russian internet trolls. facebook has told it up to 2.7 million people may have been affected by that data privacy crisis. the spokesman says facebook confirmed that number in a letter. >> it is clear this will need further follow-up discussions with facebook. >> facebook will begin letting users know whether their data has been compromised. a british health officials says the former russian spy left fighting for his life after exposure to a rare nerve agent is no longer in critical condition. triggered ag diplomatic crisis between moscow and the west. british authorities blame russia

three russia denies that accusation. in brazil a deadline is approaching for da silva to turn himself then. ofusands gathered outside san paolo where lula spent the night. he was credited with bringing millions out of poverty. despite the conviction he is the front runner for the election. conor mcgregor facing charges after a backstage melee thursday injured two fighters and forced a removal. defendant is also facing charges. new york city says mcgregor was charged and is awaiting a court appearance. he faces three counts of assault.

news powered by 2700 journalists and analysts in 120 countries. this is bloomberg. scarlet: 30 minutes out from the close of the equity session. -- you can it above see it red across the board. , lookderperformer today at those trade war potential proxies. if you look at the individual sectors, the financials, health him, consumer discretionary and take your pick. they are under pressure. abigail has more. abigail: we have the dow, s&p 500 and nasdaq down 2%, slightly off the lows. dow's -- dow slipping for the worst day since february 8. it is going to be interesting to see how the next 30 minutes play

out. 3% dow has been down underperforming major averages on the fears of her nude possibility of a potential trade in the near term. this is a risk off picture. take a look at haven bonds, down six basis points. we see that represented in green. big way.lling off any bonds rallying. lots of volatility similar to today. fears a selloff with trump was going to go after amazon. we started off lower on a trade war. rally.ay more relief it lower on renewed fears of the trade war. the s&p 500 is on pace for a down week. all threen, s&p 500,

major averages on pace for weekly gains. now we are looking at weekly losses. pretty interesting to see that is happening. if we hop into the bloomberg, less than fewer than 10 stocks trading higher. this is a snapshot of wide. bottom, the industrials down 3%. take a look. again, the dow was underperforming. let's take a look at those movers to have a sense for the degree of the decline. boeing, big losses here. investors fearful. >> we have been looking at the

technicals, take a look at the down technicals. these are more bearish. the dow is more of a narrow index. we see an uptrend with the index above the 60 day moving average. lots of volatility this year. the dow put in a february low. down 50 day moving average. the buyers have a descending triangle. for ald confirm the dow move closer to 20,000. perhaps more bearish volatility. scarlet: thank you. -- julie: thank you. let's bring in cameron. the colleague and mine on live blog. the message for the administration officials today, they arelow seem to be

not going to back down. even if the markets are taking this not well. on top of that they are saying there is too much -- too little to do about it. as a trade war more likely? >> kudlow maybe try to smooth the waters. likeg a step back it feels good cop bad cop. the president is the babcock swinging a big stick. but by the same token they do want to be projecting this image of strength and power. they are playing for chinese foreign constituency but also to a domestic constituency as well. market wasto say the not prepared for an escalation

to come so soon after we were the last kerfuffle. we bring up a good point with jay powell. it is too early to say. we can't really account for it. the powell put the fed price outside. joe: we were talking about the fact that there seems to be a pattern with trump. it starts the aggressive line on trade and then backs down. the fact that there was a quick escalation throws into the playbook that has been modeled for this white house. >> it is tough. if you the -- apparently believe what they read, they were surprised china retaliated rather than backing down. >> they should have listened to every guest we had on this show.

>> eichinger. i suppose if you view the world through such a narrow prism, the other viewpoints don't come into your calculus. the president is approaching this to some extent like his business career, basically a game of chicken. the old joke if you go the banks a million dollars you have a problem. if you all the bank a billion dollars, the bank as a problem. maybe that is what he is doing with the relationship with china. ofia: the deficit is made $500 billion of goods america buys and $100 billion of goods that china buys. match what the united states is doing as far as goods are concerned. concerning if that is his strategy. we will go there later. but what do investors want to hear at this stage?

if they are not going to get clarity. what gives investors greater comfort here? front, if they keep it down for a bit, it will recede into the background. still proposals. they do not have the list of stuff. they are not ready to stamp tariffs on now. there is still a consultation process. essentially if the authorities be quiet and let that process -- julia: what else could come for investors here? >> fantastic earnings are coming in to earnings season. that would certainly smooth the waters a bit. if you started to hear members of congress talk about the

congressional authority over international commerce, if they were to say this is my job, if we define the terms like the rest of the world, -- that. not much whisper of show: how do you think those jobs would have been received today? >> i think people broadly speaking are willing to give them a pass in the since the weather has been terrible. the numbers for february for fantastic. if you take this number at face value, when hundred three k issus 320 for february, that 215 k over the last three months. amount well above the the economy needs to bring the

