usual tonight despite yesterday'shooting during a practice. house speaker paul ryan has assured lawmakers that the gang will go -- the game will go on, prompting a standing ovation. , stevese majority whip scalise, remains hospitalized and in critical condition following the shooting. second baseing onto with serious injuries as the bullet traveled through his pelvis and injured internal organs. for other people wounded before police shot and killed the gunman. health care deductibles and copayments will be higher in 2026 under the house republican bill. according to -- they would average 61% higher for those buying their own policy. the government report calculated higher costs despite lower underlying payments. the trump administration says

the new estimate does not take proposals.t other the russian president vladimir putin says he hopes for normalization of relations between his country and the u.s. president putin made comments on the annual tv call in show at among other topics coming the former fbi director james comey has not provided proof that russia influence last year's u.s. presidential election. list ofo getting its demands from saudi arabia and the united arab -- collate and turkey are acting as mediators between cutter and the alliance, honoring the cup -- group,rt of the allied according to people familiar with the matter, proposals could be coming in the next two days. global news 24 hours a day powered by more than 2700 journalists and analysts in over 100 20 countries. i'm mark crumpton. this is bloomberg.

♪ >> live from bloomberg's world headquarters in new york, i am julia. >> i am scarlet fu. joe: i am joe weisenthal p are where 30 minutes of the close of trading in the u.s.. >> you guessed it, a tech story once again. joe: the question is, what did you miss? scarlet: robert mueller's investigation now into the firing of james comey and whether the president may have obstructed justice. adidas regaining popularity in the u.s.. obamacare -- none

other than jared kushner's rather. joe: let's look at where the major averages stand. abigail doolittle is standing by. abigail: we are looking at smaller modest declines heading into the close. that is remarkable because earlier, we were looking into significant declines are the dow just up fractionally. the dow had been up half of 1%. and the nasdaq -- than half down less of 1% come earlier down 1.4%. seems as though you have it on the day and tech continues to be the story. not surprisingly, the biggest drag on the s&p 500, technology space including apple and amazon. down 7% since last thursday before the selloff began. 5% over that time, it

is still not entirely clear what is behind this. some people say this bearish for goldman sachs. jim martin adams had an interesting series saying she thought it on friday had more to do with the ecb being less hawkish and she thought the fed proved to be somewhat hawkish, that could bring a continuation. it is interesting how the fed can steer the direction of asset classes. afterorst day since 1999 slashing the earnings field. the entire grocery market this is actually down for that matter. certainly, declines earlier and we go across asset classes, we do not have a haven did at all.

10 year yield of about three basis points. bonds selling off a bit. it did of a selloff for the haven yen. in bitcoin is interesting. it had been down for his worst day for two years. hop into it very quickly and take a look. tells an interesting story. one of seven is out of the election. we also have the bloomberg dollar index higher. bonds selling off in the 10 year yield did climb. year,ecember 15 of last

we had the fed raise rates. the dollar yield and down. we had something similar happen in march. bigs interesting to see the piece of this reflationary, the dollar in the 10 year yields, it does not seem to be much on trump policy the more the fed. the s&p 500, can it stay out there? joe? in washington, new questions are being raised about president donald trump and whether he tried to slow the investigation into russia's's in 2016 election. , adding taxtime cuts that would last longer than 10 years. to bring in the national security editor and bloomberg's national political reporter capitol hill. newsis the latest from the

regarding bill mueller's expanded investigation regarding the russia investigation and how he is looking at whether donald trump tried to slow the investigation? >> planning to interview two top trump intelligence officials p or the director of national intelligence and the head of the national security agency that will make rodgers. he wants to hear directly about theher in the aftermath of flynn firing if president trump ever pushed them to use their influence and get the fbi back off its probe. that would be a piece of the puzzle about whether obstruction of justice to lace at all. it is the serious escalation of what is going on and it brings the close -- the probe much closer to the president himself. >> it does. are there any parameters to bob mueller's probe?

is there something he would retract or retreat from if he gets too close to any particular topic? goe pretty much he can wherever it can take him? >> remember mueller was only appointed about a month ago. still hiring the team. he is really looking at parameters of what will be the investigation. he will not leave a lot of stones unturned but you may -- nsar but -- and if it chief rodgers last week run the hill, and they refused to say in a public hearing whether trump tor pressured or ask them layoff or get the fbi to lay off on the probe or caps off. so centers have heard testimony in a closed session. the national intelligence director will be on in aill today doing that

closed session. we expect other officials to go there in the coming days and weeks including the former department of homeland security secretary next week. he is really laying out trying to figure out what the scope of the probe should be at this point. , butrrect me if i am wrong am i wrong in suggesting that both the acting and former fbi director have suggested actually that there was no effort to impede their investigations as far as their concerns? in line with that, my second question would be is in the more important question now the leaks? where did the leaks come from? donald trump's legal team is suggesting it is the fbi once again leading the nation. we do not know where the initially's are coming from. it is a serious -- i am not surprised if it is one mueller himself would have to

