president took him also to the g20 summit in germany. he returned to the united states, then went back to france where he helped celebrate the 100th anniversary of the u.s.'s entry into world war i. macronpresident emmanuel taking part in to steal they celebrations. they are hosting the u.s. women's open. talked on air force one with installment of saudi arabia who congratulated the president on the u.s. led coalition's victory over the islamic state in muscle. the leaders were also said to discuss recent diplomatic resolves in a dispute with qatar. the white house and the tosident emphasized the need cut funding for terrorism and to discredit extremist ideology. theel's government says jerusalem holy site that was the

sight of a deadly attack earlier in the day won't reopen before sunday after additional security assessments. the shrine was closed after three palestinian assailants opened fire from there on friday. the muslim administered site was adhered to by both muslims and jews. technology for the first time on paper it will have to pay money as it withdraws from the lot. as they prepare for round of talks, it is prepared to be one puttingiggest issues the fee as high as $114 billion. global news 24 hours a day. over 120 countries.

this is bloomberg. ♪ live from bloomberg's world headquarters in new york, i'm julia chatterley. scarlet: i'm scarlet fu. joe: we are 30 minutes from close of trading. julia: the s&p hitting new highs as inflation and retail sales disappoint. u.s. financials post earnings. joe: the question is, what did you miss? overet: optimism financials starting to fade. it shares lower after earnings. joining us at the close. and as the senate revised health bill destined for the rewrite? we will hear from jay inslee for his take on health care and the travel ban. york yankees managing partner speaking exclusively about aaron judge, and why he's

not looking to sell the franchise anytime soon. julia: a lowdown on the market as we head toward the close. abigail, happy friday. and weeat friday it is have records and risk on both the down the s&p 500. it is on pace for its record closing high. the risk appetite. that testimony to congress many are perceiving to be as dovish. these are a few of the stocks trading at record highs. helping to explain why the down the s&p 500 have been able to do that. facebook and microsoft, obviously the technology pullback.

some of the big tech names come back. it may has something to do with the fact that we have rates or yields falling. back into technology. it these and mastercard in record highs today. there is the 10 year yield. pace.more on gold and the yen also rallying this week. put that into contrast, that we have haven assets as the stocks hit all-time highs. you think at some point, something's got to give. gb -- g #btvt 4154. in yellow, we have gold up about 7% for both the riskier stocks. in blue, we have the 10-year

note. and interestingly, maybe the tie-breaker at the commodity complex which is said to be a more risk asset. it is down. despite the fact we have stocks all-time highs, we all have haven assets. the tie-breaker could come from the commodity complex, julia. suggesting there is a little risk off the backdrop. we like pondering on this show. let's turn to bloomberg white house editor, alex. alex: they are still wrestling with this bill, trying to get moderates and conservatives on both ends of the political spectrum with different problems with the health care bill. which, by the way, is extremely

unpopular with the american public. mitch mcconnell continues to try to thread that needle. within range are of 50 votes, but they have work to do. going back to the original version, there were several senators both on the conservative flank and the so-called moderates. alex: mitch mcconnell managed to carve out $100 billion in savings by keeping a couple of taxes that he had originally proposed to repeal. they can throw some extra money at alaska.

dean heller is pretty much the key vote. and they added another lawyer to the ranks for the russia probe? alex: ty cobb. believe it or not, that's his name. he is known as a negotiator. they can kind of keep things on track over there. maybe even keep the president from tweeting about the russia thees, and thereby allegations that he's obstructing justice. julia: you said that with a straight face, alex. i'm impressed. what did you miss? enthusiasm for the economy has -- votersthe

sentiment is a key indicator. joe: peter atwater is the president of financial insight. great to have you back on the show. we saw a super rally in stocks. surveysen, the consumer have faded. mostly, the market is doing impressively well. >> with lots of liquidity, their content to do capital work. independence, and democrats since the election have really turned blue. they turned blue, but

how badly are they feeling compared to republicans before the election? >> you see this split block. democrats don't feel nearly as bad as republicans did before the election. but the trend line suggests it's not going to be long before that happens. they say the surveys are super politicized and we can't trust them. does that make sense given the dev urgency of what democrats and republicans were saying are already in the data? -- why haven't we stripped out that apparent bias? >> it is nothing new. what it says to me that the people are now feeling it, that something is changing in mood. and i would say it is a deteriorating signal.

