members for not paying for defense. secretary pompeo called nato the most successful lines in history and commended them for extending success for the fight against tariffs. he attended the meeting with nato's secretary-general, same distances -- allies not distract from core areas of agreement. netanyahu met for talks focused on syria and iran. the u.s. and israel are increasingly concerned about iran passes military presence in syria. russia is another key ally of president, and says it's unrealistic to expect iran to fully withdraw. gathered in the worst

massacre in europe since world war ii. slaughtered at the enclave in july 1995, being laid to rest today. unprotected muslim troopsed town served executed from it thousand men and boys within a few days. the supreme court nominee brett kavanaugh listed just to assets onth a maximum of $65,000 his 2017 personal financial disclosure. he also declared about $15,000 of debt. judge kavanagh's listed -- listed assets -- report property worth millions. they may not include other significant assets he may own p to judges are not required disclose their personal residences but he will have to make additional financial disclosures to the judiciary

committee ahead of his confirmation vote. global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ joe: i am joe weisenthal. >> we are 30 mins from the close of trading here in the u.s. selling is bleeding in a big way into commodities. joe: the question is what did you miss? >> escalating tensions between the u.s. and china sparking fears of a global economic slowdown. a toll onwar takes commodities. crude oil tumbles and the commodity index dropping the most since 2015.

amazon rips of the health care scripted we go live to stick with michael, a ceo about the future of the industry. oil is plunging the most in almost a year. the commodity falling about midway through today'session. oil helped to drive the commodity index to its worst day in three years to joining us now to help us pick up the pieces, it is bloomberg intelligence's mike and tina davis. who covers commodities. tina, what happened? was there a catalyst? it came out of nowhere in some way spirit >> basically a sea of red across commodities in the way. the oil part is particularly interesting. there was not any one catalyst that moved. you can see a long and slow decline over the course of the day. a little hiccup at 10:30 when the eia released a stockpile for other than that,

it was a little like you can see the market digesting what is happening in the broader trade wars. >> were there any breaches in terms of technical levels that caused acceleration in the price action in oil? >> the biggest problem with crude oil is it when up to much. in yesterday, illustrating $75 in wti, that is up a 5% in the year. average prices were in the mid-50's. oil has its, crude most significant commodity to lift all commodities. >> trying to figure of the degree to which the trade war is contributing to the commodity weakness, with some, it seems perhaps a little more clear-cut than others. is the relationship between say global trade and potential trades slowdown and oil? >> it is a demand issue right? it is not something one economy faltering, but it is a macro

issue when you are seeing a global slowdown economically and you will see demand dip for oil. --h of those things go hand hand in hand. >> one was china. mike with the bloomberg industrial metal index as well, this shows not just for oil but for a lot of commodities, if there will be trouble in the can demand market, that spell more trouble. >> yes. you can see that plunge in the stock market. the highest correlation to the chinese stock market is not just commodities but industrial metals specifically. in the high negative quarterly -- correlation is a trade him -- we've had a perfect storm. how much lower can this go? you really have to cut back with some of the global trade and that is not likely. a chart showing, i think he brought us this, showing commodities continue to

pictures the current favorable p request that is the key thing. it demands a success of supply. i look at it as a perfect storm. >> i want to go back to julie's chart comparing shanghai and the metals index. it would suggest the metals index is holding up fairly well given the selloff in chinese stocks. is there reason to believe the metals index really has not hit the prime selling it and that there is more downside to come here and it is in matter of the tariffs actually taking effect that will drive prices lower? >> yesterday now it is still a bit theoretical p are what you are seeing is a lot of what has been priced in already, so if you're looking at couple for -- copper for example, it has had a terrible run. overall for the year, it has not had a bad year. that is true of the broader metal index. you are still seeing a discrepancy between what is

coming and what is already priced in. >> you mentioned copper. they had an off couple weeks. just fallen out of bed. is there a national -- a convention where one is selling off and eventually, the other will capitulate to that? >> certainly. there is no more significant than crude oil. we know what is happening with crude oil. technology is adding supply and reducing demand, big picture p with metals, it is the opposite. decreasing demand. a big picture is the opposite. i view this as a blip in the trend and the trend remains favorable people of times, you need to shake up these. we are obviously doing this now and it remains positive. >> all of this is theoretical. whatve grappled a lot with effect the tariffs will have, is this a trade war, mike was just talking about looking at the demand line. what are some indicators your team is watching here or in

china, to indicate if there is real on the ground, affect from the tariffs question mark >> you have a look at import and export data first and foremost. i think that will start to be skewed as we see the tariffs take affect. we have seen soybean shipments shift, really rush to get to china before the terrace hit. it will be interesting to watch export data to see any exports there. we have quarterly earnings coming up in the next week in the industry. i think we will start to hear from executives little more about what they are seeing and what they're are doing in response to tariffs. >> libya's eastern oil exports to resume in hours. obviously, always a question about some countries and their ability to get supply online. could the supply picture for oil be more favorable than perhaps the market was expecting? >> certainly today, the market likes seeing those libya numbers in terms of, you know, if you are short on the market, you saw

