from past administrations usual practice of avoiding monetary policy out of respect. a fed spokesman declined to comment. officialopean union says president trump is trying to divide over trade. juncker urged them remain and looked to ease tensions instead of escalating them. >> we should not dramatize this. i'm not sure that we will find an agreement. mark: juncker is scheduled to

meet with president trump this summer. president trump will have a replacement for anthony kennedy october. he will not ask about specific cases or rulings. a full and it vote would follow after labor day. spain's government will allow its nine high-profile separatists in custody. the path is clear to move the prisoners. a judge investigating their role said that they did not mean to remain in prisons near the port in madrid club is 24 hours a day .

i'm mark crumpton, this is bloomberg. julia: live in new york on julie chesley. julie: i'm julie hyman. julia: 30 mins from the close of trading. stocks in the grain, typical lead. miss? what'd you a warning from an american icon. protectionist measures could cost jobs in the u.s.. and decision day four of the spell --ner, it could what it could spell for market friendly policies. kari shared hikes,

his tips and tricks in an unusual cookout with joe. julia: another iconic u.s. brand saying the america first agenda may mean less made in america. general motors echoed the a stern warning. they could be forced to reduce up actions and cut jobs because of the impact of tariffs. david welsh is here with the latest. one analyst said it was a thinly made statement and this is more pr. >> this is an as direct as harley davidson.

because of retaliatory tariffs, they would have to move to a different market. directt giving it that cause and effect. they say a chain of a vax could happen here. bring up prices, bring down demand, gm has to employee fewer people. it does not quite like harley but close were gm it is a direct statement. takenave not really public stands, if any opposing the president. have a feel for how many vehicles are talking about? you're not just talking about finished vehicles, you are talking about parts that go into vehicles. what can you tell us about that?

about fromtalking mexico alone, 800,000 vehicles. aided of the vehicles are actually sold in the united states. convertibleuick they get from china but you are adding it up and you are getting a million vehicles. that depends on how trump would structure a tariff. vehicleshe number of from general motors you are talking about. still a significant number coming into the u.s. by comparison. harnesses, a lot of that is done in mexico because it is labor-intensive work. most car companies are getting electronics from china. that is important.

those are high-value parts. the vehicles. to you are probably talking about every car built here. most of the vehicles are carrying asian electronics in them. tariffs,of tara -- that is the problem with the policy. presumably the president's response would be just build them in the u.s. instead of lay them off. should you be shifting capacity from mexico to the united states? gm is not considering that option. >> that is the option everybody wants to avoid. you are talking a billion dollars. it can take a couple of years to

get that built. that is a major undertaking. we would rather spend money developing autonomous cars. they do not want to be completely re-erecting factories for the nuts and bolts part of their business making money. longer-term, what is the biggest concern? is it what is going on in the united states? the risk of greater tariffs or restrictions will damage them? >> the biggest concern is nafta. abouthe president talks the investigation, higher tariffs, will there be a nafta exemption?

vehicles,ropean made it just depends on how he does it. they get so many vehicles from mexico. a pretty significant number from canada as well. , does chinaoncerns retaliate? most they make in china. do they make things with regulations that affects how gm does business? this is largely a chinese american company. they get most properties in the u.s.. that is what they have to protect. julie: that shows why they are making this kind of direct statement.

we speak with republican congressman as the house failed ofpass the overhaul immigration three blast what comes next in addressing security and family separations at the border. this is bloomberg.

julie: the issue immigration is not going away anytime soon push, aa presidential defeat that leaves president trump's wall unfunded with no plan for how to reunite families separated at the border. by more coal we are joined

jeff, great to see you in person. thank you for coming in. is congress going to do anything? there have been several failed starts. trye have seen both parties to tackle this. only to see a number of different failures. for the dreamers, for daca, for the executive order, we blew by that. now there are a number of court decisions. over the next two weeks before we get a chance to take up this issue of kids being separated from their parents we have two weeks to go before we will be able to get some thing on the president's desk. it was a failure. messagehe president's was don't bother.

