with hacking into democratic email accounts during the 2016 presidential election releasing stolen information before americans headed to the polls. the interference was aimed at helping the trump campaign. the indictments do not allege full tallies were affected by hacking. democrats are urging the president to call off his summit with president putin in three days. the meeting is said to have no time limits with the two leaders scheduled to speak alone before by their delegations. he will address interference in the u.s. elections. lesa page you let the fbi in

may was interviewed by lawmakers behind closed doors after being subpoenaed to appear. it comes to wait for hours after agent peter struck testified for following the discovery of the text. iran will not be relinquish military presence in syria. the statement comes on the heels of how moneys meeting with vladimir putin this week. iran will not bend as result of and the u.s. want to drive a wedge between toronto an andscow -- tehr moscow. for more follow tictoc on twitter. i am mark crumpton. this is bloomberg.

>> live in new york, i'm julie hyman. julie: joe weisenthal is off for the day. ike stocks are edging >> stocks are edging higher. a mixed bag of baker names. from china.the war back onrgo holding risk. the bank reporting weakness in the core product of loans. the cfo john shuster joins us at the top of the next hour. robert mueller marches forward in his pressure probe. and data before president trump meets with vladimir putin in helsinki.

banking on earnings. the first round of u.s. banks this morning. us, jason goldberg, it is good to see you. we have seen weakness in the banks as of late. we solve that selloff in june. is there anything you saw that justifies the pessimism we have been saying around the banking sector. -- definitely big concerns. when you look at the numbers, farmajor banks reporting so , all reported higher than interest margins. laggroups continuing to

raising deposit pricing in the face of security yields. that concern so far has been unfounded. we will see what the future holds. it has been subdued you did see a pickup versus what we saw last quarter on the commercial side. pipelines continue to be good. >> subdued loan growth. is it better to be a big bank or small bank in this environment at this stage of the cycle? and in all shapes and sizes, generally speaking as we look out, a bias towards the bigger banks. we are entering regulatory rollback. we see that going, that subsiding.

informant where technology becomes increasingly important to consumer customer bases. bigger banks have more wherewithal to spend money on developing new products and distribution. julie: when you look at the trading,ains, equity how sustainable are those? what we will see, jpmorgan topped. we think about the back half of the year, the second half of last year, results were pressured. looking at to the extent of going upy increasing, globally. that could bring volatility back to the market and keep the investors engagement. >> we are going to be speaking with the cfo of wells fargo and about 30 minutes.

mortgage fees, what is the question you want to ask him? them reduce revenue pressure. as they deal with fed orders and the sale of several businesses, they continue the franchise. , being expense program very heavy come of they can start growing the top line again. a still -- they still have a few runoff portfolios. >> wells fargo has tried to do some reputation fixing. a new ad ruled out campaign. do you think that is going to turn things around.

we'll that's for a turnaround? >> it should help. there is some lag with these marketing campaigns. customers have been growing throughout the process. a lot of it is self-inflicted. they downsize the auto vividness and scale back of their products they have had that were not as customer friendly. that weighs on,'s. we do think we're in this bottoming out cycle and results will improve into next year particularly on the cost side. good stuff. scarlet: be sure to stay with us for more on wells fargo when the cfo joins us. live photos of the president and first lady, the president will be making their way to turnberry.

golf.ill play some it occurs to me does the first lady play golf? julie: good question. the president plays golf. he knows all those golf courses. since he has become president that has closed off to the press. she may be on the courses. we don't know. julie: i'm one to find out about that. from new york, this is bloomberg. ♪

scarlet: special counsel robert mueller hasn't dollar did prescient -- has indicted russian intelligence officers just days before president trump meets with president putin in helsinki. kevin joins us with a special

guest. tom perez.ined with thank you for being here. your response to the indictments earlier today? what's this was an attack on the dnc and our democracy. you look at the breadth and depth of this criminal activity. they were going after state elections boards, secretaries of state's office, they got into one election website and got information relating to 500,000 voters. the president needs to stop calling it a witch hunt. it is an attack on democracy. it is going to continue. they have been doing it with impunity. the president is ignoring it. the reality is this attack on has to beacy in stopped.

