will focus on north korea. kudlow discuss china's threats to pull back if the u.s. imposes tariffs. >> no decision has been reached by both sides. as of now. the secretary of commerce. as of this moment no decision has been reached. the june 12 summit between president trump and north korean leader kim jong-il and in singapore is less than a week away. they have been advised not to offer any concessions. the president commuted the sentence of a woman serving a life sentence for drug offenses.

johnson has spent two decades behind bars for a 1996 conviction on charges of cocaine trafficking. immigrants rights groups are suing the commerce department to stop plans to add a citizenship question to the u.s. census for the first time since 1950. the american civil liberties union and others claim the question discriminates against immigrants to increase fear in their communities and will cause census participation to drop. global news 20 for hours a day and on tictoc on twitter powered by 2700 journalists and analysts in 120 countries. i'm mark crumpton.

this is bloomberg. julie: live from bloomberg world , and julies hyman. joe: i'm joe weisenthal. julie: stocks are higher for a fourth consecutive day. joe: what'd you miss? scarlet: larry kudlow calls trade tensions a family quarrel. we call on the latest in a global trade. the biggest primary night this year. we have the latest results in california and why one part of texas is offering 100% paid raises to work in the region. president trump regards himself as a free trader according to larry kudlow. he addressed the president's trade policy in the white house briefing earlier today pushing

back on reports the administration was close to finalizing a deal to revive is eta. bipartisans drawn condemnation from congress but kudlow insisted no decisions have been made. joins us now with the latest. how do we know what the latest is? relation to cte? >> here is what bloomberg is reporting. the chinese have agreed to a deal in which they would buy $25 ,illion more of coal, shale oil and make big changes in the management of cte. marco rubio said the people there proposing run other companies that have sanctioned. they are not necessarily improvements. cte would have the stay lifted. they would have the nosek off her order lifted and could get

back into business buying american parts. we don't know if that is going to go ahead. there is a congressional opposition to this. legislation to prevent this but it is attached to the thatse authorization bill is slow moving. whatever deal they make will be in place before this legislation could pass. congress isn't going to be able to stop this except through political pressure. see a lot of speaking out. the president doesn't care about that but may lot of republicans as well. scarlet: i want to bring in this chart. it would make president trump's blood boil. this gets on his nerves or that anything else pretty trade deficit with china. it is a number he is working to reduce. is this a red line for president trump? whatever number he dangles out

there, is that a red line? a he does seem to have fixation on the bilateral trade deficit. that is a mistake. it is not a representation. the fact that we have a big budget deficit pushes our trade deficit up. he is focused on that. he wants a reduction. he's going to have to do more than whahe has done so far. they have not signed contracts for most of that. there is this other 25 billion. one of the hangups, they want it in writing. even if you put the two together you are short of 200. g7. let's talk about the you talked about how unusual it was for the administration to be singled out in the finance ministers statement. -- she said that is not

that big of a deal. who is right. you or larry? >> with all due respect i am right. the people at the summit would agree. sense.as a palpable they do not see any reason for it. i have ever seen a country symbol down the way the u.s. wise. the u.s. should get rid of its twin deficits. wasn't a communiqué. u.s. wouldn't sign on to it. the u.s. is making a big mistake. we want the treasury secretary

to tell the president we are mad. julie: this presupposes these sanctions or whatever trade barriers were putting up actually go into. and are not just a negotiating tactic. does this actually in some ways increase the president's leverage if it is perceived at such a real threat. >> that seems to the white house thinking. this is not a real este magnate dealing with another real estate magnet. this is countries with politicians that have to answer to their constituents. there has to be a face-saving way for both of them. the trump administration is not giving that option. the steel and aluminum tariffs have made everybody angry. imagine if they go through with

the tariffs on china. nafta falls apart. you get a further split with canada. then you add mexico into it. and a newly elected anti-american leading -- leaning president. scarlet: paul ryan says it is up to the itc. to determine whether there is time to strike a nafta deal. there has been this deadline the house speaker has set out. we have gone past that. is there any urgency to wrap up the nafta talks? what is the rush? it took three years to negotiate the first one. we haven't been a year into the process.

seesrumadministration the potential change of control of the house of representatives which would make it difficult. democrats want more worker protections. it might be a tougher sell come next january. they would have liked to of had a vote. it doesn't look like they would get their because they are not close to the major issues yet. you're going to get the mexican election coming into play. they are winding have to rethink where they are. saying, theional international trade commission has to review the deal really have 90 days to do that. paul ryan is talking about getting this done by december for when the house goes out. there is always unfinished business. .hat is not really the issue first, let's get it done. -- there arebig haired role

big hurdles. this is bloomberg. ♪

joe: the solid jobs report means the fed will lift interest rates next week. have littlemakers reason to rush the challenge is engaging the correct level of a neutral rate. they may need to turn off the autopilot. here to explain the challenges for the fed ahead, the university of oregon, thank you for joining us.

probably one in september. it is going to get trickier for the fed. how come? >> it is hard to see they wouldn't hike rates as you just said. september is a lock as well. when we look further into the a challengeseeing for the federal reserve. two more rate hikes, third rate hike will put us solidly in the middle of that. >> everything seems to be going in the fed's direction. it would be hard to look at this currently.

