to take it back to the vote now that i know the terms? or maybe i need to resign? the cause for her to resign are only going to get stronger. for her to resign are only going to get stronger. i am surprised she's even trying to survive. she has lost all power. it's a nice out for her now. , and she issign trying to stay in place.

what is a soft brexit? especially if her coalition says the whole point is a free flow of labor? frexit?a soft >> free movement if you have a job, but not until you have a job. she played it well and knew what she was doing. i think she could have cut a deal down the line with merkel and germany. the germans really wanted a good relationship, but it has become very harsh. and she interpreted the referendum, peculiarly, as meaning a hard exit. she ruled out the european court of justice. we voted on aid you but i am interpreting it to

mean this. best eu, but i am interpreting it differently. so, this doesn't happen in the united states, although we have plenty of other problems. but what happens if she can't stay put and does get pushed out? who would replace her? great question. i would add to that question, at what point does her position become untenable? somebody who has designs on being prime minister one day basically tells a group of -- has ahind him that group of people behind him that can threaten her. scarlet: like who? someone in the labour party. and that would be a fresh election. >> it probably ends with early elections. that would be my guess. ,f you look at the next tier

really, nobody seems to be the obvious candidate. it's a mess. it's a real mess. julia: we felt like she took a poisoned chalice and what she took over and it's getting steadily more poisonous. >> you took a big apple and she lost. big gamble, and she lost. scarlet: we will be discussing central banks next, beginning with the fed. from new york, this is bloomberg. ♪

is ericll with us

nielsen, union credit chief economist and former economist at the imf world bank. we haven't even talked about the pound and its sensitivity to the election. here is the part i am trying to wrap my head around. when theresa may first called the snap election, when it looked like she was going to end up with a massive majority, the pound rallied even though that might have been a sign that she would have more of a mandate for a hard brexit, perhaps. is there a linear relationship between the pound strength and the relative hardness of the brexit, or is it more complicated? is are complicated, but it vulnerable asset. andk back at the referendum about the election coming up. you never really know. it is a safe asset. people are operating in

the pound, and you never know what the bank of england will do. it's extremely vulnerable from here on out. joe: so, what is the ideal scenario if you are a pound bull , long on the pound, what is the best outcome to make the pound go up? first --ll, the >> well, the first thing is to sell the pound. [laughter] but if you could get some sort of clarity that would make you think it's a less hard brexit -- but i just on see the road to that. analysts arerts of a hungif this is parliament, the sterling will be at one point when he won. are we just waiting to see what this -- a hung parliament, 1.21. are we just waiting to see what this will look like because of the challenge she has internally question mark >> people are

two things. first, the u.k. has the biggest pound deficit of any ecb country is becomingliament increasingly antibusiness and more and more confused. so the chances of policies to attract investment and inflows have declined. , in my opinion, when i have talked to two business here, is a degree of -- does the financial sector have to move out? surely, you can still do things in london. but if you can't sell stock from london to the continent, people will have to move. there's too much of a belief, in my opinion, that there will be a way around it. it's not that simple. we have a bunch of central banks meeting next week. how does this affect their

discussions? how do they for this into their policymaking decisions? upprobably won't show immediately, but what do investors do? , it doesn'ted matter a lot. there was a time when it looked like they were waiting in may be signaling a rate hike, but what we have learned now, looking at the global economy and trade numbers, there is no visible slowdown in the u.k. -- which was quite slow already -- will have a global effect. what about the le? oe?- >> they have to stay put. joe: what about the next fed rate hike?