putin is not a democratic leader. the country.ontrol in efforts engaged to destabilize nato. to subdivision at home. when you see trump trashing nato , he is playing into putin's hands. only undermines our democracy. it makes america less safe. >> president trump speaking with theresa may saying he has been able to secure 34 billion additional dollars to nato. he says his disruption advocating for other governments to pay more money was something the obama administration called for, the bush administration called for, but it sounds like you disagree. you don't think he is making

nato stronger. and applied problem at making sure everybody pays their fair share but he is going beyond that. you see in his visit to the u.k. today and yesterday, destabilizing the situation. you see his repeated attacks on chancellor murder -- trauma -- chancellor merkel. he has a fetish with the strongmen. is putting our relationships with allies at risk. canada is suddenly our biggest adversary. that makes no sense to me. that is the challenge. this doesn't make america safer. destabilizing relationships with our allies. we should be together working on one of the biggest challenges facing our democracies, russian interference in our democracies. the u.s. was not the only target. they targeted france and other

european nations. the problem is this president doesn't take it seriously. when i talk about this, this isn't an issue simply about democrats or republicans. this is about the integrity of our elections. that goes to the core of our democracy. inching closer to the midterm election. there has been bipartisan legislation about better securing the midterm election system. a two-part question. do you think we are better protected? a hear from a lot of progressives that have pushed back on the notion no votes were impacted. the deputy attorney general would out of his way to publicly say no mathematical count was impacted by this election. there are people in your party it wasn't argue maybe

hacked into but the propaganda and meddling led to that. i want to get your take on that. >> a big part of what the russians were trying to do was so discord. they certainly were successful trying to so discord. they were not trying to help donald. they were trying to hurt hillary clinton. they were trying to help donald trump get elected. they sow the seeds of unrest. >> do you think any go -- to think any votes were changed? >> again. the question you are asking is an impossible question to answer. when you show unrest and discord, asking democrats to be against democrats through very sophisticated propaganda operations, you end up in a

have a cophere you was what you set out to do to make sure you hope democrats are feuding with democrats. these attacks on our election systems, there were 500,000 names according to today's indictment obtained. information on 500,000 people from one state. we have to see where that goes. i think what ought to agree on is this has to be all hands on deck. want to make sure they are doing more unlawful voter purges. this is a huge problem. this is all hands on deck. this is not partisan. ,his is our focus should be making sure election systems are secure.

be more successful if the president of united states had skin in the game and wasn't trying to undermine it at every corner. that is what he has been doing. >> i want to ask you quickly for what you hope president trump conveys the vladmir putin. >> i hope he cancels the meeting. anotherictment is example why he should not be meeting with somebody trying to undermine our democracy. he news to up present him with those indictments and demand the immediate extradition of the people involved. these were not low level operatives. these were right-hand man. that is why we need to lay a clear marker down and say you try to interfere with our democracy. on behalf of the united states we are holding you accountable. he has shown no interest in

doing that. >> there was one democrat i went to speak with. tom perez. who has a tough job of unifying a party with a lot of different folks calling for different responses. timey much appreciate your on what i know is a busy afternoon for you. back to you. julie: good interviews are today from washington. today a jury ordered johnson and johnson to pay 4.6 $9 billion to women who claim as investors caused them to develop ovarian cancer. here with more, max neeson. we did see initially reaction. to 1.5%.are done >> this reflects the fact that this seems like it made an

outlier bit larger than previous judgments. passif it does come to johnson & johnson does make a settlement, it is j&j. >> is there a chance it won't come to pass? >> definitely. they have had success in the past. a big strong legal team. when you have punitive damages of this size there is some history behind them getting overturned on appeal. there is a chance we will see this number. there are so many cases coming down the line. johnson & johnson seems like one of the companies that has had some serious allegations leveled against them. adequate't put

labeling, didn't have adequate disclosure. for many companies this would be a big problem. >> they have faced many other issues. that ended at getting resolved without too big of a hit to the company. this lawsuit makes the tie between the tout patter to as to a varying cancer. there is concern it might bring a further wave of lawsuits now that you see this big award which might add to concern now that the level has been set high. of theide or downside lawsuits over time has been increased. outlier, thet an size of the award. >> no matter what happens with whatctual award, reputational risk does j and j

suffer here? you look at the share price. it is not an extreme reaction given the size of that number. it is hard to say. this is one large one. saying itj&j is doesn't believe there is a link here. the way the trial was brought. over time if they end up settling in a large figure or there is admission of wrongdoing you might seem a be tatian or i don't see that yet. >> off that can only it seems like j&j knows how to handle these situations. or do they just have an amazing legal team? >> a little of both. so many businesses have a consumer product here. when of the largest prescription drug companies in the world. you have a pretty high rate of lawsuits. a lot of experience dealing with

this. scarlet: volume doesn't seem to be heavier than what it has been so far this week. netflix on pace for its worst day. we dig into why next. this is bloomberg. ♪

>> netflix taking a tumble before earnings release monday. in numbers may result downside risk to the stock. joining us now, abigail doolittle. it is always the subscriber addition. >> it doesn't come down to revenue. we talked about the stock.

story, valuation. analysts are out there with positive comets going to this earnings report but the negatives are getting the attention here. it has to do with how much the stock is up, more than 100%. if we hop into the bloomberg this is interesting. here,e are looking at last quarter it was a blowout quarter. 7.2 million subscribers. almost a million more than expected. this is the estimate for this quarter. 6.3. , he waskely this number talking about the possibility of a big miss. look at this trend in the stock. going in the wrong direction here. that could be pressure.