do we lack leadership trying to get something done in the short term? >> there were several mixed messages. the president supported this. it is much of what the gang of eight bill had a few years ago. for whatsimilarities democrats of always supported a we have a bigger job to do. one of the positive things, had a majority of house republicans that supported a pathway for dreamers. i thought we did move the ball forward but we had some timelines that will force us to do our job. >> do you think politically, that the president has turned this from a benefit to disadvantage, for the republican party, he got some support during the election but now with this issue of separating

families it seems as though not only is the other side mobilized , but you had a number of republicans who came out against the policy. >> everything happens either with a deadline or result of a lot of pressure. i think we're going to see a lot of pressure. we are pushing to get policy enacted that would keep family units together. texase card decisions in dealing with dreamers and whether or not the dock executive order is constitutional. there are a lot of tread through the summer. we have to get our job done. i'm hopeful we will pass a narrow bill next week. >> i want to talk about the trade situation. response, we heard from

gm today saying if we are , iting at import tariffs could cost u.s. jobs. this is pretty unusual for a company to be so vocal to the u.s. a administration. are we worried? >> i think it is rare for gm to .ome out earlier there is a lot of questions of concern. we have had some trade imbalances. we should be addressing those. we export the greatest percentage of our crop. are we handling it wrong? >> there are issues we have to address.

fixed ands to be updated. we are taking on a lot of different things at the same time. it would be nice to negotiate one and get it done. a former u.s. ambassador to canada was upset of the tone the president has taken in regards to canada. he said republicans are frightened of the president. do you think that is true? >> part of that is patience. on balance on a lot of this trade. part of it is patience but as any business owner we want uncertainty -- they want certainty in the marketplace. we are not sure what type of imbalance will be created in the

future or if there is going to be a short-term penalty that we as other countries are reacting, especially our strong allies that we do so much with. it is uncomfortable sometimes. julia: what are your voters clear constituency saying? are they afraid of the headlines they see and the risks, or do they think this is getting it right? economy.nly the the booming economy is going well. there was a lot of ads being posted in my district about the tax cut's. people appreciate the tax cards, blue collar area. from that perspective the economy by get positive response about that. even on a friday night, very visibly, when the question came heardout steel, people

all of our aggregate commodities that we export, automatically a lot of questions came up about that. we are talking but other countries and other items but there is concerned. well, in your district as you must be hearing a lot on immigration. you have workers there who are immigrants. >> immigration is always the top issue. these are dreamers that go to school with our kids. some are family members. dealing with the shortage of labor you start shutting down is onlyindustry, that one issue that would be close to that is water. seen we have had devastating crop loss because of water shortages. that heow are concerned goes to the democrats in light of all of the issues we have been talking about, taking on too many countries, impacting

certain areas. >> right thing -- right now things are going well for us. elected to lead. i would expect us to get more accomplishments between now and the election. today's politics, the issues change daily. sometimes quicker than daily. we used to deal with new cycles with the same issue for months. it is hard to predict right now. julia: we get the message. congressman, thank you. what'd you miss. leaders negotiated to find some way to deal with the flow of migrants into the eu block. what happens once they get there? maria has the latest. talk about what we have seen in the last 24 hours. they were talking until 4:00 a.m. to thrash out some

statement. what planned we have now for the migration crisis? >> it was a very long night. morning, they would veto the summit if they did not get the migration they wanted. this is what we have. takeaways that have agreed to set up migration centers. the focus as they that migrants with those who qualify for asylum could stay in europe. those who do not going to have to go back to their home countries. sharere going to have to the distribution of migrants to avoid and make the effort. this was key for angela merkel. she had to get a deal. she has one. a bilateral deal with spain. germany is going to send back

migrants. again, it is a deal that there are still questions as to how you will implement it in real terms. merkel did get a deal after all. julie: is that good enough to save her politically? she came in under a lot of pressure into the summit. some of her partners say you have to get strict on migration or we might have to pull the plug on the government. she has that deal. she can present something now. now the question her rivals are going to have to ask, given the tension, do you really want to destabilize germany and bring merkel down? that isn't the smartest decision. hopefully merkel might have saved the situation again. julia: this had certain countries more than others. germany had a problem. in terms of entry, italy and

greece in the firing line. is this a win for the first meeting of the italian prime minister who came in sounding like a firebrand, that he didn't want this done here. >> that is right. this was the new populist italian government. it essentially he said i'm not going to sign this document if we don't get this comprehensive deal. the italians are happy. this one line says if a country feels overwhelmed by the flow of migrants the other countries have to pitch in. that is a reference to italy. takeries like spain was to a more active role. the great premonition says we will have to closely cooperate. maybe that involves an actual help. will this solve the problem question mark it doesn't look likely. but we have to keep in mind the cultural issue, the numbers are down. the political crisis has

escalated. great point. thank you so much. new york, this is bloomberg.

julie: time for our stock of the hour. , costser of corona affecting earnings and margins. joining us now with more, taylor riggs. >> this is all about a margin store. the problem was down on the earnings per share. if we look at margins you see the problem in the first quarter, margins fell, it will capture that operating costs there. down to 35%.

a margin compression story that has analysts worried. , g tv ,resting they are not the first company to talk about rising shipping. which is what is hurting them. those companies are charging an extra 30% for those long haul roads. kellogg, tyson, and constellation brands. this as you can see, really affecting them. want to solve it has per tatian problem, they are trying to diversify into a marijuana company. it is been successful. other companies looking at the road to create a marijuana infused beer. julia: there's always blockchain.