labor market forward. it is above trend job growth. it would have been taken ok. snowingid it start while we were sitting here? lives in connecticut. she is knowing where we are. i like to cycle outside and this is killing me. julie: bring that shearer, the snow each year. thank you so much. julia: the dow is down 2.4%. maybe you had some impact. deutsche bank facing pressure to clarify the future of the ceo within days. following with more, the story closely, great to have you with us. it has been deafening. amid a heavily

incident with the chairman is not good for morale. investors don't like to see it. they are under pressure to announce something by next week. he has to make a decision if he is going to back the ceo or pass on the reins to someone internally or externally. >> you have been breaking news left right and center on this story. you have another name in the mixed now. isfar as i can see everyone saying i don't really want the job. what then? havesome amazing names been thrown out. meisner has spent time in germany. there is not necessarily any interest. people internally who might be able to take over our the deputy ceo's or the cfo.

joe: if there was all this public speculation about who was going to replace me on this show i would feel uncomfortable coming to work every day. what is on his mind? >> there have been trickles in news reports for a wild. , sohave been media reports there has been some pressure on the business. the trading operation. especially on the u.s.. the u.s. operation is the do they expand here or start to shrink back and revamp? julia: a lot of investors are saying this is so capital-intensive we should restrain that element and focus on the european banks. great to get your contacts. thank you. a quick look at the market. julie: we are seeing a bounce

off the lows. 76 points, 2.9%. we have backed off of that to some extent. down 2.2% which is not insignificant by any means. we have been talking about industrial selling off the most in the s&p 500. financials, health care as well. ,he biggest individual drag apple, amazon, microsoft, followed by jpmorgan, berkshire, and johnson & johnson. more markets ahead. this is bloomberg. ♪

julia: a quick look at the major

averages. we are seeing a lift off the session lows. a gain to reiterate the industrials, the trade war proxies. it is you can take your pick. all sectors in the red right now. we will keep you abreast as we can further to the close. average rising as expecting. here with his take on how the fed will read into these numbers, the chief u.s. economist. your take on these numbers molest than expecting.

reportede to see this combination. hangover. the overall pace of job creation is still pretty solid. there are reasons why march was weaker. what do you make of the labor participation rate? today, there is still some slack. >> alan krueger, research points to where the workers are. we have seen it over the last several months. the labor force has been growing at a decent pace.

there seems to be some truth to seeingi think we are some room to improve but we are getting towards the later part. joe: there are so many stories going on. let's talk about powell. despite this volatility we have seen no change in rhetoric. >> jay powell, i think he was at the economy. we have seen a few months ago and his press conference, he had a solid outlook. he use the word strength. that is the baseline outlook. things can go wrong.

he has not talked about the financial market volatility. that is the baseline outlook that is solid. the financial market of fed.ility could impact the , more pronounced stock market they look at overall financial conditions. they are still pretty benign. beforeed more volatility the fed starts to think difficult -- thinks differently. julia: perhaps the drag in the on in and what is going the united states with china, you disagreed with the idea china can't match now with the latest 100 billion offer from the united states. >> the basis in china cannot match with the bases in the u.s. because the u.s. imports more

from china and china imports from the u.s.. but nobody says they have to stick with a 25% tariff it nobody says they can't impose 50%. julia: that china doesn't seem to want to escalate this. >> i agree. nobody really wants to. what we have seen so far is a bit more than tough rhetoric. the initial tariffs announced have been very small. the hundred billion that comes buy an area, it starts to more, that is why financial are going like this. we have been seeing some signs are goinglation, we in the wrong direction in markets. joe: our trade war's inflationary or deflationary? >> initially they are

inflationary. before youup in age end up in a recession. that is usually not inflationary. we are gathering a bit of steam here in the last 10 minutes as we head to the rally. my attention to detail, here from eight minutes from the market close. .> talk about the backdrop the basis on top of which we have to view trade war potentially. how strong is the u.s. economy? how is business pending going to be this year? baseline with stimulus. we agree we're in the later part of the cycle just because of shouldoss rate -- growth

slowdown, patches was than to them. the reason why we don't see it, the bible's and budget act. a huge spending stimulus. we are buying additional growth and we see that with investment spending. that will go on until someone we're seeing slow down. is certainly a less good mood. these headlines on trade one of the big debates, would investment spending pick up to the point were could have higher growth with increased capacity? that seems like an old conversation.

are the conditions in place for that to happen? tech stocks, deregulation, is deregulation effect through the investment spending. i have my doubt that it happens. they have been spending money before. i don't think there is that much pent-up demand. you see the investment percent of gdp has declined through the 80's. we have seen a decent boom after that point. morenally, what we need is in the economics 101 spending and the bigger push on all that stuff. that is more the game changer the country would need.

