mark cohen islamic state says man who killed people mark cohen islamic state says man who killed people tuesday is a soldier of the caliphate. meantime, the attack, which killed two female police officers, a terrorist murderer. reportedly murdered another person the night before and was also serving a prison sentence and was on an authorized leave. wilbur ross calls the wto updated and says the amount of time to resolve this dispute is a joke. secretary ross spoke today at a form in paris and says the mindset is that anything a next order chooses to do is fine. the prime minister for macedonia name for his country will be put to next year. one year since he took office, he said that athens has never been closer to reaching an agreement over macedonia's name,

the subject of a desk -- decades long dispute. a referendum on whatever will be heldound in september or october. alberto is weakening but what is left is the storm of the hurricane will season is still causing headaches and southeastern united states. flash flood watches are in effect in at least eight states. forecasters say heavy rains could cause major damage and bring down power lines. global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ julia: live from bloomberg's

world headquarters in new york, i'm julia chatterley. we are 30 minutes from the close of trading in the u.s. stocks taking back tuesday as office -- losses per financials led. >> the question is, why did you miss. >> inside the trump administration, peter navarro --s steve mnuchin was wrong on china. this for washington talks. italy's pluto crisis easing today. what the limbo will mean for italian assets just ahead. this for washington talks. walmart wants to retain employees by sending them to school. the retailer will subsidize college collision bills as part of an effort to reduce turnover and earn goodwill. ,> breaking news just crossing 3-0 to seek comments on a rule overhaul and specifically if they want to loosen what we have

seen in the rules as far as cap -- tech in trading. if you're holding something for less than 60 days, they want to relax some of the rules or this opens up a 60 day public comment time. the overhaul.n aether or not there was ever trade war with china, it is now to onelly over according white house hardliner who went on npr to undercut the treasury secretary steven mnuchin. he called his earlier comments about putting the trade war on hold an unfortunate soundbite. clarifying, there is still a dispute. >> what we are having with china is a trade dispute plain and simple. a whole range of unfair trade practices, they run up $370 billion trade surplus with us which cost us over one million factory jobs in the year. we lost a long time ago.

>> 20 us now is marty. cringe. we know a lot of people have different decisions. the question is what to the chinese think of this and who ultimately should they be listening to? >> there is every indication the chinese are none too pleased about the peter navarro comment and scaling back steve mnuchin's comments. frankly, i do not think anyone really knows what to expect. they are on their way to china and there is a team already setting the stage for the talks. the wall street journal reported that these talks may not even happen because the chinese are .old set with his comments >> give us the lay of the land in terms of the personnel involved. navarro is a

hardliner. who is aligned with him in positions being a china hawk? >> it would seem the president of the united states is in alignment with him. when steve mnuchin said tariffs on hold, there was a lot of criticism with steve bannon including that he is abandoning his base when he talks about being conciliatory navarro is a hardliner. who is aligned with him in positions being a china to chin. it looks like they have taken all of these steps including the $50 billion in tariffs after that happened. >> wilbur ross seems to be tasked with negotiating a lot of details. where does he fit in? >> i would say he is more in the hardline camp. you have larry moore in the steve mnuchin camp. he is quietly behind the scenes trying to moderate that behavior. it is nothing new in the someistration to have discord on the trade issue. >> if you are the chinese negotiating, you really do not know who you are negotiating with or if the person you're

talking to actually represents the administration. is it any clearer in the nafta negotiations in terms of whose voice really matters? >> i would say there is not. also in the north korea negotiations. if you are the north koreans and you want to negotiate in good faith with the united states, what would prevent you six month from now to believe that the administration will not change his or if the person you're talking to actually represents ? i think a lack of clarity and lack of strategy is something the administration has been accused of. i think with some justification. i think with some justification. >> there is so much conflicting voice to allow things to fall through the gaps.

