impose tariffs on imports. european leaders are challenging the president's trade policies, including the tariffs. >> the president of the u.s. has been tweeting. others think this is not the case. we will explain this fact by figures why this is not the right you one should have on this. mark: earlier today, the president tweeted the g7 summit in his words, "will mostly center on the long time, unfair trade practice to against the united states." reporting today, special counsel robert mueller has brought additional charges against president trump's campaign chairman and longtime associate, accusing them of obstructing justice. the new charges were unsealed today against paul manafort and constantine after prosecutors

accuse manafort of attempting to tamper with witnesses as he awaits trial. prosecutors have accused constantine of having ties to russian intelligence. the world health organization says strong progress has been made stemming the ebola outbreak. working the vaccine is and new cases have slowed. thedeath toll is now -- infected number now stands at 58 including 13 deaths. health workers are at high risk of catching the deadly virus. the boston mayor says his city does not have a partner in the federal government. speaking today at the 86th annual meeting of the u.s. conference of mayors, he sat down with bloomberg and complained about the trump administration's lack of involvement on several issues. what has happened in the past

is the administration and the obama administration would send secretaries to be here. you would have the cabinet meeting with us and talking about issues that pertain to the country. administration, we have seen one cabinet secretary in my time as mayor since the new administration has come in. mark: mayor walsh says president trump has not delivered on his campaign progress -- promised to upgrade infrastructure in cities like his. he says local governments do not have the money to do what is needed on their own. local news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪

julia: i am julia chatterley. scarlet: i am scarlet fu. joe: and i'm joe weisenthal. julia: with 30 minutes from the close of trading in the united states. stock adding to weekly gains. joe: the question is "what'd you miss?" scarlet: president trump rocks the boat at the g7 summit. he wants to bring russia back to the table. from one summit to the next, president trump will leave québec early and had to singapore for his meeting with kim jong-un. bringing the alarm on iphone demand. shares of apple and its suppliers falling today on report of a steep drop in orders for new iphone parts. julia: "what'd you miss?" president trump arrived in québec ahead of the g7 summit this afternoon.

president macron shared this with trump. that looks quite friendly, intimate. joining us from washington with more is shannon pettypiece. we have the president throwing russia into the mix the prospect of the g7 again becoming the g8. no shortage of contentious issues this time around. thisthink this suggests sticks with the pattern a lot of the allies are feeling where the president is more interested in cozying up to adversaries than our allies. little interest in the g7 meeting. he is more interested on north korea and focusing on that summit. and really has been putting a lot more pressure on our allies with the talk of trade then he

has on our adversaries like russia and north korea. scarlet: the e.u.'s president is that russia is less interested in this format than the others. given the current divisions +1,ween the g7 nations and g6 is there talk in the administration the united states might want to leave the g7 as well? shannon: i have no reporting to indicate that. the white house frames this is a friendsuarrel or we are and sometimes friends have disagreements. that might be true. but if you stick with that analogy, sometimes friends fight, they make up, and their relationship is never the same. there is the risk the foreign policy community is ringing the alarm bells on that we will not in that being mortal enemies, we

will always be friends and of the but the strength relationship of the g7 leaders has been trust. and these are the type of countries the u.s. can call up and ask for help with something, sometimes not in the country's best interest but they will agree to do it because we are partners and there for each other. if that trust breaks down, so much of this easy relationship that has existed for many years also breaks down. julia: that is the beauty of the strength of the united states. joe? joe: we have seen in the past trump show a willingness to attack people on twitter and in statements. then it seems when he is the same room with them, things get more conciliatory and he is less inclined to throw stones so to speak. could we see something like that where after this weekend is over it does not in that being as dramatic as people think?