it would complement the policies we see. sell. that may be a tough ain't you. -- thank you. julia: let's look at the last few moments of trade in this session. we are off the low. it feels like a choppy session. the gain is very choppy. losses in the light of various headlines. three sessions of gains for the u.s. equity majors. now 2.7% on the u.s. 10 year. the trade proxies, the industrials, the tech names coming under pressure. health care energy as well. further pressure on equities. we are seeing some gains for the bond markets.

julie: let's get more perspective on what we are seeing. peter is here with us in the studio. i mean, what a week that we have had. three straight days of gains. now this sharp decline today. all of it on lower than average volume. what do you make of it as you look at the action of the past week? >> besides the fact i have dislike, and i really coming out here and being semi-constructive, if you look at the range from february 6 , weugh the march 14 high still held onto those lows. 25, 45.in the s&p was we're still above that. rally,ere we had their

400, 90 out of 500 stocks, it is kind of washed out. that is always a warning sign. the biggest moves happen from oversold conditions. we have to be careful. we have a president that says something and his staff, whether it is mnuchin or kudlow, makes reasons for why he said something. that is backwards from a policy perspective. that is going to lead uncertainty and more whiplash. if we take out those lows we have some serious issues. a long answer for a bumper car question. julia: probability of that? >> in this environment, you have to give the benefit of the doubt to selling rallies. higher than that. if you're going to be selling

rallies, that will be taken out. it is brutally difficult to trade. in a bear market, even the bears lose money. scarlet: by a and sell high. >> sell high, sell lower. sell the rally. it is difficult to show weakness but if you take out those lows that is going to be the hard trade. the hard trade is the right trade. highs, we take out the -- >> i would readily admit we need to erase the tape. who is selling in this market? we talked to lots of institutions. earnings are going to be great. the tariffs stuff is noise. jobs report was a blip. overall we have seen consistently strong growth.

have multiple timeframe holders of equity. the longer term may stay there. adjustments,stic we talk about it repeatedly. the map works and the stocks could not go up at the same rate of speed, we are catching on to that and uncertainty is widening. i disagree somewhat with chairman powell that it is clear skies ahead as far as economic today,rate unemployment think of the adp number. the number today, you look at the yield curve. big move but a given the negative sentiment, it has been acting unbelievably great. then you can start going through the list.

julie: the closing bell is running now. major averages finishing not at the lowes about 2% down across the board. the 3.1% decline. off of the 2.4% drop. we are about 576 points. i would point the s&p was finishing down 2.2% and the nasdaq as well finishing off below that index was down 2.8%. ee a continued selling and large-cap technology, but of course it was much broader than the. at. we saw health care and financials down. julia: the lowest since monday, april 2. some perspective on that. there, come back here because

what you are saying about the difference in short-term trading and the price action we have seen i think is important because even if you are holding risk and you have assets in your portfolio at this stage, you have to adjust and compare it with higher volatility. have we gone through that, are we still in the adjustment? peter: we are in the early stages. generally 26 high, not that far off the high. at its is hanging around 200-day moving average. you want to get for amazon's 200 day moving averages? joe: a lot lower. peter: yes. a good $400 lower. those stocks if they moved toward their 200-day moving average, and normal resting point, it either has to pause so can catch up or will go down. ree: this was the week whe everybody tried to become a

on the soybean market and everybody wanted to figure out the ramifications and everything but you're are the only guest in the history of the show that talks soybeans naturally and did not have to force it. what should people think when they watched soybeans trade as they respond to the tariffs? peter: is a much thinner market than the equity market. you will have moves that are magnified. first of all, it is a weather market. it really has not turned out to be spring. it is below average weather. it makes planting more difficult. the usda indicated that, that is what we had a big rally. the flipside of you have china and they will not be importing soybeans. it is a bit of a tug-of-war. the long-term trend has been down because technology improves production, and it lessons demand because people use it more efficiently, so if you add the china uncertainty annual export less, and is going to

hurt prices. this is part of the irony of people getting hurt by unintended consequences. joe: if we did have a trade war and the tariffs went through, would be a knock on the effects for the economy? peter: the knock on effects are always much larger than you anticipate. you do not know how that will play out in today. prices are going down, farmers are in debt. housing in the midwest. so the implications can be far wider than just thinking about the narrow price of an individual product. as you noticed, the president tweeted today about aluminum while thatg down, may mean, he says it is kind of positive. be because there is a lack of demand and it does not have implications as it spreads.

more in demand is the best thing we can have for growth. that is why i disagree with chairman powell. some of these indicators are saying demand is slackening. julia: talk to us about that because we have just been speaking saying you heard him you are listening and he was a the underlying economic conditions would be, slow bogus stimulus from spending and the tax overhaul and this will keep us going for the next year. hang on a tend to say second. their underlying issues here. . peter: i feel like i've become the resident contrarian. we should be off i-75. but yes. you have to be forward-looking as a traitor and a risk manager. you cannot be looking backwards. backwards from a positive outcome. here is the demand. we saw in the unemployment figure and and in the fact that there is low wage growth still.