u.s. trade officials arriving in beijing suggests an element of conviction even at the top levels. >> as said at the briefing in the afternoon, the president of the united states has the policy and until he signs off, they can agree to one million things. if he is not happy, there will not be any deal. >> he is the one that can move the gulf -- the goal posts. >> i wanted to follow-up on sarah sanders and the daily briefing. there was in it -- an incident today that struck a different tone. >> it looks like it will be a life -- at a moment. sarah sanders really had a hard time keeping it together to answer the question. emotional and it

was a really human moment. she was sorry and the administration is doing everything he can to keep students -- she did not have a great answer. >> on a slightly less important matter, the president went to day day without commenting today, yesterday, sarah sanders said she has better things to care about. >> i thought the tweet was pretty funny. and well done. the president's tweet. she slammed dunked the answer and had a written statement listing all of the things abc news had broadcast that were offensive to the president and made the point that he never got a call for me. she was ready for that one.

yep. did it well today. >> this is bloomberg. ♪

scarlet: the federal reserve says the u.s. grew moderately. that indicates this remains firmly on track. with insight is matt. atot of data released today gp.

you are looking to that report and breaking it apart. there we go. talk us through it. >> this is really the most interesting thing today. was really due to a noisy inventories component that flaunt around a lot. upward tos show business investment and within the software investment in particular, a major quarter. the blue line shows investment in research and development as a share of gdp. you can see it just missed that 2016 record high. it is on is that a record. you want to be in an economy where we are dissipating a

pickup and going forward, this is the kind of thing that helps support that. >> does it vindicate the white back?in pushing is a good question whether it had much of a causal effect here. really with a tax cut did his pulse lowered investment that might have already been planned. it is kind of unclear how much has been planned. it is something you might expect to see. >> it is good news if you are a landlord and less if you are an attendant. if you are ae looking at here

landlord and less if you are an attendant. it is something we talk a lot about the show. the pink line is overall, core inflation. you can see for the better part of decades now, the airline shows a total share of, total u.s. personal income going to rental income. this is the share of income landlords are basically taking and you could see it is at a record high going back to the 1960's. this is something we do not talk about enough. it speaks to the fact that more and more of the budgets are going toward rent. attest to thatld fact. it has the effect of crowding out consumption on other goods and services. that is something that will be important to watch. does it go lower as the economy

that, or is it something will continue to hurt consumption going forward? >> the phillips curve and the relationship between inflation is -- inflation in wages and unemployment. you strip a bunch of stuff out and adjust to the data and massage it, it does not look so bad. going up. it shows the headline average hourly earnings figure. in see it rising slowly and it has been flat in the last few years. it really comes down to three factors toyearsyears. it really comes down to three factors to the economy holding that back. you get something that looks like a blue line which is wage growth above 3% and much more in line with the curve. the yellow line shows the population ratio and you can see

the blue line of adjusted wage growth is actually tracking that pretty well. education and healtheducation a. these are big important factors. we're not saying they do not matter. these explain why the phillips curve looks for moral -- a little more broken than in previous cycles. those are not the type pay that wrecked the economy. >> to me know what sectors are driving wage increases? >>'s books -- if you look at the industry, industry, those are the most physical. that type of thing is also quite cyclical. it is not as it is with other sectors. >> people always worry about the software investment.

>> that is what brings up the average. thank you so much. the latest church on the u.s. economy. time for a look at some of the biggest business stories in the news today. j.p. morgan chase has taken the title of the largest currency trader by market share. the investor survey found jpmorgan holds around 12 per share last year. for your run of the top. it is partly due to their new methodology. goldman sachs unveils an app publiculd help protect companies from corporate wages. they have spent two years quietly developing the jupiter program that rates companies loan ability to activate. iny fight for market share the u.s., mcdonald's will over new its share on breakfast.

spoke at aant chain conference and said mcdonald's needs to boost customer accounts in the united states here they inl invest 1.53 and dollars remodels this year. that is your bloomberg business flash. an uptick in volatility but the stock of the hour may not have been enough. the market falling after an analyst/its price target. >> we're talking about the underway on the stock. he an uptick in volatility but the is now cuttie target to $94, the lowest on the street. for context, the average price target is around 11580. >> may 29 should have been better.

