ally of steve bannon who is removed today as white house chief strategist also faces removal from his post as a counterterrorism aid to president trump. orca previously worked with bannon at breitbart news and has on fox newsularly to speak on the trump administration's behalf. year, he drew sharp criticism after reports he had links to a far right group and hungry alleged to be anti-semitic. gorka has dismissed those accusations is groundless. a democrat from west virginia says he's not going to join president trump's cabinet as energy secretary. week as aurfaced last possible way to let the republican governor name a successor. said that it's not going to happen. he faces a tough reelection campaign in 2018.

a man stabbed eight people in finland today, killing two of them before police shot him in the five and detained him. authorities are looking for more potential suspects in the attack. the incident happened in the city about 100 miles west of the capital helsinki. officials say security has been stepped up. at the attacks in barcelona and at a nearby seaside result -- resort. angela merkel's main challenger says he spoke with the chancellor and both agreed to suspend campaigning. they told reporters today they made the decision as a sign of solidarity for those people affected in spain by the attacks. global news 24 hours a day powered by more than 2700 and analysts in over 120 countries. i'm mark crumpton, this is bloomberg.

♪ lisa: live from bloomberg's world headquarters in new york. julie: i'm julie hyman. joe: scarlet and julia are both off today and we are half an hour from the close of trading. lisa: oil rises. hat'dthe question is, "w you miss?" julie: the controversial aid president trump will leave his job as of today. and with more of the original cabinet members out of the of a law office, is the administration ready to get back on track for economic reform? mario draghi and janet yellen will be the headline is at the weeks jackson hole economic and symposium.- economic

what'd you miss? steve bannon was ousted from the white house. heat was on shaky ground for weeks. news outlets reporting that he will return to breitbart. bannon plans to go thermonuclear against globalists. let's go to kevin cirilli in washington. marco rubio's presidential campaign, he joins us on the phone. on theto start with you issue of going thermonuclear. kevin: it is likely steve bannon will be returning to breitbart and he will also have other roles.

in the business community advising or consulting, he will likely play a role in the future of right part. it should be framed as globalist versus nationalist. it will be interesting to see what type of rhetoric steve dan or or what -- steve bannon an all-star operative is able to log against people like steven mnuchin. vice president mike pence was scheduled to speak tomorrow at a conservative gathering. he been replaced by commerce secretary wilbur ross. clearly after charlottesville, the response from the white house, what you're seeing now is intense pressure not just from outside the white house, not just the business community, not just republicans like senator bob corker, but large portions of the american public. lisa: i want to turn to you and

get a sense for where this leaves president trump. he was a key ally. it came to views on a lot of things. what does it mean for president trump's future in the white house? >> it leaves him very isolated. as kevin was saying, we have seen republican lawmakers distance themselves from andident trump, ceos councils disbanding because they didn't want to be seen with president trump. and you see his poll numbers falling. he just doesn't have a lot of allies. and someone like steve bannon leaves the white house, he will have even fewer allies. it is just increasingly isolated. the reason it matters, the more isolated he is, the harder it will be for him to get things accomplished.

they don't have great relationships to begin with. bannon's ideology characterized by the so-called economic nationalism. it but nothing we have seen suggest the white house is pursuing that in a meaningful way. reform, not having much fingerprints of populism on it. does this really change anything? with house speaker. he says he has not spoken with the house speaker at all since tuesday. just think about it for a second. the state of affairs in america, the consciousness and the overall mood in the country. the speaker of the house has not spoken to president trump all week.

some has been communication, small communication between the chair as well as the president. , think we should really note the lack of communication. alex, is it your view that president trump's failure to get anything significant done policy more a results it of ideological gulf between him and other numbers of the republican party? or is it more about president trump's behavior and demeanor? alex: i put it on president trump almost entirely. congress's default state is gridlock. aleman get things done when there are strong presidential leaders. you can look at a major piece of legislation in modern times that didn't pass because of strong

presidential leadership. but where was that during the health care reform debate? the president never gave a major address on health care reform, let alone a press conference or series of interviews. he didn't travel the country trying to drum up support from members to support health care reform. and when you look at something like tax reform, which republicans really want to get done, it is controversial and they are going to need presidential leadership. there's a lot of questions about whether or not trump is going to be able to provide it. a republican strategist, how concerned are you about bannon going to breitbart and it has to meeting -- and exacerbating the fissure that has become apparent in the republican party? concerned about that. republicans need to be united. trump won the republican nomination by being very divisive.