this month we will get the first one. will there be another one? >> there will likely be another one in september. there will be a balance sheet reduction at the end of the year, and that takes away a rate hike. that's my guess. but this is all about the u.s.. my guess is that many of us are a the process of adjusting to view that growth will not be over 2%. eric nielsen will be staying with us to talk more about central banks and how they are all moving somewhat in the same direction. this is bloomberg. ♪

scarlet: eric nielsen, our guest , says he expects a fed hike in june and another one in september. he is keeping a close eye on the banks balance sheet reduction as well. let's start with market expectation. it's very different if you are looking at the bond market versus the equity market. the bond market has made peace with perhaps less stimulus. the equity market seems to be moving of its own volition completely. >> it's difficult to understand, but my guess is what you are world flush with liquidity, and interest rates are unusually low. long run, american policy rates should be about gdp roles. have very cheap money. your normal price earnings categorization are where they should be. where are you going to put your

money? you saw today and yesterday that we got the latest numbers. people by risk. they have to. risk is kind of expensive. you're not getting a big rally. question is why are the europeans not picking up more than they do? it's a little unclear. scarlet: why do you think that is? >> i don't know. they should. there is a concern about italy now. there was a concern about france before. we are seeing a good move on the bankside, and they are the cheapest ones to buy. i think the spanish deal shows clarity. this is what we see now. banks,ime i peek at the i think now it is coming, now it is coming. it's interesting you mention europe, because going back to our original discussion,

four years after the crisis, it fairlye, the u.s. is stable, europe is a complete mess. now the u.k. is messed up. it looks like europe, at least politically, is on smoother footing. is this a major shift and he you think it will have ramifications in economics? >> yes. i think macron is a real game changer and he will get a significant majority in the parliament. he will come out of that with a huge mandate. not just for france, but for europe. election, hehe walked out in front of the louvre to the french national anthem. you have never seen this before. he needs to do some reforms in france to be in good with the

germans. and then he is going to put france on the front burner and say we want to do integration. germany has to come along. julia: let's say angela merkel wins her election. >> she does. buta: we are pretty sure, let's not be predictors on this point. does italy matter less? we are talking about france and winning amacron majority in parliament. does italy matter less? >> maybe, but you can't really have the next step of european integration without italy? we have to, because get through the election in italy. joe: all right, great stuff, great conversation. economisten, chief at unicredit global. nasdaq at session lows,

off by all must 2%. a clear underperformer with the s&p and dow barely moving in comparison. dow up by 16 points. nasdaq off by him as 2% in heavy volume. this is bloomberg. ♪

>> "what'd you miss?" day for the top cap tech names in almost a year and the worst year for the nasdaq in 2017. chatterley. >> i'm scarlet fu. >> chatterley. >> i'm scarlet fu. >> i'm jerod wiesenthal. if you are just tuning in live, we want to welcome you to our closing bell coverage. scarlet: we begin with our market minutes. wreck in tech is a great way of describing it, because if you look at the nasdaq, a big decline. nasdaq, off by 1.8 percent. it's the biggest drop in two weeks. at one point, it had fallen as much as 2.9%. that gives you a sense of -- >> the extraordinary intraday volatility. [laughter] scarlet: we have kind of a round

number, close to 6200 for the nasdaq. , inside the bloomberg. overu look at the movers the week, you will see financials, energies, materials, those are big gainers, and in the case of financials, up by 3.6%. these were the laggards in 2017. rs,you look at the decline tech, off by 2.4%. this rotation has lifted value stocks up against a growth this week. that has been a theme. 100,you look at the nasdaq that has had its worst day in over a year. many companies, those big cap tech names. if you look at nvidia, this was a huge laggard on the nasdaq and s&p 500.

that stock is down by 6.5%, and apple, microsoft, amazon, these are all called -- joe: goldman came out with a new acronym. apple,: facebook, microsoft, and alphabet -- also known as google -- leading investors to underestimate their risks. there is plenty of volatility today. julia: no volatility in consumer staples. it is so alluring. is: i don't think famga going to take off. let's take a look at the bond market. 10-year yields, still taking up higher. that's interesting, we've got this part of the market. 2.21 on the 10-year. a quick look at the u.k. yields. we were talking before with eric

nielsen. what is the relationship between u.k. assets and a risk of event like this election? today, it is selling sterling but also buying government bonds. julia: perfect. i want to take a quick look at what is going on in currency land. sterling,f the uk's lower by 2.5%. if you look at the one-year chart, compare the move we saw after the brexit vote, we can see while we are down 1.8% this year and it looks pretty bad a, compare that to the move we saw in the brexit vote, and it's nothing. joe: finally, a look at commodities. oil and gold, let's look at those. a little more action in the industrial metals, copper up 1.4%, palladium up 1.2%. let's take a look at a one-year