the spikes that we have seen in the past couple of beers. up in thet it terminal here. joe has got it looking at the option volume. it is commensurate. have the spice -- the spike in price and volumes. basically he is saying it should have been better here. thisve seen stocks fall year. there are concerns about the blowup in products at the beginning of the year and what company'sor the profit. a lot of things went nuts. we're talking about treasury volumes yesterday. that didike the dog not bark. >> said as part of the defense of the company. this, heone brought up

kind of joked around and said usually we see a spike in options. coincidentally, you get a call like this. he kind of joked around and said usuallyhe did say other productt good volumes. spike, which the is an etf. spike, which is an etf. you see the volumes at the top have been trending somewhat lower. said if you look overall at the product portfolio, we are pleased with the volumes we are seeing. pickup and itity itexpected to calm down as goes on. >> two months ago, this was a consensus it goes on. >> two months ago, this was a consensus trade, the volatility

would be higher. for a whole host of reasons. all volatility said that point trade back. >> we are in may and things calm down in the summer. volumes have been low recently. we will see how it plays out. >> thank you. coming up, how much do you want to bet, gambling on the profitability of the trump kim summit. what you can't miss coming up. this is bloomberg. ♪

scarlet: compared with last year, investors are anxious >> have trade wars across emerging markets. no surprise global financial stress indicators have moved higher. you can see the tick up with positive territory.

the red lines -- red lines indicate -- this is a measure of risk must different asset lines -- red lines indicate -- this is a measure of risk must different asset classes as well as investor flows. seeley 2008 was a high water stress index moving up to almost three. then you have the european debt crisis above one and more recently, indication to push back against all of this as recently, you had a global recession. julie gave us anwell. as yesterdayc seemed, imagine if they actually started -- >> you just have to put it into context. right.lutely

maybe you saw in the news today that walmart will now be paying college tuition for its employees. why would they do something like that? there is obviously a labor market story trying to compensate. here is another turf it probably helps explain it. people feel the labor market is good. feel theeople have you job market is, do you think it is good, the better people feel it is. a quick rate, the percentage of workers that quit their jobs, put it together and come you are looking for ways to retain you put people into a sort of long-term tuition program at a college, people might want to finish that you are this chart might want to explain. >> very clever and i like it.

looking at whether or not the trump or kim jong-un summit would take place over the weekend, it was all off and then things changed dramatically. for the best place to look it is not the polls. exactly -- what predictors specifically do. setting the line for helically the trump and kim jong-un summit is. around 50 or 60%, that is where we stay with increasing optimism. we got trump saying we will see what happens, then it spiked and we got the trump letter. is down at 20% saying the likelihood of have -- of this happening. 73% now of the probability of this happening.

>> if you were to buy or>> if y, it happened far too often. >> i should learn. i haven't. > collect all of this. ♪ > collect all of this. ♪ retail.

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julia: "what'd you miss?" joe: if you are tuning in live on twitter, we want to welcome you to our closing bell coverage. we begin with market minutes. today it is risk back on. the dow up 307 points. the nasdaq the laggard. it is only up .9%. this is across the board. across the globe, a retracement of yesterday's move. the nasdaq underperformed today as it outperform yesterday. at the: if you look

sector performance in the s&p by and largetocks the best performers. energy stocks up 3.2%. all of 11 groups in the s&p 500 gaining. the tech shares outperformed yesterday, up .8% as well. keeping a eye on different retailers. s struggling to convince shoppers to buy handbags. retail sales in the americas fell 2.5% in the recent quarter. since march lowest 2014. we are watching dick's sporting , earnings guidance

outweighing the gun controversy. up 28% at its peak after the higher profit guidance cheered investors. moves to end the sale of assault-type right. rifles. seeing them are celebrate a decent quarter. joe: let's look at the government bond market. selloff inck, or a government bonds, leading to a pickup in yields. 2.84%.high as it was 3.11% 10 days ago, so we are well below where we were, a pretty swift move.

also a pretty swift move in italy, the central focus around the world. today significantly less anxiety. anyone is look like rushing to that, so a dramatic drop in the short and bond to 1.7% on the two-year. julia: currency markets reflected that as well. i'm showing you dollar canada. of the big movers, the canadian currency soaring today. the central bank appeared to lay the groundwork for more interest rate increases. it was also getting support from oil prices. we will talk about that in more detail.