.ot ever trying to unify people and if bannon goes back to breitbart and they just decide to go and declare all-out war on the remaining white house staff, it will be very messy very quickly. it will make it harder to get anything done legislatively. party, it have a makes it hard to get reelected next fall. all overe primaries the country, trump is potentially supporting primary challengers to sitting republican senators. oz of us keeping the house and the senate much more difficult. -- alex conanten , and kevin cirilli from washington.

coming up, highlights from our extensive interview with ceo brian kingston. find out where his company is buying and selling real estate. from new york, this is bloomberg. ♪

julie: erik schatzker sat down with the rising star of commercial real estate, brian kingston at brookfield's new luxury residential building. he has a unique perspective on real estate valuations. asked if pieces of real estate at are doing so well could be repurposed. we see retail is the top investment opportunity in america and it is acquiring high-quality retail that we

think is mispriced, but also acquiring some of this other retail that may be fit for other purposes. it may be acases, smaller center where there is too much retail space. retailoo large of a footprint. we've been spending time on specific opportunities were we have been shrinking the footprint and putting in higher property tenants. spending time and money. it is a significant capital investment. we are building multifamily apartments. putting in gyms and theaters to make these attractive places for people to want to go. erik: i've heard these ideas before. they sound like good ideas. is this stuff practical? can you take a mall, the kind of thing that i grew up with, and know what it is, and turn it into something else that is actually, i don't know, a community? mr. kingston: we are doing it

right now. it is happening. i can give you a number of examples in california. we own a shopping center in suburban oakland. there he high-end migration. we have a retail center too large for the site and includes a couple of department stars. we are in the process of buying back those boxes from the department stores and converting 1500 residential apartments right on the mall. it will not only make the site more attractive, it turns it into a community. it really is a live, work, play. we are seeing increasingly that that's not only where shoppers want to go, but where they would like to live. they want to live in interesting places. they can go get a coffee, get their shopping done. eric also asked where the company is looking to sell

property. mr. kingston: in certain markets where there is a tremendous amount of offshore demand for those assets, you see pricing that is out of whack with the underlying fundamentals. in certain situations, we look to sell assets. where we have a long-term fixed income profile. redeployedassets and into higher returning. it is still in those markets. underlying this is the economic growth in the united states that we were starting to see. job growth is very good. we are at 16 year lows and unemployment. it is reasonably constrained. we think we will see good mental are in.n the markets we

and so we are still positive on situations where maybe you've got shorter duration in those markets. where are we most likely to see brookfield selling properties? and what kinds of properties might those be across the range of assets that you own? similarly, what are we most likely going to see brookfield buying? mr. kingston: i think we have been, the last couple of years, selling in those markets. and we've been buying in those same markets. the investment theory that really defines how we invest in real estate. by these assets, reposition them. and ultimately, we sell them and redeployed the capital. part of whatut makes brookfield different is that there is an aggressive focus on redeploying that capital into markets or assets with higher return potential.

where are those markets right now? mr. kingston: it's not easy because there is a tremendous amount of capital for opportunities. houston, oil crisis certainly have had negative impact on that market. much like retail, you have peel back the headlines and understand what is happening on the ground. we are seeing good activity in sectors outside of oil and gas. there is a lot of migration happening in the market. they built up quite a health as well as government employment base. those things continue to drive demand for office. we think the story on the ground is not well understood. that is where we are looking for opportunities. julie: that was erik schatzker interviewing brian kingston. lisa: a look at some of the biggest stories in the news

right now. after just a week, tesla bonds are trading lower. the electric carmakers want $1.8 billion of 5.3% notes. the hit about $.97 on dollar today according to data compiled by bloomberg. eight year securities price to week ago at a record low yield 300 -- has added $300 billion to meet demand. one of the bearish strategists still thinks bitcoin have lots of room to grow despite hitting all-time highs. thomas lee says the --ptocurrencies could take could hit $6,000 by next year. he expects bitcoin to reach about 25,000 by 2022. barclays track how often bankers are at the desk. the device uses heat and motion centers -- sensors to track

movement. it's not moderated productivity, just identifying which unoccupied.re that is your bloomberg business flash. i'm just processing that story. a company reported earnings beating expectations. here to discuss his oliver renick. how did they beat? oliver: they beat on pretty much everything that counts. they had a next occasion for fourth-quarter profits and revenue that exceeded what the street wanted. when it comes to earnings, it's about the future. when you have guidance that goes up, it gets people excited. they are making semiconductors that people need for basically everything. it's another boost on top of that. not only did the earnings do well, but analysts got really excited.

