the trade executive -- representative advocated a different approach. >> might experience does not include slapping tariffs on countries. we should sit down and try to negotiate a solution to problems that do exist with our trade with china and it would have been wonderful if we started by joining hands with our closest allies who suffer from the same problems. the tariffs to hurt workers in the u.s. and china. an fbi agent removed from special counsel robert mueller's team will speak publicly to members of congress, testifying before the house judiciary and oversight committees. he is expected to answer questions about fbi probes into hillary clinton's email use and coronation between russia and the trump campaign. an ap report said 40 immigrant army reservists and recruits are

being discharged. theyservice members say were not told why they were being discharged while others said the army labeled them as security risks. those affected said there citizenship is at risk. anti-authorities -- and thai authorities have suspended their caught in aourists storm. all the victims were chinese nationals. they will resume the search saturday morning. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪

scarlet: i am scarlet fu. am joe weisenthal. scarlet: the dow adding 139 points and the dollar extending losses after a mixed jobs report. joe: the question is "what'd you miss?" scarlet: china retaliates with duties on u.s. shipments. unemployment rises to 4% and slower than expected wage gains suggest there is room to run. justice and geopolitics, president donald trump's busy week ahead. he is set to announce his justice candylace and then heads to the nato summit in brussels. trump pulling the

trigger after months of threats, 25% tariff on $34 billion of imports took effect at midnight. beijing fired back with him tariffs of its own. now that the trade war is escorting president trump is threatening to impose tariffs on every single import. almost $500 billion worth of goods. chering.oined by neil sh ofs is the latest sign escalation. has the u.s. articulated what it wants? a talk about fair trade and respect for intellectual property rights but has the u.s. specified levels or other goal posts being moved? >> there is a reduction in the trade deficit. up. is bound the point is neither of those

goals are going to be achievable. china is not going to give way. that is the centerpiece of its industrial strategy to key parts of rebalancing china's economy and reducing your trade deficit and the economy -- [indiscernible] the trade deficit is getting wider, not smaller. slightly to be contradictory. that is why it is not easy to see how this deescalate's. u.s.is it possible the wins? we're looking at the market here. you cannot make a judgment based on one day but markets have not been too anxious. and major selling and chinese assets pretty dramatic. it also -- there is a limit to which china can't retaliate on the tariffs on because it does not important enough to match

this. is there a point where it says we will get hurt that maybe china will be hurt much more and bring them to the table? that is a win, then yes, it is conceivable. both sides lose, just one size -- side loses more than the other. there is lots of ways that china can hit back. it will he guess we have started to see things like shipments into china being delayed. that theyiff barriers will retaliate. joe: what if the long term goal game china to change its approach to market access and technology transfer, could that be worth a domestic hit for the u.s. in the short-term? guest: and the long-term where all -- we are all dead. as far as this is running there on eitherns, no one

side of the trade war. there is a debate if this is a trade war. it is not nothing but not enough to make a meaningful dent. scarlet: maybe a trade scuffle. each side believe they have an advantage. from the chinese side they believe they can wait it out longer. presidentxi can be for life. there is more imports to tax. this through the mechanism of the balance sheet. we can close the trade deficit and we will be better off and that is not how economics works in the real world. be to theis it will chinaiff barriers that will retaliate. we have already started to see that and i expect we will see more of that if the u.s. follows

through on the tariffs that trump talks about. joe: we have seen a pretty dramatic selloff in emerging markets. outside of china as well. how much of that is attributable to slowing or fears of a global trade war and how much is it the more typical stuff, the rising dollar? guest: if we had this conversation six weeks ago i would have said it was concerns about rising u.s. rates or domestic politics in emerging markets, elections in brazil and mexico. in the last four to six weeks you see some evidence that trade emcerns are weighing on equities. equity markets in asia, the ones that are most affected by the supply chain linkages, taiwan, the markets are starting thisel some squeeze from

trade war stuff. scarlet: what is the risk that this trade scuffle becomes something more than just the u.s. and china? a lot of people in the u.s. including democrats are applauding president trump to stand up to china. they think something needs to be rebalance. what is the risk of europe coming in with its own sanctions or tariffs and adding to this? guest: it is potentially huge. if you look at the size of the eurozone trade surplus, that used to be offset by these deficits. hugee left with these [indiscernible] and that would be the obvious place for trump to go. as long as the u.s. runs large trade deficits and the administration thinks about the world through this perspective isallergy than the scope

there to go off in all directions. could spiral out of control quickly. joe: what is the next thing you would look for, there are many ways this could go. agreement,have an they could roll it back. maybe it will be something with the u.s. and europe. what are you watching for? the process of negotiation, will it be tit-for-tat or is there going to be a line in the sand where tariffs are in place but there is a process for negotiation. that is the key thing we need to look for in the next six months. the -- there's the new mexican president, what that will imply for nafta of the issue of europe.

scarlet: who is going to blink first, china or the u.s.? guest: good question. i do not see how this deescalate's. we will see a ratcheting up. both sides have become so entrenched. bymp has to much to lose backing down and china has too much invested in china 2020. my bet is this continues to ratchet up. like i say, emerging markets have more to lose. scarlet: they are caught in the crossfire. thank you so much, we needed that perspective from outside the u.s. who could solve deutsche bank's problems? weighs in. from new york, this is bloomberg.