>> it is going to be difficult, beyond neutral. thatut having some sense it is going to rise. you have a 3.2% employment rate. we are going to hit this kind of environment. by the end of this year you may see the impact of past rate. the fed doesn't want to get .head of those

the fed want to be careful. joe: how surprised he by the jobs report, this latest stage in the cycle in many say we have to be close to full employment? >> we are always worried. we could drag into the labor force. we see solid job growth once demand starts to pick up in the u.s. economy.

, i would beard surprised if you could maintain the job growth numbers if you get close to 3%. joe: if they have shadows flagged under improvement -- underinvestment, some are shown to be right, should they just let it run height -- run hot? let's see if we can exhaust all that? what's the fed would have a hard time justifying that position. we have some concerns and bottlenecks and trucker

shortages. the last isn reports. , and percent risk on the net. things start to overheat in the economy. ways, in many conditions most of us have not seen in our lives. things that we have not seen since the 1960's. the fed is right to want to operate close to neutral should these unpredictable events rise. they don't have to feel like they need to adjust policy quickly. >> if you were in the press conference next week what would be your top question for chairman powell? >> my top question, thinking reservew the federal

wants to deal with a flattening point weve, at some might see the yield curve become completely inverted. what do they want to do at that point in time? do they want to take the view that the yield curve is not a good indicator, and they need to focus on the rest of the indicators. that is a significant question in my mind. thank you for joining us. time for the bloomberg business flash. the biggest reason the news now. the embattled ceo of us in a health step down. sale or considering a

other transaction. allegations of misconduct against jonathan bush raised questions about his ability to raise the -- run the company. amazon may be considering a move into home insurance according to the information. work ongs from amazon's connected devices in the home. the website says smart devices could be used to monitor threats such as fires and that could lead to cheaper premiums. bank.hanges in deutsche the heads of the leverage business are leaving. ceo is scalingew back in the advisory businesses also senior executives. that is your bloomberg business flash. soaring.shares are this comes after the company's annual shareholder meeting in

california. abigail doolittle is checking up on the stock. the best day in years, not too much new came out of this meeting. it could be a short squeeze. , looking at 5000 models produced each week. it could come as early as july. chairman, the sovereign fund wanted him replaced. shareholders voted that down. he is reaffirmed his status as this visionary god. stock ise fact of the going up, it also implies he still has some credibility. he still says we going to hit the 5000 target.

people believe him. >> people really love elon musk. he has made incredible things happen. he has made things happen and i would like to point out these are the number of cars tesla has produced each quarter. this could go up to 50,000 or 100,000 very quickly. i think that is what the bulls are positive on. as he does make good as he has in the past. thank you so much. up, the paperg world cup begins next week in russia. how could that matter for stocks? it matters quite a bit. this is bloomberg. ♪

scarlet: an eventful week and a half judging by the fix performance. this is a chart of the vix. the second panel, the tuesday after memorial day, the vix ended the week around 4:13. bond yields blowup and treasury yields tumbled. on wednesday it retreated. down, back to a 13 handle below 12. why does this matter? there may be fewer spikes in coming weeks. traders are going to be distracted by the soccer tournament. let's bring up the following chart which shows what happens. event. a quadrennial

the country indicates which company hosted the event. the market volatility declines in the last world cups. for the first time in 30 years the u.s. men's team would not compete. that is not going to dissuade anyone from watching the world cup. joe: i have a feeling. scarlet: but there are a lot of international traders. joe: that is true. a huge part of the story is the financing question. all of the anxiety about cash flow. it is instructive to look at how the bonds are trading. here is a chart going to the beginning of the year. stocks in blue. bonds in white. we see a nice jump in tesla.

in 2025.re this is a wide territory. elon gave them a prediction that is very specific. people are feeling more comfortable there will not the more. julie: what is the best ?erforming subsector he probably would not guess retail. but it is retail. this is surprising. apocalypse is over but investors have known that it is over. this index includes netflix and amazon, and tripadvisor. macy's is up. advance auto parts is up. the s&p retail index is at a record today.

at a record high. cap techand big stocks. julie: that is the amazing. scarlet: the market closes next. the nasdaq of 6/10 of 1%. this is bloomberg. ♪