chart of palladium. look at that, up over 50% on palladium. it's the best-performing major commodity in the world. analysts say supply and demand is in deficit. people may be switching from platinum to palladium for industrial purposes. i hope you had your money in palladium. scarlet: let's take a deep dive into the bloomberg. you can find our charts using the function at the bottom of the screen, and i want to pick up on something i mentioned earlier, the outperformance of financials. this is a bigger picture, and they have been getting a bit of a lift as the 10-year moves higher. the selloff of the treasury is rmod for financials' near-te performance, and what we have seen is a fairly robust recovery. financials had their best three-day winning streak since early december.

of bloomberg-ons intelligence was telling us there is a desire to keep this rally going. urc may seeing a shift from growth, technology, to value names, like financials. we saw financials as the early beneficiaries after the elections, but those gains faded in march as the trump trade faded. there are signs that the trump agenda on policy for tax and deregulation in the financial sector aren't really taking off. joe: maybe people are revisiting some of those aspects after that trade faded. intensey, today's selloff in the tech space raised the question like, is this the end of the tech rally? none of us can see the future. we can see the past. here is a look at tech valuations. it is the ratio of ratios, the tech versus the s&p. as you can see, in 1999, 2000,

the pe's on tech stocks went berserk relative to the entire which was quite elevated back in those days. as you can see, it's much more muted these days. if you look at the right end of the chart, the pe, whether we are looking at s&p 500 technology or information tech, it's not nearly as extreme. while there has been outperformance in terms of the s, it's not like the valuations relative to the other parts of the market have gone bananas. julia: you mentioned nvidia and netflix.both of these guys have rallied more than 35%. if you look at the realized volatility for these guys, nvidia is higher than 40%. it's like, whoa! that is significantly higher than the average -- joe: that sounds fun to me.

i can see why people are participating. scarlet: no one is going to complain about lack of volatility there. as we were saying earlier, the tech sector is getting wrecked. you can see it in facebook, apple, and nvidia, facebook and apple down by almost 1.4%. to discuss the action and overall sentiment in u.s. and global equities, let's bring in ben carlson, director of institutional management and a view."st for "bloomberg we have been talking about this lack of volatility, this complacency. then you get a date like today. not that a 1% drop or 2% drop in the nasdaq is a big deal, but it is notable given how much the s&p and dow moved. what do you make of this to virgins between tech and the rest of the market? ben: i think you have to put the move today in perspective. over the last 10 years, tech

stocks have done unbelievably well. the nasdaq has outperformed the s&p by almost 40%. in the last five years, it has outperformed by 5%. the nasdaq has gone bananas. and a time you have that high highd, you have to expect risk. it's hard to know when this will end, but typically what happens is you have a smooth ride on the way up, people are happy, and once volatility starts to hit, people get worried, things go down. especially when these stocks are trading on momentum, when it starts to go down, people might panic. you can expect this volatility considering risk is naturally attached to the hip with reward. joe: you talked about a very technical term -- stocks have been going bananas on the way up . for the investors fortunate enough to ride this an end is rally up, how important is it to have a plan preemptively of when

they are inclined to sell and when they are inclined to take profits? ben: first of all, with these stocks, they are trading on pretty much price alone. it's not that these stocks are trading on valuations and fundamentals and you can plug something into your cash flow model and figure out when to buy and sell. i think the biggest thing for .nyone is to have a plan you have to have an exit plan, something dealing with price, a simple moving average or stop loss. trading these things on a gut feeling is tough. we are going to see some wild swings in these names of eventually, whether they continue to go up or not. julia: tell us about the broader market here. out the bank of america survey saying 40% of managers saying global markets are overvalued, double that when it comes to u.s. markets.