it is a pretty clear nonpartisan view. the information is really quite troubling. voter.ependent the economy is getting better, half say the economy is getting worse. that mainth that is street is just getting their head above water. if it looks like the beginning of the year may be that pivot point. this will be very different from the banking crisis. scarlet: independent voters have

been feeling meh for a long time. those that feel like it's going --l >> it is way into this recovery. soft survey alan watching as is the nsa be survey. it is pretty clear. there optimism shot up. there's no major change on regulation or anything like that. could we expect them to spend more on capital expenditures and hiring.

>> the conclusion to reach with this data is that these partisans wins or reflections of continents. they are reflections of relief. it we're responding to something. it is very different from the kind of nature you would make an economic decision. question, youur see in the latest survey that they are now putting consumer confidence and small business confidence in the hands of saying, notnd unlike jamie dimon earlier today, guys, you've got to deal with this. the sentiment gets worse, this will be a really angry voter. we are outside looking in at the united days, donald trump benefited from that angry vote. does that turn on donald trump? >> during the campaign, donald

trump's popularity was in first three -- inversely related to confidence. the worst people feel, the better he does in the polls. but when he becomes president, he's only as good as we feel. the republican confidence turned down sharply. the things that small businesses and consumers feel important. is the number one financial stressor of mainstream today. peter atwater, thank you for joining us. coming up, yankees owner steinbrenner spoke with our sports podcast. remember, he won the home run derby. from new york, this is bloomberg. ♪

scarlet: what did you miss? bloomberg is launching a new podcast tomorrow. bloomberg business of sports. we talked with yankees coach steinbrenner. a. steinbrenner: we have had rough few years that we've been talking about sanchez's and those that are now here. we're going to get bird going as well. we are patient. it we do not treat these kids away when everyone was asking for them. they were great. the judges have arrived and the judge delivered in a big way. >> he had a couple of 500 foot moon shots. he was the most searched after

player. of race ball.face baseball. nobody predicted he would have this much success, this much impact. he's driving sales, tickets, television ratings. everything going gangbusters because of aaron judge. this point,until the yankees were having trouble selling tickets. theyg new hope, that continue to make a run. >> it sort of proved that they did the right thing. yankees, ifk of the we needed a player, we would go give up the prospect and get the established all-star. scarlet: whatever it takes. >> now it is about keeping those prospect and it is coming to fruition. hell said, everybody called and wanted judge.

they said no. it the word we heard from how ce.""patient they have taken a different tactic and it is starting to pay off. scarlet: steinbrenner also said everyone needs to win now. >> for us, it is not necessarily about any individual player. which is different people to sit there before every game. the fans love it. total, he's just one of them. fans.nbelievable with the that's what, overall, the fans are excited about. if you own the yankees, i suppose that -- , wee said this is new york

are predicated on winning. by the way, the ratings in the last eight years, much of it because of the young players. they need to be contentious. you will see them probably lead the american league in attendance. scarlet: did how give any clues? the miami marlins are losing $50 million, 60 million dollars a year, if they can command a $50 billion price tag, what are the yankees worth? yankees at about $3.7 million. the open auction with international bidders. these yankees could top $4 billion. moving north from

there. it's got, thank you so much. the full podcast is available. .t noon eastern time julia? it is time for the bloomberg business flash, a look at the biggest business stories in the news right now. chairman and controlling shareholder -- taking investment johnwarren buffett and malone. buffett is considering an infusion of 10 million to 20 million. sum -- it would provide a cash infusion to strengthen the struggling wireless carrier. funds posting the biggest gain in three years. , they were able to take advantage of market performance.