>> going into monday, the short interest of the stock. for a stock of this size it is not tiny. >> that is interesting. huge. investors did not believe in this in terms of valuation. rising cost we were talking about. a point.yst might have this is a longer-term chart. above its is 44% moving average. you see it tends to reconnect. a momentum indicator coming down. perhaps the stock will cool off again. it is extraordinary. julie: the one-day move, 9%.

it is going to react one way or the other. scarlet: thank you. the market closes next per looking at gains here for u.s. stocks on the day. you have the dow up by 100 points. this is bloomberg.

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julie: "what'd you miss?" stocks are ending on an up note with the s&p 500 reaching the 2800 level earlier in the session. i'm julie hyman carried scarlet: i'm scarlet fu -- i'm julie hyman. scarlet: i'm scarlet fu. joe weisenthal has the day off. julie: we begin with our market minutes. yet another day of the low average volume. this is a trend we have been watching all week. without we people -- we thought people would come back from the holiday and jump back into trading. it is not happened much. we are 6% below the average volume on the s&p 500. it is still running a bit below. if you look at the 100 day average, it is 10% below. even though the s&p gained on the day, it was mixed in terms of group. outcomes and financials down. industrials and energy are trading higher with staples.

individual stock reports, a big day for banks earnings. all and lower -- and lower. jpmorgan -- end lower. jpmorgan and citigroup flirted with higher levels after the earnings read there's concern -- earnings. there's concern about loan growth. we will be speaking to the cfo and wells fargo in just a few moments. we are watching cisco here. company to betest hit by competition from competition of amazon. a report that amazon's cloud unit might sell their own switching devices according to the information sending those shares down 4%. mcmoransaw freeport copper fall even though prices were on the rise. there is concerned there is an

agreement with indonesia. there are plenty of hurdles before they can secure a deal and operate a black shaft -- flagship. broadcom is sliding for the second straight day on concerns that it is not in its strategic interest to make its latest deal. day, not ae latest lot of movement here. these are something of a disconnect as we see more movement on the stoxx front and bond front. stocks are moving easier today. we are seeing buying across the curve. on the week, it is interesting when i looked at the 10 year yield on the week, it did not go much of anywhere. just a decline of three basis points. finally, if you take a look at the spread, as we watch the yield curve, it keeps getting flatter here on a pretty consistent basis. although, we talk about the effects of that and what it did not have on the banks. scarlet: i feel like we sound

like a broken record when we talk about the yield curve. it, flat, flat. let's talk about currencies. if in the first week of the earnings season, at one point, the dollar had its biggest weekly gain in a month. that has faded. you can see the rollover in today's trade. it was done as much of a 10th of , and it recovered after president trump apologized to theresa may criticizing the handling of brexit. he also praised boris johnson, the outgoing foreign secretary who did not agree with theresa may over her soft brexit plan. rubles.n of the dollar spike in value versus the ruble about midday after rod rosenstein detailed charges against all russian intelligence

officials for hacking into you mills during the 2016 presidential election campaign. -- hacking into emails during the 2016 presidential election campaign. oil is higher and the wtf post their first gain in three days. more risk appetite coming in there. metals declined. gold, copper, aluminum are all lower. numberxported a record of aluminum in the first half. we know the timing is interesting given the sanctions and tariffs are put into effect. echo look at the numbers week to date. the bloomberg index is down two point7 percent -- 2.7%. really so the bottom fallout there. it was all across the board whether it was soft commodities or hot commodities. for the metals and

energy components, just wanted to take a look. corn is falling for the north day and five. before we close out the market minutes, i wanted to mention the headlines that i just noticed on turkey. they are downgrading turkey's debt here. i'm looking at the lira on the bloomberg and we are seeing the dollar spike versus the turkish lira on the back of these headlines. be,ain things cut to double and the outlook is negative. scarlet: more downgrades could be in the offing as well. those are today's market minutes. wells fargo shares falling after a disappointing second-quarter. they range from falling to positive with mortgage fees to an unexpected increase in expenses in the. . -- in the period. jpmorgan gave the results and a top estimates.