>> marijuana has done pretty well. the market closes next. here are the major averages. less than four minutes to the close. we are taking a leg down into the close. this is bloomberg. ♪

from some ofk their gains. every are tuning in live, weekday from 4:00 to 5:00 eastern. the marketart with minute. swing ineen this recent days. a dramatic reversal from the highs. a 10th of a percent.

energy, materials positive on the day. nikeidual stocks, record.g higher to a wells fargo returning cash to shareholders. largely, we saw a rally in bank stocks. warned itral motors might shrink its u.s. operations .ecause of the import tariffs finally, we were talking about constellation brands.

lowestmpany missing the estimates. and looking at bonds, it was pretty mild. we continue to watch the yield curve. the flattening trend pretty much intact for its biggest gain. we were just talking about the .igration deal we also have the canadian dollar stronger as well. expected and than hike frome to price a

the central ring government earlier. we saw sterling higher as well. it is cited as a reason to buy sterling. tumultuous few weeks. it is month-end and also the first quarter in.

let's go ahead and talk about commodities as well. we want to show you the gains we have seen. there are supply disruptions in canada and the as well. the faculty have the united states saying they wanted to see , what else exports is going on? the dollar may be the first choice. as you can see the pressure is not stopping.

as you can see, the three-month basis still down 1.3%. bust in the bank space. lining inuest over .he space .t is nice to see you the long slide was followed by a rebound. focused on value investing. found a lot of value in financials in recent months and we think they are poised to benefit. .e pick our spots one that we own is our former employer.

is over book value. i still think it will be healthy in the double digits. makinggoing to start money again, investment banking and a shared business. capital return will all be good for goldman sachs. lot about talked a the community banks. ?o you see value there banks, it the smaller would not surprise me.

we have small bank exposure as well. >> there is the problem of the flattening yield curve. how much of a challenge is that? a for financials it is headwind. that is certainly not a positive. our base case does not suggest a market curve. it is awfully flat now.

>> it very much ties to all the risk we have been talking about. just talk to us about your thinking there. much bottomry investors. and say get in the way we have to be close to that. to guess we are probably 6% or 7%. own is ast company we garbage company.

it succeeds by picking its and it very carefully requires smaller competitors. they are small enough that it moves the needle for them. >> coming up, reeling a perfect state in timing play hikes just right. -- and timing rate hikes just right. this is bloomberg.

council president says cooperation among eu countries on immigration policy is easy compared to the task of implementing it. holding includes holding centers for outside. messageve sent a clear law they must respect the and must not of struck me operation of the libyan postcards. >> intake centers could be built anyuropean soil and

resettlement will have to be voluntary. -- the 61-year-old becomes the second director general not from the united states since the organization was founded. juncture at a critical there will be a conclusion on migration. beens tennessee have clouded by migrant family

separations. the libyan army delivered a two soldiers loading trucks and the cargo being carried. food, andes included medical clinic. last victims of the storm -- killed 68 people in texas last august and forced nearly 65,000 from their homes. global news 24 hours a day, powered by more than 2700

journalists and analysts in over 120 countries. >> it started with a tweet. to bragto social media about his grilling. interview. he shared tips for grilling steaks. >> the challenge is have you get the meat well-done on the outside. i saw whole reason is this. i think everybody wants to

enhance transparency so we are looking for more ways to do it. see as the value? >> i think it is a low-cost way to engage people. once it is done there, i put it on the hottest that i can. go ahead and dropping. i'm going to set the timer for an hour and then we are done. >> is there a point where you question the premise of the idea. in a recession economists raise unemployment.

conclusion is i don't think it is useful to ratchet up because we are so reluctant to lower it. we would be better off holding it fixed. we know workers have more education than they did 20 years ago. there is a symmetry and the estimate in what is full employment and it is easier to bump it up. >> that is an observation i made. most economists ratcheted up very quickly and then there was a narrative. i was echoing it to.

we would have been better off not having made the assumption. >> the unemployment rate has come down. maybe people will ration down there estimate. is there something the fed can do some around so that it is not keeping that number high? i think one simple thing is don't ration it up. it is really 3.5 or seven, i say there is a recession, let's hold it there. i know canada every five years has a big review or they have an approach to making

policy and whether it makes any sense. do you support something like that? >> i'm not opposed to it. but i will say we have worked really hard. i'm skeptical that even if we wanted to raise the target, i'm skeptical the american people would support it. we work very hard to get a framework networks and that 2%ns actually live by the and not treated like a ceiling. mistake thesay the fed has in making so far has -- wanting to >> we are moving closer to our inflation target. overall, only comfortable us moving to a neutral rate.