we have seen this streak where we haven't seen more than a 5% pullback, and yet investors want you to buy on debt. what changes that? there seems to be a dichotomy in sentiment and mentality. ben: i think the reason doesn't matter as much as when investors decide to panic altogether. it's hard to predict the emotions of all of these investors. once things continue to go up and up, you aren't really dealing with emotions. it's hard to predict. the simplest thing that could happen would be that we get some bad news on some of these names. the biggest, easiest thing would be that the economy starts to slow, and we see a recession. some people are saying that could be a few years away. we could see a contraction in the economy, but it is hard to say. joe: it might be amazon cloud numbers. the first time they miss big, it could take this market down. more thanldn't pay

100 times earnings for amazon. [laughter] have talked about how there is a diversions between with the bond market sees and what the equity market is seeing when it comes to the overall environment. within equities, as you look at this rally and how old it has gotten, if we are looking for a catalyst for a broader pullback, is it going to come from within equities, or is it going to come from outside the asset class? is it going to come from currencies, for instance, or high-yield? ben: it would make sense if we see a sustained rise in rates. the reason matters more than anything there. one of the few risks people talk about is, what happens as inflation takes off? it seems like it has been nonexistent for a while. we haven't heard much since the hyperinflation fears of 2010 that never transpired. i think if we saw a sustained rise in rates, that is something

that could catch people offguard. competitionome investmentsincome were much higher, we could see a shift in allocation. scarlet: ben carlson, thank you for staying late on a friday evening. we appreciate it. inflation, whyf stronger wage growth is all the fed needs to make their economic forecasts more plausible. that is all we need. scarlet: just a small thing. joe: we will be talking about that next. this is bloomberg. ♪

joe: we have some breaking news. the house intelligence committee has requested comey's notes and

memos of his talks with trump. those were discussed yesterday in the hearings. the house intelligence committee, demanding any copies of white house tapes. the existence of these tapes, it's kind of a mystery. no one really knows. president trump was asked today, and he was coy about whether the tapes exist or not. it seems we may get some answer, and if there are tapes, you may find out what is on them. the house intelligence committee, requesting comey's notes and any white house tapes. to get to first word news with mark crumpton. mark: president trump says he isn't letting the explosive congressional testimony by former fbi director james comey derail his agenda. to get to first word news with mark crumpton. during a news conference with romania's later, the president told reporters he feels vindicated. >> no collusion. no obstruction.

he is a leaker. we want to get back to running our great country, jobs, trade deficits. we want them to disappear fast. he is a leaker. north korea, big problem. middle east, big problem. that is what i am focused on. mark: as joel alluded to, the president was asked if tapes exist of his conversations with mr. comey. he says he will answer in the near future. secretary of state rex tillerson is going on saudi arabia, egypt, the uae, and bahrain to ease their blockade on cutter -- qw atar. secretary tillerson says the has derogatory humanitarian consequences. >> we call on all parties to strengthen relationships. we ask that there be no further

escalation by the parties in the region. + previously, the u.s. insisted that the qatar crisis would not affect u.s. military efforts in east.ddle secretary tillerson says the u.s. will support efforts to mediate the crisis, along with kuwait./ the u.s. ambassador to the u.n. nikki haley continues her trip to israel, meeting with the defense minister. he thanked ambassador haley for her strong defense of and support of israel and presented her with a gift, a miniature high-heeled shoe. he called her the new u.n. sheriff. earlier this week, she accused the u.n. of bullying israel and that "israel is no longer the un's punching bag." day,l news 24 hours a powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. joe: "what'd you miss?" call it the fed's new conundrum.

the other implement rate indicates the u.s. labor market is around for employment. why aren't we seeing surges in wage growth? let's bring in our columnist for "bloomberg view." connor, why aren't we? you sort of see it in the fed's forecast. the last forecast we got from them in march said that over the next 2.5 years, we are looking growth, which is what we have seen, and an unemployment rate at growth, whs what we have seen, and an 4.5 percent. the unemployment rate has dropped to 4.3%. above trend gdp growth and rising unemployment. the only way you get there is with rising wage growth. scarlet: here's a question i have. we have been waiting for rising wage growth for what seems like years. we have been wondering why the phillips curve is not playing out the way it is supposed to this has been going on for years.