shannon: he is certainly known to throw stones with people in the room as well as twitter or on the phone. in arson of a way -- in person of coming off as charismatic, interested, like he is your best friend. and he has no other interest then your best interest. you can -- he can come off in person much different from twitter. we are about 16 months into this at administration. they have had a number of interactions where they can start to tease out if this is someone with can trust or not. allies increasingly seem to be thinking the u.s. is not a partner they can trust. that is what we have been hearing from our reporting across the world. scarlet: good stuff. shunning pettypiece in washington. thank you. julia: you have a point. what is ultimately achieved at

this meetings -- these meetings? a great photo opportunity. having russia on board would not hurt. scarlet: policymakers across emerging markets have cautioned the federal reserve to keep their economies in mind as the fed gets set to raise rates again next week. one country with questions looming is israel where the governor's term ends in november and his reappointment is not certain. joining us is shai babad. >> good afternoon. morning. jet lag. scarlet: let me ask you to clarify the situation with your central bank's governor. are you looking for a new central bank governor? if so, what kind of candidate are you looking for? >> that is action prime minister

benjamin netanyahu will have to take. i think they will start looking up a governor in the next few months. she is finishing her term in november. i think it will be up to them to decide whether she continues or they find a new delegate. scarlet: that she stand -- does she stand a chance of getting renominated? >> you would have to ask the prime minister. julia: you have been critical of the extra spending and tax cuts, worrying there will be little firepower. do you argue against that and say this is a great time and why? >> that has been the argument the past few years. she was concerned our deficit would grow with tax cuts. when wend of the day see the 2015, 2016, and 2017 results, in those years we got a much better deficit. we posited 2.9% deficit. we finished with 2.1% deficit.

we have seen growth raising. we just adjusted our growth percent tofrom 3.2 3.5%. policy is showing you can keep a low deficit and promote growth. saying the central bank is wrong? >> i am not saying whether the central bank is right or wrong. used to spend a lot on defense. in the past, we changed the policy. expenditures are going to health, education, welfare, and transportation. those are things the governor would like to put attention on. she thinks that should come from increasing taxes. we have managed to show we don't need to increase taxes to increase those expenditures. we can spend more on civil expenditures and get growth high. macrohere are two big

stories affecting economies around the world. one is concerns about rising trade tensions. everybody is potentially exposed to that. and then the ongoing federal reserve hiking cycle. we are seeing emerging markets all over the world having to respond to that. how concerned are you from the israeli perspective about those things? >> i'm watching them closely. it is early to say how that would affect us. states, israel is not the biggest trade. china is a much bigger player than us. we will be watching what happens with general trade. we will try to adjust for that. you have to make israel and attractive investment for outsiders. you were in omaha this week speaking with warren buffett pitching israel. tell us how that meeting went. julia: and successfully raising

money. >> that was yesterday. trying toyearly event raise money for israeli bonds. warren buffett is kind enough every year to host an event for israeli bonds. last night was the event. there were 80 guests. we managed to raise $80 million, they successful. we got two very fascinating hours with warren buffett on a .&a session to get a perspective from someone who is 90 and started to invest when he was 11, imagine when that was, it is something amazing. joe: what was the most interesting thing you learned from him? >> one of the most interesting comments he gave is that if you want to succeed in your investment, you have to invest in companies in which people love what they are doing. it is all about the people in those companies. if you want to invest in a company, it is not always the

brain, talent, or level of technology. it is how much the people in the business love it and are passionate about it. i thought that was interesting to see how much he gives value to who the people he invests in. scarlet: is a huge investor in israel -- he is a huge investor in israel. famousas a very quote in israel. he says if you're going to the middle east looking for oil, you can skip israel. if you are looking for brains, it is israel. cybere 15% of global investment in israel. a lot of great things happening in israel. foreign investments are increasing in israel lately. we also have the natural gas we found.

components of those are things that will make our economy even stronger. director ofi babad, the ministry of finance, thank you. very two days for him. up, the baltimore mayor joins us to talk about issues facing her city and how a federal infrastructure bill could change that situation. from new york, this is bloomberg. ♪

scarlet: baltimore is a city with potential and problems. was home to almost

one million people and a booming steel industry. deindustrialization has hit the city hard. the population has dwindled and the riots of 2015 are still a fresh memory. catherine pugh is the mayor of baltimore and is at the conference of mayors and joins us now. thank you for taking the time to speak with us. in may, the city lost its third police commissioner in three years. i know you are in the process of searching for a permanent replacement. give us a sense of how much patience whoever gets the job deserves to turn it around because they would have a lot of things to solve. >> i want to be real clear because i have hired one police chief. one was there when i got there. one had a problem with the filing of the taxes and would still be there otherwise. it is a challenging city

