>> summit in helsinki. the form. we are live in the finnish capital with extensive coverage. we get earnings from bank of america and black box. and may's flightpath. funding for the aviation industry as it braces for brexit . we are live at the airshow with the chief executive of boeing. francine lacqua with tom keene

is in helsinki with special coverage of president trump's summit with vladimir putin. before all of that, let us go to taylor riggs. >> president trump is in helsinki today as he meets with vladimir putin. the event will include 90 minutes with the leaders meet one-on-one with only their translators in attendance. it comes as president trump is under pressure to confront his russian counterpart over concernsmeddling and rising about the u.s. abandoning the current international order. minister will say today that her plans for leaving the european union strengthens the position of manufacturers and protects jobs. as she comes under pressure from the u.k. aeros -- aerospace sector. may revealed

yesterday the u.s. president donald trump advised her to take the eu to court rather than to talk to them. economic expansion has slowed in line with expectations stable outputdly as the trade conflict with the u.s. intensifies. gross domestic product increased in the second quarter from a year earlier. sinceas the slowest pace 2016 and down slightly from the 6.8% pace in the previous quarter. investment growth and industrial output also slowed in june. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i am taylor riggs. this is bloomberg. so much, taylor. let us turn to our top story. we are live in helsinki where donald trump needs vladimir putin today. the u.s. president will be under pressure to confront his

counterpart. that is after trump labeled the eu a flow entree. joining us now is a reporter, henry from moscow. we sell the u.s. ambassador to russia downplay this saying it is not so much a summit but a meeting and in the meantime, president trump is under pressure to confront president vladimir putin. what can we expect out of this 90 minute meeting? >> from the russian perspective, the fact of -- the fact that the meeting is taking place at all is a major step forward. obviously, we can see that there is a huge amount of pressure on president trump given the indictments that have just been issued and that is likely to overshadow the entire event. again, from the russian perspective, you know, this is a major concern. the foreign ministry put out a statement directly saying that.

that this is basically sabotaged. nonetheless, i do think that in those 90 minutes which the two leaders will be one-on-one with will nonslators, they doubt reach some kind of agreement. there are areas that are aportant for the tdb -- with two countries to work together. syria is one and the iranian influence there. and arms control needs to be dealt with. behind the headlines we may see some progress. >> we may see some progress, henry. 10 we expect any actual deliverables from the meeting? -- can we expect any actual deliverables from the meeting? henry: there is a huge amount of skepticism. can he reduce the iranian influence? skepticism.ifiable

on arms control, it is a difficult issue. there are accusations on the american side that russia is a andating a key 1887 treaty start which is expiring in 2021. that could be an area where they will manage to work together. >> henry meyer for us in moscow. now, in murray joins us -- anne-marie joins us. as i was saying to henry, we did see the u.s. a massacre to russia downplay this. saying that it was a meeting and not a summit. reporter: they are certainly dialing back the importance of this meeting. as you said, the ambassador said it is not a summit at a meeting. others in the administration said -- do not get too excited about the deliverables.

this is just a starting point between the countries. president trump already had breakfast this morning in the city of helsinki with his finnish counterpart. they will be meeting here at the presidential palace behind me. likely on the agenda will be ukraine and crimea. saidd trump in brussels that was an interesting question. a pass forbe sanctions relief for russia? will also discuss syria through the lens of iranian backed troops. the new start treaty is set to expire in three years. it was done under the obama administration and is a negative for trouble. and they may talk oil. vladimir putin has been preparing or donald trump to bring up oil. because of his prolific tweets

regarding opec. saying that they are artificially raising the prices of oil. today withines reports that the u.s. may be looking to tap those emergency reserves to control prices. interesting that oil a come up as well. put this in context for us, the trump's of president entire trip. and you were there at the nato meetings in brussels as well. the back, itst off is completely historical. helsinki has been a capital for moscow and washington to come together and meet. we had forward and brezhnev. bush and gorbachev. and clinton and yeltsin. that was the most recent in 1997. that is key because that is when clinton said that please join the g7. and now due to the annexation of

g7 and it is back to president trump is saying -- let us invite russia back in. i have been following president trump. in brussels, he had a very contentious meeting when he met with the nato leaders. he came into the meeting targeting them in terms of defense spending saying they were not doing enough. and very much targeting germany especially with their gas pipeline deal with russia. he brought that up again in the u.k. and in the u.k., he met with prime minister theresa may. the bombshell there was the son article on friday. saying that the trade deal was off with the u.k. because of how she was dealing with brexit and also more personal saying that boris johnson would make a great leader. he then apologized for that. and cbs news said that the european union was at fault. absolutely.