consistentsons why with what we thought since the beginning, or have they evolved over time? conor: i think we have almost two different labor markets. we have the group of people either young enough and the crisis or have come in the labor market after the crisis who have not been impacted that much. those people can find jobs easily as entry-level analysts, and then we have the people really rocked by the crisis. maybe they were construction workers, white-collar workers, and they are a group of people having a harder time. they've got lower wage growth. together, weate it have a labor force with weaker wage growth. it's a mix of younger people having a great time and younger -- older people struggling. julia: i wanted to ask you, as you were just saying, one of the solutions is high wage growth. there's also a productivity question. that has been in the doldrums. all the evidence suggests that

the supply of labor is going down and basic economics -- i get what economists say about the phillips curve -- but it suggests a wages should rise. at what point do we get it? conor: one of the arguments of for why productivity growth has been so slow is that labor has been so cheap. you can just hire cheap workers, which is what we have seen. as labor slack decreases and wage growth kicks in, that finally presents the incentive to corporations to invest in machinery and productivity-enhancing tools. joe: going back a little bit ago, we showed a chart of labor force participation rate among prime-age workers, and that is the other big question. we have seen a bit of a bounce back in the last year and a half. this is for people among 25-55 years old.

based on the little bounceback that we have seen so far, do you think there is room for much more of an increase here? conor: i do. i think higher wage growth will bring out more supply. 2006w that in oil where in we felt we were at peak oil, and when oil was over $100, that was the investment to get more supply going. if we were to get 4% wage growth for a sustained period, we are going to see people come back in. joe: you are saying, will we see that and when? one thing i find amusing is people have talked about full employment since 5.5% unemployment, then at 4.5%. now i'm at the point where we are talking about 4.3%. could it be that we are just wildly overestimating the level of full employment? maybe it is 3.5%. conor: that is a great question. we will see that over the next

6-12 months. if you look at those details where unemployed is falling of the most, it is young workers, demographics having trouble getting employed the most. corporations are exhausting every kind of marginal labor supply they can find, rather than paying out for good workers already working. joe: conor sent, thank you very much. scarlet: coming up, washington may be over the trump up, but it is a different story on main street. we will dive into the soft economic data. this is bloomberg. ♪

scarlet: i am scarlet fu. "what'd you miss?" in the united states, the economic surprise index is no longer surprising anyone. there are a couple reasons why.

on the one hand come economic surprises revert to the mean. economists change their forecasts a long way. if you think about what the white house has accomplished, the answer is it hasn't done much in terms of concrete action. we haven't had anything concrete to work with. that may show up in different data points. the blue line is basically soft data. the bloomberg economic surprise index, only looking at survey reports. you can see how there's a big rise after the election, and its bit.down quite a the white line is the bloomberg economic surprise index with everything but the survey data. it is the surprise index of hard data. unlike the survey-based indicator, it never got that post-election rally. has been coming down. in fact, it went negative in april. everything is coming south right now, self-reverting measures.

joe: here is a data point that president trump might like. american households in q1 of this year got $2.3 trillion richer. we got the flow of funds report thanks to a rising stock market, home prices continuing to rise. it's been the best quarter in terms of an increase in household net worth since early 2014, and this chat goes -- chart goes back to 2002. there are all kinds of factors, but from this perspective, good news for american households. julia: taking you to china here, a focus on the tightening measures from the pboc. let's go to april. you can see the retraction, the .ightening of debt requirements what that have had an impact on is the stock market. we've got the white line, the smaller companies, and you can see those under pressure. what we can see with the blue

line is a bottoming of marginal .ebt that is at a 10-month low. the belief is they have done tightening. june, butloosen up in perhaps at that point we could see lift up -- lift off in china. you can see exactly this thing happened in the early part of this year. it is that loosening and marginal debt to cost. joe: time to start borrowing and buying again. scarlet: all right. out, yount to check it can watch our programming live. there is one of the future charts joe was talking about, and you can click on things and interact with our producers as well as ourselves. thank you.