reducing violence. working with the previous police chief and the one lego, we have been focused on reducing violence since i have been in office. in november, we created an initiative. we have been reducing violence every month since november. we had an uptick in april, but almost a 50% reduction in may. overall, about a 24% reduction this year. scarlet: you have been forming a seven-person committee to assist you in searching for the replacement. what is your number one requirement for a police chief? >> one, that they understand the city is under a consent decree. two, they must do constitutional policing. three, they have to create a community engagement process and proper diversity training that allows for more community input and that we develop a relationship with our community that creates a public safety environment. joe: mayor pugh, turning to the

national situation, there was a lot of optimism among some people when president trump came into office that we were going to get some big infrastructure plan. it seems like people are not optimistic about that happening soon. someere were going to be serious push to infrastructure investment, from your perspective as a sitting mayor, where could we get the most bang for our buck? >> let me say i think there is still optimism around opportunity zones and infrastructure dollars. i always brag i was one of the first mayors who prepared a letter for president trump before he was president, right before he was inaugurated, when he came to baltimore for the army/navy game because i heard him talk about infrastructure needs. our city is under federal mandate to fix its infrastructure, particularly as it relates to the water system. they have created this

opportunity zone. you have to prepare those. just being here in january, learned a lot about the opportunity zones. baltimore prepared its package that had to be submitted to the governor. of the 44 neighborhoods we submitted, 42 have been designated as opportunity zones. that we are not waiting for that. -- but we are not waiting for that. thanks to the approval of the city council, we have created a 50 late dollar investment fund to invest in communities in our city that have been underinvested in for decades. our goal is to expand that to about -- attract investment of about $200 million a year for the next five years to create a $1 billion fund so we can refocus investment on neighborhoods and communities that have been underinvested in. julia: i read an article recently talking about the chronic absenteeism of children in schools. i know you have challenges with

population size. i wonder how you tackle something like this which is fundamental not just to funding but also about the future for the city. when you have got a problem with education and those not attending schools, how do you rebuild and prevent a further decline at this stage? >> i should say to you the first thing you should know is being a state senator, i last year being a state senator, we brought back $1 billion to build new schools in baltimore. we are on pace to build more schools in our city than the entire state of maryland. i don't run the school system because we have a c.e.o. i work cooperatively with the school system. we have made baltimore community college free and baltimore. and now, the entire state has done the same thing. we were projecting would have a couple hundred young people wanting to go to baltimore community college.

there are over 500 currently. we created a jobs fair for our young people and have 100 companies that employ our young people. we are trying to create a culture of not just caring for our young people but helping them to see the path forward to a brighter future living in our city. we are creating apprenticeship programs and working with our school system to make sure they are accountable for every youth in our school system. not just in terms of them being present but in terms of the latching onto opportunities available for their future. scarlet: we started with crime which is a big challenge for the city. julia mentioned population and education. what is important to remember is all of this is happening against the backdrop of a strong u.s. economy. my question to you is, what happens if the broader u.s. economy weakens? where does that leave baltimore? >> that is why we created our

own investment fund. we are looking at what we can do as a city to get private and public partnerships that will work for the future of our city. as a result of the fund, we believe we will be able to attract private investment, philanthropic investment, because we have so many assets in our city. when you think about baltimore, you think about the inner we think about the need for more affordable housing. when we look at what we are doing, not waiting on the federal government or the state but creating a private pool so we can continue to move our city forward. julia: we wish you the best of luck.

catherine pugh, mayor of baltimore, thank you for joining us. from new york, this is bloomberg. ♪ om new york, this is bloomberg. ♪

julia: it is time for the bloomberg business flash, a snapshot of some of the biggest business stories today.

they are holding discussions with the touchpad technology company. talks may not lead to an agreement. it has a market value of around $1.4 million. synoptics is valued at 1.6 boeing dollars -- billion dollars. sent a electric reassuring message to investors. the board has announced a $.12 dividend. $120 billion in market value in the last year. stitch fix continues to soar. the apparel company jumped 14% today after reporting earnings that beat across the board. they have added a new product line for children. customers asks

about preferences and builds a wardrobe. by share price has doubled the end of december. that is your bloomberg business flash. this is bloomberg. ♪

♪ >> stocks in the week in the

green. the u.s. majors, penalty in the lead -- technology in the lead. in live onre tuning twitter, we want to welcome you --your closing the coverage closing the coverage. -- closing bell coverage. >> u.s. stocks made their way higher as stocks closed up about 71 point in the s&p 500 added 3/10 of 1%. the nasdaq has been on fire overall with the big cap tech stocks. overall, a return to low volatility.