$23 billion -- jimmy choo with a price tag of about $1 billion. competing with investors from both the u.k. and china saying the holdings of 70% of jimmy choo has the company up for sale as part of the streamlining plans. and that is your business flash update. scarlet: coming up next, we take a deep dive into bank earnings. and reminder if you have bloomberg terminal, check out tv to watch us online. a direct with us directly, send messages to julia, to joe, to me. from new york, this is bloomberg. ♪

joe: i'm joe weisenthal. what did you miss? a bank theme to deep dive with our charts today. oliver renick made this chart and it really puts the

postelection trading into perspective. election,the everything shot up. the blue line here. s&p financials. this is the 210 spread. the net interest margin. as you know, the spread has flattened quite a bit. those enthusiasms about inflation. as least as a long time ago, it is holding up pretty well. they so holding together. optimism perhaps over deregulation. factors not related to that spread. at least here, we haven't seen the postelection rally dissipate just yet. scarlet: but a lot of that is 10 don hopes and what happens in washington. jamie dimon is frustrated about the dysfunction about the gridlock in bc.

on the analyst conference call, he shared some of his thoughts and some colorful commentary. mr. dimon: since the great recession which is now eight years old, we been growing at 1.5% to 2% in spite of stupidity and political gridlock. have become one of the most bureaucratic, confusing, litigious ascites on the planet. it's almost an embarrassment being an american citizen traveling around the world and listening to the stupid [bleep] we have to deal with in this country. he did not criticize the white house directly. he is chairman of the business roundtable, and he has work to do. julia: the point he made about the litigious nature of the perhaps some, but of the frustration he was sharing, it's a concern about .hat is going on

i'm showing a comparison between it citigroup, and jpmorgan in yellow. this is the fixed income trading revenue. you have jpmorgan out there ahead. it plus what we are seeing in 2017 so far. it's just a little under $1 million between them. we saw fixed income trading and revenues falling. for citigroup despite far worst predictions. some catch-up going on for citigroup. joe: here's what i want to know. when was the last time we had to bleep out something as ceo said from a conference call? have we ever had to do that before? that is historic. scarlet: he's always colorful. julia: tom keene talks about how to listening.rd a new high or a new low. call it what you will. scarlet: the market close is next. unless than four minutes to go before the close, the dow at a new high and the s&p 500 also at

new highs. from new york, this is bloomberg. ♪

♪

joe: the s&p 500 and dow hitting new records. inflation data came in a little iffy. if you are tuning in live on twitter, welcome to our closing bell coverage. every weekday from 4:00 to 5:00 eastern. scarlet: let's begin with our market minutes. another green day for stocks. the dow gaining 87 points. s&p 500 adding 11 points. up by at least 4/10 of 1%. the way, this marks the sixth straight day of gains. this is on the heels of disappointing economic data. joe: remember rotation. scarlet: what happened to that? not another story that did

pan out. julia: it is all about the day do, who cares about fundamentals? moving on. scarlet: look at returns for the week. guess who is the big winner? technology. up by 4%. energy stocks a close follow-up, getting by 2%. there was a downgrade from bank of america. this is a defensive sector. financials a pullback for that sector with the earnings reports today. taking a look at the big movers for the day, sprint getting a pop this afternoon. after the chairman held conversations with warren buffett and john malone about investing in sprint according to a person familiar with the matter. we wanted to mention gap as

well. jpmorgan added it as a top specialty sector idea, raising its target to $27. jpmorgan dropping, toning down outlook for loan growth. wells fargo reporting a drop in lending that surprised some analysts. joe: let's take a look at the government bond market. .ield ending the week low were inflation data was saw. retail sales data was kind of saw. you see 10 year yield down to 2.3%. quick look at the intraday. that tells the story. a fairly pronounced drop on the inflation the data -- inflation data. julia: just in line with what joe was saying, setting the tone . the dollar trading at a 10 month low.

nowave repriced 40% chance of a rate hike by the end of this year. week, or a a tough positive one. dollar-yen, trading, you have to watch what is going on in terms of levels. sterling trading at a nine-month high. actually the u.k. looking at relatively more hawkish now in terms of central banks. cap, off the back of what canadian bank hike, morgan stanley saying they will gain bullish -- they remain bullish on the shekel.