us now.rgo's cfo joins john, thank you so much for joining us. there are so many places to start here. what i want to begin with is, have the rising interest rate environments that helped some banks notably, jpmorgan, has it helped wells fargo in any way? can we start to see benefit from that? john: it has come up for sure. thank for having me. -- it has, for sure. things for having me. we have had increases your per year because of the front that occured. you talked about your market minute and the flattening curve, and we have preferred if the long and was moving up from earnings perspectives. we are very sensitive to the front end and tightening cycle that we are in. we will probably continue to see it for a while and contributed

to incremental income. i want to ask about a loan growth here and your ability to grow assets. i wonder if you look at loan , and whenlack thereof you do, how much was that a result of the fed's content versus other elements? -- in terms of growing your aspects versus other elements? john: it has an impact on the balance sheet, but it has been more around different deposits we are willing to take and not willing to take and the cash on the other side of the balance sheet. for loans, we are vigorously , in particular first mortgage loans. all categories grew. some loans have been cooler. commercial real estate loans were -- loans.

we are the largest real estate lender. there is a lot of competition in that space among nonbanks as well as banks. our commercial real estate exposure year-over-year, we tapped the brakes. we think we are about to resume growing the auto business, but we paused a little bit in that portfolio shrank. -- aill have original reasonable portfolio. aggregateook at the loan growth performance, you have growers and shrinker is. so, each of them is their own story. it's time to be prudent, especially when it comes to extending loans. i want to talk about home loans. your ceo warned of overcapacity mortgages. in addition to other banks, wells is competing with nonbank

lenders as well to gain market share. talk a little bit about the size of the mortgage five. how much smaller do you expect to get as interest rates creep higher? mortgage pie as measured by the mba is inspected to shrink from $1.8 trillion last year to about $1.6 trillion this year. we think that is a reasonable estimation. the nature of what is going on with mortgage origination this changing from one from mortgage asinancing oriented employment got fuller and folks were in a position to take advantage of lower rates. that has run its course and we are disproportionately in a purchase market. the size of the market is going to be more controlled by job growth, the willingness to form households and by available supply. it is a little smaller. with that excess capacity last quarter, it means there are a variety of mortgage originators,

us included who are willing to cut price to use their capacity. it has resulted in margins falling for the industry over the last couple of quarters. in q2 and wesaw it will see it in q3. he'll not surprise me if there are some folks who do not have a full range of mortgage originality. if you don't have all the drivers of revenue, it is probably true it is hard to stay in business at these lower margins. some capacity will probably come sut of the system, which i appropriate because it was built for a time where people were refinancing. julie: when it comes to mortgages as well, or any of your businesses, we talked about competition, i have to ask about reputational risk at this point at wells fargo.

you have beenell able to quantify if customers are choosing other banks over wells, how much the past couple of years with all the missteps the bank have had and if they are in a factor -- if they have been a factor, and what you are doing to improve your image with customers and helping them trust you. john: that is a great question. there are lots of ways to think about customer acquisitions, customer retention. our growth before the fall of 2016 has probably been half from doing more with existing customers and half from attracting new customers. without a doubt, it made it harder to attract new customers when we caused our own reputational problems. we have not had much problem with customer attrition. you see it in car growth, growth,checking account

and we are growing the number of folks coming. we are not losing ground in those areas. reaching people who do not have a relationship with us through a product or a manager has been hard. appropriately, what people know about us is what they have read or seen in the papers. part of what we have done recently is take these approaches to advertising treat i think it came up earlier on your show. it is a benefit to tell the story to people who do not have a relationship with us, what is going on at wells fargo. the willingness to be transparent and find things that went wrong and fix it. sentiment andom measuring awareness are much better as a result of that type of outreach. you can see it in the numbers, seat in the social sciences. the approval be in adding new customers over time.

scarlet: clearly you were listening to our conversation with jason goldberg. he mentioned he would want to ask a question to you on where start on when you can your topline again. you have had negative print for wells fargo since the first quarter of 2017 and not produced -- not projected to produce revenue until the second quarter of 2019. what are the odds of being able to get to revenue growth before then? john: it depends on rates. more than half of our revenue comes from interest. we talk about the shape and level of the curve. piece of it.a at loan growth will be a piece of it. deposit pricing will be a piece of it. those things will contribute at what weight interest grows. we will called 55 or 60% of the revenue. the assortment of fee streams. we talked about mortgage, and in