>> you have nine out of 11 rising. energyrgy -- only declining. let's start with apple. itses of apple and newliers falling after iphone component orders. able big and later, but it raises a lot of questions. the newest devices will be released later on this year. we also want to mention broadcom. recordedr broadcom second -- second earnings, yesterday to my attention focused on its wireless business . by about ares up third of 1%.

even as the company's rivals have these megadeals. a lot over who would take over verizon because lowell mcadam who is a year from his 65th birthday will retire. >> kind of a quiet and to the week. today, really quiet on the front. 2.94,r gilts picking up but again a couple of weeks ago, we were all over. >> let's take a look at currency land. euro, ecb decision and

whether they would do it by the end of the year. have on track to gain around 1%. the question is can the euro-dollar continue to strengthen and i will talk about which gives you the sense of which options market. also want to point out the euro swiss as well. on whether the missions central-bank has sold authority over my supply. what eventually up in banks, but a little bit of a risk they're playing out. i mentioned the risk russell and i just want to point this out.

what does this say when it indicates the added premium to protect against the euro downside dollar heading into next week and this is what this chart is telling you. the one-months risk reversal which is what this is telling you. quickly, i would just take and pull up screen the performance from the last five days. you can see this week the south underperforming. i want to point out in light that the help the argentine peso has got, it has reached a record low.

of chart gives you a sense the weakening we have seen here and we have seen the central bank after securing that $50 billion deal. it is a record low. let's look at oil and gold, very quiet. tex down about half a percent. it will be pretty interesting to see how that does to see whether the downdraft and the. those are today's market minutes. ramsey, bring in doug chief investment officer and he joins us from minneapolis. great to see you again. maximum now moved to a

defensive position and there are a lot of headwinds for investors to contend with, but it seems like we are back to 2017 the s&p 500 is back at its highest since march of 2018. why is it that u.s. stocks seem --ilient question mark resilient? still think that seems to be the investor focus. 2017 was counting these excellent earnings and we thought it might have been realized by now were people who ahead this one year ramp up because of the tax cut and begin that.k beyond i think you will begin to see that over the next the munster. the question is going to be what is coming after that. you might remember the big caterpillar earnings.

they did walk back that statement, but i think we will see more that later in the year. the focus is a return to the decline in liquidity. it is more economic liquidity that the economy has accelerated . , the stimulusme is being drawn pretty rapidly. below nominalcent gdp great it is this liquidity we are very concerned about. >> your argument people are going to put money into factory -- factories that could of gone into stocks? factories --h into

it is just the notion that there is a draw on this liquidity pool at a rate that hasn't been here throughout this expansion at a time when money growth is the slowest the been. liquidityg about the already in place, let alone what the major central banks are planning. they have been known in times of duress to blink. it is not like we have paul volcker in charge of the fed. there may be changes in store him of of the liquidity drawing place is already significant. >> historically, are there any beer examples that prove to a detriment for the market? -- detriment to the market.

>> absolutely. the 1980's, the accelerated for much higher levels. low hasthe 1987 her been overplayed, but 1962 would be an example. there are a number of what you could call major economic triggering orut having been associated with a recession. 94 was not a severe decline. maybe something like that could be in for. that was clearly a big liquidity ratese as rate doubled -- doubled. being stimulated from the european center bank. japan is still investing and

likely to continue to invest in their economy and the united states, we are not seeing characteristics of late cycle behavior. it is hard to be optimistic. >> the bread in small caps are a conundrum. you expect to see small caps underperformed in a cycle economy. we are really getting the reverse. is aame time the market distraction. -- breath within the s&p 500 is very poor. stock in the s&p is