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scott: markets are speculating other banks might buy a stake in the german lender. our guest discussed his concerns about deutsche bank earlier today on "bloomberg surveillance." -- were is a couple of need some better transparency, financials, so much of their profits from the global market business, they are not so strong. they have a wide spread of level markets business but there is also strong players, goldman

suisse, and in their banking market of germany it is if occult for companies to make money in retail banking. their core business should be retail banking. make money in germany's retail landscape. >> what should touch a bank become? guest: that should -- that is a good question. they have a good wealth management business that is growing and exposed to asia. they have reformulated global markets business. seven or eight times normal earnings. why look at something like deutsche bank that is more opaque. when we can look at something like credit suisse where we have

seen this improvement and there is a lot more visibility and a very attractive price. mr.ou and i know that diamond has a collective memory of acquiring other assets on the cheap. sometimes at gunpoint. that would be called bear stearns. he is not at gunpoint now. if it comes out there is a strategic interest in jpmorgan here, explain why mr. diamond would be interested in affecting some sort -- form of ownership of this german national bank. he didi would hope that not get some form of ownership. i think, if you look at jpmorgan's business, it is so strong and getting stronger and why ruin that? why still defeat from the jaws of victory? there is nothing in there they do not have. >> on a book basis, a quick look

in the book, it is at 0.33. he could buy this thing on the the newarkring operation to german -- two jpmorgan and help the german government use -- move this turkey forward. >> you have to look at the cost of integration and what businesses they are giving up. ifpaper it looks like deutsche bank is trading at a third a book, it is like a chinese bank. deutsche bankring with the chinese bank. -- this isnot will do thisand i in real time just like we do on the bloomberg. i will do a quick long-term

chart and you can see the rollover and collapse of deutsche bank. i need to know is that is an elegant chart and shows how he has been correct not to own the stock. so they own it that the fact is they come with a lot of real estate. would you suggest that mr. diamond like with bear stearns is acquiring real estate? are someam sure there businesses that were complementary that they could meld into each other. there are others that they would want to show off. if mrs. merkel and the germans want to help deutsche bank might do something about the retail banking market. italy did it, spain did it, all these other places have done things to make the market more balanced. thatf the reasons i assert deutsche bank's have crippled is they have to compete in this retail banking market in germany where it is a must impossible to make money because of unfair

competition. aboutne: when we started lookche bank you said why at deutsche bank when you could invest in credit suisse? guest: if anything if you look at the last couple of quarters 'sst year, of credit suisse earnings report, they continue to strengthen their business. the theme of the business transformation has been to take some costs and be more efficient and put more focus and capital allocation in the private bank and this has worked. this is actually working and you are starting to see much better results. this business is continuing to be degraded and it visitors a higher rating. normalr eight times earnings. evenould be 12 or 13 times where their business exposure is today.

david harrow. bloomberg for the business flash. a new report says that amazon is medicine than for walgreens. hey will face pressure on comparable sales and gross margins. echostar does not plan on making a new officer -- a new offer. after rejecting the takeover offer. british regulators had set a 5:00 p.m. u.k. deadline today for a firm offer. echostar said a combination of both companies is strategically compelling. it would gain valuable airwave licenses that are owned for potential deal.

china's version of yelp is announcing ipo plans. china has minted more billionaires this year than all 2017. of the 27 new millionaires, one third have cashed in after public offerings in hong kong. that is your bloomberg business flash. newng up next, soaring on hope in the fight against alzheimer's. this is bloomberg. ♪

scarlet: biogen announcing positive results for phase two of an all-time are drug. alzheimer drug.

ofre have been a lot positive results in the search for a cure. >> one of the reasons that people are reacting positively is there is not really anywhere else to put your money. if you want to bet on alzheimer's. so many things have failed, so many things have looked promising part of the way on and then had some blowup in the final stages of testing. this is one of the last things out there in the later stages that people can put their money on. they have some interesting areing results but people being cautious about what they are saying. -- is the approach of this therapy something novel, even if this drug is not the final answer my might it lead the way to a new generation?