joe: finally, let's take a look at the commodities. everything green today. 1%.up gold rising modestly. silver has been getting clobbered lately. getting a bounce back today of 1.5%. metal, the industrial strong demand out of plants in china, sending nickel up nearly 4% on the day. those are today said market minutes. scarlet: what'd you miss? wells fargo reporting a slowdown in lending that surprised some analysts. second quarter revenue missed estimates. the efficiency ratio fell in line with expectations. joining us now is wells fargo's chief financial officer from their offices in san francisco. great to speak with you. thanks for joining us, as

always. wells to introduce fargo as the country's biggest mortgage lender. you are also the country's largest car lender. talk about the broader market for auto loans. largest autoen the lindner at different points of the last few years. thatve been telegraphing we were going to allow that to slow down, because we were reducing.lly our portfolio shot by a couple billion dollars during the quarter. up.performance has ticked performance is actually improved. we are in the middle of doing some --

though ahead. i wanted to get then impetus behind that was. >> auto lending tends to be a competitive business. inre are dealers involved the origination of the loans, which is different than most loans that banks originate. people have thought used-car prices have been very high, for very long. they have started to get softer over the last few years. the loss expectation is a little bit higher. people are getting paid for their risk. it is not a missed price broadly. it was appropriate to take some risk off the table. we are consolidating our collections centers.

we are consolidating them down to three larger locations. a makes sense for us to have lower risk portfolio so there is less collecting. joe: i was showing a chart of the 210 spread. getting a lot of people's hopes up for interest margins the has flattened. how does that flattening affect your strategy? >> sure. deflecting we have a lot of adjustable rate loans and short-term investments that earn more and do better as fed funds moves up. we are a big investor in the market. long rates have come down from where they peaked in the fourth quarter. , wereinvestment opportunity

generate excess cash all the time, and we have repayments. the opportunity is not as attractive. we end up with more cash on hand than if we had more attractive entry points into the market. it is good for mortgages. it is good for corporate's and others looking to extend maturities. possible -- possibility of higher rates in the future. julia: another reason there is an optimism, hopes of deregulation from washington. i am sure you heard jamie dimon lost the plot on his conference call, expressing extreme frustration with washington, not just the current administration, do you share his frustration?

there isn't really an expectation of bank regulation. it looks much different. it is the world that we are living in. we have all adjusted to it. we are able to serve our customers. a very fairng profit and good return on equity in these circumstances. i would say as it were good -- relates to banks, probably deserve a good look. and the ability to relax a little bit. they are individually smaller. frankly they just cannot give up with the requirements required of large banks. separately, maybe more of his frustration was leveled at what it means for the broader economy . in the fourth quarter we had a to dopen opportunity,

several things that would have promoted growth in this country. today, none of that has come to pass. that relates to the most recent period. i think it is frustrating for people who sense there was an opening, that it didn't happen. julia: investors buying it at this moment with the hope of the short-term. their optimism is misplaced? >> there is maybe an opportunity to streamline costs. but i think anything beyond that is actually quite hopeful. you are buying bigger successful banks for the returns they are generating today. it is an option on higher rates

in the future, which is additional upside. those things add up. thank you. bloomberg has learned that uber shareholders have discussed selling shares to softbank another potential investors. this is something that the former ceo and founder of uber was debt against. he didn't want the shareholders to be diluting and selling it. interesting, whether they are looking to raise cash. joe: it is interesting. one thing to take some money off the table and cash in their profits, but the fact that it could include a new raise. scarlet: it raises questions about whether uber is facing some challenges.