take up with an investigation. i want to point out something else. you remember in terms of the mueller probe, when james comey testified week ago on the hill, he said when he was fired, the president was not subject, as far as he knew, to any investigation personally. that is what seems to be changing here as we find out a few more details about mueller's probe. mueller has a reputation for running a tight -- a tight ship. when he was fbi director, and that said, if you bring people into testify, they have lawyers with them. people start to increase who are aware of it and that is hard to keep a lid on. >> we have breaking news. merge, u.s. antitrust -- antitrust approval. getting the ok from the u.s. government with the u.s.

antitrust approval. it has cleared other barriers, including approval from china and brazil as well as the european commission. it was one of the last remaining hurdles. we had heard that closing the deal was slated for august after being pushed back from the original 2016 timeframe because of the delay in getting antitrust approval from around the world. we are getting that approval earlier than expected. pop, and givef a up a little bit of losses and has come down a tad. .own for both >> not a ton of action either. i want to bring the other side of what is going on out in d.c. on capitol hill. an interesting story you reported regarding a change by the gop to make it easier to pass a tax cut. explain what is going on. >> it has been going on

underneath the surface for little while. today has been a major momentum addition to this push to ease the path forward to cutting taxes for a longer time. basically, the budget window under current rules requires that any tax cuts added to the deficit after 10 years automatic he within a deck it, what republicans want to do is change the rules to make the 10 year window something like 25 years so they can enact task us that add to the deficit for a longer time horizon. this comes as republicans are very divided on these, how to -- how to make the tax plan reusable, so they don't have much for -- much anymore. republicans are moving toward changing the rules now that they to't have agreements on how make it revenue neutral. they have an agreement on wanting a trillion dollar tax cuts. >> this will create an opera with the democrats. they will hate this.

>> they will. i spoke with the democrat on the tax-writing committee and he said he would be very opposed to this and it would be a backdoor way for republicans to sneak through big tax cuts. this on a partisan basis and they don't need democratic support to get things through. the rule has been if you are at into the deficit, you do it in a 10 year window. yes, fears democratic objections. made a rule change that pertained to tax cuts. would also apply to other deficit expanding things? if they wanted a seat -- a huge spending bill increase not offset i revenue raisers or somewhere, would this only theoretically apply to the tax component of deficit increases? >> you are right on your first point. if republicans want to enact tax cuts for longer than 10 years,

even if they add to the deficit, democrats can come around when they control the white house and both chambers of congress, saying they want to enact spending increases on the fast track faces even if they add to the deficit and let's do it for 25 years. yes, this can come back to haunt them later on. once the president has said it can go anyway, the bloomberg national security editor and bloomberg's national political reporter, thank you both for coming out. up, steve told us where he sees the best opportunities in real estate. it is an exclusive next. ♪

scarlet: he sees a drop-off in

foreign investment in u.s. real estate. in an exclusive interview he told us where he sees the best opportunities in the property market. >> we think the market has been in 2016. likely in the first half of 2016, in terms of pricing. we think the markets have transitioned into what we refer to as pricing discovery, usually to theet as a precursor next direction. something big has developed in the marketplace where buyers and sellers are not connecting on transactions. you see it most profoundly in transaction volumes. levels, across real estate and geographies, plus or -13% down. a particular, you have seen real fall off in foreign transaction activity, activity

by foreign buyers and that is very important to watch. they are such a large -- a large driver of volume in the recovery. of dryear there is a lot powder. we know that pension funds are directing more, allocating more to real assets investments like real estate, and we know several wealth funds continue to employ more money out of the private markets. drop-off in foreign transactions temporary? we think like anything else, it goes in cycles. over the last two years, foreign buyers have been incredibly active in the u.s. real estate market and in the primary markets. we think they are taking a little bit of a deep rough, observing what they bought, and terms oft the next in where prices are going.