mortgage, we can gain chair. it is a weaker time. we will watch that and see what it delivers. the other part of the question is whether -- regardless of what happens with revenue and what pays growth, what are we doing with expenses and the capital in the denominator of our return denomination to return -- to give returns to investors. we've been specific about our expense plans. i'm sure you took note of the annual capital planning process for larger banks, and we are now actively engaged in reducing our share count. capital forexcess some time. that also will contribute to higher returns for shareholders. we're the hide is r.o.e. bank among big banks last year. just mentioned will contribute to a high level of return this year and next year also. that: we will be watching

r.o.e. number. john, thank you so much. john: thank so much for having me. julie: president trump ups the ante with the trade war in beijing. chinese trade officials cautioned there is hope in a negotiation. you will have the important takeaways next. from new york, this is bloomberg. ♪

mike: i'm mark hampton with first word news. top congressional democrats are calling on president trump to cancel his upcoming meeting with russian president vladimir putin. this comes after the justice department announced the license -- the announcement -- house foreign affairs german ed

royce said in the statement the president "should use today's indictments to challenge vladimir putin at the summit next week in helsinki." senator jeff flake says the --sident continues the public comments came from the senate floor. >> the white house is as confused as the nature of the threat we face from mr. putin as it seems to be. a meeting between our president and his russian counterpart for which there is no record, could not be more concerning. was: senator flake said it vital that such meetings between leaders not go unreported. especially "when the world seems to be hanging in the balance." the mexican president's office says he asked a u.s. delegation led by mike pompeo to quickly reunite migrant families

separated by the border. presidentt from the says he called for a "permanent alternative that i or ties as the well-being and rights of minors." alternative that prioritizes the well-being and rights of minors." one man was repeatedly beaten by a "break and was told to " go back to your country -- beaten by a brick and was told to "go back to your country." an associated press report says one north african country has forced more than 13,000 people from some saharan nations to try to reach neighboring countries by foot. that's after dropping them off and buses. to top security officials in audi area have been fired after widespread condemnation of the expulsions. 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. julie: "what'd you miss?" the u.s. government conceiving a debate days after the trump administration escalated its trade war on china. the u.s. government lifted a ban after the firm made their final payment of the one point billion dollar -- $1.4 billion penalty. is this growing tensions between the two largest economies? our guest is here with the takeaways. it does not seem like there is much falling, otherwise, does it? >> i think the two issues are unrelated. they are negotiated on separate tracks. the key right now is going to be how china responds with tariffs. if they go minimalist, they do somewhat less than what the u.s. does, i think we will see the market rally. if they try to match them dollar

for dollar, we will see a selloff again. scarlet: in terms of motivation to keep this moving along, the u.s. is motivated because you midterm elections coming up. what is china motivated by? does it have the same sense of urgency to retaliate, come out ahead? is a sense ofre national pride and present themselves as the bastion of free trade. some may be skeptical, but that is the way they frame the way they are in favor of free trade. you don't have to agree with that, but i think it plays well domestically entitle -- in china. you were surprised by the speed of the u.s. moving forward with this. in this quite a large list of goods targeting for tariffs. is the midterm election the primary motivator there in terms of that velocity? >> i don't want to say it is the primary motivator. we've been talking about this

for a long time before the election. i think the calendar is a partial motivation for them to get things moving. they were successful. the first round of tariffs were relatively popular. we saw today that import rates dropped. in termsof the tariffs of what is on the store shelf does not seem too bad. if they stop now, china would say ok, we can live with this. i think they have to feel we have to keep pushing. julie: scott minor from guggenheim was here yesterday and he was bringing up washing machines. we have seen a 17% surge in washing machine prices because of the 15% tariffs that we are now seeing on them. yet, there hasn't been much complaint from consumers yet. pointould be the tipping for popular opinion to turn against of these things? >> most of us by washing

machines once a decade, so we can amortize that. most of us never by motorcycle. if you begin to see something you purchase regularly, and you can see prices moved up when you went to the store, i think the popularity or the acceptance of these tariffs would come into question. scarlet: under what circumstances will there be a pretty meaningful inflation impact with of these tariffs? the tariffs imposed on china and also the ones imposed on the u.s.. >> i think the dollar rallying against the tariff country is mitigating the inflationary impact. it makes a more painful for chinese exporters. they're getting paid less for what they are as -- what they are exporting. as long as the dollar is strengthening on this and viewed u.s.,isk outside of the