quickly to give you some perspective on the broader moves. the year to date price moves as well. i have a chart to show you dollar-turkey as well. optimism on the central banks readiness to take action. now the turkish currency on its longest winning streak in a month. you can see that reflected in this. still a lot of ground to recoup over the past couple weeks, but some gains there. i want to give you a broader sense of the rally and the relative softness in the dollar. turkey is the outperform are in the session. polish come on guerin, and eastern european currencies hit

yesterday also regaining and session today. joe: on those commodities, green today some of so crude oil, which had been weak over several people see opec so a 2.4%y its cuts, rally. goal didn't really catch a bid. goal didn't really catch a bid. basically flat on the day. those are today's markets minutes. our nexts bring in guest for more market action. the tie-in this panic generated yesterday by the political drama, it is amazing how short investors memories are across asset classes. was surprising how quickly

the turnaround came. not sure it is mission accomplished with italy. this could come back to haunt us in this summer. how lessis fascinating -- last week we saw the beginnings of this. there are some trades the market has fallen in love with, one is short treasuries betting on higher yields, and the other are higher oil prices. last week, we saw the fed minutes talk about intentionally having stomach for an inflation overshoot. dipped below yield 3% by the end of the week on the 10 year, then the opec moves by the end of the week, and you saw oil crash. you saw those popular trade start to blow up last week you'd it's not so much the stock

market is worried about a tie in politics, but you see those yields crashing and financials far in the lead, banks, diversified financial companies and insurance companies. as of last week, there was a big 10 year treasury short. how much of that car covered today will be interesting. thank you very much. some breaking news. this is a bloomberg scope. warren buffett proposed investing $3 billion in uber, but talks fell apart following disagreement over the terms and size of the deal. warren buffett proposed an uber investment earlier this year. offered $3to have billion, but the talks did not lead anywhere. joining us now is eric newcomer

who broke the story. was this uber reaching out or warren buffett offering on his own? >> this was a serious twotiation between the post-softbank deal in january. they were discussing back-and-forth different configurations and deal sizes. more than $3me in billion and centered around that number. there is talk on uber side of lowering the number. the proposed deal offers very favorable terms to buffet. that was the concern on the air uber size. julia: warren buffett is known for being pretty widely in these situations. we saw that in the financial crisis. it does cost and make great returns for him.

>> it is funny because the financial crisis was this global disaster. this was a disaster of uber's own making. by the time they are having serious conversations with warren buffett, they already had the new ceo in september and softbank had come to the table. the belief was we are turning the page on our own. how much do we need this e to say we are on solid footing. joe: there are two aspects of it that come to mind. one is warren buffett does not make many tech investments. he is legendary for avoiding the space. talked so much about

character and the good behavior of a company as being critical to him, and of course uber's thee problem has been ethical questions surrounding how it does business. >> that's true. i am sort of laughing to myself, but uber and wells fargo, another buffett investment, sort of a running apology ad around the same time, so that is his beenation, but he has willing to be involved with companies or step in when there are crises. he invests in airlines right now. if you think about uber as this transportation connector, you are right on the tech point to come up but i don't think this would totally be out of character. julia: he's legendary for avoiding tech. he said i missed the boat on apathy on -- on amazon and

apple. scarlet: we reached out to warren buffett and his team did not immediately respond to requests for comment. give us more center. warren buffett does not go into a deal without getting something very good for himself. what was in the structure of the deal that he was proposing before uber said thanks, but no thanks? >> it was supposed to be a convertible note, similar to the there iseal, where upside and downside protection. uber that there would of that no matter what happened to uber, warren buffett would come out ok. terms.ere very favorable we don't know super hot, fine-grain details, but the general contours were protection echoingsides, sort of

the goldman sachs deal during the financial crisis where berkshire made a ton of money. scarlet: it all worked out pretty well for him. julia: i wonder if he left the offer on the table. scarlet: let me know. julia: eric newcomer from san francisco with that scoop. great work. right, get ready to get smart. we are diving into technical analysis of equities. this is bloomberg. ♪ s. this is bloomberg. ♪

ark: president trump signed right to try act of that allows terminally ill americans to test medication that has not been fully approved by the fda. the president says to expect

news from u.s. drug industry by the end of the month. have some of will the big drug companies in two weeks that will announce because of what we did voluntary massive drops in prices. expands access to potentially life-saving treatments years before patients would normally have been able to access them. peter navarro says steven mnuchin jump the gun when he declared the u.s.-trade war on hold and criticize the remarks today on national public radio. >> that was an unfortunate soundbite for two reasons. one, what we are having with china is it trade dispute plain and simple. they engage in a whole range of unfair trade practices. $370 billion trade surplus with us which costs us one million factory jobs a year.