>> so rates are low across the spectrum and prices are high relative to cash flow. if we look at office and hospitality, if we look at retail, where our evaluations most stretched? i i might not look at it asset classes are probably by geography. interesting in the last cycle, you mentioned all of the individual types of investors, they have been focused on to play more money into real estate as interest rates have remained artificially low. they have remained largely on markets. the top six in the country. when you look at the major markets, those major markets are up 40% over the prior peak level. they are up 120%. you have never seen prior cycles this type of cap rate compression and value appreciation. our feeling is as qe unwinds and yesterday,ets rise

cap rate -- cap royce will marginalize and what will be affected is the primary markets. say cap rates will normalize, when we look at multifamily, they are in the 5.526% neighborhood. >> i would love to say if they were in 5.5 present area, we would be much more active in buying a lot of those. but we have seen cap rates drop in the markets on the multifamily side, we have seen cap rate below four, we have seen them dip low five to those are plus or -200 basis points inside historical levels. we are not necessarily saying we will go all the way back to historical levels. there is more permanent capital allocated today, but we think as interest rates normalize, cap rates have to -- we think it is those primary markets. it is the coastal markets. it is the large or midwest markets like chicago that really

experienced most of the -- most of the foreign activity over the past cycle. >> that is the executive mansion to -- management director speaking with erik schatzker. the tech selloff has dragged the rest of the nasdaq with it. we will look at tech collateral damage next. this is bloomberg. ♪

>> losing as much as 3.5% revamping global operations, under armour and adidas. daily move compared to past moves. we're looking at this upper panel here. it is a distribution curve of the daily turn over the past three months.

this is the move here off by more than 3%. you can see that is the biggest one-day move since march. late march when the stock tumbled almost 7%. was when third-quarter sales missed analyst estimates. this -- this is for likely -- nike. we have not seen a move your than 3%. about 2.7%.time was quite a move for nike. it has not been a great story overall. we show the share price movement in the stock is not closed more than 3% higher. the nike stock is down about 8%. investors trying to assess the global overhaul, the changing of its business struck -- a structure to determine whether this would be enough to better compete against adidas and under armour. >> a response today. a massacre in the currency

market. i like talking about it. i want to put a bit of perspective in it today overall. losing $16 billion in market caps. $100 billion in the week. i just want to give it a bit of perspective. bitcoin in the past five days. for those of you who care about the trade levels, we are here just about to touch the 38 stretch. >> more tech related technical analysis. its what -- forget the

tech bubble in 1999. we find this many days, over 130 where the nasdaq was trading above its 50 day moving average with the recent selloff, we're getting close to the white line. it will be extraordinary watching it hang above the level . a sign of its momentum. the white line catches up fast and the actual number is a breakthrough that, i expect a lot of attention on that. people are wondering whether this is it. >> i love it. some context given to the recent selloff. a modest selloff. looking at the chart, it looks like nothing. it feels very dramatic. >> that is what it comes down to. it feels dramatic. looking at the numbers come we are not there yet, we do see tech shares leading on the downside. the nasdaq off by a whopping 10%

per the s&p 500 retreating by just a bit. what the -- the market closes next. no numbers for us, joe? from new york, this is bloomberg. ♪

♪

>> tech shares continue to selloff today. a bit of cautiousness in response to yellen yesterday. [applause] julia: i am julia chaffee. i am scarlet fu. joe: i am joe weisenthal. our coverage every weekday from 4:00 to 5:00. begin with market minutes. u.s. stocks closing down for a fourth time in five days. the nasdaq off by half of 1% and the dow closed down. we had been harder hitting on the nasdaq earlier. and'm looking at the imap nato's -- imap and it is those industrial names. pie longs fisa of the

to packaging companies, but it is red all around. energy names down two thirds of 1%. on the upside, you have bond proxies, and utility trusts 1%.g better up by half of green all around indicating most of the numbers are higher. you can see that in electric utilities. 100% of the numbers are gaining on the day. at theshares trading lowest in almost one month. it has come back a little bit here, but amazon closing 25%. -- 1.25%. kroger seeing its worst day since 1999 cutting its earnings forecast. we know that these grocery chains are dealing with lower food prices, which yes is good

for consumers, but it results in lower margins. stores.opening 10 that is a factor as well in terms of increasing competition. mattel shares at its lowest getting a downgrade. nike, which we just mentioned, cutting 2% of its global reports , revamping its global operations and rethinking how quickly it could get some of its sneakers to customers. a check on snap. at the ipo that have not done all that great great you can see closing at $17. >> proof that markets are priced efficiently. ipo $17. >> let's take a look at the government bond market. rates are higher in this u.s.

, was an increase, but we have seen rates move higher after that janet yellen conference which is perceived as being hawkish. u.k. yield jumping noticeably today. the bank of england declined to hike rates, but the vote was 5-3. three people saying on the monetary policy committee same patient hike rates. uncertainty onis the economy, there's important inflation. >> it is they u.k.'s's are laying stocking the broader trend. adding to yesterday's gains on the relative but hawkish surprise from janet yellen heading for the first week of gains in three.