only up about a quarter of a percent so it has gotten to be this heavy market within the large caps. netn't make argument for and small. keep in mind, the bulk is in the 600.00 or it is very unusual. it is not typical, i will grant you that. chart that shows the moving day average currently at just over 68%. theant to get back to abnormality of the small rise we are seeing whether it is trade, the u.s. dollar, the impact of tax reform that is favoring some of the smaller caps. this is not a normal cycle by any stretch of the imagination. is that the reason you think #>>

i think there is a lot to the argument that small companies have had higher effective tax rate don't have quite the sophistication and operations to allow them to drive down the tax rates. on the other hand, i don't buy the trade argument. even a small cap company can be heard by some of the tariffs. if you have steel or aluminum in costprocess, that is a big increased you are absorbing. i think that holds the most water is the fact that small caps have benefited disproportionately from a tax cut. even in the one quarter we have books, you can see it. >> i want to wrap up the

conversation. , where areof yours outsideing opportunity of u.s. secretaries? -- equities? we like the financials. we have a fair amount of consumer discretion. i agree there is better value weside the u.s., but instead have aged that exposure. most pushed into commodity. we also bought some aluminum and goal this week. i think we are looking to increase across commodities. you are moving into this tighter environment in which commodity

should outperform stocks over the next couple of years. i don't know that means they go up, but they will be better when stocks do. >> makes perfect sense. great to chat with you. doug ramsey, chief investment officer. coming up, apple's core maybe under pressure. worried as well. this is bloomberg.

>> leaders from the group of nations arerialized

holding a summit in canada. the meeting comes as u.s. allies are dealing with a trade dispute blame on president trump. he insisted that russia the into the group. ratedth the highest ministers today held its first full meeting, the government of 12ro sanchez is comprised of females and six males. thes said to be one of fastest changes in the country.

-- erdogan-year-old -- the 31-year-old was indicted on a charge of involuntary manslaughter. a special prosecutor said today felonyl not refile a invasion charge against the man for allegedly taking an unauthorized photo of a woman. this comes a week after allegations of personal and political misconduct. officials dropped the second felony charge and accused him of using a charity list for his political campaign. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries.

>> apple shares fell after reports the company introducing orders for iphone components. let's bring in from san francisco. from san francisco. one japanese newspaper reporting cuts to suppliers. it puts us back on this roller coaster of various decide where we are. -- sometimesyou these things do tend to the a precursor of what happens down the line. >> when i saw the headlines, i

was like didn't we just do this question mark -- this? what is new this time? >> i don't know if there is anything new, but there are andctations versus reality if you remember what tim cook won the superne x bowl, but not by as many points as we wanted to. we are talking about expectations here. >> you have decades of experience covering chipmakers. applet extent has increase the number of suppliers over the last three years. we talk about how they have lots of levers to pull. chip industry has

consolidated and they have been reduced by doing more of its own chip design and specifications and that gives it leverage. in terms ofworld variety has narrowed. --ian king and san francisco in san francisco. >> we reviewed this report. review this report. >> coming up, why he should take a massive global crisis. this is bloomberg.

decisionpation before

next week. they are filled with pressure from the emerging markets. jonathanspoke with ferro earlier today to the spot -- discussed the impact. asset class is prone -- >> this is a class were crossover money overwhelms the dedicated money and went crossover money decides to exit which is happening these days, then most of the countries are impacted. influence that we are seeing. it overshoots on the way up and on the way down. >> are the fundamentals ok? the fundamentals are mostly

ok, but you can't trade just on fundamentals. facingor question investor survey is where is the said breaker? for some, the hope is yesterday's announcement of a package for argentina. the hope is that acts as a circuit breaker, but i suspect there is quite a bit of money in the trade. >> the other hope is that the federal reserve somehow steps in. given the rapid rise of the u.s. deficit, the fed must respond and if it does not, treasuries will absorb is inevitable.

does the fed have a role to play and why attention now on the fed's balance sheet? because it isy shrinking and it will continue to shrink and that is happening as the same time that the deficit is getting larger. typically, to emergency economies and you are healing -- hearing from india -- emerging economies and you are hearing from india. warning that it is not going to change the fed's behavior. the fed is guided mostly by u.s. factors and it would take a massive global crisis to change the fed's behavior so i understand what they are saying.