[closing bell ringing] scarlet: what did you miss? u.s. stocks closing in territory. the nasdaq extends its record high for a third day. joe: and if you're tuning in live on twitter we want to welcome you to our closing bell coverage every weekday from 4:00 to 5:00 p.m. eastern. julie: the momentum to drive continues stocks higher here. this is the fourth straight session that we've seen the 500, all major averages on the rise. recorddaq 100 set a again, the russell 2,000 is at a record again. s&p retail index set a

record. dows the s&p and the are not a record notably. we've seen them lagging the records set by these tech-heavy indices. talking about the today'srmers in session, signet jewelers. abouts one we heard earlier. the company said that same 0.1%,sales were down but that's a big improvement over the 12% drop a year does seem signet to be showing some signs of improvement here and those a hugehaving increase in part likely a short squeeze because there's high short interest stock. devon energy announcing a pipeline and processing unit. devon also notable because the shares were higher consistently throughout the day even when oil was falling. tesla we've been talking a lot about that one and elon a vote ofng confidence following the company's shareholders meeting with that advance of

10% in the shares and finally, one we did not talk guys,as much today jack daniels owner brown-forman. jack daniels part is very important because mexico says it's going to onose 25% tariffs tennessee whiskey in retaliation for the president's levies on its aluminum. brown-forman said it's hard to accurately forecast future sales growth with so much uncertainty surrounding the proposed tariffs. daniels, we'll see. scarlet: you're starting to impact. joe: let's take a look at the government bond market. let's start in the u.s. rates continuing to climb with this big risk on rally, people selling the safe havens, feeling more confident about the economy loss of close tariffs. we're below 3% on the 10-year. got some ways to go before reaching those recent highs that we've seen. now, i want to turn the page to europe because there's

some interesting stuff going on. obviously, italy just incrediblyo be volatile, what a big debt market it is, two-year again todayng up to 1.36. what a week. weeksere negative two ago, and then they got 2.5% during the peak of the last week and this week they were down to .67. now, higher again, making some people nervous with its proposed policies on the notal side and this is related to anxiety of the stability of the euro zone per se, but the ecv meeting next week and people are getting more confident that the central bank will be ready to turn the chapter on crisis era own programs and stuff like that. and so with the withdrawal stimulus, we saw a pretty big drop or sorry jump in rates.rm there's -- ireland, france, their 10-year

bond deals. they shoot up with the expectation of tighter in europe. firmerthe euro against all the g10 currencies except the ozzy. before next week's meeting you see the euro dollar-range 118 again. yen gaining for the sixth straight day, that's the longest streak in almost the -- the brazilian real, when i look the major currencies it's the worst performer versus the dollar today. a three month chart against the u.s. dollar so that rising line shows the strength of the real.ollar versus the inreal continues its deterioration. it breached 3.84 per dollar today. the next level, of course, would be four per dollar, which we haven't seen in over two years. bank's offer yesterday of one and a half billion dollars in extra swap contracts failed to losses. there's concern that the elections this october will lead to a president that's exactly motivated to

make the painful spending cuts needed shore up the all these with concerns that's not sitting well with the brazilian real. joe: and finally, let's take a look at commodities. oil continuing to be weak. interestingy story. stockpiles in the u.s. building up faster than expected. below point we were $65 a barrel, ending just at 65.12. gold continuing to not do anything. and some of those industrial metals doing very nicely lately. here's copper up another 1.7%. so you know, getting cut up in the risk rally, the endorsement of the economy, e.m.'s looking a little bit more stable so there is one are today'shose markets. scarlet: for more this year in chris,g capital management ceo and founder. studio. see you in you focus on concentrated long-term investments. it's all driven by research. aboutn julie talked

the record highs that we've seen across u.s. equities nasdaq, retail in the s&p 500, the russell 2,000, are these record highs justified? >> you know, i think so. i think what we have is a economy. of course, there's the fear that when there's no clouds in the sky that's the time cautious, but another couple of good things that happened today besides just reaching records, one underperforming groups like and retail are really starting to participate. so we like that. second, even though rates going higher, long rates are going higher than short rates. in other words, when joe was bonds, 10out the years went up four basis points, two years only two so the curve is getting a steeper. we keep a close eye on how the that curve is and steepening makes us happy. joe: you have some specific stock picks that are very interesting because they're controversial and one is comcast. and it's done very weakly and historically, a very cyclical company, when well, theydoing

do well, but it's caught up in a lot of different things. secular anxiety about cord cutting and stuff like that. i'm very curious about this it and why you like here. >> first of all, you have to start from the premise that you can't get a great bargain, unless there's a of issues with the stock, but then we look for high quality and we think comcast is best in breed in do and we look for onething that's down nonearnings fundamental related. they're down because of cord and because of the deals with fox and sky. we're looking at three years. we think once you get that brian us we think roberts is a great operator, and that stock is down 30% from its highs and we've been adding like crazy down here. funny that joe prefaced your picks that way. we have comcast, which is, you know -- in addition to trying to get those deals done the cable companies are noted by consumers