we were talking about the one to watch to tie in with the week of payroll numbers. sterling fell after weaker retail sales. board -- hawks on the with sterling weakness. we will keep in mind the november nine number. -- still aw you significant downsides. relative cost of downside protection versus upside protection. of the week's post in more than two months, the government announcing information on the mining section saying it to the 30% by black people, addressing the concerns over the apartheid issue. >> finally, on the commodities

front, not a ton of action. crude oil continues to weaken before -- we can below $45 a barrel. gold down by 1.5%. that selloff in gold and treasuries. natural gas any 4% after bullish stockpiles reported/lower inventories and what was expected. had to the oil weakness do with more gasoline inventory earlier this week, natural gas gaining because of less inventory. those are today's market minutes. >> we have breaking news. flows, long-term take that is on foreign holdings of u.s. securities. china's holdings of u.s. treasuries have increased to the highest since october and rose for a third straight month in april. now it is at the highest level and half a year and a stabilizing. japan, whiche that

is the biggest nine u.s. holder of treasuries actually decreased it total to 1.1 trillion. --nese ownership has one chinese ownership has risen. if >> a surprise slowdown in u.s. inflation is threatening the fed's desires to normalize policy. how is the market interpreting janet yellen's weak data. joining us is cameron. the phrase of the day -- policy mistake. people talking about the idea that the fed might raise when it's an appropriate. is that a reasonable way of interpreting the market action? not that we have an intent selloff, but every getting hints of that concern? >> i would not call it a policy error, but more of a normalization. we have been in an environment for the last seven years of accommodative monetary policy. we are simply willing to an environment where it is less accommodative.

it is still easy, but it is a lot less easy than it was for most of the decade. that itruggled to say is policy error. the yield curve is still normally shaped. inversion we saw an of the 10 year treasury, that would be the dead canary next to the goldmine. [laughter] mr. flynn the right now -- cameron: right now, it is a reduction in accommodation rather than an era. is -- the financial conditions are loosening. so it is a free hike. why would you not gained firepower if you need in the future? cameron: there is an element to that of the reaction function has clearly changed. andou look at what you said they did not and 2015 and 2016, anytime you had weak data, it no!all know -- it was oh

it was like building a house of cards. one small blow and it fell over. clearly that is changed. at aare now looking situation where they want to normalize and they are targeting de facto and a level of racing want to get to so they can go back to assessing high-frequency data flow. >> you see that projected by the market as well. i am looking at the out of another rate increase on the bloomberg. you can see, yesterday during the news briefing, the odds went down to 30%. cameron: that was right after the cpi data. >> excuse me, you are right. and it bounced back a bit and now it is stabilized. cameron: flip a coin. coin toss. when you look at what the fed does, remember the dates of the dovish hike? are those over? cameron: never say never, right? terms, it absolute

wasn't massively hawkish, but we are so used to come at you know, a very, very dovish commentary that something more neutral is perceived as hawkish relative to what we are used to. the -- that they will be monitoring inflation closely. they have given themselves in out of the inflation picture continues to deteriorate and it can appoint to figure -- and they cannot point the finger at one off. then they can pull a hand brake turn. >> this is what struck me yesterday watching yellen. and they saidin janet is such a dove. we imagine that one day inflation would be a 2.5% and 3% and she would poke holes saying it is transitory. but isn't it the other way around? inflation isn't going anywhere she is poking holes at the weak data. sort of the exact opposite of

the reputation she came in with. cameron: again, that as a result of this --when i am assuming a conscious decision of the committee to say, ok, let's normalize things a little bit. but for the rhetoric on the balance sheet -- clearly, the rhetoric on the balance sheet has been nonstop this year. they want to get rates to level acts, at which they can address the balance sheet. >> the last two days with have a canadian central bank surprised saying they will raise rates. we have janet yellen something more hawkish. we have the bank of england with five votes on those who want to raise rates. what does this mean for risk assets? there is a shift. get the bank of japan if we can mention that. cameron: we have been in an environment where we have had a massive fail of monetary policy. on the market, it is less supportive. ring theean we will

bell and everything will go wrong? not necessarily, but the odds are not in their favor. >> we said it five times already and i said it, this word of normalization. isn't that a loaded term? what does that really mean? cameron: listen, we are at negative real fed cycles, which is abnormal in the grand scheme of the history of the united states. that is not regular. the neutral real fed funds rate is also lower than normal, which we have to take into account. it.that is the gist of we have been very negative for a few years now. --'s get somewhere let's let's get some were less negative. >> can we get into your scary data gesture again? actually, you can.

my wife has told me to quit using my hands. [laughter] >> sorry. sorry to cameron's wife. >> thank you very much. >> nike is announcing layoffs at a reorganization. that is that enough to stave off competition and get growth back on track? we will discuss. from new york, this is bloomberg. ♪