and president trump also tweeting -- our relationship with russia has never been worse thanks to many years of foolishness. president trump active on twitter. now, let us get to francine helsinkid tom keene in leading our special coverage. francine: thank you so much. doing delighted to be this coverage. we have many reporters on the ground. we will be looking for any signs of whether president trump will bring up the indictment of the 12 russians on friday. if hel be looking to see advances the vladimir putin agenda across the world. that whatld suggest really matters is a press conference. this is where we find out what is going on. a may get a summit or

meeting, whatever you call it. we will get some decisions. and also some entertainment. francine: it will be interesting to see how vladimir putin deals with the president. stay with "bloomberg surveillance." plenty coming up including the press conference that tom is talking about. we will have live coverage of that. we will bring you everything as it happens right here in helsinki. and later on, we will also speak to the blackrock executive. exclusive that interview. that is 11:30 a.m. u.k. time. this is bloomberg. ♪

francine: economics, finance, politics, this is "bloomberg surveillance" live on the road.

here in helsinki donald trump needs vladimir putin. let us get to henry meyer in moscow. needdoes vladimir putin out of of president trump. if president trump does not bring up the indictments, is that enough? henry: look, the situation has changed since the end of last week and now russia has dialed back its expectations for the thatt because it realizes this issue of the election interference is going to dominate the summit. it has really overshadowed it. at the same time, i still think that vladimir putin needs this meeting to take place. donald trump is so much more positive on russia than anyone else in the united states, the entire political establishment is ranged against russia and get

the president of the united states has only kind words for vladimir putin and they are still banking on some kind of resumption of the relationship. that is the key thing they want to get out of it. henry, one of the remarkable things here in helsinki and all of finland is a poll that shows that vladimir putin is more popular or least negative then donald trump. what does the relationship of mr. vladimir putin and the zeitgeist? how is he perceived? henry: i would have thought there would be a lot of concern certainly in the baltic states about the russian role and the russian threat. his popularity is probably not bury high in the baltic states. finland traditionally has been a very neutral country and the relationship has always been strong with russia. that does that surprise me what

you are telling me. tom: yes, what is so important is the history of finland, the history of the summit. orbotech than bush senior and clinton and yeltsin. sit, theom where you russian elite and political elite in moscow -- the question of the morning is is it a summit, a get together, or a meeting? henry: it is a summit. that is what it is. the first real summit between the pwm and. iny have had two meetings the past on the sidelines of the g20 summit and the asia-pacific summit but they do not count. this is really the first real get together for the men and it is highly symbolic. russia taken has the indictments of the 12 officials on friday? are they talking about extradition? what happens next?

, you: under russian law cannot extradite your own citizens. russian citizens cannot face trial in another country. that is off the cards. in any case, the russians totally denied the accusations. they understand that this has a whole different level of seriousness to the accusations against them. they also understand that this job thatsident trump's much harder. he is coming under attack not only from the democratic party that also from his own party. he is being seen soft on vladimir putin. there is great concern in moscow that this has the potential to the rail their hopes for this meeting. their hopes for this meeting. blame crimeas he

and ukraine on obama? what is the tactic the russian president will use? ukraine, we talk about i mean, the issue will, but i don't think the russians expect anything do, that. russia had its position. it will not make any concessions. it does not really expect donald trump to make any concessions either. ukraine is an issue that is frozen conflict. i don't think that will change as a result of today's meeting. syria, we could see some kind of understanding. henry, give us a russian civics lesson. we understand that president she in china has tenure as president that is longer than anyone else

thought. is mr. vladimir putin president for life in russia? helsinki, whato is his permanence as president of the russian federation? vladimir putin has always maintained that he will never change the russian constitution than twos more consecutive terms. under the constitution, he has just been reelected with a thumping majority. that term expires in 2024. unless he finds some clever mechanism, you mentioned the swap with medved -- with medvedev which allowed him to keep our as prime minister, that is a possibility. i think he does not know himself. it is very hard for him to let go. that much is clear. to say that he will definitely go in 2024, no one can be that sure. tom: --