chart whichded the is looking at the number of buys in green. the bars represent how many buys there are. the reds are sell, yellow is hold. today, we're getting upticks. let's get our forecast even higher. stocks people pay a lot of attention to semi's. sorry, that wasn't meant to be -- you have this outside role in understanding the tenor of the market? oliver: i'm giving you a hard time. that's totally correct. we talk about being swap using one or two companies. the fundamentals are pretty good because they signify what companies in this field can do. big margins and big spending.

the terminal tells a pretty important story about the company. trendlso sort of this we've been looking at trying to figure out if corporate executives will take risk. if fundamentals function. means ave number here lot more expenditures. .ou can see the tick down here going back to mid-2000, this is a company spending money and analysts will spend money. stock folks are definitely going to be there. and to your point, semis are up this year, joe. they are done more sharply. lisa: i will also say the south korean and north korean conflict also factored into that because there is concern it would take people off market at that point. julie: everybody has something

to say about semiconductors and we will have more to say coming up on our charts of the day. stay tuned. this is bloomberg markets. ♪

julie: i'm julie hyman. what'd you miss? trading at lower level since the election and we have talked so much about the politics in washington and what people can extrapolate about what this means for tax reform. here is one way, one proxy board. of higher at an index tax companies versus the s&p 500. it is a ratio. that we are getting tax reform done, they will be cut. see that slow fade and those expectations. it has gotten less slow recently. it is near the lows now, versus the s&p 500 which shows just how little hope there is right now.

something that we've been hearing from investors. chart is very similar to mine, similar themes we are looking at. this is small cap versus the s&p 500. similar to the chart that julie showed. spiking up right after the election of trump and then fading. a lot of enthusiasm. economic nationalism that wouldn't be so good. it might be good for the more small caps. focused but just in the way a lot of companies are hoping for tax reform, so to have a lot of these stocks. it the departure of bannon, is a backward looking indicator rather than something that would affect the market going forward. lisa: i did a different take.

i was looking at the volatility we have in seeing recently. you can see the white line is the vix index, known as the fear gauge on wall street. s, moreed upward concerned about the conflict on the korean peninsula as well as turmoil in the white house. it is the move index. volatility --ply implied volatility in treasuries. there is this bifurcation between stocks and bonds joe:. no treasury movement -- and bonds. joe: no treasury movement. concerned about what going on so that suppresses the volatility. talkg up next, we will more about this.

and the market close comes up. we have a downdraft once again after a pop earlier in this session. it looks like the dow is the big loser in the day. down .33%. this is bloomberg. ♪

♪ julia: u.s. stocks hitting a

downdraft, turning higher after the white house announced steve bannon will be leaving his job as chief strategist on friday, then dipped layer -- lower as the day went on. i am lisa abramowicz. julia: i am julie hyman. joe: i am joe weisenthal. live onre tuning in twitter, we want to welcome you to the closing bell coverage. we begin with market minutes here you have a summary from lisa, looks like we are indeed going to close in the red. it is also expiration date, expiration of futures and contracts. sometimes that causes an uptick in volatility and volume. not necessarily the case. volume and the s&p 4% above the 20 day average.

not a meaningful surge in volume. you can seem closely how -- see closely how lisa was describing the pop up in the s&p 500, when the van and headline started -- the bannon headlines started crossing. if you talk about why that was happening, we will get more into that in a moment. there was extrapolation as to what that could mean for the economic project -- agenda. stocks coming back down by the end of the day. let's look at the big movers, because some interesting ones. foot locker, declining 28%. it was the worst day since 2008, 2014.owest since it came out with a negative forecast like competitors, dick's, under armour. regal, the movie chain, coming out. their shares only 7.5%.

movie studios are trying to by companiesions like regal and forge ahead with digital release a week after they release in theaters. shows no forecast for sales in the u.s. and canada. and this company is agreed to be bought by capital energy partners and and and -- and a consortium of investors. $16.25 a share, going up 10.5%. joe: let's look at the government bond market. lisa was showing how little volatility there is. we see it today. not much going on, the 10-year up to 2.19. looking at the six-month chart of 10-year yield, you can see we are steadily drifting lower. lower highs. we have not broke out of the june lows, but in a tight range