terribly positively. you have wells fargo and you facebook, which currently is enmeshed in some stuff. >> we like to say we have to for our gag factor stocks. if you look and go what are you doing that indicates not a bad thing. it indicates people are scared, people are running from those names and that's what we like. julie: explain to me in the case of wells fargo in particular why you've got to that gag reflex because every time you think that wells is done with all of its scandals, something else happens. is there's a hundred foot drop. what we think still is they terrific banking assets so they're historically have been worth more than say a or j.p. morgan which has more investment banking or trading so they're year,le year after income from banking is good. as the long-term rates go higher that's great for a that actually does banking like wells fargo. if they can put this stuff in the rearview mirror and

looking out three years we think it normalreturn to valuation. joe: facebook feels like the of comcast. there's all these issues that come up with it, data, and now, the thing with the chinese maker. it doesn't seem like people are fleeing it. >> not anymore. the nonearnings related crisis, if we can get comfortable that this isn't going to affect the long-term earnings. it's hard are facebook because these are new issues, but what we really believe is that they have a structure with literally billions of users and their interest is in users.ing those those are the geese that are eggs. the golden julie: i think that is not an uncontroversial statement given some of the

recent steps we've seen facebook take. when you talk about this data sharing with these handset makers, the fact that they company then sort you're oh, no, making too much of this, doesn't that show that they don't get it? an immature thing. there's a lot of truth in what you say. what we're seeing today, this happened several years ago before the facebook app mobile so now, we don't do that anymore. it was a mistake they're going forward what they do is they sell access to very specific demographics, but they don't to sell the demographics anymore. they just have to promise we're going to get you 60-year-old housewives or something like that. scarlet: they've also trailed their faang peers. amazonailed netflix, there. >> it's growing almost as quickly as amazon and theing for a third of valuation. it's not a cheap deed value stock. scarlet: what would make you

mind onour facebook? >> if i saw advertisers say this troubles us, but we're going elsewhere, that would trouble me because it will affect the earnings. right now, there's nowhere go. that they can julie: chris thank you so much. interesting chat about these underloved names so far. chris thank you so much. well, coming up next, the most was important night yet on 2018's political calendar. we're going to have the latest on the state primaries and what the results say about the midterms. the midterms.

>> i have first word news. democrats today took aim at administration's new zero tolerance policy that has accelerated

andrations of children their parents at the u.s. border with mexico. >> what this administration doing is inhumane. taking children from their parents, from their families, from their mothers, must stop and it is negotiable. it's not what we do. it's not reflective of who people or as a nation. >> the president has placed the blame on democrats. he tweeted recently that the separation of families is the fault of what he called passed byation the democrats. house speaker paul ryan is breaking with the president, sayeing with others who there's no evidence that the fbi planted a spy in mr. trump's 2016 presidential campaign in an effort to hurt his chances polls. the speaker today referenced house oversight and reform chairman gowdy who said the fbi was its duty when it investigated claims of russian meddling.

>> we still have someone to answer questions. it would have been helpful this had gotten information earlier as the chairman said the other day. got all the information we were looking for we could wrap this up faster, but i have seen no the contrary of the initial assessment made. added thatryan he believes chairman gowdy's initial assessment is accurate. german chancellor merkel is warning she will not accept anything that waters down earlier agreements when world leaders meet at the g-seven summit this week in quebec. she is expecting tough discussions over issues including the u.s. the paris from climate accord, the iran nuclear agreement and steel aluminum tariffs. the chancellor addressed the german parliament today, two summit.ad of the in london, firefighters have been going room by room city'sng the mandarin oriental hotel to

make sure no one is inside. broke out at the 12 story luxury building today. startedrs to have high in the hotel. black smoke was seen pouring the the top of building. there were no immediate reports of injuries. global news 24 hours a day air and on twitter, powder by more than 2,700 inrnalists and analysts over 120 countries. this is bloomberg. bloomberg. julie: "what'd you miss?" democrats hopes to take back the house may have gotten a major boos yesterday with party appearing likely to avoid their worst nightmare as democrats have survived california's top junglecalled primary. here to give more insight as theet closer to mid-term is bloomberg's national political reporter who was in california story.ng on this he is with us now on the phone so walk us through exactly happened and why it is good news for the

democrats. hadight so democrats feared getting locked out of three critical southern california districts that were part of the party's strategy to win back the house. districtsthree out of seven in california that had voted for hillary clinton in 2016 that are currently held by republicans. that kind of shows you the potential that the party had and what democrats had field ofwded candidates who were splitting the vote among progressives in those districts between a bunch of them and risked sending two republicans to the general thision because of unique kind of top two rule that california has so they in two ofckouts them definitely and they look good to avoid a lockout in a third one. democratstwo competing for the second spot in a district held by incumbent republican running. joe: so democrats avoided of nightmare scenario being locked out of winnable districts, but was there good news for the democrats? was there any sign that anything from last night that portends well for