♪ >> i'm mark crumpton. president trump said today that would republican congressman steve scalise is in some trouble, but again, quoting he is going to be ok we hope, offering that assessment is a shaky u.s. house gavels back in session today, the day after the

shooting of steve scalise and of is a baseball field. the president and the first lady visited the louisiana covers minute the hospital wednesday night. vice president pence and his wife karen paid a visit this morning as the house return to business, lawmakers offered prayers for the wounded and echo the president's pledges of unity. >> i want to be crystal-clear that there is not any roman our society for hate. there is not room for violence. , and wherever we actstand, this act/-- let's in a peaceful nonviolent fashion. mark: the shooter was identified as 66 old james hodgkinson coming home inspector from illinois who led several minor run-ins with the long recent years and reportedly launched a facebook group called terminate the republican party. or so to me to come he lashed out at the president and the

gop. hodgkinson was shot and killed by capitol police. the senate has voted overwhelmingly to increase sanctions on russia and iran and give congress the power to review attempt by the president trump looks as mr. to improve relations between washington and moscow. areakers say the sanctions in response to russian involvement in last year's residential election and iran's mona stick -- ballistic missile program. at his annuale call-in show. he said that former fbi director james comey has not provided proof that russia influence the u.s. election. london police have launched a criminal investigation into the high-rise fire that killed at least 17 people. prime minister theresa may earlier ordered a full public inquiry in london authorities

expect the death toll to rise and said, they have little hope of finding more survivors. a judge in montgomery county, pennsylvania has told jurors to keep trying after they told them they are deadlocked in bill cosby's sexual assault trial. cosby is charged with aggravate indecent assault for allegedly drugging and molesting a woman in 2004. each of the three counts carries a maximum 10 years. dayal news 24 hours a powered by more than 2700 analysts and journalists and over 120 countries. i'm mark crumpton. this is bloomberg. >> thank you. what did you miss? the treasury department has hostile nations, particular a from china, which would undergo extra scrutiny. if they seek to buy stakes in american corporations. this is according to an administrative -- administration official.

great to have you on. give us some perspective because hostile seems a pretty aggressive word. how with the treatment of these companies differ from the scrutiny they would already face? >> just to be clear, china is not a hostile nation towards the u.s., but there are four countries at the treasury has showed interest in singling out for extra scrutiny and their foreign investment. korea,ussia, iran, north and china as well. china poses a pretty big risk because of their do interests in certain industries in the u.s. through shell companies and vc's chinese companies are interested in buying technology and semi conductor businesses echo compromise a military intellectual property. and also some nuclear businesses based in the u.s.. that is a big national security concern for the u.s.

>> anytime we talk about cross-border fund flows, the bloomberg and the function, i have it your all my terminal if you want to take a look. this tracks the outbound money coming out of china for m&a. for the month of may, we have seen so far that it is about $2.7 billion. my looking at that right? and then we had the geographic breakdown. this portion here is asia-pacific, about 44%. the mistake is about 34%. the rest of asia -- the united states is about 34%. this is the part that's really interesting is there has been a huge drop-off this month because we know that china is cracking down on capital outflows in general. treasury hones in on

these investments from china, what does this do to the relationship that the president jinping?t with xi >> the u.s.'s relationship with china has been tenuous longer than trump is been in office. but since president donald trump took over, he has tried to strike a friendlier tone with china, despite some of his rhetoric on the campaign trail. it is not unusual to hear presidential candidates talking very tough on china, and they get into office and realize we do need to work with them. the part of the reason they want to be friendlier on both sides is that the two countries come under the trump administration, are redoing their trade relationship, trying to have more reciprocal trade that the u.s. can export more to china to balance out that trade deficit. and also because the u.s. needs china's help in addressing some of the risks that come from north korea.

the with a u.s. giving any direct investments with china more scrutiny, you know, that is something china could retaliate on. it could be something the u.s. uses as leverage. that you cannot really set aside is that in congress, there is bipartisan support to go tougher on china. in thets and republicans house and senate are hearing from their constituents that they want their local economies to the safer from chinese interests. >> this feels like the rebalancing to me. we use the term leverage, but it is going in one direction. some redress make sense. >> they are always trying to seek a rebalance of trade. >> coming up, nike taking some dramatic action as adidas regains cash u.s. with their white sneakers. that is coming up.

from new york, this is bloomberg. ♪

♪ >> nike announcing our quitting --nike enough air cutting 2% of their workforce. shareholders don't seem impressed with nike stock down by 2%. uphill analystan --an apparel analyst. what does it look like right now and what does like you want to get to. >> nike has a lot of different people handling a lot of different categories. what they found his it took them a really long time to respond to specific changes to

the market. when consumer demand shifts from one trend to the other, took them to long to respond and that is what they are trying to change with these actions. >> are there any specific trend you can point to that nike was not asked to jump onto? >> the story about adidas that we heard about a couple of years ago, davis came out with new versions of their classics -- adidas came out with new versions of their classics. you can go back to their catalog to the 1970's and bring them a refresh. that was something nike was slow to respond to. that is the most recent trend i can point to. >> they are facing fears competition from the likes of adidas.