they have not been waterproof, that they have been pretty impermeable so far. as long as that is the case they were incentivized to keep pushing. scarlet: if that was a basis to whether the president could say they are easy to win -- is that a basis on whether the president could say they are easy to win? onwe put the same tariffs them and they have to do more thinking that we do. julie: as a result of all of this, to the parties that have the most to lose, are the outside of these two may negotiators trying to end the u.s.? you talk about commodity currencies in the most recent note and we saw commodities take a hit. hit,mmodities have taken a but if you take it asian equity markets, they trade in lockstep with the s&p. this year, the correlations are stronger with the chinese equity market. maybe not the same magnitude,

but the same direction. i think there are issues particularly in asia and worries about spillovers that are affecting economies in currencies that look pretty much impervious to the first part of the year. scarlet: there's a rethink going on across the commodities getting hit first. stephen engle and there, thank you so much. york, -- englander, take you somewhat. this is bloomberg. ♪ berg. ♪

scarlet: let's get a recap. the dow is adding almost 100 points, the s&p 500 gaining attend the 1%. the nasdaq is hovering near record highs. julie: on a closing basis it is there. scarlet: so little changed on the day.

the president-elect is getting a visit from an all-star delegation. we are from mike pompeo next. -- we hear from mike pompeo next. 2, down. back up.

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mike: i'm mark crumpton the first word news. president and mrs. trump has arrived -- have arrived in scotland will they would spend the weekend at one of the private golf courses. they say the president will be preparing with the summit with vladimir putin, with the white house confirmed is still on. is to us in at least 128 people in pakistan and wounded more than 120 others. that attack took place at an election part of the country. a provincial parliament was among those killed. this is the third major attack to take place that targeted politicians in the south asian nation this week.

and the second today. british investigators have found the source of the poison killing one person. a small bottle found in the home of one of the victims headed -- tested positive for novachoke. further testing will be done to see if it was related to the further poisoning in march. beinged in moscow after sold world cup into gets that allow them to enter russia without visas. they were told they have jobs waiting for them, but that was a lie and their return tickets turned out to be fakes. since realizing they have been deported, men have been camped out the nigerian and a c. the local ambassador promised to provide of food and shelter while he looks for a way to get them home. global news, 24 hours a day on air and on tictoc on twitter, global news, 24 hours a day on

air and on tictoc on twitter, -- 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. crumpton, this is bloomberg. mike pompeo is about to hold a news conference with mexico's foreign secretary. -- thewith the president country's president-elect also known as amlo today. were there as well. joining us from mexico city is amy stillman from bloomberg and, looking at the agenda, it sounds ake they have been given proposal for how the two countries can work together on key areas of cooperation. what do we know about the proposal or what these areas of cooperation might be? what we know so far is that there has been a proposal by the

upcoming government of , and wet-elect understand it will focus on key areas of trade and he areas of security. have not been too many details, but we understand from the foreign minister that these are the areas that the new government will be focusing on. secretary of state pompeo has been given this proposal to bring on to the u.s. and to president trump. scarlet: we pointed out how there are three u.s. principles attending. heads of state, homeland security, jared kushner, and the president's son-in-law. to mexicoemonstrate the importance of these bilateral ties to the white house at least. my question is, is that how mexico interpreted, or do all of these people create confusion.

i think back to how five principles want to negotiate trade in beijing and not a whole lot got done. >> i think it is being received well in mexico. let's not forget that the country just elected a new president. inual lopez will start december. it is a good sign, considered a good sign that you have the secretary of state and a fairly important delegation from the u.s. that is now looking to meet both a with the current administration and the upcoming administration. it is also important to mention that we are certainly seeing a slightly different shift in the relationship between the u.s. and mexico. duringe new government the day after the election of on the days may will lopez over

over -- after the election of amlo. we are seeing a mood of diplomacy over the two countries after what has been a fairly turbulent ride as a result of some of the rhetoric we have been hearing from donald trump about the border wall plans. julie: i want to ask you about the wall. the current president, outgoing president has said we are not paying for the wall. issue,dering, on that what kind of rhetoric, if any have we heard from amlo? >> so far we have not heard anything in these meetings as far as we understand. the border wall has not been discussed. of the policy that mexico plans to implement going forward on security, we have heard things along the lines from amlo, that the best way to

prevent immigration is to raise the economic income of central americans and mexicans. we've heard him backtrack to some extent on implementing a special police force on the border. inre are some differences terms of how the two countries want to approach the issue of security and going forward with the plan of the border wall. scarlet: thank you amy stillman joining us from mexico city for keeping us up-to-date with the u.s. delegation and what they have a compassed. more indictments on the investigation into russian interference in the 2016 presidential election. this is bloomberg. ♪ ♪