that is, ofthat is, of course, . from new york, this is bloomberg. ♪

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public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. mark: i am mark crumpton. news.ime for first word the house intelligence committee is demanding copies if they exist of any white house tapes of conversations between president trump and former fbi director james comey. it also wants mr. comey's notes and memos of his discussions with the president. the development comes a day after mr. comey's testimony in which he said he created a memo following a january meeting with the president because, in comey's words, i was honestly concerned he might live. ae president today, during joint news conference with romania's leader, said he feels

vindicated by mr. comey's comments. senior russian lawmakers are dismissing fbi director comey's testimony is "insignificant." thateader of the duma said her testimony was an attempt to make the relations between washington and moscow worse. >> actually, the hearing, which, as i understand, was a big thing in the united states, was of no interest in russia. all of the allegations of russian hackers interfering into american domestic politics, they have already been done many times. mark: house democratic leader nancy pelosi says she has concerns about president trump's fitness for office and thinks he needs more sleep. hello see is referring to the president habit of early morning

iseting -- nancy pelosi referring to the president's habit of early-morning tweeting. pelosi said it more sleep might be a solution for him." european union president donald tusk has congratulated theresa may following yesterday's elections. he added, there's great urgency to begin the brexit negotiations . global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton.

this is bloomberg. joe: let's get a recap of today's market action starting with the major indices. it was all about those two at the bottom, the nasdaq down 1.8% . just a total tech wreck. i want to say, let's go to the next board. we are going to look at some of the specifics. not only were all of these stocks down, but they were higher earlier in the day. it actuallyyou see, diminishes how big the intraday swings are. it was a really intense day, and if you look at the end of day moves, you don't see how big that intraday swing was. scarlet: who said there is no volatility? president donald trump says

fired fbi director james's testimony shows he did nothing wrong. 100%. i hardly know the man. i'm not going to say i want you to pledge allegiance. who would do that? who would ask a man to pledge allegiance under of? i hardly know the man. it doesn't make sense. scarlet: let's head to washington with sahil kapur, bloombergs national political reporter. the president said he would be 100% willing to speak under of to answer any questions that bob mueller had. what we learned is that the house panel, the house intelligence committee has requested copies of jim comey's notes as any copies of white house tapes. what do we know about when this house panel might begin to meet and hold hearings? we know the house panel requested that information from

mr. comey in terms of the memos and the white house in terms of potential tapes of the conversation by june 23. it has not issued subpoenas, and the president was continuing to dance around the question of whether there are tapes. he said, you will find out soon. he will begested, disappointed with the outcome. the flurry of activity has been prompted by comey's testimony. he clearly said the president asked for his loyalty and tried to stop the investigations. we have on one hand the former fbi director calling the president a liar and the president calling him a liar. that is a lot for investigators to work with. joe: what did you make of trump's response when asked

about the existence of tapes a? sahil: it's been a we are dance. i don't understand the purpose of dragging this one out. tweet started with a shortly after the firing of james comey in which he said, mr. comey better have no tapes, don't leak. since then, the white house has refused to answer again and again questions that have been coming up as to whether there have been tapes. i don't know what to make of this. it's hard to understand what the president is trying here. scarlet: or a reality show as many people observe it. attorney general jeff sessions will be testifying next week. will this be open to the media? will it be open to the public? how much can we expect to learn as it relates to the ongoing investigation? we sahil: know that there are

senators who want him to testify in an open setting. comey's testimony raised questions, especially from democrats who i've spoken to in the senate. ,e said that he came to realize mr. comey came to realize, that attorney general sessions should not be part of the russian probe. comey did not share what those facts were. that is what senators are going to try to get to the bottom of. i spoke to one democrat,, harris of california, and she said what she heard raised serious questions as to the attorney general's ability to do his job without conflict of interest. we are going to hear about the nature of the meetings he had with russian officials, some of which he wasn't forthcoming with early on.