house said today it was moving ahead with plans to impose tariffs on $50 billion of chinese imports and the move comes as wilbur ross is scheduled for talks this weekend in beijing. of events today in ukraine where russian journalist and a kremlin critic showed up alive and well at a news conference. he hadional police that been shot and killed yesterday. stage the murder after russia offered to pay $50,000 to have him assassinated. he said those behind the real plot had been apprehended. designate said possibilities have emerged to form a new government, an option he said he would like to pursue.

has beenimf executive ordered to form a caretaker elections.and plan today's development comes after the anti-establishment five-star movement and the anti-immigrant league walked away from their last attempts to form a coalition. 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. julia: it is time for smart charts with abigail doolittle, where we look at three charts on timely topics. take it away. week we talk macro. let's start with the europe. what do you see here? >> any time we are looking at

global markets, we have to be mindful of the credit backdrop. these are high-yield spreads that have blown out. when you look at what has been a pretty good rally over the last to view itwe have skeptically given the weakness in credit. thisig question is whether is a redux of prior years. one difference is leadership within the european market is not that defensive here it industrials and discretionary are still quite good. we think it is early to say it is the end of this move. >> looking at the technicals relative to the stoxx 600, testing that 200 day. are you concerned about that and does that give credence to what you're seeing with spreads going wide? is bad, but the stocks are higher, so sentiment may be a little overdone.

>> let's bring it to the u.s.. we had a big pullback yesterday for the s&p 500. today, big rally. what do you see here? levels a tested these number of times over the last three months, but on each is retest,e free test -- sellers are less motivated and not in control of this market, stocksimately we want are in pretty good shape given the fact that sellers don't seem to be in control. >> you just answered one of my questions. some strategist tended to say by -day,irst test of the 200 sell the second, but the third? of .5,end reading

internally one of the best days in a year, so that is a pretty good signal. coming off support, we held it, lets fly them. >> i love this chart, very busy. talk to us about all these different lines. of the redng on top line is outperforming this year, everything underneath it is not. what is working are risk on, up top semiconductors, regional banks, high beta, so there has not been a risk off trade. what is not working on the bottom of the chart, staples, telcos, bonds. what has been unique this year is that defensive trades have not worked. defensive tend to lead before big problems. >> great stuff. thank you for joining us for

smart chart here it back to you. scarlet: great charts. coming up, walmart announces payment for college. what is the strategy behind all this? this is bloomberg. ♪ berg. ♪

scarlet: it is time for the bloomberg business flash. deutsche bank will stay in the u.s. market despite the rumors. the ceo says the u.s. is the banks most important market, but added it could retreat from small business areas. cut its workforce by 7000 by the end of 2019. the finance chief at barclays

has resigned. she stepped out earlier this month after joining the firm in 2015. she did not respond to request for comment. last year, the barclays ceo referred to her as a "rock star." three sedan has won consumer reports blessing after fixing its brakes. it had declined to review the car after tests showed it took longer to stop than the f-150 pickup truck. elon musk about to pick the issue within days. the braking distance has been shortened by 19 feet. that is the bloomberg business flash update. annual shareholder meeting today with government regulation, diversity, and hq to topics of discussion. we have this report from seattle. government regulation was a

big theme at amazon shareholder meeting. a shareholder asked specifically about this, giving jeff bezos the opportunity to address the topic. what he said is that any organization that reaches the size of amazon, from 30,000 people in 2010 to 600,000 people today. thatnly thing it can do is it passes with flying colors. that is the message he is trying to give to shareholders. don't worry about the anti-trust talk. we will make sure we pass scrutiny with flying colors. diversity in is the ranks of amazon, especially on it's all-whiteboard. rev. jessee jackson said they need to do more to increase diversity. .here were protest groups here one concern is that as amazon looks for a new location for headquarters, it has identified

some states that has legislation that could be seen as discriminatory against the lgbt population. they are pushing for amazon wherever it builds headquarters that all employees will be treated fairly. walmart's annual meeting began today. a new strategy, using a cap and down to get people to say -- stay, education. college joining us now is matthew boyle. great to have you with this. what are the caveats? >> you are right. this is a big step for walmart. hadart like many companies subsidize the cost of a diploma in high school or ged.