>> now. which is why people are skeptical. myloid, it a targets plaque that builds up in the brain. of alzheimer's or something that happens as a byproduct? lots of other companies have tried and failed while attacking amyloid. all these things you would think the marker of a successful drug and you asked the question, does it really work, does it improve alzheimer's, do the get worse more slowly when you measure them in the clinic? hasthere is this -- it typically been no. that is the concern, this has been tried and failed at it has been tried and it has failed. here we are again. is this drug that finally works or is it there is some signal in the noise and it is being seen

and it will bear out and later trials. scarlet: there have been 100 experimental drugs that have tried and failed. what is the next step? do they go on and move to a next phase of testing? >> it is what they do not say in the press release that is important. when drug companies have a great result and phase two they will say we are moving into phase three. here we go. this is absent from this release and that is worth noting. there are figuring out what this data means, what it tells them, and do they want to

hundreds of millions of dollars to test the drug. they have another drug that is a little further along. it might be they have not made a decision until they know what they are dealing with. joe: we are talking about tens of millions added to the market cap. >it sounds discordant with your characterization which is cautious and not clear what they will do with it. >> this is what we are talking about, 500 -- 5 million people suffer from it. it is a massive market. if you have something that helps a little bit. what people would pay to not suffer from alzheimer's, i do not know if you have had family members but it is an awful thing to watch happen to someone you love. there is nothing out for these folks. there is a massive medical need. even a gamble on this, people respond and say it is worth putting some money down. it soared almost 20% yesterday or earlier today. any u.s. companies we should keep an eye on? >> biogen is the big game in town. eli lilly has backed off from its later stage program. this is last horse in the race

in the u.s. scarlet: thank you. we're looking at stock indexes --r their high, the nasa cap the nasdaq up 1.3%. this is bloomberg. ♪ ♪ phones have made our lives effortless.

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>> u.s. stocks arising and communion with a solid friday falling better-than-expected. fire tech was leading the way. you can do the nasdaq is up 1.6%. i'm scarlet fu. oe wiesenthal.u if you are live on twitter, welcome to the closing coverage. scarlet: we begin with the market minutes. we had another blockbuster day and the nasdaq is up by 1.3%. biotech had big performers. we had decent job numbers. i don't want to say blockbuster because there were issues with the wage growth. joe: it was not blockbuster but it was very goldilocks in the strong job creation, but nothing can dictate to imminent action. scarlet: the feds may not need

to raise rates for the fourth time. in terms of individual name, i'm looking at the sector name carried 11 groups in the s&p 500 at the first level all gaining out of the 24 groups. if you slice it into thinner subsectors, you only have household and personal hair products declining. that is largely on the weakness of estee lauder. for stocks.tive day at a couple ofok individual names. we were talking about biogen surging since 2004. we are seeing positive results in the clinical trial the raised hopes for treatment of this disease. experimentbeen 100 of drugs and no breakthrough on how to cure it. jpmorgan cut to neutral.

analysts writing about the outlook for print circulation and advertising for them in this environment of rising newsprint costs. had denied a report in a german magazine in his part in deutsche bank. there is that someone will buy a stake in the company. price hasank's share been terrible over the last couple of months. today it is a by 3%. joe: let's take a look at the government bond market starting with the u.s.2 and tenure -- 10-year. there down by one basis point. speaking to the jobs report, it is the thing that is decent but nothing else in the feds have to tighten. if we look at the intraday chart of the 10-year, you see decline. it faded a bit, that was the initial impulse of people looking at that unemployment growth,e mediocre wage

and tsonga is no inflation. scarlet: let's look at -- and there is no currencies inflation -- there is no inflation. scarlet: let's look at the currencies. a.m. you can see strong job growth, but it was weaker than expected. presuming that the fed raises in september, the bloomberg dollar index is at its lowest in about one month. three weeks in change. in terms of another currency i'm keeping an eye on, the peso is the best performing major currency against the dollar this week. i had no idea this was the case. when you see the line going down, that is the dollar weakening of versus the mexican verses thekening mexican peso. there really pushing this business friendly image. the finance minister pick

stressed the budget would remain under control and the central bank's independence would be respected. those good enough to get the peso higher. joe: on commodities, let's take a look at oil gaining a little bit in the week of to nearly $74 in west texas. gold future is done a little bit, and soybean is having a big day. there been getting clobbered lately. maybe there is some sort ofb the news or -- sort of buy the news or sell the news. those are state market minutes. scarlet: breaking news when it comes to the brexit negotiations. theresa may has commented after the lock-in with a cabinet saying they have agreed on a collective position. it seems she has what a crucial victory over her pre-brexit colleagues. we knew this would be a critical week. keeping close trade ties with the eu after leaving.