we saw how it has taken a step back and russia. ,t was working with yandex now in china. ofhas had to take a couple steps back. it has to look at its spence is, and clearly it is using a lot of cash in the meantime. julia: this is a benchmark that was meant to be fundamental and him from the ceo role at the heart of this looking to sell out their shares. interesting. we will bring you up to speed with that story. facebook is making a push into virtual reality. we will discuss it next. ♪

mark: time for first word news. the justice department filed notice that it is seeking review by the san francisco bay's aderal court of appears of federal judge that the trump administration did not conform with the supreme court's instructions rolling out its temporary travel ban. jeff sessions promise to take the matter back to the high court. president trump plans to put veteran washington lawyer tied called in charge of overseeing the white house lead it -- legal and media response into russian meddling in the 2016 presidential campaign. colb is intending to be the and the of discipline, point person for questions from

congressional panels and justice department special cancel -- counsel, robert mueller. earlier he said it would be unfair to describe secretary of state rex tillerson's shuttered diplomacy as a failure, insisting the crisis cannot be solved in a day. arid arabia, the united uae cut ties with qatar. a doctor specializing in conditions will travel to assess the critically ill baby. he suffers from a rare genetic disease that has left him brain-damaged and unable to

breathe unaided. his parents have been fighting to taken to the u.s. for treatment, but after legal wrangling, a doctor of columbia has decided to go to them to examine the child. global news 20 for hours a day powered by 2700 journalists and analysts in 120 countries. this is bloomberg. today on the focus on tech, looking at facebook and apple, both companies investing in boundary pushing technology. facebook with virtual reality and apple with face scanning. joining us now, bloomberg tech reporter -- you are here in the studio. joe: mark, i feel the next iphone is the most evergreen story intact. people are always interested in what is coming next. 3-d face scanning?

>> you will just be able to look at it when it is in your hand to unlock it based on scanning your face and other biometric faces. joe: is the appeal that it is more secure? >> it is really cool. [laughter] it is going to sell a lot of phones. because there's nor data points it is also more secure than a fingerprint. when you are working out at the gym, it doesn't work. especially in new york in the winter. there is problems integrating it into the screen. if you put it on the back it is inconvenient. so, that is another workaround. scarlet: for the shallow people who look out there, the look is going to be different as well. the last couple of iterations

looked basically the same. addhat they tried to do was colors. gold, rose close -- rose gold. this is going to be an actual different look. it is going to have a about the size of the iphone 7 screen, which people like. that phone is really big. the by the smaller one. it is going to be the size of the smaller one but have the screen of the bigger one. they remove all the edges around it. julia: mine is glitter colored. talking about facebook, oculus rift for the mass market. >> instead of having the bone in your park it -- the phone in your pocket, you have this thing around your head. $200, it will take virtual-reality mainstream. joe: it doesn't seem like it is moving the needle commercially just yet for any company.

is that right? at $200the idea that that is the point where it becomes one? >> people just don't want to wear these things. and they are expensive. there was a price drop, 500, $600. you need a big gaming rig to hook up to it. you combine the price of the phone and the headset exterior hardware, this is going to be $200. you can go to an at&t store and buy a samsung phone, you can go to a store or online, and that is going to spur sales. julia: are you sold it $200? joe: i'm going to get it and do the 3-d thing. >> i think it could be a cool gizmo as a gift or on an airplane. am to be wearing around the

office? i wouldn't be caught doing that? typically in san francisco, here in new york for the day, thank you so much. coming up, the vix is at multiyear lows. many wondering what has happened to market volatility. we dissect the problem with charts, of course. this is bloomberg. ♪

with the vix volatility index, just about 10, hovering near record lows, one of the hot topics has been what happened to volatility, and where is it, if anywhere? great question. where is the volatility? here to dissect some charts, dan

is a chartered market technician. 17 years of market experience. thanks for joining us. we have a chart which is the vix on the nasdaq 100 to the s&p 500 . can you talk to us about why this might tell us where volatility is? >> will be can see is the vix of the nasdaq 100 has spiked relative to the s&p 500. the simple answer, the volatility has showed up in the technology space, but if you drill down a little bit, you see these spikes tend to be short lived. you get a hard spike and then a reversion back to the range. if you look kind of at the daily chart of this ratio, you will see we are in fact starting to roll over. volatility, that does seem to have been short-lived.