especially in the summer months, but not much action at all. you see the lower end. lisa: welcome to my life. a steady line. i want to take a look now at the currency market. in particular, the dollar. let's look at the bloomberg dollars spot index. you can see the intraday chart. over the day you can see it just kept getting weaker against the major peers, people looking at volatility we are seeing in the white house, the turmoil on political policies undermining potential for the policy measures that president trump was going to get through. looking at some of the broader indices, the u.s. dollar versus the japanese yen, the dollar weakening, the yen strengthening as people look at the economy. it is the best performing among the g7 economies. the euro is strengthening against the u.s. dollar, same

story about the dollar at this point. even the pound gaining against the dollar. everything gaining against the dollar as we look at some of the tumultuous political developments. joe: and finally a quick look at the commodities. oil growing 3%. i do not know why. i don't think anyone knows because i -- i will not even insult anyone's intelligence to have an isolation. it went up around the same time as the bannon thing, but seeing that it might have something to do with that is implausible. let's not pretend we have a story. sometimes stuff happens. those are today's market minutes. scarlet: let's bring in steven wieting, the global chief strategist at citibank, and also michael mcdonough, global director of economic research and chief economist.

can we stop pretending we know what is going to happen in washington at this point as well? >> and the relevance of it. for example we were just dealing with potential catastrophe of war in the koreas again, and that is off the table. we are having wild swings, but this is august, september. this is the most volatile time of the year where we are dominated by professional investors try to get out of their momentum of trades. this is not indicative of the full year. joe: we have seen slight lists in the past couple of days -- lifts in the last couple of days. there was selling on the bannon stuff. is there any explanation for traders putting -- a lot of speculation, policy hope out of the united states has been wildly priced out of the market. we have the mexican peso up to 16% year to date. we had domestically focused u.s.

stocks behind 1400 basis points behind international equities. so the expectation of a massive stimulus is that will not be speculation. >> i want to bring you in, because there is a specter of fear that bbaaannon will go back to breitbart. >> it is not necessarily whether he goes back, but there are still people with his same mindset in the administration. you have steven miller. what kind of influence to they continue having on trump now that bannon is gone? joe: economic nationalism, how would we expect it to show up? let's imagine been in and these and these- bannon guys had major policy influence. where would it show up? >> the first place where it has

the short-term meeting is nasa renegotiation opened this week. i think terrorists is a big -- tariffs is a big part of that, domestic production. with nafta renegotiations, with the trade talks with china, there is a chance we could see that ruled down a bit -- cool down a bit. >> the dallas fed president came out and had a very interesting statement where he said immigration was what made the u.s. great. do not take that away. economywhat gave the what no one else really had. do you think that is a big risk, what if we don't get immigration to the same degree? >> for certain. take a look at what you see from job creation by immigrant-started as mrs. and its effect on domestic employment -- businesses and its

effect on domestic employment. there is plenty of data. you look at the economic projection over long periods, this is some contribution from immigration flows. whether this hurts certain people, domestic populations on a per capita income basis, we can debate forever on this. the labor force, the labor force contributes to economic activity, entrepreneurial activity. >> when you look at the balance of the trump administration thus far, forget about the promises, but what it has done, any changes we have seen, is it net positive or negative? >> we are looking at the global context going into this year there were concerns about outright disruptive policies on the trade front, and that risk is that down some. hyper stimulus, whether it was financed with deficit spending or tax informed reduction, these possibilities, i think either

way the absolute magnitude of tax policy change in the u.s. economy will go down. the u.s. economy is doing well. here, they arere lagging, but we have 13% year on year growth, falling unemployment. i would rather sustain what we have been have the boom bust cycle. many respects, risks have come down. joe: you mentioned coming that has not gotten a lot of attention, that is nafta renegotiation. is it possible to have kicked off the negotiation schedule, could there be an accident and by the end they don't have any deal and nafta and? -- ends? ends, but think nafta with the discrepancy, if you look at negotiations going in, they are going in with the idea of do no harm, no terrorists -- tariffs with agricultural

goods, but trump is a deficit hawk. this could become a smack in the negotiation. >> thank you so much. bloomberg intelligence's economic director of research -- steve will stick around with us. why the central banks could be the biggest risk for investors. this is bloomberg. ♪

♪ mark: i am mark crumpton, this is first word news. rex tillerson is condemning hate speech and bigotry as un-american, speaking at the state department today. he also confirmed one american was among those killed in the

van attack in barcelona. >> we express our deepest sympathies to the loved ones of this individual and obviously the others who have suffered loss of life, and we offer our , as theirnd prayers families will be dealing with a tough few days ahead of them. mark: tillerson called racism evil and pledged to diversify the white ranks of the senior diplomatic for. he also sought to calm fears [indiscernible] local tourists in barcelona have found ways to pay respect to the victims of the attack. people have started putting flowers and candles near fountains, trees, and lampposts near the famous barcelona streets. the number of fatalities is 13, 120 wounded, many hospitalized, in critical condition.