a nice run today. as mike mentioned, there is a net long speculative position and i think you have any kind of news that is bearish, you start to see people change in those positions and also the concern that there is far fewer new buyers coming in when they are long on the market. >> this will sound silly but given what we heard in chicago after croatia scored its goal, was any of this done in distracted training, because so much focus is on the world cup, and of course europe has gone home for trading already? >> exactly. it is july. spark to revert and this is a bit of that spark. >> and you are saying it is slightly above average. and wti is about average. if europe has gone home, someone is still trading brent crude

right now. >> and when you guys are talking to traders, what is the sentiment? that is a steep decline. it is it accompanied by, panic is maybe too strong a word but what is the concern level? >> i think what we're hearing over and over is uncertainty. there is the uncertainty. no one reallywe had a nice note from goldman sachs last week talking about how everyone is overreacting to the trade war but at this point, no one knows how things will shake out. today, slow unwinding those positions. >> a start of this year as well. thank you both so much. and --s the ceo badly amazon in latin america. this is bloomberg. ♪

>> blackrock is taking steps to establish a sales presence in argentina. sources tell bloomberg the largest asset managers preparing a small so office. it would begin by focusing on selling the company's shares products. jerry's is under attack for allowing pesticides and its ice cream, which it claims is non-gmo. groupumer food advocacy filed a lawsuit against the company and its parent for marketing. they said ben & jerry's ice cream is made by the same though that make many other products that contain a common pesticide. a $4 is set to look for billion loan tooth by fighter

jets. the government is working on a deal that will be backed by export credit agencies. become an is boosting defense spending after being shunned by thei arabia, egypt, and diplomatic and economic ties in 2017, accusing the link to iran and funding terrorism. they have denied the allegations. estimates the average household will spend $292 in store from backpacks, note books, and gadgets which totals about $16 billion including $6 billion for e-commerce goods. visits easier to find. that is your bloomberg's newsflash. >> the sun valley conference in idaho brings together some of the biggest names in media. we sent our deals reporter ed to the valley to catch up with some of the egg names. ed?

bed: thank you. i'm here with the ceo, chairman, and cofounder of the biggest e-commerce company in latin america. your stock has been fairly rocky this year because there is volatility and what we're seeing with uncertainty and a lot of dashing american economy. is it possible for investors at the moment to see the growth story or is it all shaded behind volatility we're seeing in the region? >> a is most for investors to look at real growth on our numbers and they're gunning growth and the businesses we are look at, we like to stock prices over time. 10 years ago, $18 per share are today's trading north 300. in the middle, everything has happened in latin america. and aonth to month basis day-to-day basis, there is a lot of volatility but i think investors have -- that

understand our story and what hold things for long-term and so far have benefited from that. >> what are you building? you are compared to amazon and alibaba. what is the right analog. >> we don't have a cloud we have largest marketplace in latin america, we thatvery large platform, is statements and processing, also an online credits or for archants, and we are building very large payments network and quality. from credit cards to loans, to be old to earn interest on savings because they don't have a bank account, and we are creating a digital wallet which

provides returns for whatever money is left on that while it and it enables our users to mastercard that we can use as a debit card that mirrors account benefits. we are gaining access to half of the population that does not have access to financial services. cases for the first time. >> that sounds a lot like prime lending or something where you are providing people something they otherwise would not have access to. that completely changed the risk profile? >> we are comfortable with the risk that we have, getting loans to these people. this behavior when they do online purchases or when they do online sales. had less than half a million merchants selling on the platform and they connect through our payments tools. so we are very comfortable lending.

of the people do not qualify for a bank line -- a bank loan care they do not have financial statements, whatever. are saying they about them. they control revenues because they collect to us. we know thatrriers ,heir behavior on our platform it is a different model and a different reality. >> a key area everyone is some knitted by google and facebook. how do you take that company in that direction? >> it is growing nicely in our platform. many of the merchants selling on

the platform went to drive more , they have this was in our platform because of official they'reecause advertising on our platform. still a minority of our revenues. they are providing to merchants and providers but it is growing rapidly. >> he has spoken about south of the border wanted to expand. how do you as the current leader in the region keep your edge? >> we have been competing since we started 19 years ago. it has always made us better. our way to look at all the players and see what they have that we think is great, we corporate -- incorporate that info. at the we are looking

morning cup, using our advantages and our strength. technology.eat according to consensus, what is your consensus over $2 billion of revenues. we are doing very well to the condition has made it better. looking what other people are doing, are we likely going to see the break in the way amazon is made a big push in the past few years? >> we are focused on building our infrastructure. in the next few years, that is where we will be investing in the marketplace. most of our investments will begin at -- >> how do you do that? in let america, we think of one

marketplace in one region but actually, it is not. it is a series of countries with different practical difficulties you have to overcome to operate. how do you deal with the challenge market by market? >> we have to do with it market by market and integrate with these markets. there are huge differences between the various countries geographically, the continental u.s., and also in terms of in fors of labor, unions, etc. --h country, we need concerns about the postal service and whether or not it will operate, is that a typical cost of doing business in the region? this, we operate in 13 countries. any region in the world that includes 13 countries, you will find a lot of things going on.