25% fewer products and we have a shift in the marketplace in terms of online sales. the market here is saying we are not sure they had the story right in the shift that they are doing. nike think they have it right right now? >> they have to get to the knowledge meant that something is wrong, then you can take specific action. you mentioned online sales, yes, there is a big shift to online share. they depend on that to distribute their footwear. they have to combine their website, e-commerce and work together to drive more growth. >> are they doing that yet? >> they are starting to. reducingmentioned their line by 25%. >> we are talking about their

skews, the styles that are not performing. productof the skews the don't represent a lot of revenue. >> they should have shed that a long time ago? >> yes. >> ah-ha! >> and if you have a bloomberg terminal, really the only way to watch tv is to watch tv . it is the best way to watch tv. this is just earlier on when we were doing our chart chat at the end of the three clocktower. -- at the three clocktower -- at the 3:00 hour. this is the chart i was looking at. you can save it or even reach out and tell us what you don't like. it really is the future of tv. just go to tv on your terminal. from new york, this is bloomberg. ♪

♪ mark: after a speech marked in trump florida, president is expected to announce he is rolling back parts of the obama administration's plan to call relations with cuba. an official did not provide specific details about the president scheduled announcement, but other people familiar what discussions and said the president plans to impose new limitations on commerce. the miami herald reports the goal is to deprive the cuban government of cash flow of american travel to the island. some very badsays

and conflicted people are debating the single greatest which had an american history. mr. trump reacted on twitter afterward that special prosecutor robert mueller now appears to be examining whether the president tried to obstruct justice. according to people familiar with the matter, mr. mueller will interview to top intelligence officials about whether the president asked them to get the fbi to back off an investigation of former national security adviser qamar michael flynn. washington dc police have issued arrest warrants for one dozen turkish security agents and to canadians link to a violent altercation last month. the incident happened may 16 turkish president -- when the turkish president visited washington. video footage show security supporterssome attacking protesters. an official with the company operating in advertising at the u.s. open says the pilot is ok after the aircraft crashed.

the associated press reports , says then maynard company operation team on a, reported on the pilot's status say no additional information on .he crash that happened global news 24 hours a day powered by more than 27 journalists and analysts in over 120 countries. i'm mark crumpton. >> let's get a recap of today's market action. the retreating u.s. talks for the fourth time in five days. you can see the big cap technically in the declines with the nasdaq off by half of 1%. s&p down, but not by as much. >> what did you miss -- valerie jarrett discuss the paradigm -- tackletion aiming to

equality in the workforce. >> diversity is a strength and there is a mounting body of evidence that shows companies that have a gender equity, have women represented, perform better. we had a very strong business case as to why this is important. >> where are we on that? top fortunep 500, five hundred, we had 32 women who are ceos. that is 6.4% and that is not nearly enough. a group of women that together two years ago and saying, we are in positions of leadership and what are we going to do to start this momentum? and now there are 51 companies, including bloomberg, bank of america, coca-cola who have signed on saying what can we do to get rid of implicit advice? how can we train people? what can we do to increase the number of women who are in senior positions? and how are we going to measure that we have achieved it and how

will be -- and how will we be transparent to our workforce? what can we do to make sure their sensibility in the workforce? minimum and are demanding more flexibility, so it should not be just going up for work, it should be your performance. and what will we do to ensure that women have sponsors? people who advocate on their behalf? is to reallyum expanded space, communicate with people in the business community and make a business case for this is so important. david: so women came into the workforce in a big way generation ago. an increased the productivity in the united states and helped the economy to a very large degree. why hasn't trickled up yet? by a large, you see it in the lower and middle rank, but not at the very top. reasons,are a host of and we have to really look at what are we doing in the workforce that creates an environment that is conducive

for women to excel? computer science for example -- women are now finishing college and graduate school higher rates than men, yet they stay in the field for three years. what is the reason they leave? the number one reason elitist culture. what can we do to create -- number one reason is culture? . what can we do to create a better culture? yourself, do you want to invest in them and have them go somewhere else? david: from your time at the white house and see -- from your time at the white house, is there any pattern at all? >> that is appointed a paradigm model is to figure out what the best practices and how can we share them and have them expand and grow? we have seen over the last several years, many leading ceos there isnize that

business interest to increase diversity in the workforce, but they do not necessarily know how. we want to give them the tools ensure the best practices to make sure everyone can take advantage of it. david: because you said the company will be more successful. >> yes, they will do better. >> that was valerie jarrett. 's ceo isf america making an effort to promote women on wall street. >> how do we define how we try to achieve is how we define inclusion. we want everyone to come in and work and not have to leave at the door who they are. we struggle to have people, very senior people try to define inclusion, and finally we did a group of relatively junior people. to come to i want to the door and i

have to make myself at the door. that is how we measure our success. this is more about how people are doing it. that defines a mobile ultimately trying to achieve. we have not done it yet. we need to keep moving forward. >> you started your career as a lawyer in providence, but did enter the banking industry until 1983. , then org the way since then shape your views on women in the workforce, and diversity more broadly? it is how think that you grew up in who you were around. i was around diversity and you did not think it was any other way. you are my age, but might -- my age generally. [laughter] >> i want to brown university.