a man stabbed a people in finland, killing two of them after police shot him in the five and detained him. they are looking for more suspects. the incident happened 100 miles west of helsinki. security has been stepped up across finland. lyon --s in syria sierra leone say finding survivors, the chances are diminishing by the day. 400 bodies have been recovered around the capital city, 600 people are missing and feared dead. more than 100 victims are said to be children. the that government is moving ahead with. despite the threat of more -- moving ahead with burials. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ >> things. we are back with steven wieting,

from city private bank. i'm going to turn to something that is important arguably for the market, and that is the central bank. jackson hole is the big economic symposium. we will hear from janet yellen. mario draghi will not make big policy pronouncements. but do you think we will see that for banks come back to the fore temporarily? steve: i don't think they will have new rate hikes, but if the topic is a more dynamic local economy -- and for banks will be important. -- central banks will be important. some of the strongest growth rates since 2010 when we were bouncing back. if you look at monetary policy is based -- particularly with the fed announced, forcing drive it favors to finance government as they shrink the balance sheet , $300 billion in the first, $600 billion in the second year.

that means favors will come from somewhere else. that will be a headwind. you have to remember this is a growing economy. you will have 100 dollars inllion -- not everything its constant, but military policy is gradually getting -- monetary policy is gradually getting tighter. joe: i will ask you how to make money off of this. the central bank headwinds, not a massive headwinds but growing. we have political volatility, certainly going to rise in september with the potential government shutdown, debt ceiling -- every year. what do you do? steve: international shares, not u.s. dollar equities, are the largest second valuation discount in history. the only time it was deeper, the u.s. economy in the late 1990's had it grown 4% for five years the nasdaq bubble and the asian

crisis at the same time. i don't anticipate -- anticipate that extreme. this is creating opportunity. having the u.s. dollar go up for six years, showing meaningful peak, it could be a drag on international returns, but it is no longer there. you could see it this year. it will be a balance correction, but it will last. there will be a long time catching up to international markets. >> so it sounds like you are increasing the allocation to international markets. steve: we have. >> with respect to equities. i want to talk on the credit side because we have possibly maybe were not arise. i wonder if we have a big growth coming out saying they are reducing allocations to credit, riskier credit in the u.s. and europe. where do you stand? steve: the issue in the high-yield market is absolute yield is low, the spreads are not wonderful, but it is

globally competitive. we have seen last year for example yields in developed market government bonds, europe and japan, that had never been seen before. these are yields coming that very gradually. the big negative drivers of high-yield am a collapse in energy, default cycle, all of these things playing out in a way that is not impacting returns. it could take the overweight status in high-yield, but we are underweight in government bonds and potentially in fixed income because there is so much room to avoid the rich markets and have a bit of a decent waiting in credit. >> when you look at the united states, seems like you are globally focused. are there opportunities? steve: if you look at fixed income markets, what i said about u.s. equities and where we are neutral and fully allocated, the relative valuation difference is some of the places where equities shine a lot

relative to fixed income. that would be europe for example. the u.s. dollar bonds rate recently high i would say compared to other opportunities, not like emerging markets where in some cases you get government bond yields at 7%. markets have falling inflation rates. 10% at this, we have almost short-term rate and plunging inflation below 3%. if you look at the portfolio with lots of opportunities -- if fits everyone. you could do quite well. joe: the chief investment strategist of city private bank. thank you for joining us. if you have the bloomberg terminal, check out tv . you can watch us online. click on the graphics charts. from earlier in the can click on the chart and interact with the yourself, do whatever you want. you can message us, see

headlines as they happen. it is the best way to watch tv. go to tv . this is bloomberg. ♪

♪ >> stocks have been volatile dropsly, staging 1% to 2% the last week. this company had its worst month since january 2016. is volatility more ahead? we have a market technician. scarlet: dan has more than 17 years of experience on wall street and is a chartered technician. something that stands out about volatility is it tends to breed more volatility. we have a great chart of the

vix, one year chart, and is more volatility ahead? dan: we are seeing a behavior change in the vix. if you look back the past 52 weeks, you get a sharp spike higher, a quick retreat over the average. hardost recent spike, a spike up, then going back to the 200 day moving average. it helped support at the 200 day moving average, before spiking higher yesterday. that is a change of behavior for the fix. -- vix. it is something i am keeping an eye on closely particularly because the momentum. overbought with the most recent spike higher, and it is flashing divergence. we are seeing of behavior change in volatility. you can make the case we commute death we could be more volatile. julia: your view seems to be supported by that higher high.