we had a truckers strike for 10 days. in our 19 years of operating in the country, it hasn't. those are obviously unique to view with them on a day-to-day basis as they occur. >> thank you so much for joining us. >> my pleasure. bloomberg deals reporter at the valley conference. more to come including a conversation with michael talking about the disruption in the health care space. from new york, this is bloomberg. ♪

>> it is time for the stock of the hour. scherzer sharply lower, the s&p 500's material sector. abigail doolittle is here to talk a lot about the bloodbath basically we have seen in

commodities. >> more than 70% of the revenue comes from copper. at a two-dayk chart of copper and we will see them down two days in a row, to damp pace for its worst day of the year and all of this of course has to do with renewed fears around a trade were, the extra possibility of tariffs and $2 billion worth of chinese goods, and investors just not theng that it could affect demand picture enacted hit the commodity complex, and it is also oil, it goes red across the border. here, commodity functions you can see the screen of red. the energy complex lower, agricultural lower, when we have a natural gas slightly higher, , times arehe warmth off the charts. so it's a really out in force. >> one thing is it appears they

will sign a deal and there is .nvironmental issues >> the stocks are up about 38%, down about 78%. that could be a real risk to the company. they are doing a lot of things to turnaround in terms of strengthening the balance sheet and reducing the cost of the debt and they are focusing on delivering profitable proper output and it will be interesting to see whether or not that happens but that is certainly a positive. saying, considering the individual pallets, , they are taking a beating in that has to be the overhang here. >> that is definitely a big macro overhang. just to put the commodities slide into context, we can see a chart using the gt the function.

pup -- ait was just a couple of days. now it is the worst since 2015. there was a big commodity stocks selloff in 2011. >> thanks so much. the market code is -- market closes next. this is bloomberg. ♪

julie: "what'd you miss?" stock selloff in commodities tumble across the board. i'm julie hyman. scarlet: on scarlet fu. joe: i'm joe weisenthal. welcome to the closing bell coverage. we begin with market minutes and the stock selloff we have been seeing drop the day. we were talking earlier the commodities today saw a relatively high volume. julie: not the case with stocks. interesting difference there between the two aspect classes. the declines are being led by commodities within stocks as well. one important movers to hit is american airlines having its worst single session since 2016. its lowest level since that your as well. the worst performer in the s&p 500. there estimates were cut

because the fares were lower than anticipated. its earlier forecast was cut by half a percentage point. and hess representing the commodities. fastenal leading gains on the s&p 500 having his best session since 2008. the company having a good quarter. incremental margins are breaching the 20% level so that is something that led to some of the buying we saw during the course of the day. fastenal sells industrial and construction supplies. joe: let's look at the government bond market. the two-year and 10 year is looking interesting. rates were up earlier in the day when we got a hot index number, then they sold off when we got the intense selling.

at the end of the day, not that much in the final analysis. the two-year on changed, the 10-year is 2.84. the flattening trend continues. mark: let's look at what -- scarlet: let's look at what continues in currencies. the dollar is that a six-month high versus the yen. the looney strengthen briefly against the dollar and 25 basis points. the central bank indicated rates need to rise further. looney plunged once again as oil prices bug. the dollar gained ground versus the canadian currency. your weakness in commodity currency. the aussie is falling the most. you also see losses in the norwegian grown -- crone. joe: and commodities, there is a sea of red through the day for

oral -- oil. gold is up 1%. copper is down 3%. in the commodity index is also down 2.7%. real quickly, a look at how much the industrial metals have fallen, look at copper. it was financial jim. it is not -- june. it has not had a bad year except lately. scarlet: "what'd you miss?" for more today's action, let's bring in a macro strategist, george parks -- perks. we want -- we might want to fall.off the commodities how much you read into this drop across the commodities sector? i don't read into it that

much. especially for something like wti which was recently well above its moving average in terms of trend, it has been it in a rocksolid uptrend for about a year. every time the futures contracts and gotten up to standard deviations above the 50 day moving average, it tends to pull back aggressively. this was an extreme version of that. that to me is what happened. you look at the eia data and it has been a noisy couple of days. crude demand is solid. we have relatively tight crude markets around the world and it is getting tighter. it is hard to square that with a huge move on crude was a fundamental driver. it's also important that speculators are extremely long crude compared to the aggregate crude open commodity market. when you have the market overbought, you sometimes see violent him a harsh reactions