pavewill be offering the for an employee ease college education and the employee only has to contribute one dollar a day. .t follows other companies starbucks already does this. three years ago they decided to fully fund employees if they wanted to pursue a degree. you are right. the problem is making it work for employees. can they juggle a full course walmartrking at part-time or full-time, and in many cases caring for a family as well. scarlet: the size of starbucks versus walmart is different as well. doing have any sense whether starbucks tuition policy has paid off? have they been able to retain talent better? and it are expanding it is doing well.

they would not have expanded it to cover full tuition if it was not working for them. walmart feels that this will help them in terms of employee engagement and retention. feel they might get a better caliber of employee walking through their door if that potential employee knows he or she will be able to get their college degree paid for. we are in a very tight labor market right now. companies need to be doing everything they can to recruit new people, good people, and keep the people they have. joe: i was on the credit page of walmart where employees gather and talk about things going on at work. there are a few comments about the reimbursement plan, but tons of comments about the relaxed dress code. managers will now be able to wear sneakers during the day. this inof a deal is terms of keeping employees happy?

>> that is funny. we had this story in april that they were testing this. always been a sore spot for employees who like to express themselves. very hard for not the greatest wages in the world. if you're not even allowed to wear blue jeans, it will impact year attitude and willingness to work hard. these people are representing walmart every day when they open the door and give you your change. if they are not happy, that could potentially hurt the business. julia: it worries me for customers. when youu help someone can't tell who works there and who doesn't? >> you still have to wear the walmart vest. julia: devil in the details.

good point. how normal is this at this point in the cycle for companies having to raise minimum wages, having to adopt policies like this, including education for the staff? i'm looking for signals on how difficult it is to retain staff at this point in the cycle. >> it is. we are seeing it across industries. there is a trucker shortage as well that impacts walmart. walmart has a massive private trucking fleet. just finding people to get the goods to the stores is harder and harder these days. walmart has always had a chip on their shoulder. as paying higher wages and offering better benefits. let's not forget they have a little extra money thanks to the tax reform and the windfall from that, so they took some of that

to pay the higher wages. i'm sure they are taking some of it to pay for it the tuition reimbursement program, which could front-end thousand dollars per employee, per year. that is not specifically what walmart will have to shell out, but that can be the cost for programs like this, so it will be as sizable investment, but the walmart ceo lee c will get a payoff from it. scarlet: yeah, they are earning goodwill from this. thank you for joining us. julia: there's no mandatory term of service. scarlet: for part-time and full-time workers as well. julia: it is a bold step. scarlet: you can consider walmart in a different way. julia: juggling lots of things .n life i am impressed. scarlet: let's get some first

word news with mark crumpton. mark: friends and relatives of the 70 to pick comes of last year's inferno at london's tower have been paying tribute to their loved ones. the public inquiry seeks to establish the facts about what led to the fire and make recommendations to prevent similar tragedies. one man said his son died when he was born two months prematurely after his wife was left in a coma. she recovered and was with her husband today. what you areknow .ade of and tell you are broken , my wife isou this made of the hardest material i know. without her strength encourage, i would not be here.

one of the criticisms following the fire was the that the building's exterior was retrofitted with insulation. thefirst elections in host-robert moog oblique era. inwas forced to step down november. the election will feature european union monitors for the first time since moog gabi expelled western observers. the constitutional court ruled today against allowing zimbabweans to vote in the election who live abroad. the las vegas police department is releasing additional records about the deadliest mass shooting in u.s. history. releasecourts order the of public records including please body camera video, dispatch logs, witness accounts, and officer reports from the

shooting that killed 58 people and wounded hundreds on the vegas strip. authorities still maintain the shooter acted alone, but are yet to determine a motive. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. and this is bloomberg. of recap of's get today's market action, a reversal from monday. muchgoes back to how should there is this risk off feel on tuesday. today, we see a retracement with the dow industrials up 306. the nasdaq lags behind today, up .9% treasury yields recovered as well.