when you see this uncertainty. that is why we feel that demands as a whole and you break down the components. and then of course government spending. big tax cut changes. the following year is very volatile and often negative for the stock market. why?asked him if you do not like what is happening you can sell. julia: you just called yourself a contrarian. are investors reacting to the saw? early we are very, very in the entire process. julie: what if they do become permanent? i do not know if there's a chance of that happening. how does that affect the mix of all of this?

peter: you have to change the entire budget perfections -- projections. i think the party in power can then take 180 degree turns from more because they are ready have a 180 degree turn from where they are previously. i do not think that is a likely scenario but i do not know how that happened. again, the issue is you have to ask yourself this rhetorical question. if they do that and the deficits will grow significantly, would you rather own u.s. government paper for 10 or 30 years? or would you rather own apple paper who will be more stable? joe: think the last tenure on the show you said the stock to watch with visa and mastercard. member favorite eco-proxies. i'm looking at a chart of these. i put out some lines and i do not know if they mean anything right here at the 100 day moving average.

peter: one of the things we would like -- look at from a trading perspective is we look at the macros. a short -- you want to be short because that is selling the relative weakness. more money is lost by anticipating something happening than being patient and waiting for it to happen. they are trying to be patient and wait for it to happen. it is starting to be -- slowdown which is amazon getting into the 200 day moving average. julia: with respect from the consumer, particularly when we have seen the bond? peter: we are always a

consumer led economy and to reliance. think the assumptions as far as continuing the strength of the consumers. peter: absolutely because the distribution of growth has gotten more narrow. joe: our viewers will get it. peter: this is much lower among higher income people that it is against those that are working paycheck to paycheck. in the tax cuts don't benefit. they're working and people get scared. aspect of losing money is far more painful than making it. that is another marginal utility of money. a day we started to see to consumer confidence measures. not a big one, however. i would going to start to see that weaken?

peter: we look at the numbers as coincidence indicators. if r.o.k., they are happy, they read the news, things are great. those are coincident indicators. market starting to go down. volatility is picked up. the potential trade war. going into the weekend, what is china going to do sunday night? ten-year. you look out all of your european rates. they are still incredibly low, which shows a lack of demand. japan is still almost at zero on its 10 year. so all of those things say the coincidence indicator could be now switching to more negative. becausehat's perfectly we will continue this discussion. stay right there and do not move a muscle. more to come. from new york, this is bloomberg. ♪

mark: former brazilian president apparently has defied a court order to turn himself in to authorities. the deadline was just a few minutes ago. he was ordered to begin serving a 12-year sentence on a corruption conviction. late thursday, thousands gathered outside sao paulo where now spent the night and is appeared to be conquered down by supporters. during his time in office, lula was credited for bringing millions out of poverty. despite the conviction, he is the front runner for october' presidential election. sthe trump administration is

punishing 17 russian government officials and seven oligarchs, billionaire, with sanctions. the sanctions are a response with the u.s. calls russia's malign activity around the world. the treasury department says the company's owned -- companies owned by the oligarchs are also targeted. >> today, sanctions in the totality of the administration's action, which are in keeping with congress's wishes prove the president is correct when he says no one has been tougher on russia. we want a positive relationship with the russian government, but for this to happen there must be a significant change in their behavior. mark: russia's foreign ministry has issued a statement that reads in part that the sanctions will be an effective and will "consolidate russian society." the russian president said nato was "growing near our borders." he made the comment during the meeting with the russian

security council. he pointed out the importance of strengthening security measures on the russian border while at the same time keeping the border open and clear for those who cross into the country in his words legally and with good intentions. pakistan's prime minister arrived in afghanistan friday for a visit that many see as an effort to ease strained relations between the neighbors. the statement issued by the afghan presidential palace says the two sides discussed counterterrorism,-afghan-led the stocks, and border violations. they have stopped offering safe haven to militants. a charge islamabad denies. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. julia: what'd you miss? more tough words on trade between washington and beijing. the white house says there is no

trade war. >> this is not a trade war. there is no war here. all we are trying to do is stay and defend american technology, which is crucial to american economic growth. you have to enact the tariffs. no trade war. we're back with the chief strategist of the core group. and we're back with michael mckee. he said to us earlier, backward policy. explain. peter: generally policy if you have a group of people that come together and negotiate something and then the president comes out and announces its and finds it. hiscompany of counterpart peers making a proclamation and staff has to scramble to try to make sense out of it. i certainly can't so maybe they can and that will help reduce the volatility. julia: uncharted waters is i think what we called at the beginning of the presidency. joe: i am sensing a message