francine: henry, thank you so much. .et us get to max kettner he is looking at the spillover of what happens if president vladimir putin together with president trump talks about nor .tream to is there anything that could be said today? max: good morning. is still ase for us stronger dollar over the next couple of weeks. and months. slightly stronger. the biggest move is over. basically donald trump is saying -- we will have a couple of trade issues over the next couple of days. today for the dollar it is not that crucial. the crucial point will be when he gets back from helsinki and we see the next steps in the trade tension. we have seen him mix it up in

the u.k. and also with the negotiations with the european union and nato -- we have seen him mix it up with trade tensions and that is the more crucial issue for the dollar. for the dollar it will not be as crucial today. overall, i did not see a lot of movement in the markets on the back of donald trump living that interview saying that the eu could be a photo. -- could be a foe. that have an impact on economics longer-term? max: i think it does. nato or what you , it all means or suggests a low potential growth rate over the next couple of years. ,f you are thinking long-term

5-10 years out, it means it will attract from potential growth rate not only of the u.s. or europe but on a global scale. late inthe backdrop of the cycle. an environment where we are getting closer to that kind of stage where the cycle is breaking. on top of that, you have these issues that detract from the potential growth rate on the longer term perspective. it is negative all around. commerzbank has a real easternof a study of europe. what is the state of the eastern european economy? we are only 54 miles from estonia across the baltic see. poland,m estonia and what is the vibrancy of the economy if these -- as these two

leaders meet? max: that is interesting particularly to em as a whole. 2017, everyone thought this would be a spectacular rebound. speaking of russia for example but also brazil. those are the economies we were thinking what come out of patchion or out of a soft and rebound in 2018 and help us with globally synchronized recovery. that is not happening. that is the story of russia. in a more regional context, if you look at the ce three hungary andoland, the czech republic -- what we downee there is the slow in the data in germany that the other countries are also taking

a hit there. , as a cross about us aboutategist, tell currency as a litmus paper for continental europe. not so much euro-dollar or eurosterling but if you look at euro versus the polish zloty or the russian ruble -- what do they tell us right now that these leaders need to know? max: there is a slowdown. currencies,at those not relative volume. if you look at it versus europe, you can see some significant weakening of those currencies. there is spillover. the market was expecting too much at the start of the year. spillinglobal theme over into regions right now. a global theme that six months

ago a majority of investors were expecting a globalized -- a globally synchronized recovery. it is now getting much more regional. it spilled over into russia first and now into the ce three. theonly the economies but currencies. they are taking a hits. hit.ey are taking a tom: i cannot convey how important that observation is from max. we talked about synchronization being the end all. francine: it really is the case that this would be a massive earthquake in geopolitics. something that the markets could be directly pricing in is china. we had a mixed tag of data. we saw the selloff in asia. is there any circumstance where china would use the yuan in the

trade war? loss also for china. --k at what happened in 2016 the really crucial point about china is not really growth per se but more the flow picture. what we saw in the beginning of 2016, the circuit breaker that was sparking the panic in the markets, it was the expectation of evermore outflows from the chinese economy. it was a fear of capital outflows from china and dragging the tax reserve lower. if you had a drastic devaluation of the yuan that would res park those fears again. tom: max kettner, thank you so

much. as we continue our coverage from helsinki, there is a lot going on in europe today. andguy johnson did exceptionally important trade war interview. -- always anburg important interview with boeing. we continue our coverage from n-trumpi and the putij summit. this is bloomberg. ♪

francine: economic, finance, and politics -- this is "bloomberg surveillance" from helsinki.

you some deutsche bank headlines. they are seeing their second quarter coming in at about 400 million euros. this is positive news. expecting this release today. anytime there is positive news, they want to get it out. look at the deutsche bank price. tom: up to almost 3.7%. a moonshot for deutsche bank. it is a whisper of good news. francine: two weeks ago it was 10 u.s..htly above tom: i want to say folks you are seeing real-time here at the summit. on aower of the terminal cell phone. it is extraordinary to see the headlines coming through from frankfurt and london right through to us. it is a whole new world after

all. tom: let -- francine: let us get straight to the bloomberg first word news. u.s. president donald trump is in helsinki today as he meets vladimir putin. the highly anticipated event will include 90 minutes in which with only-on-one their translators in attendance. it comes as president trump is under pressure to confront his counterpart over kremlin meddling regarding the 2016 election and concerns rising regarding the u.s. abandoning the international world order. >> i highly respect your country. this is very good. i enjoyed being with you a couple of days ago. nato has never been stronger. and it was a little bit tough at the beginning and it turned out to be loved. it really was a great meeting