>> this is a monthly chart. if the end of july happens to get very volatile for tech, that line could go back up. what do you think about that? >> it is a possibility, but if you look at a daily chart you will see we made the initial spike. we came down a little bit. so, personally nasdaq volatility will decline relative to s&p. >> you have a great chart you have put together. can you put that together? >> what you see as investors, increase their willingness to take on risk, what you see as the s&p 600 information-technology index. uptrend fora solid most of this year.

test of the 50 day moving average, beginning to reinsert -- reinsert itself higher. what you see is the small cap take index. s&p relative to s&p 500 information. we have been declining since december. if you do believe that decline,y is going to small caps will outperform in the tech space. >> we have seen in the biotech space. before you said you love this chart, you think it is beautiful. >> one of the best charts i have seen in a long time. a 15 month base when it goes through the orange line.

it is above the moving average. attempting to retest that level. now moving higher. interestingly, that is a momentum indicator. above five hard and got 80. isn't that really overbought? , you want to see the index or the product you are trading get massively overbought like that. >> you have a real risk on for the markets here. great stuff. back to you. scarlet: thanks -- julia: thanks. jay inslee weighs in on the health care debate in the latest on president trump's travel ban. this is bloomberg. ♪

mark: time now for first word news. the pentagon says this week u.s. forces killed a top islamic state leader, dana white is said died in aned airstrike on the group's headquarters in afghanistan. other members were also killed him with a pentagon calls an action that will significantly disrupt the terror group's plans to expand its presence in afghanistan. california congressman adam says new information on donald trump's meeting with a russian lawyer adds another

deeply disturbing fact about this secret meeting. a russian-american lobbyists now says he was also in attendance. donald trump jr. has discounted the meeting, saying he did not receive the information he was promised. explanations and a part of consistent dissembling and the seats. the data and digital director with president's campaign says he will speak with the house intelligence committee later this week as part of its russian investigation. any russiane of involvement in the data of mr. trump's campaign, and he is voluntarily appearing before the panel. senate majority leader mitch mcconnell's latest health care draft almost certainly is headed to rewrite, again, to appease the handful of republican moderates worried about medicaid cut. the bill it has drawn to firm

knows. -- no 's. jimmy carter is out of the hospital after being treated for dehydration in canada. he was volunteering at a habitat for humanity home building project in winnipeg for 90 minutes on thursday when he appeared to wobble, and was taken to the hospital as a precaution. he was probably return to the building site this morning. global news powered by more than 2700 journalists and analysts in 120 countries. i'm mark crumpton, this is bloomberg. >> the one weak spot my

financials as they reported earnings. course we will get more next week. julia: the annual national governors association meeting in rhode island today, mike pence urge support of the gop health bill. they argued it would harm residents of their states by reducing federal medicaid funding. governor jay inslee echoes these concerns, saying senate republicans have outdone themselves with a health care plan that incorporates the worst of their worst ideas. governor ensley joins us now. a frustrated -- as frustrating the bottom line is the current situation is not sustainable. the republicans desperately need

a legislative win. they seem to be doing whatever it takes to pass this vote. do you have to just accept that? >> for heavens, no. it toothghting and nail. it is seriously jeopardize by this. it is pretty amazing, it takes a lot of talent to take a terrible bill and make it worse. i believe that is what has happened here. the contortions they have gone through, the muck of alien efforts to hide the ball from the american people, that is what is not sustainable. this new provision is worse with those with pre-existing conditions. conditions that extra drive up huge premium increases so people with pre-existing conditions would not be able to find affordable insurance. they have created incentives to not cover people for medicaid.

opioids,uflaged about they have cut $800 billion out of medicaid, jeopardizing the 600,000 people i have been medicaid expansion and have a few shekels on the pile to solve the problem. that just won't do. i want to give some credit to my republican colleague of voters senators toled out not degrees the us harm. those voices are going to be heard ultimately in this matter. joe: one theory of conservative health core -- health care reform, you can push people off of medicaid if you subsidize them on their own. in theory, if enough money were allocated to subsidies for forle who lost medicaid, subsidies for them, would that be a reasonable approach going forward? >> it is not anywhere in reality.