disconnect. hard to believe. the president trump keeps hammering on the trade deficit than that could, larry says this is a transfer technology. michael: he is speaking for the majority of people who study the issue and the problem is china does not play fair in terms of technology and makes companies sign joint venture agreements and transfer technology to do business in that country. the rest of the world doesn't like it. the president seems fixated on the trade balance. with all of these countries that he has talked about actions against. it is hard to know exactly what he is thinking, but the u.s. cases built on the idea chinese unfair trading practices. julia: larry spoke to his earlier and he said the serious talks that china has not really begun yet. later on in d.c. he was talking again. beenntioned they have splashed all over the media in the last 48 hours. we have not yet given china list of demands for what we

want. but such a list is under discussion. we have all the fire and fury and ratcheting up of tensions that appears. that actually -- >> he gets way out in front of these things, and that is always the problem for his staff. having to walk things back because he terrified wall street today. julia: very quickly, what ultimately is the risk here that you continue to wretch up tensions? and in goes culturally we cannot handle it and close up. we cannot reach a deal here. >> the risk is we are on a train and going too fast and heading on a curb. wheels will come off and the rail the february 6 level. to me it is that derailment point. julie: what about the opposite risk? i've been asking people this over the past few days, what happens if this all works out? what happens if this game it orults in a better situation more advantageous situation for the united states?

michael: then we are all better off. it's hard to see how that's much more at pages. -- advantageous. if the more unfair chinese are unwilling to negotiate. it is a question of how they are negotiating over. they will not give up on their made in china 2025 plan. they want to dominate all these industries of the future. good for them to we should want the same thing. they will not give up on that. what is that we want from the that they can and will deliver? we negotiated in such a way that we do not lose face because that is important for them as well. andg with the stock market, we are all talking about the stock market because we follow that here at bloomberg, we look at what raphael bostic told us. he said companies of the about the insurgency that trump's tweets cause will hold back. and will put things off until we get to the midterms and if the democrats get to the house.

joe: why do trump's tweets matter now went for a year did not seem to have any effect on the market? julia: just before that, as if you are during the same thing. people telling you the same thing about investing decisions? sure. if you do not know the rules in the speed limit and everything else on the highway, it is hard to determine how fast when should be going. back to his tweet and one reason. he talks about china and the wto. gdp is abouta 57000 and there's is under 9000. in a lot of ways they are in next-generation emerging-market. i think we downplay where we are as far as in the economy and our sophistication and ability to adopt. it is difficult for me on the 50th anniversary of the taking 50ion of mlk years of policy and reversing it and thinking we will have the

same market outcome. we have had a free flow of people, markets, capital, and ideas for 50 years, and we have had tremendous growth. not having a free flow of capital and ideas is going to slow economic growth. that is the insurgency. that is why people are less likely to invest. that will hurt aggregate demand. julia: all right. -- scarlet: we ended on -- julie: we ended on a somber note. thank you to you both very much. coming up, the u.s. treasury department takes aim at vladimir putin's allies with a new set of sanctions on russian oligarchy. if the u.s. expecting a response? we will head to washington next. this is bloomberg. ♪

julie: what'd you miss? the trump administration announced a russian sanctions and they were directly aimed at the individuals close to president vladimir putin, including bowling derek cosco, the billionaire industrialist who has been linked to paul manafort. nibill joins us now with more. this has been something that folks who wanted the u.s. to be tougher on russia have been calling for. something they say will be more effective and influencing russia. at the same time, we have just passed a very overwhelming election in russia. connect the dots first year in how we might see this play out. >> is interesting.

the treasury moved today sanctions. 36 individuals. oligarchs, companies, russian officials for a range of activities, going from supporting syrian president assad to cyber attacks around action into russia's ukraine. treasury did not cite the recent nerve gas attack or nerve agent attack in the u.k. do not cite meddling in the 2016 election, but it is significant and it is one praise -- won praise from people who are critics of the trump administration because it takes and t some officials allieske of vladimir putin. he mentionsy the billionaire oleg deripaska. there was also one of the men targeted was formally married to vladimir putin's daughter, so it really is a bit closer to an inner circle of people. whether it has any impact that putin has secured his election, it is hard to see but that is

something we will be watching for in the coming weeks and months. joe: obviously, the administration has been accused nonstop for lacking teeth and its actions against russia. has beeny, this action praised by some critics so why did they do it? bill: that is a great question. the administration has been under a lot of pressure from republican foreign-policy hawks in congress. you're talking about the lindsey graham's and john mccain's. you have even seen of alaska will of weeks the departing national security adviser, h h.r. mcmaster, saying russia has not paid a price. that is something trump's own security agency told the senate february. even among his closest aides there has been a feeling that russia has not paid a price for meddling in the of election -- and the election. and made the u.s. look weak. whether that has been the argument that convinced trump,