over done for now because there is still a lot of time left until elections are called. julia: "what'd you miss?" a bond auction in italy stabilizing the market. the impasse continues. here's a breakdown of how the turmoil is affecting the economy and market. let's turn now to our next guest. great to have you with us. some pretty outsized moves theerday, particularly repricing of the u.s. treasury market in particular. you cited new rules to banking regulations that perhaps precipitated some of the outside moves. explain what you meant. europe,in u.s. and the they have discouraged banks. may be in other circumstances people might have come in when the italian two-year yield moved by six standard deviations, a huge move.

in underould have come a different regulatory environment and try to buy those bonds. a lot of different people by bonds at big discounts. you have a lot of fund managers who get if i waited relative to a benchmark. you might have to buy a tight and bonds because italy is issuing more bonds. when should you buy them? pre-italy,s huge job but also relative to spain and germany, so there are some value investors who could come in. joe: you said the moves are supposed to happen rarely. >> it's like flash crash with sterling, treasury bonds. the market can be functioning normally, then it breaks down, partly because of the regulatory environment in the but not only. from the market

structure or technical issues related to italy, have people gotten too complacent about the fact that populous keep winning in europe and there is this anxiety about the current system bubbling to the surface? >> i don't know. i think in italy is the first time the populace have won. yesterday was the biggest move since before the french had their vote last april. think that anxiety is running very high in any event. scarlet: it's not just italy. spain has its own political issues as well. how did that exacerbate the when it comes to the non-core european countries. you have a real problem

in the eurozone. spain are italy, linked together. i think the outcome in spain is different. if the government collapses, they have to have new of elections. the largest party in spain now is moderate, investor-friendly. in italy, the two biggest parties are not so market friendly. i expect what we are seeing now are the beginnings of a division between the five-star movement which is like a social democratic party, versus the northern league, nativists, nationalists. only party that has gone up in the polls since the march election. movement seems to be willing to compromise. we have fractures in this

coalition that will give us a little optimism going into the election late july or early august. julia: we could ultimately see a center-right formation of the government. we've had the dollar rally and people predicting 115 by the end of q2 in terms of euro-dollar. what you think about this currency pair? >> if you look at the commitment of traders in the futures market, they are record long euros. if you look at longs minus shorts, despite the euro falling in the middle of february, the long euro positions have not been shaken out yet. julia: with a short again? >> mostly the dollar and there may be some crosses, but most people think the dollar can't of the twine deficits and camp rally because

of a trade war. everybody is going to wait. the italy story has taken some of the spotlight off turkey , which had been the big anxiety from markets last week. has turkey done enough? the turkish lira has had a nice run, bouncing off the bottom. have they done enough? >> i suspect not. a test is coming up next week because the central bank said they will raise interest rates if inflation gets worse. en the sharp depreciation, they will have to hike rates. the irish raised interest rates over 100%, then they devalued. if you bought the currency come you still lost. at some point central banks cannot raise interest rates enough to compensate for a falling currency. mark chandler, thank

you for your perspective. still ahead, the organization of american states wants to hold the venezuelan government accountable and is taking the first step towards triggering an international probe into nicolas maduro's administration. we have the details next. this is bloomberg. ♪ ♪

julia: "what'd you miss?" straits, the organization of american states has come out with report accusing the maduro regime of committing crimes against the humanity and could set the stage for an investigation by the international criminal court. bloomberg spoke exclusively to

the secretary-general earlier today. we will submit the report to the international criminal court. that is one of the recommendations of the panel of experts. the second thing we are doing is working with member states in them to refernce this report to the icc. to work on this from now until september. we expect to have supporters for this case. in any case, we are working hard some interestved from member states come in so we

are moving fast about this matter. >> you are saying you will refer this port the icc why september? >> know, we will send it today directly. >> what to do expect to happen once the icc opens an investigation into mr. maduro and his regime? >> we expect to justice. is not a political movement or political approach. we are looking for justice for the victims. this justice was denied by the venezuelan regime during those years, victims of torture, rape, political imprisonment. of the victims have been killed during these years. have a wide spectrum of different aspects of this report

where we want this to deliver justice to the victims. that is our approach. it is a hard report that is hard to read. but delivering here this very human approach, but also on a legal basis, we expect to justice. that is what we want. the u.s. issued sanctions before and after the venezuelan elections, but stopped short of imposing sanctions on the oil industry. do you expect the u.s. to target venezuelan oil? if so, what would be the catalyst for oil sanctions? we expect harder sanctions from the united states and canada and the european union.