it is consistent with what they have been saying before, but it is not going to change the fed's reaction. it will depend on their own shop assurance -- self-assurance. was mohamed el-erian. -- he has confirmed she has met with bob. she said they did discuss nafta. -- now, it is tough to see any progress as far as the negotiations are concerned and the president is talking about bilaterals in terms of the progress going forward. theext, north korea and

looming his sort summit. this is bloomberg. -- historic some this is bloomberg. -- storks summit historic summit.

gaza health officials say at least for demonstrators have been killed and six unders there -- six others during the gaza-israeli border. today's demonstration was the latest in a series of protests. wereal palestinians similar to those. the united states has pulled to more of its workers out of cuba and are testing them for possible brain injuries.

there have been 24 confirmed pins. facebook executive sheryl sandberg did not shy away from a commencement speech. she and said turned about accountability and urge new responsibilityke for their actions. >> when you own there mistakes -- or mistakes -- we will see it through. warned that even technology created with the best intentions can be twisted to do harm, a lesson she says hit close to home given some of the

issues facebook has had. president trump says he supports marijuana.of the legislation would give states the right to determine the best approach to marijuana within their borders. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. recap of to a market action. the nasdaq trailing a bit here, gaining only 1/10 of 1%. buteally wasn't next day,

they've had such a strong run they are clear out performers. jong-un and president trump happy from petty on salts to sending letters -- petty insults to sending letters. here is what we can expect from the summit. great to have you with us. the president said something in haslast 24 hours that he entered from this summit all his life. that concerns me with the expectations he has himself. >> the risk is present trump is overconfident. as we were talking earlier,

there has been such a dramatic makeover in kim jong-un's attitude and now that has all .eta the way -- faded away we have gone from my blood to maximum engagement. the question is, what is the motivation? of your this concept imaging. we don't understand why he is --ng this, although i see the danger is the trump or someone else could not be understanding his motivation. hasourse, north korea so there isterests,

a risk there could be a misreading of north korea's intentions. >> he talked about the iranian nuclear deal and it made me think of that. because heesting said he has been preparing his whole life. he also says he does not need to prepare. in the meantime, mike pompeo says he speaks with the he isent every day and prepared. what will you be observing to gauge just how well the president understands and? understands? >> president trump did say it is not going to be a one-shot deal. .t will take some time

the libyan model is actually good because it is the first time a state sponsor of terrorism gave its weapons of mass instruction without regime change. theou just can't call it libya model. what happened to gaddafi at the end. critics of the administration say there is no competent because basically this is what can dongguan -- kim jong-un has wanted. they have not given up anything yet and all we had is trump agreeing to the meeting. is that fair or poor has their been something that has been accomplished? yet.would say not

however, i'd say that is premature. officialsr military with u.s. have said they are very skeptical. they have broken the armistice , but really the question is strategic choice of north korea seems to be making. we won't know until negotiations take place. that's how do you tie them down to meaningful -- down inyou tie them to do you see the sanctions that have been applied, it feels like north korea has no choice but to come to the table.

>> that is the way i look at it. i think sanctions were the noose tightening around north korea's and. -- north korea's and i -- north korea's snack. -- neck. by not testing, he made a calculation that the cost exceeds the benefit. he has achieved that and moreover, is he receiving a reduction? china has resumed flights, so kim jong-un has already a thing started to read and if it's. the u.s. and south korea has not yet, but the south korea and china, they want complete

nuclear the fluoridation -- the denuclearization. >> how do you define it? past, removing deterrencee terms -- and also north korea being part negotiation.nal i understand the metaphor would rootsling a we out of the roots. out of the

theek after announcing denuclearization and within a month, the u.s. was taking stuff out of libya and the economic benefits came right away. just can't call it that. up, senator chris van hollen is here. to ourminder, subscribe weekly podcast. ?t is called what you miss some of our favorite interviews from during the week as you get a chance to read listen to them. >> perfect for your commute home. >> this is bloomberg.