we do not know. i think that carries a lot more weight than the constant democrats asked, which may continue -- attacks, which may continue but for today subsided as you had people even like adam schiff, who is heading the democratic side of the house intelligence committee when it was investigating, the russia . hetion-meddling came out today and praised the decision. julia: does the president really need convincing? countering america diversity through sanction at. in 20 15 the presidency seemed outreach because it constricted his powers and control to be able to a net the sanctions. this is now congress going, ok time to act. bill: absolutely. if you remember last summer, the administration opposed passage of the legislation, saying that it effectively was taking for policy out of the hands of the president. even the republicans in congress

wanted to make sure, number one, president trump did not try to weaken any existing extensions on russia. number two, they wanted to pressure him to go further. the at ministration was reluctant in accepting those positions but i think as the evidence continues to build up and use of the recent attack on the former russian spy living in the u.k., that really galvanized support not just for it the administration but among european allies to say we have got to do more to come from vladimir putin and russia's activities abroad. i think that helped carry the day, even though it was not cited in the treasury sanctions list. julia: that is what the president said on tuesday. i think i could have a good relationship with president putin, i think possibly i will not. national security coverage in washington. thank you for that. resigning today and a presidential bid. we will discuss the implications great from new york, this is bloomberg.

♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. mark: i am mark crumpton with

first word news. rocky long says it will take upwards of $50 billion to help puerto rico following hurricane maria. they say the goal is to make the homes, roads, bridges, and electrical grids strong as possible. officials are running out of time because the next hurricane season starts june 1. when the 50,000 people remain in the dark more than six months after maria, a category iv storm. the former catalan leader carl's debt of a prison today after posting $92,000 bail. he called on spanish authorities

to immediately release all of his colleagues still being held in spanish prisons. as attorney in brussels -- are political,s and that is no longer tolerable. is not permitted in the european union. they have used foreign courts for their own political agenda. mark: he was detained by police in northern germany last month after crossing the border from denmark. spain is seeking his extradition for rebellion and misuse of public funds. the former south african president jacob zuma was in court friday to face corruption charges. 16 charges of fraud, racketeering, and money laundering were recently reinstated after being thrown out nearly a decade ago. after the hearing, zuma emerged defiant, telling supporters the

case against him was politically motivated. ultimate fighting start conor mcgregor is facing criminal charges after backstage m elee injured two fighters and force the removal from the ufc event. a second defendant is also facing charges. the new york city police apartments is mcgregor was charged and is awaiting a court appearance. he faces three counts of assault and one count of criminal mischief. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. crumpton. this is bloomberg. ♪ julie: that is get a recap of today's market action. the downward action that we saw drug the session really beginning at around 1:00 p.m. stocks, are already lower, started to accelerate the decline. they finished off the lows of the day but still it was a broad-based selloff as well with all 11 sectors within the s&p 500 trading lower. industrials leading those

declines. only 11 stocks in the s&p 500 finishing higher on the session. julia: what'd you miss? brazil's finance ministers said today that he will step down from his post in october's brazilian elections. in the key architect of the country's recovery from the recession. and a time has passed that brazil -- in and beginlf serving a 12 year sentence for a corruption conviction. it is about the election and what is ahead for brazil is the head of economics for goldman sachs. that is really noisy. >> absolutely. julia:, as i alluded to their a lot has changed particularly in the last two years as far as the brazilian economy is concerned. what do they need for the next government in terms of policy? >> absolutely. this is day and night. economic reality.

we are now living under more inflation rates going through the initial waves of recovery. some funding needs are rather modest that there is a missing part there. the issue is urgent and unavoidable. it leaves without losing too much time which will eventually lead to a reversal. julia: is that understood do you think? >> to a certain extent, yes. the current administrations about -- administration did not move that much but they tried hard. namely, critical social security reform. julie: when you look at the brazilian stock market

performance, it has been pretty spectacular. it is up about 30% this year but sideways thus far. do think those various measures are necessary that we need to get past the selection and order for next leg up to happen? >> critically necessary. certainly the stock market reported significant gains over the last year or so. coming from a depressed pace. we see now the initial signs of the business cycle rates are low. when you look at the outlook for equities in general. the environment is also playing a role in supporting local equities. all these games we've seen so far can be compromised and even reversed if we do not advance. joe: on the website, we have also see the rail weaken to its weakest since march of last year. how much election uncertainty is

still residual in the market that if there were an outcome that were the ninth most investors? when it was money back and brazil ove ? alberto: a field of candidates is still very undefined. they do not have much visibility into the election. political and policy uncertainty still quite high. american in closer and closer to that election, we really do not policyat would be the makes that will come with the next administration. julia: coming to the end of an easing cycle as well for the central bank. julie: and speaking of uncertainty, we have them here in the united states. that, we have perhaps handed brazil a gift in the form of bigger market for its soybeans.