we want also latin american states to join these sanctions and make it even harder for the venezuelan regime. least two more rounds of sanctions targeting the oil industry of venezuela. have the knowledge also that there were sanctions that happened against oil production otherszuela done by because of the decline in production to the minimum level in the 20th century. is a case where there were sanctions against the and six moreople years of maduro.

we need a democratic transition to get out of the humanitarian crisis we are facing. venezuelan people are reeling from hyperinflation, shortages of food and medicine. how long do you expect mr. maduro to stay in power? we have to do is work as hard as we can to recover democracy for venezuela and work as hard as we can means to provide stronger sanctions against the regime and to make the regime bring about a democratic transition, stability, security of the region, but will mainly help the venezuelan people. countries, the nine is the one in the hot seat if they ultimately want to press for charges against the regime. watch this space. scarlet: coming up, follow the

money, republicans pitching the tax plan as a boon to the middle class. it is becoming clear that is it not where the savings are headed. we have charts you can't miss. this is bloomberg. ♪ berg. ♪

julia: "what'd you miss?" windfall for corporate america. where is the money going? where president trump in the republican said it would. track how s&p 500 companies spent their tax savings. early days, let's be clear. we tookoved is how numbers out and looked at proportions. explain what you found. the pie has gotten bigger

because these companies have more money and these massive tax way they are the spending the money is basically the same. there was not a shift in corporate behavior. the pie has gotten bigger, but the proportion of the pieces are x, wages forpe employees. scarlet: you have broken down capex as a percent of cash flow. it is in the middle of everything. julia: it stays the same. >> in the previous three years, it is basically an line. and republicans pitched this as generating new investment. it is notut, but change the way they are spending the money come the same ratio as before. joe: to be fair for the

president and the people who therete for that, capex is often a long lag time. they might be making decisions now that we won't see for five years. >> exactly. capex is one data point. , they paiduise line for ships 10 years ago, but it really surges because they're taking on new ships. companies that will ramp up investments may do that in 2019 and 2020. , early days.eat who knows if this will play out this way. maybe there will be a shift eventually and you can point to it and said the tax cuts caused this behavior. scarlet: in terms of the extra cash they save to pay employees more, what are you finding? >> we looked at one measure that

looks at wages and benefits. that went up in the first quarter the most since the recovery. again, and continued the trend line of where it was going. the trend was that this was increasing, even dating back to 2015, 2016, so we saw a pickup in that. some people pointed to these one-time employee bonuses like walmart. that could have helped that. to go wages are supposed up without the tax cuts because of the tight labor market, the correlation between wages and gains. julia: what about these cash piles these companies have? all time high.a as a percentage it is not that different from last year as well. granted, early days, but if you

crunch the numbers, basically they are acting the same way they did. that is what we see in the data. joe: we will have to revisit this in 5-10 years. julia: we need to do it more often than that. how often will it take him a one-year, two years, to get a sense of investor intention. >> some people say a decade. scarlet: there will be an annual edition for the next 10 years. we will revisit the chart annually. >> it is a political football going forward. trade concerns. good luck with that. thank you very much. joe: coming up, which you need to know for tomorrow's trading day. this is bloomberg. ♪ his is bloomberg. ♪

scarlet: "what'd you miss?" u.s. stocks recovering from yesterday's declines. it was risk on after risk off yesterday. u.s. personal income and

spending for april out at 8:30 a.m. eastern time. joe: the number four jobless claims as well. some finance and development ministers and central bank governors meeting with british columbia. scarlet: that does it for "what'd you miss?" joe: have a great evening. this is bloomberg. ♪

emily: i'm emily chang in san francisco and this is "bloomberg technology." coming up, amazon holds its annual shareholders meeting, and activists and protesters turned up the heat on the normally low-key affair. we are on the ground in seattle. plus, the price of that coin remains well off its december highs. has the crypto crazed run out of steam? and how the online payment startufe