like the one today. that is especially true with liquidity. necessarily expect volumes to behind in that scenario, but i do not think that disqualifies the fact that crude was overbought and has pulled back toward trend in a way that looks more like positioning than anything else. scarlet: and people are distracted by the croatia england date -- gate. julie: setting oil aside, let's take the rest of the commodities, it is not a one-day event. this is something joe has been hammering on for several weeks. in particular, the metals. they have been seeing a slide in the month of june, we were just talking about copper, but it is across the metal. does that tell us something more fundamental or is that a more fundamental rolling over of those markets? >> i think there is more fundamental the comes into it. thecially around tariffs in

u.s.. the possibilities of an escalating trade war between u.s. and china, whether you look at chinese growth and chinese credits apply trending lower in terms of growth rate. activity,k a global last time i was on the show, if that is happening, you would expect metals to pull back a bit. confluence ofis a factors around industrial metals specifically and you can include precious metals there that is a very different story from the one-day swan dive we saw in crude today. joe: let's talk stocks. maybeday it looked like the s&p 500 was 2800 and and finally making a breakout to a new high. every time it seems like it will happen, it gets slapped down. make of big cap stocks? lots of movement and very little gains in either direction.

one of the things we have seen in a slow market is long periods of consolidation where you see reasonably large drawdowns from parabolic new highs. a good example would be the dynamic from 2014 through 2016 when we saw stocks take off from yearso 2014 and spent dunking sideways in a range. parts of that felt like very scary selloffs. when you took a step back, it was a sideways move. we see a smaller version in february and it makes sense if you look at the clear out that took place in volatility products in february. the fact that we had a strong want to 17 and a lot of positive catalysts come down late in 2017 into early 2018, and then we have seen those catalysts come off of the table with negative catalysts introduced. economic growth in the united states looks solid. you don't expect a selloff

without a large event of some kind. trade could turn into that. the markets are just looking for putting. range on thepoint s&p, but it has really been the dividing line for stocks in the last five or six months. until there is a breakout consistently on that, it should not surprise investors to see pull back every time we get into that range. joe: i've read more notes whether people are worried about a recession happening in a year or two, and it seems to be the yield curve is a big catalyst. what is your take on that and how concerned should people be that the maybe there is a signal we should have an economic downturn at some point in the future? curve iseld historically very good at forecasting recessions. on average, once it inverts for the first time in the cycle, you

see a two-year gap before the recession starts. iswant to beat worried about in a year term -- near-term session, is a recent evening of the yield curve when the stead -- fed is stimulating the economy getting rates back down to where we do not slow any further. on the inversion of the yield curve, low rates falling below long-term -- long-term rates falling below short-term rates, tends to be a leading indicator of recession. historically, it has not been the case. it usually a couple years before the economy goes into recession. barring some sudden explosion a trade war activity that is way beyond what anyone forecasts, it is hard to see how the u.s. goes into a recession over the next year or two years. julie: george, thank you so much.

george pearkes from the bespoke investment. broadcom is said to buy ca technologies. broadcom abandoned its acquisition of qualcomm and is trying to set its sights much smaller. qualcomm is and $84 billion company. ca is about a $15 billion company. it is also importantly based in new york. not looking like an international deal in this particular case. 44.50 a share. on today's ca shares session. if you look at the after-hours session, you have it on scarlet's terminal there. you see the pop in the shares at 16% in the ca shares. we of the qualcomm -- excuse me, broadcom shares up and trending downward on this headline.

this is a journal headline we are working on at bloomberg and we will bring you any developments when they do happen. there is after-hours trade in those two stocks. coming up, speaking with tech, washington and tech are suffering the managed-care space -- are disrupting the managed care space. from new york, this is bloomberg. ♪

mark: i'm mark crumpton with first word news. members of the u.s. senate are president trump's criticism of european allies is unfolding even as he meets with them during a nato summit in brussels. today, the president said germany is "totally controlled by and captain to russia because of a gas pipeline project." connecticut democrat, richard,

said the president should apologize. side,has to by our sacrificed resources for us and ,ars that we continue to fight and this is absolutely despicable. disgraceful. >> we value our alliance. we value our allies, but you have to pay your own way. america -- the american taxpayer has carried them on their backs. we are paying three times what germany is paying. we are paying twice is what -- twice would france's thing. mark: president trump suggested nato allies spend 4% of their of, up from the current goal 2% by 2024.