i feel like i need to say for now because every time there is chris on brexit, it underlines -- it unwinds later on. poundden the day, but the is getting a leg higher. if you pull it up on the bloomberg, you can see right there at the tail end, up by half of 1%. there's the bloomberg terminal and action. for more on today's market action, let's bring in cameron crise. when you look at today's job numbers, it would appear markets and investors are more concerned about what the federal reserve does in relief on perhaps maybe we will not tighten faster than the onset of the trade war. >> in terms of the trade war, there has been blanket media coverage for five or six months. if you did not know it was coming, did not know it was

happening, you probably not be investing. joe: we could still expect some last-minute save. cameron: i was a quite the contrary. i would submit the reason we rally today is that trump did not turn around and responded to the chinese tariffs with, oh yeah, you do that and have some of this, powell -- pal. relatively benign job factors add to the issue. its and add to the brinkmanship from trump. maybe that's why soybeans did well today that trump did not re-up. in terms of employment figures, pretty good. the fact that the treasury market did not move on the jobers showing a lot of gains does reflect the fact that they were mitigating factors in terms of both the wages and unemployment weight.

the reason unemployment went up is a good thing because of the pool of available workers when a by almost 600,000. that means more people are coming into the workforce. joe: and there could be a lot more coming. cameron: potentially. we should temper this by saying the labor force participation rate was 62.9% is it jiggling. you cannot say it is breaking higher. it is a little premature to say this is some sort of start up in the very detailed release. the bls releases estimates and analysis of all this data being significant, and the rise of labor force participation rate was not. it could be noise, so the jury's still out. joe: looking at u.s. equities, we have had a range bound market for several months now. we get to the top of the range and say we are at new all-time highs and it feels like three

days later the world is ending. cameron: we normally get a tweet. and listen, maybe those things are not unconnected. maybe the president, when he says we are on the front foot, to i can stick the knife in china again, whereas if things were rolling over, maybe he wants to be a little more circumstance. aarlet: i know you brought chart with you. talk us through what we are looking at here. it is about bonds starting to look properly rich, the highest cap you'll model in some time. cameron: terminal users and readers of the blog, i have this tenure model based on a number of fundamental factors and policy factors. normally, it tracks the treasury market pretty well. this chart shows the level of 10 year yield minus my yield model. mine says it should be 2.98%.

you can see the second half of like the is basically lower the bar the more expensive bonds are when yields are too low. the second half of last year it said the market was too rich and deals were too low. that is the big selloff. the beginning of this year, it's kind of went too far and bonds -- joe: what are some of the ingredients in the stew. cameron: that's an interesting question. the fed rates are one. number two is expectations of fed tightening which feeds into what -- if you read the minutes of the june meeting, they were released yesterday and referred to a staff study that looked at essentially the slope of the short-term, very short-term yield curve as sort of a recession indicator. that is essentially what this model is. 2%, and pce relative to interestingly the unemployment

rate relating to other estimates at 5%. the model suggests that the lower the on employment rate, the lower all being equal in the lower the bond yield will be. the lower the unemployment rate essentially says the further you are in the economic cycle and the flatter the curve should be. whereas, for all being equal -- joe: is not all intuitive. cameron: until you think about it. when unemployment is high, what do you see? a big yield curve. that is the theme of the last year or so. scarlet: and probably for a wild to come as well. cameron: one would think so. scarlet: cameron, thank you so much. great weekend. as we get back to the breaking news as we were telling you, the prime minister of the u.k. has commented after the lock-in with her cabinet said they have agreed on a collective position. we want to get perspective here. joining us from london is five

via -- favia. as you and i were saying, every time it seems theresa may is able to move forward on brexit, one step forward, it seems like two steps back later on. are there any things that we should be worried about? >> i think the story with theresa may is that she has been the delay or. now we see her as the enactor. she said we would get those people in one room, get it to agree on a vision and it is her vision. we are waiting for the penny dropped in the brexit people to mount an insurrection. in the face of it, it looks a very good part of brexit. is of the u.k. remains in a custom unions, a bit of a rotten deal in the services, a couple of sweeteners for the brexiteers

, but essentially, even though brussels will say this is unacceptable, this is something they can work with. joe: i imagine there are a lot of people watching curious about the financial services aspect. is there anything in there for them here? flavia: i think they will be desperately disappointed. the key thing is the u.k. had said there will be some form of mutual recognition, clinging onto the hope that is given up. it is not in this. scarlet: what does this mean in terms of speculation about cabinet resignation, leadership lots against theresa may? is her job safer? flavia: it is hard to say. these guys fought tough and none of these guys have resigned. believe that she got them all in one room and they signed up on this. we've seen stuff on twitter, we

are working to see if something will happen, but truthfully, no one wants to resign on the day before the u.k. plays a match. scarlet: and no one wants the job either if she resigns. flavia, think you so much for that instant analysis of what looks to be a blueprint that theresa may's cabinet has okayed. hot jobs in june, we break down the latest report on the labor with a chief economist. this is bloomberg. ♪