let'se get to neutral, wait to see how inflation involves. or two hikesne away. some people think it could be as low as 2%. we are not very far away. i don't want us to commit until we actually see how wage growth picks up. six --ld we checked the the six -- steaks? >> yes, we are already that's almost ready to take them off the grill. it gets hotter even if you are a little bit off in second, you actually get some taste. i love the flavor.

to test it, i want to cut one open. sometimes the temperature is a little off. it is a little more done than i would have liked. perfect. >> tell me the truth. >> it's the only way i'm going to eat a steak. amazing.as it was a little bit overcooked. next, bitcoins bust

nears historic proportions. that is next. this is bloomberg.

>> the rise and fall of the coin is nearing an ominous milestone. let's bring in rob. he is senior finance editor here. obviously it is not apples to apples. >> one thing you should remember is that bitcoin is an extension of the internet so it is kind of

the same thing. i think it is growing pains obviously. blockchain is not going to go away. i checked before i came on set and if you have bought bitcoin exactly one year ago today it isld be up 130%, so it double. bitcoin mania.he so a a sin margin and flood of people buying large and small amounts can push around. where at a point now

traditional finance people are trying to figure out a way to create an actual market, but that hasn't happened. >> it is difficult to find people who are unbiased. when you look at it versus the internet cannot what is it going to become? >> my view is i don't think it is going away. i think there will be tremendous changes. just because there are so many missing pieces, there is really no clear regulation and you have got to have that.

a lot of the things you think of orst in name in bitcoin cryptocurrencies. had tohe past, you exchanges. talk about the initial offerings. quantity of these is not working, now another reason. >> it has been $7 billion, $89 something like that matt has been raised. that raise ico's say there is a tremendous amount of fraud. next, a preview of the

mexican election. this is bloomberg. two, down, back up!

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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> president trump today held a white house event to mark the six-month anniversary of the republican health care -- republican tax cut law. >> since months ago, we unleashed an economic miracle by cuts andhe biggest tax forms. the tax overhaul in fact,

ranks behind president reagan's in 1980 and post-world war ii. >> the 38-year-old appeared in the courtroom today, but do not speak as he was denied bail. attorney called him a flight risk and danger to the community. >> and assessing to -- the evidence we brought to the judge , the evidence suggests a usedinated attack and the huntingtical approach down and shooting the victims. they usedties say facial recognition technology to

.dentify new score storm battered puerto rico. they refuse to change labor laws as ordered. for lebrongearing up james's decision 3.0. multiple video reports are reporting that he will once again become a free agent. he will reportedly opt out of his option for this season.

five-year, $207 million contract from the cleveland cavaliers. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. >> candidates are batting or the presidency for the in mexico. the company is grappling with economic turmoil. has braced for the leftists candidate to succeed in the election. portion remain undecided here? voters are ready from all of

the polls we have seen to go against the establishment that has controlled mexico for the past century. about a lot oft issues. they are upset about corruption in the country. they are upset about security and they are looking for change. they are looking at different strategies to narrow the gap in income equality -- income inequality. one analyst told me they are ready to throw the bums out and try something new. >> talk to us about different scenarios that could occur.

>> what people will be looking is significant front runner status. investors have started to discount that possibility, but they're looking at how much support he will have in congress. there's a possibility he will and a majority he can build that would make him one of the most powerful mexican president in a number of decades. is something people are looking for, what kind of mandate does he have? >> great to chat with you.

for more, let's bring in our next guest. great to have you with us. it is not just about a presidential when, it is about to what extent you can control congress. promiseshe likelihood there isgo through if a strong wind in the election? >> it is going to give more leeway to the populist policies. it is important to remember that even if he were to win the vote on july 1, he would have to see how much of a majority he gets in congress. if not, he would have to rule by decree. if he has a majority in one or

both houses, that would give him a little more leeway to start addressing issues. createcould try to stronger anticorruption measures in the country. however, that will have to depend on the electoral outcome and that is something we will watch for. as someone that could shake up the economic policy and mexico. we ran a story where we talked to some who said maybe he will be more moderate than expected. what do you think? >> i think there is some validity to those assessments. he would not only be governing over institutions controlled by him, he would be facing a relatively powerful sector by

him. >> this could backfire on him. there is a validity of those assessments and he would not maintain. >> i can't help but think as far as foreign policy is returned. what is an low going to mean for the next negotiations? particularly if we're talking about mexican walls and such. it is important to remember that nafta is widely perceived as

something that has been official -- been beneficial to the elites. continuing in december, he will likely approach it in the same manner. the future of nafta depends on what the white house does. >> we were getting a bit carried away. the thisd the upset weekend? there is the potential for electoral upset. a lote to remember that of analysts are treating it as something that is likely to happen, but we have to wait for july 1.toral results