nevada? november. >> there were some primaries in california, the seven districts that clinton won that they're hoping to pick up at all. districts in new jersey that are held by republicans that are winnable for democrats and two in iowa, the party got all the candidates they wanted in those districts and warded that it candidates didn't want to run in the general election so all in all it was more a matter of bullet orng a really free in southern california, but, you know, they'remost part, not only relieved about that, but they're happy about the other candidates. warning sign was bob menendez in new jersey, he lost 40% of the vote to a to an unknown candidate which shows how weak he is in new jersey. julie: when you look at the in california and around the nation to what do you attribute them? seeing an improved democratic organization on the ground? energizeding

democratic voters? are we seeing both? what's the balance? about what's going on? >> it's mostly about democratic energy. that's the entire we're innt that right now politically, democrats are much more than they were under any mid-term scenario in the obama era. mostly due to -- where this stuff materializes. joe: you had an interesting likening the democrats and the sort of resurgent democrats of the now versus the tea party back in the day and how back it 2010, tea party candidates were knocking off incumbent republicans who were deemed conservative enough. there's really no equivalent right now on the democrat side is there? >> there is not and that's a huge difference between this plank and the tea party left today, the so-called resistance movement gets compared to, but the big difference was

the tea party was first and foremost determined to purify their own ranks, the topple a bunch of republican incumbents that they thought were too squishy or too moderate or too willing to compromise. democrats are not doing that. finestein had a liberal who she defeated handily by huge margins. she is more moderate than i the leftts of would like her to be, but it's not just her. takentana, who has some moderate, conservative votes, easily won nomination unopposed. others like joe manchin and mostonley, the two conservative democratic senators, easily won renomination. democratic voters are not as angry at their party republicannt as voters were in 2010. they're more interested in taking on the other side. muchet: thank you so for joining us by phone. now, coming up, get that gtv function ready. technical analysis of specter performance coming your way. from new york, this is bloomberg. york, this is

bloomberg.

scarlet: it is time for smart charts. where we look at charts on with some of the street's best technicians. that.'re right about we are taking a look at the best sector for the s&p 500 year and we're doing that with chief technical analyst and thanks so much for taking the time. let's start off with the best. not so much today, but we've for tech.ig rally all these fears about regulation, investors not really thinking about that anymore, the nasdaq hitting lots of all-time highs. >> lots of all-time highs the chart of the

survive. it's a clear uptrend, i use the word textbook, above the 50 day average and taken out and highsg it at all-time here and what's interesting to me is that the move is confirmed by momentum. we have the rsi indicator on the bottom, 14 period rsi and that actually is -- and, to a local you know, large cap tech is obviously working. ist's interesting here this is the s&p 500 tech index so it does not include amazon and it's still strong, and i think that trend is likely to continue. >> what would concern you? iswhat would concern me if this was a false breakout. if the market reacted to the andition in the rsi sometime in the next day or two we snap back below this breakout level. the door foren a move down, at least to the

50 day moving average. >> so tech is up 14% on the year, pretty amazing because again, earlier around those big tech concerns, tech had been slightly lower on the year, but the consumer staples consistently down on the year, 13% on the year. take us through this weekly chart. >> it goes back five years, the consumer staples and you solide, you know, a uptrend until the beginning of this year, it's kind of since and,g ever you know, took out up the trend line. i think that opens the door move down to the 2015 lows here, around 460, 470 the index. and i think that that's going to continue number one because the trend is numberly broken and two we're -- the risk on appetite in the market is going to lead people to like technology and away from these defensive sectors like staples. technician that we both know well, he made a point on a panel months ago which is very interesting saying he becomes concerned if any of the s&p 500 ortors are down 20% more. we're far from that at this

point, but if it does continue to break down would that concern you about the broader markets? are you thinking investors are going towards growth? >> it would certainly be on.thing to keep an eye i think what we're seeing is rotation into the stronger sector is down 20%, obviously, you want to pay attention, but, you tech is 26% of the s&p 500. the fact that that's making importantis more to me than the fact that staples are breaking down. >> that makes a lot of sense. let's take a look at one staple break down in particular that you don't like the technicals on. here wef the chart have coca-cola. you can see that it'sying after making a high in broken downs below the 200 day moving average. kind of consolidating here. roomnk there is more to the down side. i think the stock as long as it's below $45 has down side level.37 it's within the consumer staples group, it's within group, which is horrible looking compared to the rest of the market, it's a down trend so it's a of want toind

avoid overall, but if you do need exposure the chart at constellation brands and look at the difference, bouncing off that level here in early may and consolidating, if i had to pick between coca-cola and constellation i would pick wine over soda and go constellation. >> great charts here. really love your charts. stick with tech. be the theme here. thanks so much. much. thank you so appreciate it. and next, we're going to talk about why the oil industry is in desperate need for workers. we're going to shale country to talk about what is happening with workers and wages. workers and wages. what's a gig of data?

well, it's a whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way.