julia: what is the latest on coming up with some sort of tax bill? there are rumors that is going to be pushed to the end of the summer. what progress is being made on health care? of course, it was infrastructure week. did he make any progress on back? sahil: it was infrastructure week. the president introduced a plan to privatize the air traffic control system. in terms of health care, the senate is working quietly in a secretive process on a health care bill. i think they are further along than many people realize. they have been meeting regularly on this, and some of the more vulnerable members are sounding optimistic. senator mcconnell has said it is going to come up in the near future. they don't want to let it drag out. we don't know the details of this. we only know some aspects of the conversations that are happening based on what senators say. we will have to wait to see what happens. if they come up with a proposal, we can expect it to move to the floor pretty soon.

as for taxes, this one is still stalled. legislation yet, and the house and senate and white leaders arelican waiting to come to some consensus. they all want to cut tax rates on individuals and businesses, but they don't know how to pay for it, and they don't agree how much should be paid for. scarlet: bloombergs national political reporter, a busy week and more to come next week. thanks. joe: we have some breaking news. movies has downgraded south africa's credit rating to baa 3. there is also a negative outlook. the ratings agency has assigned three key drivers for the downgrade, which is the weakening of south africa's institutional framework. a lot of the political stresses we talked about, reduced growth prospects, policy uncertainty. we talked about south africa slipping back into recession.

there was more week data out of the rest of the week, and the continued erosion of fiscal strength, which follows from all of those other things. when you have weak growth, the debt becomes harder to sustain. for those reasons, moody's downgrading south africa's credit rating to baa 3. julia: fitch downgraded them to , and the s&p, after the finance minister was fired this year. joe: a good perspective on where they stand. the fda isng up, asking a pharmaceutical firm to pull a product because of abuse. we will look at the move and what it means for the wider context of the u.s. opioid epidemic. from new york, this is bloomberg. ♪

scarlet: it is time for the bloomberg business flash, a look at some of the biggest stories in the news right now. tesla has put another big carmaker in its rearview. it now ranks as the fourth most valuable automatic -- automobile manufacturer. cap beat out u.s. rivals gm and ford in april. itses spiking today boosted market cap to $61.6 billion after elon musk confirm production of the model 3 was on time. today, musk tweeted he created tesla because big auto companies tried to kill the electric car. deutsche bank will not comply with the request by democratic lawmakers to hand over information on its relationship with president trump or trades bank's moscow operations. lawyers say the lender is required by law to maintain

confidentiality of customer information. it's mirror-trading skied -- a scandal help to move about $10 million out of moscow. julia: "what'd you miss?" endo international plunged today on news that the fda has --uested the comfort to stop the company to stop selling its opioid. and though has said it is reviewing the fda's request. it is a clear sign that the nation's opioid crisis has become too big to ignore. let's bring in drew armstrong, bloombergs --rmaceutical procedure news. this is just 4% of their revenue. has the stock reacted so dramatically, and the second thing is, does this open up

other pharmaceuticals? drew: to enter the second part of your question first, the fda has indicated and the commissioner has said, we are going to be taking a look at a lot of these issues. the fda does have the legal and say,go out there hey, people are abusing this. if the risks to people who might use it beyond the legitimate users washed over into that, it becomes a big deal here they feel the responsibility to take action because they can. from a legal perspective, there probably is the signal of some risk. keep in mind that several states, several counties and no andhave sued and

other manufacturers about how they have abused communities. lawyers and courts are going to listen to that as they attempt to build cases. julia: accepting you are willing to take this off the shelf may indicate liability. scarlet: this continues the idea that these opioid pills are responsible for this epidemic, budging a, you've written about how we have seen a handoff from pills to heroin on the street. as companies and the government has helped to reduce some of the there, we have drug dealers from other companies making the same opioid available. you have written about this. talk to us about the shift in how much there is going on in the pill business versus

heroin. >> it's an interesting dynamic. physiologically when you take an opioid, the effect on your body is extremely similar to whether you are taking a prescription opioid or heroin. till supply gets constricted, people shift right over to heroin, so if you've got this latent population of addicts using these pills, there is a good chance that if you cut off that supply, people switch heroin. i should caution a public health officials often say, this is the case. this isn't an argument against curtailing pill supply. what you do is, over time, you eliminate the gateway. while you might see people switch over to dangerous heroine in the short-term, you are creating fewer addicts if you control the pill supply. julia: it's also the sharing of needles that is spreading these infectious diseases, which is