the head of energy and transportation of the german institute for economic research is dismissing president trump's criticism. he says his remarks are pitch to sell u.s. gas to europe. the trump administration says it is working to comply with the deadline to reunite all 100 migrant children under the age of five who are forcibly celebrated -- separated from the parents. they still have to do 3000 older kids by july 26. those involved in the senate bill designed to prevent separation, say they have to get more information and nothing is imminent. 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. i'm mark crumpton, this is bloomberg. back to the sun valley conference in idaho where and hammond is with a major

player in the managed care industry. ed? >> thank you. that's right. i'm here at the chairman and ceo enteen. i feel bad, you could be out white water rafting with mark zuckerberg. thanks for joining us. [laughter] >> this is safer. >> if england wins the world cup and my mood turned sour, it may not be that way. [laughter] you have really interesting people here, jeff bezos, warren buffett. intentionally those people are doing the most to disrupt the health care industry. what is the conversation like? >> i won't talk about things at the conference, but, what they are doing is disruptive at some level but it is productive. we need to be looking at how things are done. they have a total of maybe a millions and a half lives, which is not a huge number, but they

have an opportunity to explore how things are done. opportunity.an >> disruption is a force for good in the health care industry? >> i think it can be. >> let's talk about another disruptive force which is washington dc at the moment within the obama health care umbrella being largely dismantled and the aca is coming under pressure from the trump administration. are they doing anything that you are encouraged by that will be good for the managed care industry? >> they are trying to be disrupt the. wet year we grew more than thought we would. we know how to deal with that form of disruption. the big issue we have in washington is, we have moved from policy to politics. there's a group of individuals

who we can work with and talk about what is the appropriate policy. americans are entitled to insurance and high-quality. i think there are a group of individuals on both sides that we are working with in a organizations and want to know how they can improve things. we have to talk about what it takes to stabilize the industry. i think there are lots of ways to do that. we working quietly behind the scenes to achieve that. >> as you said, it has been so politicized across the spectrum. just yesterday, trump came out against a lot of the big drugmakers saying they are can roll back price increases. do you see a future that is less politicized? >> i think we will over time. that is what we are pushing for. i'm not saying we should not deal with hot issues, let's deal with it from a policy

standpoint. what is the appropriate public policy when it comes to pharmaceuticals and other drugs and go from there. >> let's focus on m and day. you guys did your deal with the is.las -- fidel had you do the m&a -- how you view the m&a market? >> there's consolidation still taking place. we evaluatede up and it has to be good for everyone. how do you play that? with the aca in the flux that it is an, do have to wait until the picture is clear or deal with the other stance? >> we will make our decisions based on the facts as they are today. if you start the what if's, you'll get paralyzed.

holland used to talk about analysis by paralysis -- paralysis by analysis. that is something we work to avoid. analysis, but you make the decision you have in front of you. if it changes, we have the agility and systems to move with it. that is a you go about it. >> where are the opportunities you go big? saw the biggest health insurance merge about two years ago, the previous administers and was negative about those deals. i'm interesting to see where we will see deal flow. >> i try telling people that i felt we would have difficulty, and at length, the justice department is looking at it through the lens of the airline industry. they consolidate airlines, it is good for the companies, but consumers did not do well. you have the look at it and say, will the consumers, providers,

and the organizations benefit from it. is, we have systems to allow them to improve quality. >> what are the other markets other than north carolina that we can expect it? >> there are of various number of markets. unless they have been publicly , i tend to be quite or work behind the scenes. >> the me ask questions slightly differently. what you look for when you are making decisions on going into new markets? >> we look at the policies and practices, look at what the current environment is with competition. who is there, are we able to compete? we can always compete, i should say.

if we look at those kind of factors. >> we're kind of in that spot where people are looking forward to 2019, house the market shaping up -- how is the market shaping up? >> i think it will be fine. they're going to try to be destructive. >> they being washington? >> yes. from 62 that last year million down to 30 million, and now we are going down to 10 million. >> why? what does d.c. get. >> they think the administration will help shrink the aca, but it did not. people are becoming more satisfied with it. they did things, they removed factors which costed $7 billion and replaced it with premium subsidies the cost of $29. once again -- $20 million.

once again, we are able to deal with it no matter what. >> michael, thank you so much. scarlet, back to you in new york. scarlet: thank you so much, it hammond over at sun valley. let's get you now to the weekly segment with abigail doolittle where we look at timely topics through the charts. today's trading action has been dominated by talk of tariffs, earnings season will also be front and center starting friday. let's go to abigail. >> thank you so much. david, thank you so much for taking the time to read before we talk about earning seasons, volatility tremendously today in the commodity complex. it reminds me of 2011 when we had the big swing of commodities, any quick thoughts? >> i think you get the sense of this competition of all the different assets either near or very near inflection points. with commodities, your that strength in oil and manager energy space.