republicans will never do that. the primary driving motivating factor here is not health care, it is wealth care. their desire is to free up money for the federal budget that will be available for huge tax cut's benefiting the wealthy. whether that is in this bill, or subsequent bill, doing abn switch is not going to ever -- a bait and switch is not going to put money in that private insurance market. the goal is to reduce federal support. baby hypothetically what you would say would be true, but they have no interest in doing that. they want it handed out to gianty people in giant, tax cut for the wealthy. that is what is going on here. what we are seeing here is what happens when a party becomes fundamentally at odds with itself, trying to do the impossible.

republicans have been against expansion of health care. they voted to repeal obamacare. it.they can't do they don't want to provide health care, but the american people like health care. the american people like the thought that 22 million people ought to have insurance. they have run up against that hard reality. they are trying to work this way out of it with camouflaged, and tricks, but it is not working. it is not working because the american people are speaking, the insurance industry is speaking. we hired 50,000 people in my state. we have the number one economy in the united states. we are getting a handle on health care costs. and hiring more people. all of these successes, republicans are trying to snatch defeat from the jaws of victory. there's ways i would like to share our success in my state. we have integrated physical and

mental health and as a result we are having low inflation rates. we would like to share our experience so they can succeed as well. scarlet: we will see if we get to that point. perhaps there is room when the august recess is delayed. your opposition to the travel ban is well documented. this has generated a ton of feedback within your state and the rest of the nation. clearly the supreme court has youn action on this, as look ahead, are there any other donald trump white house initiatives on which you will be taking a prominent stand against? >> today, as you know, there was a judge that trimmed the travel ban. it was a commonsense decision. i think the biggest threat to my state right now, other than health care is the fact that he wants to surrender to climate

change. my state is under assault by kleiman change. our glaciers are receding. we are having difficulty growing oysters. forest fires have been devastating. we need to fight against climate change. the fact -- the fact we have a president of the united states who amongst all of the leaders in the world is now the only country in the world with an executive who wants to surrender to climate change, that is disappointing. my stay is moving forward. we are leading an effort with other states, with 13 states and one territory. multiple agreements with nations. and met with the president of mexico and canada on this to make some joint efforts. leadership is now found in the governor's offices. we are going to defeat climate change. we are a can-do country.

we will not surrender to this existential threat to the future of our kids. we are moving with or without the president on this. julia: they should be an incredible opportunity for the democratic party, record low poll ratings for donald trump since he became president. the health-care care debate, people pushing back. voters don't want this, in your view. climate change is a problem as well. how do you turn everything that you are complaining about here into victories in the midterms in 2018? i know you have been asked, but do you not believe there is a leadership vacuum at the head of the democratic party, which you yourself could fill? >> our leadership is being by literally thousands of

. . .

scarlet: what'd you miss?

investors flocking to etf, but roddick's are being used to play hot and crowded trades. these, discuss a few of etf specialist. one of the trends is to bet amazon will dismantle the retailers and the mall is about to die, when we look at the ways to play this, it is an active way to play this. 100% -- up 140%. fascinating.is it only has $150 million in assets. it trades $200 million a day. that is weird for an etf that is not fix related. related -- vix related.

a lot of people are using xrt in place of high borrowing costs. it's a surrogate way too short those stocks. everyone is talking about it, and incredible moneymaker. that is shorting volatility. i have a chart here on the terminal, the white line, you can't quite appreciate this. it is up eight fold. it is up fourfold in the last year. shorting volatility is such a moneymaker. >> everybody complains about the vix. x iv makes money off of that same issue. it is an invert. vix is only down 50% in the past

five years. x iv is at 1300%. all of that money is basically making money off of the role costs. >> one of the dangers here is you can have huge drawdowns. what would have to change in the nature of the shape of the curve for the fundamental bull market to not work anymore? lose halfx iv could its value in a day or two. be careful. it is like picking up nichols in front of a steamroller. inverts, x the curve iv is going to feel it in two ways at once and it is going to be nasty. julia: this brings us back to where we started, when you are saying that is a massive advantage here. it is super expensive to borrow these things than when they are

in demand. if we are talking about the position we have been that, what happens with that squeeze? >> you can always create new shares. it is called creates a lens. it will just be like anything else. this is playing with fire. his volatility going to go up? question, up in smoke. people are betting the wrong way on this thing. julia: you have asked the

question, is volatility going to go up? .reat to have you on shareholders and board have discussed selling stocks to softbank another potential investors. this could be a game changer. this is bloomberg. ♪

>> a look at the biggest business stories in the news now. david facility has called for a congressional hearing on the amazon wholesale whole foods deal.