julie: 12 more indictments from robert mueller, the special counsel.- special development comes days before president trump is set to meet with russian president vladimir putin in helsinki. kevin whitelaw from washington. kevin, summarize what these indictments detail and who was targeted by them. kevin: this is something we have been anticipating for a while. we do not know the exact details or what they would be. indictedn spies were on charges related to munger -- money laundering and conspiracy

to the u.s. or hacking into the computer network of the democratic national committee, the democratic national campaign committee, and people associated it with hillary clinton. disseminating those emails through various channels which they committed -- they created to do that. they trick people into giving up their passwords and gave the ability to gain access to them. -- one people named contacted these cutouts for the themselvesat created and presented documents for political reasons. scarlet: there could be a lot more disclosures to come here. the timing is what is critical. that itluded to it in comes days before the president meets with vladimir putin in helsinki. there is a message that my be sent here. one official that

briefed the president of the charges earlier in the week yet to the president called the investigation a witchhunt and is damaging to the relationship with russia. kevin: the immediate reaction from the white house and from look, theyyer was didn't indict any americans, these were russians and have nothing to do with us. nothing has changed here. shows the it continuation of this investigation. we saw another swath of russians and i did a few months ago on charges related to social media tampering and efforts there. misused socialy media platforms, and now you see the the hacking indictment. timing is inescapable to figure there is some kind of message here. we have been anticipating this for a long time.

since all of the named individuals are actually here, it is not like they were timed to any arrests. it is hard to ignore the actual timing of this, coming as it does right before the president is scheduled to have a one-on-one sit down meeting with the russian president. you so: kevin, thank much. deputy managing editor joining us from washington. for more on what to expect from the summit in helsinki, we bring in the vice president of global analysis at trapper in comes to us from texas. the democrats are saying in light of these charges against the 12 russians, the president should cancel his meeting with vladimir putin. should he? doesn't, and if he he meets with vladimir putin one-on-one. >> whether he should or shouldn't, he is going to be meeting with putin. if we set aside the investigation for moment,

because the investigation clouds and complicates this dialogue with putin. if you separate that for a moment and look at the emerging strategic environment, the united states is basing this great power competition with china in its most prominent position, and russia is trailing behind. these are two powers that are in strategic alignment. even though there is no love lost between them, in strategic alliance, that is a big emerging threat the u.s. is facing. if you set aside all of the trump politics around this, there is a strategic region -- reason for them to have a dialogue with russia, see where bargains can be had to file down the emerging access between china and russia. on all the issues they have to discuss, there are a number of constraints, including the institutional constraints reckitt home and in the united states -- back at home in the

united states which will be heavy on the president to limit any sort of big concession, particularly when it comes to sanctions. julie: how do you tread that line, reva, between some kind of relationship and at the same time these indictments seem to show that the u.s. is under russiann many ways from elements, if not the russian government itself? ofa: from the perspective the white house, they have been in power for more than a year and a half now, and it cannot avoid this dialogue forever. there are real issues to discuss. when we talk about arms control. -- arms control attacks, we have in --f -- imf which is a lot of activities around syria in containing a ride. -- containing iran.

being proposed that from trooijen. there are lingering issues in ukraine. russia is going to try to insert itself into north korea and their issue. there are all holes of issues that it does make sense. i think that is where they will apply the focus on the more substantive issues. when it comes down to a real negotiation and you have concessions on both sides, that is what the white house is going to be constrained, because where theer areas, president have exercised a lot of unilateral authority so far when it comes to imposing tariffs in trade, and congress is starting to mobilize the checks on that. and it came to russia policy, we saw quick check to implement the oversight. that is going to be tough for the president to circumvent. scarlet: does president trump's

tensions with our western european allies add -- as evident of his meeting at the nato summit help his relationship with but a mere putin? reva: it certainly helps putin's strategy. regardless of what president is in the white house, there is a russian imperative to divide the west, prevent a strong western front from challenging russia directly. do u.s. president will openly quarrel with its u.s. allies and were very directly in that strategy, that putin will be following. it is not necessarily help the negotiating position of the u.s.. that said, the u.s. has cards here. it will show that we are the ones trying to rev up nato, build a stronger presence on europe's eastern link. a poll and has been taking advantage of that in the white

house is in discussions around that. those are things that are threatening to russia and being part of this negotiation as well. julie: i guess i'm a little baffled, and i think of not the only one who is brought up this point that you bring up all these issues that russia and the u.s. could be working on, including syria. there are a lot of issues the u.s. could be working on with its nato allies as well, yet president trump seems to be pushing those allies away. at the same time there is this issue with russia in the face of the -- there is this friendship with russia in the face of the indictments i think we have to take into account the limitations -- indictments. . reva: i think we have to take into it count the limitations. there is is underlined u.s. imperatives to contain russia. you are already seeing that in effect when you see the u.s. restructuring its forces in europe, having these rapid