scarlet: breaking news, the facebook ceo has now passed warren buffett as the third wealthiest person. to give us perspective, we will

bring in and from san francisco. mark zuckerberg is overtaking warren buffett. this is certainly a rise of technology. things that this shows is technology is now the driving wealth generator in the world. the top three ridges people are all tech billionaires. you bill gates, jeff bezos, and mark zuckerberg. joe: when it comes to how rich you get on your tech company, holding a big stake in it is very important. are there other people out there who might be rich of they have not -- had not sold more? >> one thing that is interesting is zuckerberg has passed warren buffett, but that is largely because warren buffett has given away a lot of shares. is given away about $50 billion worth. scarlet: of you count all of the stuff that he hadn't given away,

you would be much higher up. joe: and bill gates has given away tons of money. scarlet: so we are talking about and bezos as the richest bill gates is second, and mark zuckerberg is third. remind us how we calculate that. we are looking at the stock value, but what else are we considering? anne: we are considering assets we are holding, but one thing we track in real time to look at is the value of the stock. that is what allows you to see who is up and down. that is day-to-day for the most part. theyet: all right, anne, do so much. mark zuckerberg passing warren buffett as the third richest person. joe: good news for mark zuckerberg. scarlet: and his foundation. "what'd you miss?" jobs friday. the unemployment rate also bumped up.

more than 600,000 people enter the workforce. joining us now is the chief economist, bill lee. joe: bill, thank you so much for joining us. what does this jobs report tell you about how much information is coming in from the labor markets? we see no improvement in the unemployment rate and not much acceleration of wage growth. been the labor market has having such a shortage of workers and difficulty filling openings. on the show we have said many times i cannot believe there is a shortage because where's the spike in wages? it certainly won't be a shortage if you raise wages. one of the unemployment -- unreported things is the strength of manufacturers. you see the gained thousands of jobs at a pace that has not been seen since 1995. that's about 285,000.

they are able to fill the slots and they are hiring nonsupervisory production workers and it has been accelerated. they've done at by raising wages at about 3% for the last six months. they have been raising wages aggressively, but manufactures is weird because they have to be competitive. so how do they keep wage costs down? if you look at the wage inflation for all employees in manufacturing, it is only gone up by 1.5%. there kept cost down and made management pay for the workers in need. they did that by restructuring their management, getting rid of costs, outsourcing and innovating. that is the secret sauce that is not been talked about we can have a lot of employment gains, a lot of higher wages to fill job openings, but at the same jobs.not fill

scarlet: this is a case for manufacturing as you pointed out but our economy is services driven. to see this in that sector as well? bill: manufacturing is only a percent of total employment. the bulk of the employment is in the service sector. if you look at health care and education, one of the fastest-growing sectors, they employ a lot of people. they unfortunately are burdened with a lot of administrative and government regulations that prevent them from really cutting costs. the procedures seem to be gets more complex that is adding to the cost, even if they are able to streamline some of their management, you can see others getting ahead of the curve because way to inflation is going up about 2.7% which is about the pace of the overall service sector. they've not been able to cut costs away like manufactures to be competitive. joe: bill, if there is no shortage of labor overall, and

we talked all the time about the labor shortage, are we just parroting corporate propaganda? excuseust as the trade is going to be a great excuse for stores to use to explain why things are not going right, the shortage issue is going to be another one for companies to do things they were going to do originally. issuek the wage shortage as an economist, you -- yourself, there is never assorted -- never a shortage at the right price. folks are not willing to rage leases -- raise wages. nature is onee that is exemplified clearly in manufacturing where they have to be competitive so they did all they could to bring in what ever innovations they could to lower costs. at the same time, raise wages

where they needed to. scarlet: i want to go back to what you are saying about the rising administrative and regulatory cost in some of the service sectors whether it is educational health care. how much of that is showing up in the wage metrics that we follow? that corrupting the way that we look at wage gains? bill: if you look at the pc inflator, it helps the cause. a lot of it is not even a market price. when we look at the deep later, ter, isight -- defla right. i've not seem on -- it is right. i'm not seen anything that strips out the government bread on prices. costs are part of inflation -- not part of inflation. now it is because we have seen higher costs brought about by

government regulations. it is no going into inflationary processes and distorting a lot of the numbers we see out there. the federal reserve is not the right tool to use when you're combating price inflation. joe: bill lee, always a pleasure to talk. thank you always so much for joining us. president trump's attempts to rebalance global trade have sent the world into a tailspin and the disarray may only get worse. joining us now with the latest is bloomberg's metal and mining reporter. thank you so much for joining us. what have we seen most america in terms of companies needing to really choose their processes and plans to respond to the tariffs? >> if you want an exploit -- explanation of a big news headline, no further than harley