that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. -- formark information on payments that novartisg maker made to trump's loyal, michael cohen. aat's according to spokesperson for wyden. the probe follows revelations last month that paid $1.2 million to cohen's firm under an agreement aimed at gaining theght into

administration's healthcare policy. security council is calling on all parties in ukraine to recommit to a agreement and expressing grave concern at deteriorating security in region.tile russia has been in a tug of war with eucaine since moscow's annexation of the crimean peninsula in 2014, but all 15 council members, russia, agreed today in the council's first eucaine in an year and a half. ceremonies parking the robertniversary of f. kennedy's assassination were held today. kennedy was shot minutes after winning the california democratic presidential primary june if 5th, 1968. rights icon john lewis quoted a speech kennedy gave the night of martin luther king, jr.'s assassination two months before kennedy's

death. >> what we need in the states is not division. what we need in the united hatred.s not love and wisdom and compassion. >> former president bill and parkland school emmant survivor gonzalez joined members of kennedy's family for today's observances. first lady trump remerged with her husband today at the fema headquarters. the president said of his roughhe had a little patch, but she's doing great. the appearance was mrs. trump's first outside house since may 10th. the first lady underwent a kidney procedure and recuperated in the hospital for five days. global news 24 hours a day on air and on twitter powered by more than 2,700 analysts inand

countries. this is bloomberg. scarlet: let's get a recap of today's market action. the s&p 500 closed up for a day and theght nasdaq -- earlier declines the nasdaq extended its record highs. it's not the only one that's at record highs. the nasdaq 100, the russell s&p retail index, including some big tech them. microsoft among julie: it feels like in some ways a return to the very early part of this year late last year where we kept seeing records that drift and low volatility. scarlet: reminders of 2017 anyone? see.: we'll "what'd you miss?"? feast and famine, in the permian shale basin, the oil boom is driving sales tax andnue to record highs

yet unemployment is still at a record 2.1% low. news's david joins us from houston to weigh in on the oil industry's workers.for david, your story is really fascinating because you look town midland, texas, in particular and how places like restaurants are finding it difficult to get workers. what are some of the stories you heard when you were there? >> yeah, it's such a vexing situation because in one sense everyone is proud in this town to see their town world for the this hot commodity of oil and so you know, you see on theelectronic sign flashing weekly rig count and how half of all u.s. rigs are right here in the basin, but in another sense it's very frustrating to locals because you end up losing the service workers from hotels and restaurants and else that you can think of because they're allured by the higher wages a goodand so it's

thing, but it's also a bad thing. kids are late for school a cdle if you have and you can drive a school bus you can also now asentially make as much $140,000 driving a truck for so you industry know, there's just vexing problems that make it bad on one side, but really good on the other. joe: i'm glad you mentioned the school bus thing because something that your brought in that i haven't seen elsewhere, some of these shortages in industry, but public sector shortages, whether it's teachers or the town of being 200self people down. how are they dealing with this? public sector can't easily i imagine raise pay as aggressively. that do to a town's operations? >> it causes you to think creatively. part of it is, the mayor who i talked to who also by the of owns a couple restaurants so he's very much personally involved with how to solve this problem. you have to try to get and think well okay

we're making more money off sales tax collections. can try to push wages higher for city workers, but let's try to also be creative in other ways, let's try to pay on a more regular basis like what this mayor is doing. restaurant his workers weekly instead of every two weeks so maybe for city workers you try to do them moree give time off for more flexibility with their job, try to do other things that maybe just the dollar itself necessarily solve because you're never going to be able to compete with oil wages so you try to think outside the box and of other ways, but truth be told there is no golden solution yet and losingwhy they are these people to the oil industry. the other thing that the mayor tries to say is if you stay with us you may still have a job when oil prices go down, whereas if you're oiling for the industry, you may be out of a job especially for the companies. scarlet: in the meantime as long as the going's good, everyone is still going to where they're getting paid. on commodities, bloomberg's own alex steel sat down with the ceo of and take a listen

to what he said about labor in texas. the truckers, it's the hot shot service, it's it's thers, electricians, all of those, everythinges, that requires people there's definitely been pressure. to 15%eted a 10 increase. we've seen that come in as we had envisioned. scarlet: now, you referenced downturn.ble this is all part of a tried and true cycle. when oil prices rise the energy companies offer huge paychecks and poach people from other existing jobs. does this particular oil boom compare to the lead-up in the years prior to the in 2015?lapse >> this one has a number of factors that make it different than the past ones, particularly you're in the permian basin where you layers of rock that have oil in it and you're constantly developing technologies at cheaper prices to be able to get more oil out and so technologies are more

proved now than they were in the lead-up to previous upturns, plus, you're getfrack sand, you're getting that locally. you're getting it a little bit cheaper price so that's morer one why you have demand. in the oil explorers to watch not just go crazy and spend every dollar that to returntry money back to shareholders. there's a little bit more of to, you know, control your growth and not just go crazy so that could help this -- these oil prices to last longer at a higher rate and not just plummet back down again so this upturn, especially for people in the people areland, optimistic that they feel like this thing is not going to completely die away as withto $75 a barrel or something. joe: and even if a bunch of in to midland in