i think coming out a commodity session -- season will see if inflation is more of a concern than we think. >> let's take a look at your s&p 500 chart going in and out of earnings season. >> going into earnings season, we have had a great run and the last couple of weeks. it is impressive to see how the market has come back. the s&p is about 2800 up. that has been a key resistance level. and march eyes, and once we sold off, you can pay attention to that is a level of resistance. we're right back at those levels. going into earnings season, we are at resistance. from a technical perspective, we are key. we are either able to take control and perceive the new highs back at the 2800 level -- i'm sorry, 2900 level or beyond, or become back to these previous support levels that were important. 2700 it is the midpoint of the consolidation. if you turn consolidation into a

trying all, the midpoint is 2700 and that has been a key barometer for the bullish and bearish side. the put the weight on the side of the bulls. >> we bring the rest of the world here. the s&p 500 looks like it is outperforming the rest of the world, what does that tell you? >> these are two concerning data point we are paying attention to. while the s&p 500 is outperforming the world, and , it hasthe msp i xus been on the great run as the s&p is recovering. something like pure markets have struggled while the s&p in the u.s. has remained strong. that tells you the rest of the world is starting to rotate lower. if the growth concerns globally start to affect what we are seeing in the u.s., that is the issue. >> earnings season kicks off on friday with financials and you have a great chart of the financials to talk us through. what does this tell us? >> this is one concern going

into earnings season, the health and financials. particularly the big cap financials, goldman sachs, bank of america, those kinds of names. as we see the big cap consumer do well, financials are starting to trade lower and is starting to underperform. this is a relative performance of the financial sector versus the rest of the u.s. market. we can see it is broken down and is a relative underperformer. if you season, a chart like this need a catalyst. the good thing about a consolidation. , isonsolidation period that, one way or another we have to break depending on the catalyst we get. once we report good numbers, break higher, see return of outperformance, or we see the opposite. >> some are inspecting investment banking could be week around the trade war but, finally biotech, a breakout is possible? >> that is the idea. one group going into earnings

season that is promising is biotech. financials have been struggling and biotech is breaking to new highs. it is new to see when the market is doing one thing and we see groups do something different, that tells you there might be an opportunity. breaking above resistance, eating a consistent outperform or while the rest of health care has been a market performer your today, this is a group to pay attention to. >> that is interesting for sure. biotech looks like it could be strong. david of alpha research, thank you so much. julie: we have breaking news now. bloomberg has confirmed that broadcom is said to agreed to buy ca technologies for $19 billion. earlier we said that the journal had reported that broadcom was said to be near a deal to buy ca. now, bloomberg is reporting that they are to have come to an agreement. $19 billion is the price we are talking about. -- 44.15 per share.

this is bloomberg. ♪

mark: i'm mark crumpton with your first word news. following criticism of nato today by president trump, theresa may defended the importance of the alliance. she woke -- see spoke to reporters in brussels. >> nato is as vital as today than it ever has been. the u.k.'s commitment prevents prevalent. we lead by example. we're spending 2% gdp on defense and in the way in which we deploy thousands of armed forces down on nato operations around the world. mark: over the next two days, the leaders are expected to announce plans to continue

funding the afghan army. strongs a 60 million training effort in the country. theresa may would provide 440 additional personnel. the united nations says antonio guterres and japanese prime minister are offering support to deal with landslides. he has expressed his condolences for the loss of life and destruction. he also commended the government's effort and expect -- expressed admiration for search and rescue efforts. the overall death toll has climbed to 176 in japan. --u da silva he will be officially registered as a candidate on august 15 and

his partner will keep pushing in the courts for his release from jail. the former president is serving a 12 year sentence for corruption and will likely adopt a new strategy if electoral authorities reject his presidential bid. 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. i'm mark crumpton, this is bloomberg. scarlet: let's get a recap of today's market action. red across the equities board and many assets in fact. the dow is off 219 point. crude oil was really the mover of the day along with all of the other commodities. 4.5%s plunging more than to $70.56 a barrel. crude is off better than 6% and you saw commodity currencies take it as well. it is time for the bloomberg business flash. look it's at some of the biggest stories in the news. twitter its warning its

users.wn could be less they lock an account if there is no response to sudden changes in pattern. looking at 10 million question all caps per week. said the japanese conglomerate is trading at a steep asset to its value. they oversee about $22 billion and was founded by chase coleman in 2001. coleman formally worked at tiger management. u.s. inflation at the wholesale level accelerated last month in the 12 month ending june. the producer price index was 3.4%, the most since 2011. the higher cost of services was a driver. tomorrow, the government comes out with consumer price index figures. the bank of canada is raising interest rates i a quarter of a point to 1.5%. it is the second hike this year

in the fourth over the past 12 months. officials said rates will need to rise further to keep price pressures in check. that is your business flash update. julie: "what'd you miss?" let's head to idaho. ed hammond is on the ground in sun valley. ed, i'm sure you're getting some of the football updates there. i won't dwell on it, but i'm hope you're doing ok. >> we could talk about that. sleepy, they more chairman -- maurice leavy, the chairman here. did you think prince would win the final? >> yes because when we showed the bridge the direction -- brits the direction of brexit. >> if england won the world cup, it might look like brexit was