what we have here is a lower high. be: it was a stock, it would an outbreak to the upside now consolidating and going higher. julia: even more volatile on the year. we have a great charge your of the russell 2000 over the last five years, beautiful uptrend in relation to the 50 and 200 day moving average. todaylearly we can see the russell 2000 has been taking out the 200 day moving average. looking back the last five years, when that has happened, it has tended to leave to further downside, the index has those below the 200 day moving average 20% of the time. when that happens, it is deviation from the 200 day the average 5%. it is currently at 1375, 5% down would be 1300. so i think it makes sense to be

cautious on the small-cap stocks because of seasonality. this august and september timeframe is not the best for equities. caution is in order for small-cap investors. julia: so do you think this is like that one or that one back there? are we testing to go back up, or are we looking at corrective action i had? dan: somewhere between those two. we take up a 200 day moving average. i don't see the correction as late as 2015 and the beginning of 2016, but we will get wet. julia: with the action on small-cap, let's look at the next chart. it shows it is underperforming in a big way on the year. we have small-cap and white, the rest is flat on the year. most, it00 up the hundred. it put in -- 2007,

the all-time high at that point. is this a bearish signal ahead or just volatility? dan: in my view it is volatility. it is something which keeping -- which we should be keeping an eye on. it has been doing mid-caps all year after breaking to the upside and leading post the election. so in my view what is happening is the market is coming to terms with the fact president trump may have a harder time advancing his agenda. so all caps would have been a winner to the trump trade, and this turn to roll off. julia: let's rounded out with the big caps. here is the s&p 500, two-year chart. we see this beautiful uptrend, but i was going to surprise you, but i did show it to you before. we had the first of trend since 2016. -- uptrend since 2016. will we hold? dan: i think we will hold. the market will be choppy, but

long-term the trend is up. taking more than a 60 -- six review, it is good. -- six week view, it is good. julia: sounds like you are long-term bullish. what is the chatter on the trading desk? dan: it is about liquidity especially in the small caps. that is the big issue. as we get out of earnings season, what the next catalyst could be to get the market running. julia: good stuff, thank you so much for joining us. >> thank you for bringing this charts. steve bannon is out as the chief strategist. what is next for the white house. this is bloomberg. ♪

♪ >> i'm mark crumpton. it is time for first word news. as we have been reporting throughout the afternoon, there has been another shakeup in president trump's inner circle. steve bannon has been removed as the president's chief strategist. 2016 campaign.'s he clashed with president trump's inner circle and family members. alsosay that sebastian faces removal from his post as a counterterrorism aid to president trump.

he previously worked with benin at breitbart news and spoke on the trump administration's behalf. more republicans are coming forward to criticize the president for his reaction to that violent west premises rally last weekend -- mitt romney said that the president's rhetoric may promote an unraveling of our national fabric. he called on him to apologize to the nation. carolina is south the only african-american republican in the senate. the mother of heather heyer said that she won't talk to president trump after what he said about my child. she acquitted the protesters --

nt'ssaid that the preside remarks about the protesters being equated to the white supremacists was unacceptable. there were looking for an acceptable time for the family to meet with president trump. let's look at every cap up-to-date's market action. today's market action. we saw big drag from the retailers on the day. the likes of foot locker are down 28%. nike, under armour, michael kors are among the top 10 worst performers in the s&p 500. down a third of 1%.

as mark just reported, steve bannon, a controversial key hasonent for donald trump stood in jeopardy amid the fallout of violence in virginia. here is what president trump said about bannon at trump tower. president trump: he is a good person. i like him. he is a good person. we will see what happens with mr. bannon. he is a good person. >> let's bring in the washington executive, editor, craig gordon. connect the dots for us? the president was reportedly satisfied with his press, as earlier in the week and yet there was a lot of criticism of annan. it is interesting that he would check off the criticism of the press conference without a criticism of bannon. >> welcome to our world.