davidson a week ago. that happened at the beginning of the week and correspondent, in my world, with one of the largest deal conferences in the world here in north america, and there was an analyst who is giving a speech that said listen, but with all with harley davidson at the time, we are going to see more of this to come. more manufactures considering offshore and. he said -- off shoring. he said not if, when. scarlet: by not doing what the president is doing -- pushing for. you look at unintended consequences with different tariffs and perhaps stuff the administration did not foresee. is there a basic theme here? i got of thought of the quote you included in your story which is when one door closes, another opens. it seems like when you plug up one hole somewhere else, another

place pops open. you can control of it. joe d.: a good example in the story overnight was pointing at that are we actually seeing these tariffs work? on some level because if the aim is to hit china back, especially with steel and aluminum, and bring jobs to the u.s., we're now seeing the u.s. putting up erected tariffs -- tariffs. you are starting to see this in asia as well. they, the excess capacity had shipping out, maybe does not have the opportunity, so it ends up staying inside the country. so are the tariffs working? possibly, but what does that cause instead? domestic prices around the globe go up because that excess capacity is no longer available to these other markets. the question that needs to be answered now, does that mean these rising prices are going to

flow through and hurt manufacturing globally? plug of one whole, you have another one to deal with. hole, you have another one to deal with. joe: users of aluminum and steel are not going to like other prices. trump likes to say the steel companies are doing fantastic. looking at u.s. steel, it does not look like a company skyrocketing. joe d.: then you get into the weeds that a lot of people don't want to listen to much about. u.s. steel does have its own situations going on on company specifics. they have a new revalidation -- revitalization plan. when you step back and look at century aluminum, the big american aluminum producer benefiting from this, and you look at some of the other producers, they are maybe not going to skyrocket skyhigh. joe: is the opposite at looking at century aluminum down some 24. where are these companies that are the winners? in,d.: right, but to jump

the steel companies were out talking publicly and they said peres are higher, $900 short ton versus $700 not too long ago, demand is still good though. even though prices are up, people are saying they need more material. they are paying that price. on that level, if you take them at face value, they are doing a little better now than they were before the tariffs. scarlet: and some of the other winners you mentioned are u.s. plants and foreign companies doing well in addition. joe, thank you so much. coming up next, president trump -- sounded off on nato while defending vladimir putin as just fine. how does that work? this is bloomberg. ♪

>> let's get to first word news. as we've been reporting on bloomberg, theresa may won a crucial victory over cabinet members today. they will back a wide-ranging plan to keep close trade ties with the european union. the u.k. will now have a closer relationship to the eu single market. headquarters or u.s. immigration and customs enforcement today, mike pence accused democrat of making opposition to the federal agency central to the party. he called out to people as well as a new york mayor for saying

ice should be abolished saying that will never happen. >> in this white house, let me ,e clear, we are with you 100% and as the president said last night, we will always stand proudly with the brave heroes of ice and our border patrol. >> the vice president said while americans have the right to their opinions, he demanded a stop to the attacks on people who he says make the country safer. is preparing for second day of talks with north korea tomorrow. he has given few details about .he latest visit to pyongyang minister -- the chinese minister said there could be no winner in the trade war with united states.

speaking in the bulgarian capital, he said while these terms are not the solution to the conflict, beijing has not toys but to take countermeasures against washington. he said china wants to keep open market access to foreign companies. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. scarlet: with get a recap of today's market action. with the dowrising up almost 500 points in the nasdaq leading the way. i'll take and take on the big winners here. 1.3% gain. it certainly feels like technology beat the trade war today. joe: today, not a lot of concern about the trade war. the last few days, the actual event of it, not that much. scarlet: we should mention trading was slower than average even the holiday shortened week. trading the dow was 35 -- 35%

below. "what'd you miss?" president is planning an announcement for one of the most controversial decisions of his tenure. editor is with us with the preview of the president's busy week ahead. is reporting the last 30 minutes to an hour that one of the four nominees that the president has nominated -- narrow down has the inside track tell us about judge kavanagh. >> he is a conservative pick and worked in the george w. bush administration. he wrote a lot of the can starr report against bill clinton that led to his impeachment. he is not grown republican circles for a long time and it looks like he is the favorite right now. donald trump is keeping his own personal preference pretty close. he wants to make a splash monday

night, but it looks like -- our reporters don't want to say he is a front runner, but mike pence thinks he is the front runner. joe: so he could still pull while car between now and monday? scarlet: he could. -- >> he could. and brett kavanaugh's favor, he has support who is running -- support from somebody who is running as anthony kennedy's replacement. i think trump could pull one on monday night and leave us redoing our lead. besides the supreme court, trump has trouble ahead in his future. what is his first stop? alex: a very busy 10 days starting monday. summitoing to the nato in brussels first on tuesday. then he goes to the u.k. to meet with theresa may and the queen