smart. let's talk about your industry in advertising. is it a traditional advertising industry and as it headed toward the secular meltdown like the retail industry? ? >> we might see it even more because there's such huge changes starting with consumers. you have to always start with the consumers, because at the end of the day, everything we do is for them. when you look at how they behave, their attitudes, they are using everything from the internet and have always. this has changed dramatically. searching information, communication, etc.. this has changed dramatically. the industry and, it is not yet

finished. we need to combine and connect the data, technology, and creativity which is not easy people who are very different. also, we need to invest massively to transform. >> how is the competitive set changed? you are now competing with the tech industry -- are you now competing as much with the tech industry as well? >> there is obviously newcomers and others coming from the firm's -- consulting firms. you have many of those firms that are leveraging some services we do. there are small startups who have a niche and you are taking part of that niche of the business. players who large

can take some of the business they're doing, so we are paths andy all of the surrounded by so many competitors that is making our business stressing. i believe much more interesting for our clients also because we are bringing to them solutions -- moree competitive competitive than the past. >> had he survive such a significant change in the business model? >> it is easy to survive. there are some that have not. there are some that are suffering. we're done some investments which have been criticized at the beginning. criticized as some of our competitors and also by investors or analysts.

at the end of the day, it happens that it was a very good one. there is a lot of initiative which has been taken by the new one and the most important is building a platform which would connect all of our employees. this will help us leverage the qualities, capabilities, creativity of everyone. without taking into account who there are longing to or which country they are working because there will be one planet which is a small cell planet. >> is going to be an important distinction on who survives and who does not. you guys try to break up the

merger with omnicom, and it did not happen. is that something that we can see a revisit to? >> i don't know if this will be the case. there is something for which you are absolutely right which is, size matters. in that industry where we see the some players are so huge, if a big size, it is difficult to compete. size matters, and to oversee ,onsolidation in the future it'll probably take a couple of years. >> we saw the gdpr comment in europe, is that too little too late in terms of how far we already are in the digitalization in the way consumers direct and others interact with consumers? gdpr are used to kind of in france because there has been a 1978 decision to create a

commission for the control of making sure freedom is protected and privacy is protected. this has taught us how to deal with these kind of matters. clearly, where we are today is not sufficient. we need to go further. >> does the u.s. need a similar measure to protect consumers? >> they will have to. i'm not sure it is gdpr. it could be some been called differently, but it will be something of the like. use the that people can without control is something that has to come to an end. players arethe big doing everything they can to avoid to have the privacy breached but, we must go once a

further. i believe the consumers should receive a share of advertising spendings. if i'm using your name, i'm using your address, i'm sending you messages, and you are opening those messages, you will end up, maybe by buying a from the client, you deserve to be paid for that in receiving a share. --re is no reason the money >> all in one direction. i like that. i get paid to be me. >> it will not only be you, but it will be you. >> that he so much for joining me. back to you in york. scarlet: ed hammond, of bloomberg news, joining us from sun valley, idaho. while they were speaking,

croatia has said news. julie: croatia has done it, it is advancing to the world cup finals. scarlet: obviously disappointment in england. croatia versus france sunday, 11 a.m. there's also the consolation game, but i do not think that will be the focus here. congratulations to croatia. coming up, the trump administration rolls out another list of proposed tariffs as high-level talks had retarded -- restarted and granted to a halt. this is bloomberg. ♪

julie: "what'd you miss?" mirroring the point of no return.

president trump ups the ante announcing additional tariffs on beijing the attacks happen of all goods the u.s. imports from the nation. the latest list is set to go into effect on august 30. president xi jinping wasted no vowing to match blow for blow. there's still hope the two sides will come to some sort of agreement, but that is far -- thus far, there have not been any signs of that, have their? >> trump thinks he is croatia, but he might be england. to me, this is a textbook case for multilateral negotiations. things like the transpacific partnership. each individual nation might not get everything at once, but, collectively, they'll come out better. it kind of submerges the take for chat kind of -- take for tat

-- tit for tat rivalries for good. as soon as trump tried to go away from the bilateral, it gets into a casework countries are going head-to-head. eagles start to get involved, national pride, and principle takes over. at that point, it is hard to back off. we see the countries are not even negotiating at this stage. they are cranking up back and forth. joe: one of the key problems perhaps for china is that they cannot respond to $200 billion tariffs dollar per dollar. they just don't import that much. how concerned should starbucks or apple, or companies that operate in china but do not export to china be concerned? >> they should certainly be concerned because they're are

obviously the next point of leverage for china. you go after u.s. companies that do business there domestically, and we have qualcomm trying to get approval of buying semiconductors for $40 billion. another point of pressure is not going to be tariffs, it will be is,y kind -- the problem these are mutually advantageous relationships that are being busted up simply for the sake of one country trying to gain leverage over another. it is really destructive. scarlet: there have been no confirmed high-level talks between the two countries since early june when the commerce secretary was in beijing. was that not the u.s. strategy to create urgency by imposing these tariffs while holding discussions at the same time so there was this time bomb going off? we entered the situation where you can continue to rack up pressure without anything coming out. ultimatumdeliver an