deployment and restructuring to build up on the eastern flank for europe. these are all things build up in the confrontation regardless. up in the confrontation. despite what the president says he wants to do, putin can put out a proposal on how he can contain iran and shave it off as a big favor to the president. limitations onus what russia can do on the ground in controlling activity. there are these facts that will prevent the grand bargain. we should not expect any huge bargain coming out of this dialogue. scarlet: i hear what you are saying, but the president has managed expectations to a point where he things there is going to be a breakthrough. -- theesident so president so enamored with president putin? what you think he admires him so much and wants to have this relationship with him so much

while pushing away our traditional allies? reva: again, i point to, there is strategic reason -- >> with all due you really think that is why -- or do you think it is more based on personal relationships or, ask called it points to, his that marriage in -- his admiration. this is not a president that makes decisions on what makes sense for policy. reva: naturally. there is a lot here that is centered on trump and his personality. he has shown a much more favorable attitude. he tends to respect leaders who he sees as having strong control over their state. that is the key to having a constructive bilateral relationship, where you can get things done and not deal with the political competitions that come in the way of a more open, democratic process.

there are things that are very specific to trump that are shaping this meeting. it is imperative to bear in mind, all of the institutional checks around the president, when it comes to foreign policy, particularly on the russia issue, we have seen more of those checks in place. with this active investigation, with congress on alert for any big strategic session, and remember, this is not an elusive issue. this is recent memory for many americans when we think about threats come the cold war, replace russia as a threat to the united states. it is not take many leaps of logic to say wait a second, this is not a good thing. i think it is that much easier to facilitate those checks on the white house. there is going to be pressure on him out of these indictments to keep the sanctions pressure on.

that is where we have to watch the treasury department closely. one thaty targeted shook up the alumina markets and could be more around that. julie: reva, thank you. joining us from austin, texas. thank you. the wait is over for football fans. finals will be on sunday and we will have details and a chart as well. this is bloomberg. ♪

scarlet: "what'd you miss?" after weeks of sweet victories come on sunday, the world is on the end of its seat as france and croatia battle without in the walk-up finals. this was a world cup of upsets. we knew france would do well, but we did -- but everything

france was in the finals? >> it usually like the march madness basketball tournament, you have upsets earlier and then two teams that you knew was going to be there. not the case here. france is one of the best teams in the world and croatia is a bit of a surprise. they went further than people thought they would. they knocked out a lot of bigger nations along the way, and including in the semifinals. goliatha david versus time here. julie: what chance does croatia have? eben: they certainly have a chance. they beat a lot of good teams to get here. julie: what are the odds looking like? eben: the odds for france to voice the trophy, they are going 2.5 i about one think. croatia is certainly an underdog. most soccer fans are expecting a

french team young and dominant to come away with this, but a lot of people thought croatia was going to be eliminated a long time ago. they made it a lot further than people thought. scarlet: what we know about ratings? thereratings in the u.s., are countries that advance, that is the biggest thing for ratings. they didn't get the u.s. team and that was a big loss for the english speaking u.s. fans. the fact that there were no hispanic teens in the semifinals, which is rare. usually you have either a hispanic team or latin america team. one of those teams advanced. , and the telemundo finals won't have any spanish-speaking nations. the time zones were rough. the fact that the u.s. team was not there is also rough. it has been better for fox though. scarlet: since this is

bloomberg, we had to insert charts. if you want to look at croatia versus france, but in our nerdy way, you can look at gdp and croatia is beating france on that front. julie: in terms of growth. scarlet: in terms of growth. but, not on happiness apparently. if you look at the world happiness index, i have no idea how they measure this in particular, but france's happier. it might be all the wine and cheese. julie: denmark is happiest. scarlet: it must be pretty happy at this point. coming up, what you need to know to gear up for next week. this is bloomberg. ♪ this is bloomberg. ♪

scarlet: "what'd you miss?" give netflix reporting second-quarter results on monday. this, the don't miss semiannual monetary report delivered to the senate banking committee. scarlet: before that, we also have the world finals. we were just discussing them. julie: that does it for this episode of "what'd you miss?" is next.g technology," ♪

emily: i'm emily chang in san francisco, this is "bloomberg technology." robert mueller indicts 12 russian intelligence officers for hacking offenses related to the 2016 presidential campaign. we go to washington to talk about them in depth. boeing reaches new highs. we show you the company's design a plane that can fly passengers across the globe in a fraction of the time it takes traditional commercial jets.