also a concern. drew: that's actually what the fda cited, not necessarily the deaths, but one of the things that happens is, you have people crushing these pills, injecting them. you have to use a very wide needle. it's very easy to spread hepatitis c and hiv. that is the real public health issue. julia: the fda may be overstepping the mark. we could say this about sugar or other things. we will come back to this discussion. clearly, i think it is going to be something we continue to talk about. thank you so much for that. joe: up next, part of bloomberg's interview with blackstone chairman and ceo steve schwarzman. his thoughts on china and president trump's relationship with xi jinping. this is bloomberg. ♪

joe: >> to om group ceo jason schwartzman spoke to bloomberg about china and its current relationship with the united states? >> there has been a pretty visible dialogue in terms of the difficulty with the trade deficit or this next year will be close to $500 billion. that is over 50% of the total trade deficit of the united countries. over 200 it has been in the media pretty well and articulated by the president, and i think that it

is fair to say that the chinese have heard that, and they view,ize, at least in my from my conversations, that this is a big number. for a variety of reasons, the u.s. is quite serious about addressing this. we will have to address it. there is a july 16 deadline with the mar-a-lago meetings where there is meant to be some progress in the trade area between the two countries, and they are starting to announce different things. the 16th, so, i think there will be a lot of interesting things that happen. for sure, both countries want to

make progress. >> how would you say you are feeling about u.s.-china relations now versus what you are thinking 1, 2, 5 years ago? >> we are optimistic. it's hard to measure different periods. it's easier to talk about where you are now. think the mar-a-lago meetings were very important. the chinese like order. things were pretty disorderly before those meetings. they have teams from china and the u.s. working on both of them. betweentionship president trump and president xi

is actually really good. forget what is reported. you can get this -- in is actually really good. china, one of the nice things is they are so well courtney did, as opposed to our government. when one person tells you something, it is reflecting the view of the group, and when three or four tell you, for sure. they keep minutes in every meeting. everything is circulated. china, one of the nicethe relationshipo leaders was a really good one. >> were you surprised by that? >> it is sort of interesting that the president likes meeting people. that's the way he relates to people, and he invited president xi to come. that is a high risk invitation. of chinese companies don't normally show up to somebody's house as a houseguest or something.

choreographed behind the scenes by some of the members of the u.s. administration and chinese. they came with a process. i was there for a little bit. -- -- fourur gout different trains in two rooms, and they sort of let the two leaders stand there or walk around. in a way, the circumstances of averything created a bit of must be with each other type of thing. we have all been in situations like that. they don't all work out well. this is one where it did. jasonhat was bloomberg's

kelly speaking with blackstone chairman and ceo stephen schwarzman. coming up, what you need to know for next week's trading week. this is bloomberg. ♪

scarlet: a big drop in the nasdaq and big tech stocks. is coming up? france holds parliamentary elections. italy holds local elections this weekend. scarlet: a huge week for central banks. the fed is on wednesday. we also have the boe, the swiss national bank, and friday, the bank of japan. julia: don't miss this, day to galore. retail sales coming out on wednesday. that will be a big one. scarlet: that's all for "what you miss?" joe: have a great evening. this is bloomberg. ♪

alisa: i am alisa parenti from washington and you are watching "bloomberg technology." president trump welcome to the president of romania to the white house for what officials call a working visit.

said he will not let the testimony by james comey the rail his agenda but accused the former f.b.i. director being a leaker. president trump vowed to streamline the permit process for infrastructure projects. he announced a new council aimed at helping project managers navigate red tape. jared kushner is scheduled to meet with the staff from the senate intelligence committee in the coming days. he is expected to be asked about his meetings with the russian ambassador to the united states. the house intelligence committee theymanding copies, if exist, of white house tapes of conversations between president trump and james comey. it also wants notes and memos of his discussions with the president. the state department says the respects the decision of british voters in the general election and look forward to continuing to work with prime minister theresa may. thursday's election