that succeeds in getting the other country to back down, great. but, if you don't, if because as the other country do, do full force, both sides lose. unfortunately, bloomberg has a great story today about how, as you said, there is nothing happening now. there is sometimes low-level talks back and forth, back channel kind of stuff, but the principals at this stage have decided that each side has said, see any give on either side. oc but he sor much -- peter coy, but he's a much for joining us. some health plans a say now it is time to be in business with obamacare. we will explain. this is bloomberg. ♪

julie: "what'd you miss?" one of president trump's first promises what's to get rid of the affordable care act. insurers are now saying not so fast. here is zachary treacher with more. it's an interesting situation because there were mixed opinions on the part of the health care industry going into the passage of the aca. then, they adjusted and then some and now brings us to now. why do they want obamacare to stick around? >> right now, insurers have essentially figured out how to make money. talking about 2019, and we are five years into when the law took effect. it has taken four or five years for insurers to figure out the system. but now, they are finally

figuring out they are making money, and now they want this law to stay. some of them are expanding. >> all insurers or certain insurers? a lot have gotten out of the exchanges and are not part of it. we are now talking about smaller company startups essentially. >> there are a handful of startups hitting on smart strategies. there are established players who have also figured out ways of selling the coverage in a profitable way, but you are right. some of the big insurers of the is not worth our time to lose this money while we figure it out. we can focus elsewhere, make more money elsewhere rather than sticking around in this crazy market. , twowhat are the startups of them you spotlight, oscar and bright health, what do they do differently than legacy health care companies and why do they see opportunity? >> one thing both companies do is they partner with hospitals in the region.

they go to a hospital and say we would like to sell affordable care plans. work with us, help us figure out the right cost structure for this plan, and it is a shortcut. it's great to get around these discounts that are struck between big insurers. of the healthers insurers have to go to that hospital? >> that is right. it is it limited set of doctors. it is a great way of getting those people prices and the health plan on your side. in this case, they are working together to say, how do we create the best health plan and provide the best health care to our customers. scarlet: it sound like a modified hmo plan. >> it is, exactly. julie: it'll be five years ago next year since the health care past, and i've read a lot about it, what do you do at this point? it is opaque because there have been different things in different states and it is subject to bureaucracy. goalis the main effect or

of aca as it exists right now? >> right now is still providing health insurance coverage to something like 20 million people. the biggest effect is still the medicaid expansion. it made a lot more people eligible for medicaid and health care for the poor. then, there is this market that we are talking about where people get subsidies to buy private health insurance plans. that is still chugging along. julie: is it? going to remain intact in that way at this point or is it still under threat from the current administration? >> the administration has taken steps to undermine it or scale back pieces of it. there's only so much they can do as long as congress does not repeal it. what we have seen is, they threw a lot at it over the last couple of years since the president was elected, but the law has been resilient. scarlet: what does it mean for customers? you have startups like oscar and bright growing, and they come up

with innovative ways of making sure this pays off for them to make money, but customers at the end of the day are paying premiums as well. they're not getting a break here. >> that's one of the really big problems. for people that make too much to get the subsidies that come with the affordable care act, so they make more than $50,000 a year, the insurance is expensive. you might pay something like $6,000 a year for a low level plan and adds a $6,000 deductible. so paul thousand dollars out of your pocket for health care, and you might be making $60,000 a year. 20% of your income is all of a sudden going to health care. that is what folks are facing. julie: so more money for the startups, but not putting them in a good position. zack, thank you so much. he is our bloomberg health care supporter -- reporter. scarlet: we report on the future health care, financial forces behind it all, and they feature prominently on those. joe: what you need to know for

tomorrow's trading day, that is coming up. this is bloomberg. ♪ this is bloomberg. ♪

scarlet: scarlet: "what'd you miss?" julie: u.s. stocks declining and oil prices and metal prices are taking a hit. scarlet: we just an indication that theresa may, the u.k. prime

plans foras abandoned a tight new plans for a tight new relationship after brexit. we will continue to monitor those headlines. that's according to the ft. steve mnuchin will testify before the house committee tomorrow. joe: numbers for cpi tomorrow are at a: 30 a.m.. julie: dell reports the second quarter earnings before the bell. scarlet: that does it for "what'd you miss?" julie: bloomberg technology is up next. " joe: have a great evening -- joe: have a great evening. this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.

emily: beijing called president trump's decision to slap tariffs on another $200 billion worth of goods, "totally unacceptable." we will discuss the tech fallout for the ongoing trade standoff read plus, lightspeed venture launching a new fund w