alberto: somewhat limited because you're talking about a commodity. that would drive debt to mentor markets you.t this is a global clearing price. that being said, brazilian is an extraordinary close economy to trade. that is not going to necessarily move the needle that much in terms of the market economy. julia: everything you said about brazil and legal equal opposite to what is going on in mexico in terms of the macro environment. we also have the kicker of the

nasty of negotiations in the upcoming elections uncertainty. what are you thinking as far as mexico is concerned? how optimistic are you even relative to one month ago? alberto: questionably optimistic. the macro reality is not very inspiring. inflation, the dominant trading partner with the u.s. and the ongoing negotiations of nafta. a very complicated election on july 1 were the leading candidate seems to be response -- seems to respond to it a certain approach. joe: how does the election interplay with trump's reported desire to get in deals very soon? is there anything the current government can really agree to that would be palatable domestically? >> it is certainly an issue. it seems that the three parties are wanting to reach an

agreement within the next few weeks. the of the fast-track of authority on july 8. and that we have one in november in the u.s. they want to accelerate the process and get an agreement to see if there is any chance that the current legislator in mexico cruise whatever deal they agree to because the political balance of power may change with the election coming july 1. joe: nafta aside, he said there also is of things not to like about the mexico economy. erto: mexico needs to find a way to elevate the domestic savings. opening sectors that have been traditionally highly concentrated in the legal price. they are marshaling both domestic and external investments. julia: a preliminary deal for nafta, happen is a risk candidate wins the election? alberto: a big question mark.

w. he may not necessarily own every agreement he signed. julia: we shall see. julie: thank you. head of lot of economics at goldman sachs. the director of the national economic council discusses what could be the white house's next move in the trade squabble with china. to subscribeminder to our weekly podcast on itunes. it is called what'd you miss? your find our best content each friday to enjoy some of our favorite interviews, and you can listen to them over the weekend. check it out on itunes and other places. great podcasts are delivered. from new york, this is bloomberg. ♪

julie: the breaking news now for

nato. the real estate investment trusts says they believe they have a handshake deal to sell a 5th avenue.6 the partner in that is the kushner company. they are talking about their plans for the building and the chairman's annual letter. they believe the hand-checked deal to sell its stake in the building. we had a story in late february, and the kushner company said it was negotiating to buy that the-debt ostake of laden -- the debt-laden office tower. julia: where they will get the finance or the steel. they have very different views on where the building and what the building would be used for. we will notify you. julie: we will indeed. what'd you miss? the recovery of, the new director of the national economic council, has been cooling down talk of a trade war. he spoke to us this morning. >> there are always ongoing

discussions with the chinese. always. president trump, i traveled with him all day yesterday. president trump indicated to me that he has great respect for respectt xi, and xi has for president trump. and president trump regard xi estimate would be a very talented negotiator if and when negotiations began. they have not really begun yet. china's response to our complaints have been unsatisfactory. that is why we're looking -- i use the word looking, we have not proposed anything, they are considering a second round of terrorist actions, but it has -- actions. but it has not come to task. s. below to the u. the president. the conversation go on as they always do. the president speaks to xi, the

second and third levels between each other. -- speak to each other. perhaps there have been some truthful negotiations so far but i will say they have been unsatisfactory. so we will see. >> help me understand with the negotiations will actually begin. like trying to find out when the time arises. larry: no timetable. that is the thing. i really encourage everybody to read carefully. the president announced yesterday, the white house press release, and also ambassador lighthizer's press release. we are considering adding tariff pressures. considering. i do not even want to call that a negotiating points. there may be negotiations in the next couple of months. i hope so. i think everybody hopes so. i think your point in the , i do not want to

distract the economy. we need not disrupt the economy. the point here is we will have several months open discussion. people will submit comments. there'll be reviewed by the u.s. and elsewhere. by that point, i do not want to put a deadline on it. will use the phrase a couple of months. we will then make a decision, the respect to whether proposed tariffs will be put into place. there can and will be conversations during this whole period. that is fine. >> there will be a discussion. there will be discussions along the way. i want to use a phrase about their lighthizer used with me last night. this is a moderate, tempered approach that we are taking. tempered, and,

proportional. is not a trade war. there is no war here. all we are trying to do is stay and defend american technology, which is crucial to american economic growth. and by the way, global economic growth. this whole program, whether it is tax rate reduction or rollback of regulatory costs, or rollback of energy problems, and now trade. this is all designed to promote faster economic growth and the united states, and i believe we will. we're running out of time. i want but a few more questions in. once want to understand what the chinese can do to satisfy the concerns for the president and this administration over the next several months. what can they do tomorrow that can make all of this go away? there'll be i think a discussion. want to tread lightly here because i do not want to get ahead of the game. i think ambassador lighthizer and the president are thinking about submitting a list of