that is the stuff that we spend all day trying to figure out, who is up and who is down. at some point, sometimes, the bad outweighed the good. bannon has been a very loyal advisor to trump. he took trump's on political views and found a way to make them politically sellable. i think trump understood that for a long time. bannon did two interviews this week where he said things that trump would agree with endings he would not. he is very outspoken. he decided that it was just too much, he could not hold anymore. restore was trying to quarter to the white house, bannon was a source of instability. >> we are talking a lot about bannon's identification with the

all right, some of the nationalism stuff. that there was tension with h.r. mcmaster and over national security disagreements within the white house. should we be talking about that tension as one of the key longer for what he is no there? >> we had a much discussed battle between the globalists. the unitedbelieve states has a larger role to play in the wild, keeping stability -- world, keeping stability. steve bannon really wanted to call up the ladder, throughout the wall, they were in cap david -- cmaamp david. h.r. mcmaster and some of those to dofolks do want this.

there are different policies within this white house. side, everybody else on the other. >> somebody had to go. some speculation that the next person to go will be sebastian gorka. bloomberg, we have been pretty far out in front of the story. his continued job status is under review. they are looking very seriously about whether he should stay. much in the way there was a review of benin's performance. i think the gorka thing, he is not a household namef like steve bannon was, it will be an important look about whether kelly is doing a bigger house cleaning the steve bannon or if he is trying to reach a little private into the ranks with than

in loyalists and -- steve bannon loyalists. >> one of the downsides for is that it maygo for a lot of influential constituencies very angry. the breitbart wing of the republican party, for example. how difficult will that make president trump's life right now? >> the questions we are asking is how difficult will steve bannon make donald trump's life? there are a lot of people around trump, gary cohn, steve mnuchin, the globalist market wing of the publican party that -- republican party that steve bannon is known to be at war with.

it was a signifier to the conservative right that one of their own sat right next to the president and could talk to him and whispered into his ear. i could put their concerns and found the president -- in front of the president. trump will have some work to do to make sure that those people are still in his camp. >> thank you so much for your ongoing coverage. we will speak with a small provider who has been very vocal about the potential impact of this $80,000 research after the break. this is bloomberg. ♪

♪ >> what did you miss?

european regulations known as 2 will have a worldwide impact on the investment research industry. is peter sidoti. his firm covers about 300 companies, mostly small cap. we are talking about how this will have a big effect. mifid has not had an effect yet. >> have received -- have you seen more people go to your business? there is already pressure on commissions and less research being used. we can't control research will anymore.

newspaper business , when you publish a research report, it is available everywhere immediately. is a third mail in the industry. >> how do you expect by side inclination? are they going to pay the sums? >> that is bank of america. $80,000. peter: think of a traveling salesman who has an expense budget then he loses that expense budget. he will spend a lot less money when he is not being reimbursed. we are seeing the same thing on the research side. they will be cutting across the board. who spends what is clearly very much in the air. $10,000seen the mention $10,000 up to $400,000.

$400,000, i'm not sure who would pay for that. a smaller operator, does this give you a competitive opportunity? maybe not $10,000 but does it undercut the $80,000 like somebody like the bank of america is charging? ." and it is like any industry where is there peter: -- peter: it is like any industry. they will be 40 or 50% less research. >> when you're talking about , four hundred thousand dollars is probably excessive. $80,000 that bank of america there is a question included. it raises the question of a possible conflict of interest. you could pay $10,000 and get

emails in your inbox, if you pay for hundred thousand dollars, you can meet with the ceo or the analyst and the could give you an edge. -- that could give you an edge. peter: goldman, they will be setting the pricing. the customers will be setting the pricing as well. time -- weappen over are talking about what is going on in europe, it will go and spread to the u.s.. >> why? >p a lot of the large institutionsegeterl -- the bigger issue is that the consultants will drive the business. transparency and best practices are good words to use. who haveltants

investment in the u.s., the consultants will be insisting that they will be treated the same way. we have seen some more boutique shops pop up, will we see some consolidation? peter: i don't want to disagree with you but we have seen a lot of firms close and research departments shrink. we think that will continue. >> you think we will see thinkidation -- you don't we will see consolidation? >> people are leaving to set up their own shops right now. >> peter sidoti, that he so much -- thank you so much. next, why metals may be a bull market. that is up next, this is

bloomberg. ♪

♪ >> what it you miss -- what did you miss? metals have the benefits of substantial discounts to record highs. the commodity strategist. we have been getting chinese data as of late that is not as positive. if you look at the bloomberg, you have china pmi versus base metals. it has been choppy. what is the picture looking like in china? >> still strong. i think you can see by the prices that we are trying to figure out what is going on with the metals. the key thing to think about

with industrial metals is that there is no more powerful force than the declining dollar. the number one sector is industrial metals. >> why don't we take a look at a chart that shows what you are saying. if you dive into my bloomberg, you can see that industrial metals are gaining. this is the sub index, it has been rising as the bloomberg dollars but has been declining. -- spot has been declining. shifting, thatr is a game changer for all commodities. one thing to remember is that the metals are the only commodities that cannot grow. there is plenty of demand for technology, look at electric cars. there is copper and all of these vehicles being made with aluminum. that is not adding supply.