>> thank you for outlining the scenarios that could happen. coming up, a stern warning from an iconic american brand. from new york, this is bloomberg.

brand sayingonic they might be less american. general motors echoed the statements, saying they could be forced to reduce u.s. operations and cut jobs. by newe, we are joined

york and washington. into thethis fit ongoing relationship? >> we are seeing it play out today. america was on board with getting trump elected. before that, there was some attacking of companies on afterr and trump is going his promise for trade. general motors saying this could cost jobs. back onht be a push tariffs. >> we have not gotten a sweet

response to the general motors statement yet. he has gone after the u.s. automakers in the past. if he went after harley davidson -- it was a company he wrapped himself in. >> i guess the approach year and tackling all countries at once is of great concern. we obviously know lobbying efforts are going on for a lot of these corporations. to what extent does it resonate with the administration? we have seen every calibration

of an approach this week. >> specifically on the auto's investigation that they are trying to move forward and he tariffs, nod 25% lobbying efforts have worked so far. is big sinceut they have not come out before. these comments today are definitely remarkable and you have to look hard to find someone that is supportive of this that could lead to -- lead to tariffs. i think we will see a wave now, given that this is really heating up. have liked people

.anada's response as well is are suggesting that this small fry. talking to people today, a week from today, there is this deadline. people expect the chinese to reciprocate and that is really what could replicate a trade war. until then, who knows? most of the people do expect it

to happen. seen some periodic selloffs, but not anything sustained. i know we keep checking in with you on this. ?hat is going on is their progress being made? >> they have said we are moving forward with this. to talking.open we know that is the official message coming out of the white house. there is no one from the u.s. government expected to go to china and talk about trade or discuss not opposing tariffs, so the official line is we are talking?

>> i remember when this all again, peter navarro advises the president, saying people would not respond. am i going crazy? is there any pushback from the president? there is no indication right now there is any pushback. administration says the u.s. market is the biggest .arket we are scared because the size of our market or it turns out, that is not the case.

we will see how this is actually going to impact markets and jobs, but there is no pushback whatsoever. we are the biggest market and that is our leverage. thanks to jenny joining us from d.c. and matt in new york. with marijuana becoming legal in massachusetts, does that tipped the other states on the east to legalize it? this is bloomberg.

>> on sunday, massachusetts will become the seven state to allow

the sale of recreational marijuana. great to have you with us. what takes a spark at the state level to light a federal level? >> you will see some investors stay away. massachusetts becomes the seven state where it is legal and most importantly the first on the east coast. people are going to look at happening and it some might jump in. it is already a multibillion dollar industry. >> if you went to new york city, you would think it is legal already.

some investors are investing in ancillary companies. barehanding money behind grow operations or that do things behind the warehousing. now, it is going to the legal nationally in canada. you saw the ceo of constellation than $700 it has made million. it is an amazing new world we are at. >> is that the industry that will end up dominating? where you see them come in here a federal lifting of the ban, are we going to

start to see tobacco companies come in here and take over the industry? >> you have seen a reduction in alcohol companies in states where it is legal. they are watching closely. it is going to be cautious until something changes and there are a lot of states where it is a nonstarter. it is hard to see it happen federally in the current political atmosphere. it is really a gray area where feds do not go after the states. obama said hands and eric holder said fine. when jeff sessions came in, he is against marijuana. it was a big deal in april when trump said he will allow the

states that passive to operate. >> on wondering if you can tell us what lessons massachusetts is learning from the other states that have legalized. >> there was a speed bump with some of the edible products. ae thing is, they have taken long time, so finally the stores can open. they are being very slow to issue the licenses. the medical provider is that it. toy are going to allow them be the first. california is a gigantic state, washington, oregon. there is a body of information that states can look at and kind

of craft their rules. >> thank you. up, what you need to know. that is next. this is bloomberg.

>> we saw gains in stocks, but were up considerably. wednesday, thursday, they released their minutes. out friday. that is all for what you miss. have a great weekend. this is bloomberg.

this is bloomberg technology. coming up, the tech sector closes the book with some major standouts are we highlight what to expect. plus, racial recognition is here. we will discuss what major issue is emerging and debate how technology should be used.