suggestions to the chinese. hopefully the chinese will respond with some ideas that will solve this technology transfer issue. director of the national economic council earlier on bloomberg as jon ferro tried to get some specifics from him on what the trump and ministration wants from china. i want to update you on these headlines. for nato, realogy trust has a handshake deal to sell its interests in 666 5th avenue. it is indeed to its partner in the business, the kushner company, the firm run by the family of jared kushner. stephen roth, the chairman and ceo of tornadoes -- vornado said "i believe we have an

interested sell this to our partner with a mezzanine type return." that was in a regulatory filing. it happens immediately before the financial crisis and found a debt steve. they succeeded in getting finance, something they had difficulty doing. we have not yet confirmed that war from whom kushner companies have gotten financing. bloomberg continuing to look into that. julia:, no end in sight. oklahoma's teachers vowing to continue their walkouts for a sixth day. demand leading to a deadlock between educators and lawmakers. the students -- from new york, this is bloomberg. ♪

joe: what'd you miss? the stalemate in oklahoma, several of the largest school districts were closed for a fifth day today as teachers continued their walkouts. no end in sight. that educators are vowing to extend or strike monday to fight for $200 billion in increased funding. there was more a scoop bloomberg -- here with more was bloomberg's government reporter. when the fascinating stories of the year. primarily red states. we saw in west virginia, oklahoma how similar is that trajectory here for what we saw in west virginia and how close are they to a deal? >> in each case, what we're seeing is unions following the lead of teachers who made clear on strike or out stay out on strike with or without union support. we are thing republicans in the deep red states in legislators spending -- bending to as a man from the teachers.

it is not clear whether they will bend in the near term enough in oklahoma to satisfy those teachers and make the union leaders make it safe to announce a deal. the union leaders are not going to want to make a mistake that they do in west virginia with an acid youngsters were not behind it. joe: is there a reason we have been seeing the action in the primarily red states or is that a coincidence? josh: and those red states you see years of republican governance, especially with all the republican electoral wins under obama, that has meant tax cuts and less education spending. teachers say that contributes to teacher shortages that it up a sense of urgency and safety. they would be hard to replace. also in some of these states, use the laws designed to limit the power of unions. in the process, they made the strikes more likely. joe: tough to us about the phenomenon where the union itself is really following the wishes of its members, and i'm

curious about the role social media is playing here. people see a strike in one place at work and they should the idea. this is becoming a powerful medium for organizing? it is.es social media is an important part of this. this is not happening only over social media. people to get together in person. places like the library. social media the way for people to find each other in the first place, especially if they are talking about doing something that does not start under the auspices of the official union. joe: where else are we seeing similar things going? josh: the thought teachers walk off the job in kentucky. you have a combination of people on spring break and people who decided not to show up. took a sick out in order to be part of a protester in arizona, will protested with the slogan "i do not want to strike, but i will." you have seen smaller, shorter actions in places including here in washington, d.c. there is one school in the teachers other facilities were in such bad shape, none of the

bathrooms were working. they walked out for several hours. joe: obviously, people feel more emboldened to strike and walked off their jobs when the economy is good. they feel they can have greater wage bargaining power theoretically if they need to find a new job, they could find what. how much -- find one. how much of the story here based on your reporting is about where we are in the market? josh: that is part of the story. while we are talking about public sector workers having a tighter private sector labor market, on the one hand it means more job opportunities for people if they leave the public sector. on the other hand it means the state offers are in better shape. it is harder for them to claim there's nothing they can do. joe: really quickly, what is the next thing you will be watching for? josh: i want to see if their attention if union leaders think they might have a deal between teachers who agree and teachers who think they should hold out for more. joe: josh idols and, great report -- edelson great

reporting. thank you. cap, what you need to know for next week. this is bloomberg. ♪

julia: what'd you miss? a wekaer session for u.s. equities and what has been another volatile fight trading

game. watch the trade headlines over the weekend. julie: do not miss this. facebook ceo mark zuckerberg testified at two congressional hearings tuesday and wednesday. joe: i will be watching for the fed releasing its minutes on wednesday, hopefully getting a little more color on how they are thinking about the rate hike. julia: jpmorgan reports the first quarter earnings. earnings season begins. julie: all that optimism will see if it bears out. that is all for what'd you miss? joe: have a great weekend. this is bloomberg. ♪

mark: you're watching bloomberg technology. let's begin with a check of first word news. a british health officials says a former russian spy who was left fighting for his life after exposure to a rare nerve agent is no longer in critical

condition. the poisoning of skripal and his ose condition iscondition is improving, triggered a crisis between moscow and the west. the eu says facebook told it up to 2.7 million people in the 28- nation bloc has been affected by the data privacy process -- crisis. facebook confirmed that number in a letter. >> it is already clear that the y will need further follow-up discussions with facebook. the context on the already mentioned update european euro protection rules and questions on the democratic process. mark: facebook announced changes to its advertising policies, that i up fake accounts and push divisive points of view. in south korea, the former president has been