unit deal toof the resurrect cte -- zte. chris van hollen is one of those speaking out against the deal. you withgreat to have us. just talk about the amendment you are trying to achieve here. it is great to be with you. to read that a clear the secretary of commerce is a retroactive april when he imposed a very harsh penalties including restrictions on exports and of course the

president tweeted out that he e and chinese zt workers. prohibit ant would federal agency from buying their products and reinstating the full penalties on till the president made certain certifications going forward. clarify what those certifications are? >> they would require the president to tell congress they have not violated u.s. law for more than a year. we don't think that is asking too much. toill limit their ability jump into this deal. and secondly, to certify that they have been cooperating.

not only were they caught and penalized at first, but then they were caught again working behind the scenes in the obvious way to undermine the u.s. sanctions policy. if we catch countries for violating our sanctions, it undermines all the sanctions against iran or any other country. deal -- iturrent stipulates regulators or they arent personnel not going to do that stuff in the future. is that not enough or why do you think that would not be enough? >> it is one of those here we go again situations.

and pledgespromises in the past. one of the folks that they decided the board is someone who came up -- came from a previous entity that was found to have violated u.s. law, so it doesn't seem like they are serious and the reality is the secretary commerce new he was doing the right thing in april and he was surprised as anybody when donald trump decided to reverse that. we saw it under a great degree of pressure. it is going out of business part question mark are you willing to see the company collapse?

cost? are you willing to see the company collapse? they essentially thumbed their noses at united states government and i don't think we should reward that behavior in think the deal that was struck does reward that behavior. i don't think it is asking too much to require a foreign entity to have complied with u.s. law before they get let off the hook the sanctions are lifted. >> what is the biggest plan to secure technology from the united date -- united states.

? issuere is a lot larger with respect to china essentially stealing our technology and 14 u.s. companies to do business and share technology, but that is not part of the deal. in fact, secretary ross said what you see is what you get. there's no sign there are greater concessions. if this was related to a larger agreement on national security, that would be one thing, but it appears that the penalties were as some kind of .argaining chip on other issues who knows what it might have been? you go down a very slippery slope when you start

trading off national security priorities for these other related issues. see no evidence that was once agreement. -- i think he has. when you are serious about a sanctions policy, you need to implement it. and then tried to sneak around again and then say we are to have these harsh penalties and the later they were going to back off those sanctions. it sends an awful signal to the rest of the world and undermines our credibility. >> senator chris van hollen,

great to chat with you. alexander at last ovechkin gets to raise the stanley cup for the washington capitals. weekend sports coming up. this is bloomberg.

>> across eyes, would and grass, championship season is in full swing. alexander ovechkin brought home the stanley cup for the first time. golden state is looking to sweep the cleveland cavaliers tonight. let's start with the nba finals. this has been stellar ratings despite the same two teams the past four years.

when ratings are going down, the nba has started to raise the bar and this year fact different despite the it is the two teams. regardless, people are watching and continuing to turn on the tv. tonight is if the warriors do sleep, this could be --ron james is -- suite sweep, this could be lebron just as last game in cleveland. if it winds the triple crown, it would be the 13th horse to do so. and thenpened a lot

there was a huge drought. there were people crying but there were horse fans who felt they would never see again. question, you begin to how rare it is, but if you think about all the stuff these, there are a lot on the line. a $25 million bonus if he went the belmont this weekend. cupext week, the world begins. what are the main storylines. i know here in the u.s., they did not make it. there are american fans who are realizing for the first time, i

will not see the american teen at all. here in the u.s., the big story might be the battle for bilingual viewers in the u.s.. both networks taking over. the the u.s. team is not there gives telemundo and edge who are coming in to watch argentina or the mexico team. a massiveoader, it is event for corporate sponsors media companies around the world. just look at the battle between nike and adidas. let's talk about what happened last night. endedshington capitals their drought. obviously, the big surprise is how well the vegas golden

knights did. i know you spoke to the president of the vegas golden knights. >> the golden knights have been a fantastic story. people focus on the fact that they had to create their team out of the castaways from other teams. take --e inner entertainment capital of the country. it is a spectacle in vegas in a way that it is not elsewhere. >> thank you so much. this is bloomberg.

♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." of apple suppliers are once again in focus after nikkei reported apple plans to cut orders for components by a whopping 20% purity -- 20%. facebook's sarah samberg -- sheryl sandberg testifies in europe. we will talk