the growth in an atmosphere that was already diverse and you cannot fathom that the atmosphere would not continue. i honestly never thought it would be a different way and having three sisters, they remind you it was not want to be different. [laughter] i never conceived it would be different by that. but it has evolved. and how disappointed do you have to be to drive that. when the general counsel talks about diversity saying we're already have women, where else do i have to go? law firms is still struggling to get more women.

i never thought it would be any other way. it just never occurred to me that it could exist another way from how we started. erik: besides having three sisters who reminded you, as you say, were there any stories or experiences that you were a part of that helped motivate you along -- in that process? >> this is not male-female, but generally -- i grew up in a system of catholic schools and went to brown and went to notre dame which is an interesting juxtaposition of a different style of schools. [laughter] but i remember a professor who died away -- who died not too long ago, he calls something jurists prudence. tedious to understand all the nuances of the case. slammed the book

down and said, this is simple, you just don't treat people that way. so i go back to you treat people the way you treat yourself. it was such a simple statement from an intensely intellectual guy in an intensely intellectual setting. . just think about this. reality, that is a very straightforward to think about it. >> that was brian moynihan speaking with erik schatzker. >> tackling china's credit crunch. we take a look at the countries rising level of data what regulators want to do about it. this is bloomberg. ♪

>> breaking news. it the department of justice is investigating a unit of the company due to accounting practices. it is conducting a criminal and civil probe that relates to the charging practices when it comes the u.s. government. >> looks like they disclosed in a filing on june 7, it has been around a number of days. they say that the audit process is not been evidenced by any deficiencies a material weakness identified any significant erroneous cost charging. bring it to an appropriate resolution. now the stock is reacting. >> china is attempting to keep its economy growing wild at the same time dealing with is not the debt.

how specifically is a going about that and how is he doing at its job. earlier this week, i sat down --h an associate press a for associate professor for the school of business and we talked about the impact of china's credit creation and what that is doing to growth. it is a catchall umbrella number in china that includes a lot of loan varieties that we don't have in the united states. and you see large multinational corporations, these are not just fly-by-night operators that are using other low varieties to get wrapped up into this. and so, basically this number is telling us that they are pushing that growth number down. , that credit growth number down . the problem is basically what we see is about a six-month flag, six to nine months between the credit impulse and when it shows up in gdp. looking at we are the leverage going down now, what we should be looking at is

the growth number about six must down the road once it has a chance to trickle through to the economy. >> when we talk about the regulators having some success reducing this credit creation, what tools do they use? regulatory tools? capital requirement tools? how do they guide this number lower? they use primary tool in china something called window guidance, which is basically a regulator calls of a bank telling them this is what we want you to do in these of the key numbers you need to focus on. i have talked to banks and security houses that in compliance officer will say, i need any now. i cannot -- i need and gmail. n email. this is creating friction. we cannot just go on a phone call, but that is how it is done in china. >> so the monthly credit creation numbers --let's talk

about the big stock of debt that has people worried. what are the signals that worry the regulators in terms of the sustainability of the total pile of debt out there? what is going on with that? >> well, i think basically their formulation for a long time was that they could essentially grow with dead and other infrastructure projects and keep the cash flow going. now that they are trying to push the number down, it is creating a lot of problems because money is not flowing through and you are seeing short-term bank rates and other money market rates drift upward and about the 120 days, we have seen a moving short-term interest rate of 1%. if they do not what the fed, that is because they have gone up a lot more. that is really what is pushing a lot of it is there is so much short-term lending in china that they do not have that long-term cushion. >> you talked about from a growth perspective, we may not expect to see some of these moves filter through for six

months. what about from an asset price perspective when it comes to housing, the stock market? when do we see the ramifications of that? >> it shows up in asset prices a lot faster. there are already reports coming out of beijing that home prices are dropping as much as 5% because of credit. mortgage growth in china was up about 55% total year-over-year -- 65% year-over-year. we are talking about anonymous numbers. same thing in commodity prices when they look at coal, steel, and other prices. so that is the real concern is that as the rain in this credit, what is it going to do asset prices, which is really driving so much of the chinese economy right now. issomething you have written the relationship between bank