of england and spend a little time at his golf course in scotland. the white house has not confirmed he will play golf in scotland but he's going there. 16th he meetse with vladimir putin in a one-on-one summit. scarlet: a want to go back to the u.k. for moment. the president will visit the u.k. and visit with theresa may, queen elizabeth, and wanting he will not do is spend a lot of time in london. i know there are a lot of protests planned against him. this is a highly edited visit to the u.k. alex: controlled is the way to put it. the white house denies he is avoiding london. they say he will spend plenty of time in the city. from the schedule that has been described to us by u.k. officials, he seems to be spending a lot more time in the countryside then in london. joe: then of course, there is

nato and helsinki. tell us about the plan, anxiety on the international partners and the idea, the fact that he is meeting with nato, with whom antagonisticith things, and prudent who he has almost never said those. alex: i can expect a repeat at the g7, and also with the north korean summit. he went to the g7, it was a disaster after he starts fights with justin trudeau and angela merkel. then he went to the summit in singapore where he appeared to be very chummy with the north korean dictator. i expect the same to happen here at nato. hit our allies were not spending enough on defense, give a lot of the same speeches from the g7 and proceed conductnki and he will

what appears to be a pretty and go move -- a pretty amicable meeting. scarlet: it will be an eventful couple of days to come. thank you, so much. americans aree working, but their wages are not growing at the same rate. give a closer look at the june jobs report complete with charts. joe: and reminder, subscribe to the weekly podcast on itunes called "what'd you miss?" weekwhat'd you miss? this -- week." you miss this scarlet: this is bloomberg. ♪

joe: "what'd you miss?" jobs report showed payrolls more than expected, but wage growth remains slow. but go beyond the headline figures. luke, he brought us tries to look at and help was understand what happened in the latest jobs report. the first thing you want to point out is a very large jump in women labor force participation rates. what stands out to you here? luke: the big story in this report was all about labor force participation. was interesting was that it was not the missing men at all, it was women joining the labor force at a rate not seen since the mid-90's. this is an area in which we talk about support from fiscal policy and having a lot of room to run. for instance, in canada, it is 82.7%.

the u.s. is 75.3. the common theme will be this is not what for employment looks like. this is an area in which we have seen progress, monumental the targetedout fiscal push that would really get it over the hump. do we want to know -- do we know why women did so well? luke: it is a bit confusing but this gets to the idea that we don't have a great way to identify what the slack is. a lot of this decline for women came from the do not want it job now category. that is not what you would expect if we were eliminating slack. scarlet: so that was the female side of the equation, talk about male participation. luke: that's the other side of the situation. if one goes up, the other is probably going down. this is an area that powell has mentioned that we could see

better in something that could be revealing more slack. on the other hand, african-american males aged 20 and over, that is the best i could get on the seasonable adjustment. we can call this noise, call this an anomaly, and the general that this is one area we really expect to see some pickups and both took a step back. scarlet: perhaps he goes back to the theory that you are citing the view gains were so good -- joe: no one even wants us to work. let's talk about flows. that is an important aspect to understanding what is going on. luke: i like this chart. this fuel line is, let's think about it this way, if you are

newly employed person, you're going from unemployed to employed or from not in the labor force to employed. that you line is not in the labor force to employed. newly employed has never been this dependent on folks coming off of the sidelines and getting straight into a job. the flipside is that we are not necessarily reducing the unemployed role so there might be a need for more skills training, pervasive skills or geographical mismatches there. what that shows is if we are at tol employment and managing pull these many people on the sidelines, and that is the cause of these consistent 200 k prince, maybe we have to revisit the concept. there are people unemployed for a while who are competing against more jobs and those out

of the labor force coming back in. luke: you would think both would have some degree of not as ideal for employers, but when we are in a situation where the amount of available job openings exceeds the number of something's, this is you can see a lot of previously marginalized or not a deal workers come back -- not ideal workers come back. scarlet: and out formerly incarcerated people are seeing a lot of demand for jobs for them being hired. talk about the folks not in the labor force. here's a chart that shows bad news is good news. this pushed long-term and unemployment higher. the reasons behind it tell a different story. luke: i don't think there has ever been such a reason to celebrate increase in unemployment rate or increase in the number of long-term unemployed. this happened because folks finally started looking for work

again, and if you have been out of work and out of the labor force and come back in as a re-entrance, this is the category you will be lumped into. so the teal line shows the unemployed. that is the long-term unemployed. that mirrors the monthly jump and re-entrance to the workforce, some people came back and did not manage to find a job they wanted. this is the one-month jump over four years. when we talk about the pool of , not innemployed people the labor force would like a job now, that made one of its two biggest jumps of this cycle, this month. to think of the conception of slack, if we are the steep into the expansion and yet, still, still seeing the availability pool, this should cause labor spikes for the fed.