search of those high wages, on top of everything else housing shortage. >> exactly. housing shortage, apartment shortage, hotel shortages and this is even after they continued to build after oil prices went down to about barrel. the mayor said i ordered my staff and council members to plans, keepwth adding to the roads, keep approving building permits so they still even built and evene downturn now it's not enough, probably because builders know not to overbuild theree they've been during that bust before. you're having a hard time attracting teachers into this town because they can't the higher prices of $325,000 average price for a house. >> all right, good stuff. thank you so much and, of course, this story is bloomberg.com. we have some breaking news. fortive has announced a unitng offer to buy a of j and j for about $2.7 billion in cash so fortive again announcing a binding offer to buy this unit.

-- and it's the advanced sterilization products business. the cashis transaction. julie: the company had said back in february that it was seeking buyers for this division, at least that was according to people familiar situation. j. and j. has been trying to get rid of noncore assets. just sold its life scan unit. it's been getting rid of -- although for j. and j. even its noncore assets are fairly sizable so that's why au get something like $2.7 billion sale. scarlet: and j. and j. shares moving slightly higher. from fact to fiction, veteran financial patty hirsch went to covering 18th century crises. from new york this is bloomberg. rk this is bloomberg.

scarlet: enough time has passed for traders to start chasing at government regulation. tensions are heightened, does it sound familiar? it might not be the year you're thinking of. try 1799. veteran financial journalist patty who worked for years npr is trying his hand at fiction with a debut novel set in 1799. is the devil's half mile and paddy joins me now. great to see you. >> great to see you. set out to you write a history book as you mentioned and you wanted to the the story of founding, the birth of the new york stock exchange and you ended up with a murder mystery. >> when i was doing the research for the book, it was actually a little dull, little boring and i was doing a lot of reading of letters and, you know, people's documentations of history and lots of history books and i wasn't

getting much writing done so do a little side project, a little murder mystery and the side bar turned into the main non-fictione project got consigned to a dusty drawer. scarlet: there are some nonfiction characters that show up. alexandria hamilton makes a cam joe. >> he's in there. there's also william -- in 1792. so he's in there as well and reallyayes who was new york's first policeman. scarlet: now, you mentioned the panic of -- why did you aftermath? >> because my main character, justy flanagan, father was found dead during the panic. everybody assumed that he shirt along with a number of other people then and had killed himself. waselieved his father murdered so he returns to new york after spending some time at university in ireland and also a little the paris police where he picked up some special skills and he's come

itk to find out who done and why. scarlet: there are a lot of parallels, obviously, to happened recently, to the financial crisis and the great recession and after the 2008 crisis here in the u.s., regulators made all kinds of rules to prevent the same things from happening again. panic of 1792 lead to any kind of meaningful change? >> there was a discussion it.t alexander hamilton actually sat down with thomas jefferson and said should we a framework around the financial system because we don't want these panics to happen every 10 years and a really long discussion about it and in the end, they decided that self-determination was a better way to get that trusted tod be actually manage their own affairs, to not every step, to not rip people off, to go beyond the bounds of what normal human behavior would be expected they balked. scarlet: and how did that effort go? >> we lurched from crisis to crisis. would say we've had a financial crasis almost every decade in the united until, all the way up 1923 of course, which is when they put the securities

act in place. scarlet: now, full disclosure, you and i go way back because we worked in hong kong together at news network, more recently you were a producer at marketplace, a skilled of complicated ideas that resulted in your first book man versus markets. much explaining did you find yourself having to do in this book? >> well, i did a vast amount initiallying bought then i found that the book was stuffed with explainers and it got in the threw 90% of that stuff out and really the central financial scandal in this book is essentially a ponzi scheme without giving too much away. even explaining a ponzi pretty tricky to people who don't understand anything about finance. so that's really the main financial scandal that we have because i think a ponzi egregiou the most egregious. mentioned heightened racial tensions earlier. one of the surprises is new complicated relationship with the slave trade and, obviously, racial

tensions between the irish and the blacks is something you explore in the book. >> so in 1799, new york state actually decided to a bill for the gradual abolition of slavery. it took another 25 years slavery was completely banned, but it meant that new york became a for escaped slaves and also freed slaves who were being freed all over the country because it was a place they could go and work because once they had been freed they weren't going to be employed anymore. theyneeded to work and ran smack into the irish immigrants who were coming across not in such large numbers as they did during famine 40 years later, but they were coming across in numbers and they were ofpeting hard for all those laboring jobs and, of course, that meant that you had enormous racial strife point.city at that scarlet: a lot of demand, not enough supply. i'm getting ahead of myself toe and i don't want you give any away spoilers, but how many sequels are you planning? >> three in the works. we're looking at four at the moment, but we'll see how this one does. there's definitely a second out, so that will be coming out hopefully next

year, and then i have another two that i'll be pitchish. we will see if they get bought. scarlet: you live in .os angeles >> i was told it's a good idea to start writing the yourself so you've got grabs on it when it gets cookish. i have a little bit of a start with that. scarlet: i look forward to seeing all the developments that come out of that. editor atior marketplace. what does the devil's half mile refer to? street, they called it that. it's not half a mile long, long. third of a mile but the devil's third of a mile doesn't have the same ring. scarlet: thank you so much. julie? julie: thanks, scarlet. up next, michael's take on regulators will approach crypt currencies. pproach crypt currencies.