that we had. and it brought everybody together. and i think it worked well. i appreciated your support. >> the u.k. prime minister will say today that her plan for leaving the european union strengthens the position of manufacturers and protects jobs. that is as theresa may comes under pressure from the u.k. aerospace sector to deliver a brexit deal that safeguards its competitiveness. she revealed yesterday that president trump advised her to take the eu to court rather than to talk to them. suee told me that i should the eu. can we think about that for a second? also -- heingly, she also said -- don't walk away. >> china's economic expansion has slowed in line with expectations signaling broadly stable outlook.

gross domestic product increased 6.7 percent in the second quarter from a year earlier sincewas the slowest pace 2016 and down slightly from the 6.8 percent pace in the previous quarter. industrial output and investment growth also slowed in june. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i am taylor riggs. this is bloomberg. thank you's of march. we are getting an update on the breaking news from deutsche bank with some preliminary second-quarter results. for a trading unit will the klein -- will decline which is why we are seeing the reaction in the share price. the farnborough air show kicks off today. theresa will give the opening speech in which he is expected to announce funding for the

aerospace industry. she will also confirm plans for britain to say that the industry is critical. guy johnson is at the air show and he is joined by one of the biggest names in aviation. the focus will also be on trade. over to you. guy: a trade story is front and center at the farnborough airshow in 2018. we speak with dennis muilenburg. good morning. let me read you some numbers. one year, up 67%. year to date, up 19%. i am sure those numbers put a smile on your face. would those numbers be higher if the president had not started a trade war with china? daragh: those numbers -- s: those numbers reflect that we are supporting our investors and there is growth.

some of the things that have been doing by the -- some the things that the administration has been doing has added to momentum. we are concerned about trade. our business thrives on global trade. we will find some alternatives to the tariff discussions. guy: when you talk to the white house and the president, what kind of feedback do you get? dennis: we have a seat at the table. it is important that the voice of business is being heard. global trade is a complex topic. idea thatback to the aerospace is something that contributes to growth in multiple countries around the world. you look at the u.s.-china trade relationship for example. china needs the lift capacity of aerospace.

it is fueling economic growth in china. and it is the biggest trade surplus generator. a lot of that is generated by boeing and our supply chain. jobs ins manufacturing the u.s. aerospace is uniquely situated to grow economies around the world. guy: do you worry that these trade challenges could be that china purchases more airbus aircraft? but we it is a concern don't expect to see some shifts. we have great relationships in china. we are engaged with the chinese government. continuing dialogue with our chinese customers. we have to respect the fact that there are issues that both countries are trying to deal with. we are trying to be part of the solution. we have a seat at the table. our voices being heard. we are trying to drive for productive solutions.

guy: you talked about the supply chain and how important that is. these guys use a lot of aluminum. a lot of products we're talking about. when you talk to your supply chain, what feedback are you getting? dennis: they are feeling these pressures as well. the tariffs have not impacted us here. sources of aluminum, we 90% of it out of the united states. it plays more to the overall supply chain equilibrium. free and open trade is something that will enable continued passenger growth and cargo growth. guide: you talk about the link to global gdp. the aerospace sector is a high beatertory -- high

story. there is a downturn. -- it has kept things going in the u.s. a little longer. long-term, sustained growth. what you are seeing is a fundamental shift in the aerospace industry around the world. it is a highly cyclical business. it has been dominated by backlogs in the u.s. and europe. the aerospace industry is much more global. we have gotten away from a hub and spoke system. the fundamental structure of the marketplace has changed. add to that our disciplined around production rates. how we are investing for the future. we are moving from a highly cyclical business to a long-term sustained growth business. say you will be able to

that i can sell one of my planes in the aftermarket. you are looking for the aftermarket to smooth things. talk to me about m&a there for. how much are you looking to bring in? one of our strategies is to grow the services industry. most of that is organic growth. dois also an area where we look for an external partnerships. having some joint ventures which have been productive. out thatoking to fill vertical capability creating value for our customers and cycle stream.e sheffield, our first big manufacturing the szilagyi and u.k. -- manufacturing facility

in the u.k. m&a -- we are waiting for news. the service story will be part of the economic argument that will exist around making that airframe viable. does it become tougher to make the decision? dennis: we are right on track. we continue productive discussions with our customers. we are looking at alternatives. looking at this through the view of what creates value. for an aircraft in the 2025 timeframe. guy: and investors are on board? dennis: they are. we expect to make a launch decision in 2019.