scarlet: does this have to deal with schools are out? luke: i think they could be part of it. seasonal think the adjustments would help get that out and for college students first time in. scarlet: luke, thank you so much for bringing your charts along. coming up next, the job reviewing got bosses reviewing the best companies for women. this is bloomberg. ♪

scarlet: "what'd you miss?" the latest jobs report showed a slack in the labor market. the ferry got boss is an online startup that advocates -- fairy boss is an online startup that advocates for women. the bloomberg ongoing conversation on impact of diversity, we set down with the ceo of the start up and asked her about the trend and how they came up with the tally. >> ferry got boss -- fairy god females.n advocate for there are three questions that the best companies list based on. what is your level of job satisfaction on a scale from one to five. do you think men and women are

treated equally and fairly? and would you recommend your job to a woman? based on those answers, the list of jobs comes out of that. scarlet: will remove surprised by the results? >> some of these companies are not necessarily household names in terms of promoting themselves as great places to work. it was apparent to me there is no monopoly on what it takes to --as a good place to scarlet: these companies are not necessarily known as the best place for women or most well known companies and technology. there's no apple, facebook, goldman sachs or jpmorgan in the finance companies. what you think that says? >> i think it means that companies that make these investments, regardless of whether they talk about them in pr -- pr haver or

a lot of repetition. if they have a board of directors, there are 20 or send or 30% representation of women on the board. some of the companies you mentioned don't have that level of representation among women in the senior management ranks. scarlet: was that the k-swiss reason why these companies retire? is that why women voted for these companies? >> i think it is a lot of things. worklife balance goes in, whether women feel like they are promoted fairly is a big factor and whether they personally feel satisfied. i think while it is impossible to stay 100% with the causation of these rankings were based on, the correlations are clear. scarlet: the also had best ceos were gender diversity. poses included? >> management and -- why was this included? >> it is very important. if you don't know where your

management stands on this, you don't know whether you are going to have a fair shot. scarlet: so they need to put themselves out there in championing that idea? of these companies, the ones that ranked higher, is this where salary transparency is visible and valued? >> i would say probably not. very few companies are radically transparent about what job titles go with what amount of pay. however, for what it is worth, these women feel they are paid equally, generally. what that is based on is what is visible rather than what is on visible. and, what is visible is how many women get promoted. when you get promoted, you typically get a raise. scarlet: when the me too movement was in full swing last year, a lot is changed in the work environment since then, what have you observed based on participation of women, the quality of feedback, the

frequency of commentary on your website? >> more women are coming to our site. we launched at a very good time to read was when hillary clinton ran for president. 2017 was the me too movement. 2018 is the euro the woman. i think women feel more empowered to talk about things that are unjust, whether that is sexual harassment, equal pay, and we see a lot of activity on our site from the women it now community. companies are waking up to the fact that they have brands to , in the sexual harassment is not something they can quietly put away. it raises questions about the culture of the company's. i think they are investing to make improvements. scarlet: you talk about the tech industry and the demand their, you included best finance companies as well, why did you focus on these two industries? >> they are industries that have not historically been finally for women. we think it is important to be

positive and highlight the places where it is difficult. there are also two industries that have been in the news a lot in terms of investment in this area. a lot of these companies have increased their leads in recent breastmilk flying home for moms is a possibility, so we wanted to see how this shook out. scarlet: that was the conversation with fairy god boss . doesn't like being flown but a different one you might expect. check out this week's "there's an etf for that." the long short etf is better known by sticker flag. look at large-cap stocks in an effort to read like companies with performance issues. in 2015nged its stripes to be cam a long short fun --

become a long short fund. the funds allocation is 30% short and 100% long. it has more than 20% best $20 million in assets. oil,mes include macy's, and others. -- and one of the returns of trailed a broader market launching in 2014. flag gets yellow light in the traffic light system for the tentative waiting and potential hidden costs associated with .horting joe: what you need to know for the week ahead coming up. this is bloomberg. ♪

scarlet: "what'd you miss?" an update for u.s. stocks on a better-than-expected gain in

jobs for the month of june, but unemployment is higher. joe: everyone is worrying about that trade war. scarlet: wages did not quite meet estimates. don't miss this, nato leaders are gathering in brussels next wednesday or president trump likely demand the other members of the alliance increase their military spending, similar to last year. he also meets with theresa may on private -- on friday. joe: we look at jpmorgan citigroup on friday as well. scarlet: earning season begins again? those fast. that's it for "what'd you miss?" .loomberg technology is up next joe: have a great weekend. ♪

>> on selina wang in for emily chang. this is "bloomberg technology. coming up the next hour, the trade standoff between the u.s. and china intensifies. u.s. tariffs on $34 billion worth of chinese imports has gone into effect. later by afew hours statement from beijing to expect retaliation. unemployment rose from an 18 year low and wage