julie: what did you miss? regulators are coming for crypt ocurrencies, but that's not necessarily a bad thing, the ceo and founder of galaxy digital capital management. spoke at the bloomberg summit. >> the regulators had to get involved so they are getting involved and they're doing what they're supposed to be doing. the first thing is wait a let's calm things down and go after fraud, let's go after market manipulation so the first things regulators going for fraud and market manipulation and it's a good thing. justicertment of talked about market reception with these indexes inflating their volume numbers. all true. and so we're going to knock out some of the crap from the system. i actually think it's healthy. there are bigger decisions to make, bit coin is not a

etheirium,ut they haven't ruled on yet. doughnutss to they will say etherium probably was a security, but anymore and they're stuck because they weren't ahead, there's this group of tokens that were issued, inbably 2,500 total, but reality probably 200 that mattered that are in this regulator no man's land and they've got to figure out how to deal with that and they're working on that right now. feeling is they're going to take out a law firm, they're going to take out a token, they're going out some of the promoters of these things just to say dudes you've got rules. by the but when we talk about going forward in the future they constructive at wanting to see this new and innovative way of financing of bringing liquidity and access to the general population that they never

had. >> we've made or you've made clear that you're -- and i've accused you of being a true believer, but are. at the same time, you trade this stuff. you reconcile those two halves of your brain? the one hand the part of mike who says i believe in this stuff it's going to change the world, to a degree, maybe not as much as the internet, but a lot and the other part of you that says that's a screaming short. >> you know, gravity is still gravity and market still work and so when you see things that go from an idea to $1.5 billion market, these guys have only hired three people. that doesn't make sense to me. probably doesn't make sense. sameo it's using the rules and understanding of market psychology that i learned over 30 years and to this newm market.

>> the ballet of the charts. >> it's the ballet of the charts. it's also just being disciplined. listen, sometimes, you make mistakes, you know. i own a whole lot of etherium and it started rallying a lot and i started selling some maybe too earl broadly, it has benefited me and our to keep taking chips off the table, to trade extensions and pullbacks, to really do work on which companies or -- they're not really even companies, they're ecosystems. which eco-systems do do we believe have a shot of sucking people into them? julie: that was mike with cryptoc talking breaking news crossing the saysberg, reporting that carl icahn has built a allergan.tion in it's unclear what his motivation is, what the size of his investment is. invested iny allergan back in 2016, and

he sold it back in the first of 2017, but he has a long history with the ceo of allergan brant saunders. time whenat a there's active interest in allergan. who wrote avid sternly worded letter to the board of the company on tuesday and says the sell some units recently was a half-hearted attempt to restore strategic momentum. does need a restoration of something. 30% overs are down the past year. they're getting a little pop on the headlines. youl continue to keep posted on further developments. scarlet: let's get you to the bloomberg business flash. a look at some of the business stories in the news right now. ubs eliminating jobs at its unit.management the firm plans to focus on growth in china and passive and sustainable investment. has learned that the smallest of the operating divisions already eliminated at least 100 in areas including distribution and about 30 of those cuts were in the u.s. passive, ubs strategy products account

for $310 billion, almost 40% assets managemented. mexico's plan to impose 25% tennessee whiskey could be bad news for the maker of jack daniel's. the biggeste of growth markets. it's hard to accurately forecast future sales because of uncertainty around the tariffs. mexico retaliating for president trump's tariffs on aluminum and exports. and jessica alba's honest a $200 is getting million investment from private equity firm l. catterton. the investment is for a stake in the baby goods and personal care retail company that was cofounded by the actress. size ofyet on the the stake. financialted as advisor on the deal. and that is your business flash update. joe: coming up what you need to know for tomorrow's trading day. this is bloomberg trading day. this is bloomberg

scarlet: coming up, the japanese prime minister meets with president trump house.white joe: then i'll be looking at economic data. initial jobless claims at 8:30 a.m. scarlet: and broadcom reporting earnings. that does it for "what'd you miss?." bloomberg technology up next. joe: have a great evening! joe: have a great evening!

chang in sanily francisco, and this is "bloomberg technology." a new data scandal brewing at facebook after the company revealed that shared user data with four chinese companies, including lenovo. we will get reaction in washington with congressman greg walden of oregon. tesla ceo elon musk gave a reasonably be -- upbeat