13.7 billion dollar acquisition raises antitrust concerns on competition. the acquisition is part of a consolidation wave that has lowered wages and resulted in growth inequality in the workplace. major organizational changes after it is 85 and a half billion dollar acquisition of time warner. randall stephenson will remain the top executive of at&t and oversee ceos who would independently manage the telecommunications and business management. that is your business update. bloomberg has learned over shareholders and its board have discussed selling their shares to solve bank and other investors. here with more, eric newcomer. he is in san francisco. great to have you on the show.

talked to us about the details. do we know whether it is for financial raising purposes, or it is diversification going on here? benchmarkrstanding is , an early investor who helped read the effort -- lead the effort, they may sell their secondary shares. that does not seem to have happened. out, there isnick an investment about whether they combine secondary offering, to let investors sell -- sell their shares, and perhaps a primary offering to give more capital to go forward and prepare for an ipo. >> it is not that unusual for some of these huge tech stocks to give people liquidity and take their profits off the table. what should we read into this news?

>> we are still figuring it out. the price is a big question. it makes sense investors want to diversify. that is a sign investors want to move away from being all in on this stock. early investors have been asked to hold it for a long time. some of the answer is going to depend on the prize. it doesn't seem to be a strong vote of confidence that amid this controversy some of lupus investors would want to sell some of their shares. scarlet: what better representation than the ceo -- how does he fit into this? when he was in charge, he did not want investors to be able to cash out like that. did he get a role? did he have a say in this? controls super and about this. the only way to get shares was

to buy it from the company. tight gript such a over the company, that might change. it is ultimately a decision by the board, the board will have to approve. there are a lot of questions. that this is even going on in such a controversial time for the company is a big deal. julia: and he is still on the board. can't --t the ceo hunt? >> there is a fight between the new york times, they had a bunch of lists. some people want to throw their name in. others are in the mixed. travis himself is going to have to play a major role taking the new person.

it hasn't been sorted out. it hasn't been sorted out. uber is continuing to make big decisions. this talk with softbank they are going forward without a ceo. they definitely need one. it is literally management by committee at the moment. >> thank you for your insight. joe: coming up, what you need to know to get rough for next week. up forguerra -- to gear next week. this is bloomberg. ♪

closing the dow and s&p at record highs. financials falling because of earnings. china will be announcing second-quarter gdp sunday night. julia: britain and the eu sit down for the second round of brexit talks on monday. joe: next week i'm looking for earnings from bank of america and goldman sachs. scarlet: i'm also looking at the bank of japan and the ecb. that does it for what'd you miss. whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest prices. so if you're anything like me... ...you'll want to check tripadvisor. we now instantly compare prices from over 200 booking sites... ...to find you the lowest price...

...on the hotel you want. go on, try something fresh. tripadvisor. the latest reviews. the lowest prices. alisa: i am alisa parenti in washington and you are watching "bloomberg technology." president and mrs. trump have arrived back in the united states following a trip to france where the president helped commemorate the 100th

anniversary of the u.s.' entries world war i. the french president invited mr. trump to take part in france's bastille day celebrations. the legal fight goes on over the trump administration's proposed travel ban. the justice department will appeal a decision by a federal judge in white which weake ned the travel ban. attorney general sessions is taking the issue back to the high court. israel's government sends a holy site that was the scene of a deadly attack earlier in the day will not reopen before sunday after additional security assessments. the shrine was closed after three palestinian assailants opened fire this morning killing two israeli police officers before being shot. former president jimmy carter was released from the hospital today after being treated for dehydration in canada. the 92-year-old was volunteering at a habitat for humanity home-building project