technology is hurting both sides of the equation. >> this is not just a dollar story. i am looking on my terminal. this is a tenure chart of zinc. it is going through the roof in recent days. i am looking of zinc, it is good on coating, on steel. why is zinc going crazy? >mike: i focus a little less on zinc because it is a granular metal. as far as a bloomberg monum indicator,a great not the drive. >> what of? >> overall supply. it is a good global reflationary indicator. you are better looking at cocker or -- copper or aluminum is a better indicator. this tells us nothing about

economic growth, this is simply that it is a price issue. it is pricing dollars, it is going to rise? mike: that is another part of the story. we have some great demand versus supply ratios. if you look at the overall, the ratio -- it has been about a decade. >> if i can make an argument on this point, you have not seen the dollar affecting the other commodities. it supports the idea that it is not just the dollar. if you look at oil, the dollar has not helped much there. if you look at precious metals, it is not helping to the same extent. they had been underperforming. the dollar on the margin seems to be helping but to your point, it does seem to be that it is a supply and demand issue. mike: i think the market is kind of winning. -- waiting -- waning.

today was another indication of that. you could see what could happen. no one had a good reason. is moreening dollar, likely that the commodities will go up. copper -- itbout is a classic. then we also have seen rallies n nickel and led -- lead and ow zinc. to pastor ofined an downward swings because of changes in demand -- faster upward and downward swings because of changes in demand? >> we want to go this on the main game. i always get down to the index. you want to watch industrial metals versus precious metals. that means higher metals and

yields in inflation. if you focus on copper burst gold, it gets -- versus gold, it gets more distorted. >> we have a chart of copper that you sent to us. what is this telling you? we see a bounce here in copper. this is on the bottom chart. mike: you look at all the other assets. metals, you say i have a pretty good discounts. that is great, one issue i am looking at is that it is getting a little enthusiastic. you see futures, managed money, hedge funds, the highest ever. that is enthusiasm but it is extremism and it shifts to a little bit of cautiousness. trends are your friends, but be careful. thank you very much for

joining us, mike. >> i thought it was a fascinating story. it is time for the bloomberg business flash. a look at some of the biggest business stories. target has ended its partnership with hansen creek. that is after allegations of food safety problems. target carried 20 hansen creek products and said the removal was for violating company guidelines. investors have agreed to buy calpine. it is one of the few publicly listed generators. hollywood studios are considering a plan that could cut into businesses and movie theaters.

the film makers may go ahead offering digital rentals of movies just weeks after the release of the movie. one or is in talks with apple and comcast. notes, are taking tracker for pet related companies returned 90% over the past year. petmed express and pet pharmacy's shares double. tech companion is up 44%. up 44%.companion is >> he will no longer act as a special advisor to president trump. he said he never had access to nonpublic information. recall, i was a trump backer during the election. he famously said on the night of

the election when the futures were selling off that there was due tontroversy early on interest in various ethanol related businesses and regulations that have caused some controversy. the iphone will no longer be a special advisor to be president. what you need to know to gear up for next week. this is bloomberg. ♪

♪ >> next week, the total solar eclipse, only partial here in new york. >> i am watching president trump hold another rally on wednesday. his first visit to the states. draghiral banker mario will speak at this conference. got you outnumbered. the dinosaurs' extinction... don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here.

find your awesome with the xfinity stream app. included with xfinity tv. more to stream to every screen. >> you're watching bloomberg technology. let's start with a check of your first word news. the white house confirms steve bannon has been removed as trump's chief strategist. the departure of bannon, who

helped run the president's 2016 campaign, follows clashes with members of trump's family and other white house officials in recent weeks. bannon ally bestian faces removal from his post as a counterterrorism aide to trump. he recently worked with bannon at breitbart news. he had links to a far right group in hundred gary, allegedly. joe manchin will not join president trump's cabinet as energy secretary. according to people familiar with the discussions, the idea surfaced last week as a possible way to let the state' new republican governor name a successor. manchin faces a tough re-election campaign in 2018. president trump is at camp david meeting with his defense and foreign policy team to discuss the u.s. future role in afghanistan. 8,400 u.s. troops are still stationed there. defense secretary jim mattis and secretary of