recapitalization and the overall monetary policy stance and a currency overall. what should we expect to see there. the u.s. cop people by surprise -- the u.n. has caught people by surprise. but as china works through some of its loan debt pile, perhaps involving some recapitalization, what are they doing and what of the knocked down effects? >> basically, over the past two years, the pboc has expanded its balance sheet, primarily by buying debt swap from local governments via banks. this has allowed the banks to go out and increase lending. so basically, the question is, what is the pressure that this is having on the fixed exchange rate? even though we have seen the rmb increase in about the past month as they reset the basket, what

is interesting is that they are still relatively significant met sales of u.s. dollars to basically keep that up. that seems a little bit counterintuitive that as there are net dollar sales, we are seeing already appreciate. what that is indicating is that there is a contradiction in terms there. >> expand on that further. you say there is a contradiction. does that mean it will be difficult to maintain that strength of the rmb? where does it go? the market andk myself are continuing to expect the r&b to move lower over the next 12 months. seven seems to be the line they are really trying to not go beyond. and i think a lot of the speculation in the markets right now is that they basically tried to decouple it from the dollar beginning in april to raise it in anticipation of a fed rate hike that may really strange the rmb/u.s. dollar relationship. .

withat was my conversation chris balding. emma >> coming up, betting on obamacare in the era of trump. smaller insurance companies survived, but kimi thrive under the new administration. from new york, this is bloomberg. ♪

♪ >> republicans want to replace obamacare with a law that reduces subsidies and ends a mandate that everyone buys coverage. this could hurt smaller insurance company site oscar insurance group. it was lost after the passage of the formal care act by none other than jared kushner's brother, josh kushner. is max.us

like all new businesses, oscar insurance was supposed to solve a problem to make it easier for people to get insurance and understand how it works. >> right. aey positioned it as tech-savvy insurance company, so you would book points on your iphone, text the doctor, and it would come together under the obama care exchanges. especially during the aftermath of the affordable care act come it looked like an amazing business and he raised a ton of money. >> they raised a ton of money, but it soon started struggling and is lost money since then. >> they have lost one and three hundred million dollars since january, 2014. they did not get the membership they wanted. the other thing is it is hard to make money and health insurance. >> so what now? how much other businesses tied to the health of the exchanges? they are not the only ones that cannot get the sign-ups expected.

further?hat weakened dependent onostly exchanges still, and what is interesting is the are expanding. while anthem just pulled out of ohio, oscars going into ohio with this partnership the cleveland clinic and they will be in five counties in cleveland. that is a bet on obamacare. what is interesting is it is counterintuitive because you would think they would wait it out to see what happened and betting on the idea that whatever trump does, it will look a lot like but we have right now. >> what is the alternative if they don't make that bet? >> they don't really have an alternative because their business is really dependent on this model. they are doing other things. in april, they started a business program, but it is pretty small. this is them tried to go with what they know. >> oscar has teamed up with other local hospitals. it is not just the cleveland clinic's? >> what they are doing is

innovative. they're doing this risk-sharing thing in new york, cleveland, texas, and california were hospitals are not getting paid for every procedure they do. >> we know about the challenges on exchanges and all the different things going on with health insurance. what about this value proposition of making it easier, the idea that health care could be as easy as downloading a nap. does that work -- downloading and app. does that work? >> costs have been going up so and, so the costs procedures of drugs are squashing out any small gains you might make. i think idea is sound, but it has not borne out quite yet. >> thank you, max. >> thank you. >> coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪ .

>> coming up, don't miss a bank of japan announcement at 2:30 a.m. eastern time. it >> and we will give first aid out for the u.s. economy tomorrow. we will get u.s. housing starts at 8:30 am eastern.

seems like it has been allow until we got -- it seems like it has been a while since we got housing data. >> and don't miss this -- president trump heads to miami, where he is expected to announce new u.s. policy on cuba. doesn't sound so great for kuba. >> rolling back something else obama did. led -- in we are live big block rock tomorrow. -- in we are live at blackrock tomorrow. technology" is up next. >> have a great evening. this is bloomberg. ♪

♪ >> this is bloomberg technology. let's start with a check of first word news. house majority whip steve scalise remains hospitalized in

critical condition after yesterday's shooting. he was hit in the hip and is said to have sustained serious injury. the shooter, 66 or older hodgkinson from illinois, was -- 66-year-olde james hodgkinson from illinois, was killed by police. and lawmakers are saying that the fresh sanctions on russia's -- russia are in response to the meddling in the direction and iran's missile program. they also voted to add nonbinding language bowing for reyes is nosean longer being considered to be the federal trade commission, according to dante people -- to two people layer with the matter -- familiar with the matter. the journey of bill cosby's to -- sexual assault trial is deadlocked after deliberations