guy: it is great to see you as ever. dennis muilenburg, the ceo of boeing. tom, back to you. tom: guy johnson, thank you so much. an exceptionally important interview especially given the trade wars. only looking at vladimir putin and donald trump, but we have to look at global banking. deutsche bank is out with global headlines. 10 euros per share. deutsche bank advancing nicely. i noticed the headcount headline. tom: -- francine: the share price is up some 1.9%. if you look at some of the revenue, the net income overall was not bad. they are also accelerating the cost cuts with the loss of personnel. it is something that investors wanted to see from the new chief executive. tom: we will get an update on

that and particularly on asset management and american banking, perfectly timed, laurence fink with blackrock. schatzker will have that later. from helsinki, francine lacqua , good morning. ♪

fromgood morning, everyone helsinki, finland. we welcome you all of you worldwide to our coverage. special coverage of the meeting in helsinki and the ramifications across of the business economy as well. there is no one at bloomberg that has worked harder to keep up with mr. trump then our reporter. person. is a special she is our senior white house correspondent and has traveled with mr. trump for every moment of this trip. wonderful to have you with us. i thought your question at the news conference a few days ago was very timely about the mood of the president.

what is the mood of president trump this morning? ingaret: president trump is two moods at the same time. he is excited about the summit. -- thattell that he is he thinks he is pulling off a big show. something he considers in and of itself a great accomplishment. at the same time, he is trying to downsize expectations and issues are.the trying to blame the press. and today, bringing back up barack obama, hillary clinton, the mueller investigation. everything to say that that is why things are a problem and everything he does will be something good. this is the setup. we just saw him a little while

ago at the residence of the finnish president. the president talking about how much respect he has for finland and how great he thought nato was. how it was a lovefest and everyone loved him. this was the narrative. the idea of unity. we asked him about what he would tell vladimir putin and all he would tell us is that we will do just fine. that is what he said. i ran into wolf blitzer this morning from cnn and we were talking about the debate over fake news and all of that. what is the real news for the president that he wants to get out of this? forget about the press warfare -- what is the real news message the administration would like to achieve in helsinki? russiat: the u.s. and are in a terrible relationship. part of the reason for that is

russia has hacked emails ahead of the elections and meddled in those elections. to resetdent wants that relationship and have better discussions with russia on a day-to-day basis. it is very difficult to do that in an atmosphere of sanctions and mistrust that has been influenced heavily by russia's actions. margaret, there have been calls from u.s. lawmakers to president trump to bring up indictments or cancel the meeting. how will president trump deal with that and does he care what the lawmakers on both sides of the aisle think? margaret: that is a great question. one that he knows will be coming. there are these 12 indictments. russia does not have a policy of

extraditing people to the u.s. no one thinks that is going to happen. what is he going to ask vladimir p -- vladimir putin to do privately? what will he ask him to do in terms of the indictments or regarding the question of meddling? we don't know if he wants to say anything privately -- we just don't know at this point. we are all curious to see. margaret, you have followed foreign policy for the u.s. for about two decades. when president trump says the eu is a foe, does he mean it? is this the biggest earthquake for foreign relations since the cold war? margaret: it was a shocking

quote but it came in the context of trade. even if that is what you are talking about, you cannot just with china and russia. especially putting the eu first in the order. i cannot get into his head. i don't know if he believes that. either way, we are sending a major diplomatic sink -- diplomatic signal. maybe part of that is to lay the groundwork and put vladimir putin in a good move -- in a good mood before the meeting. but there will be repercussions. partners'st are reacting to. -- this is not how presidents typically talk about

allies. tom: margaret, thank you so much. it is wonderful to have margaret with us with the view from the white house and helping us following mr. trump through his campaign and into the white house is kevin cirilli. i remember an evening not too long ago when the democrats took an important congressional district in southwest pennsylvania. that means the president has to pay -- has to play to the domestic audience. how will he play to his constituency that he needs for the midterms and in 2020? president two hours ago tweeted out that our relationship with russia has never been worse. he criticized the obama administration and put the blame for that.

i agree with what margaret said. trump is a pending -- tradition. in addition, much focus has been placed on the 2016 meddling issue and that will be something that senior administration officials said they will be discussing. there is a host of other energy topics. the meeting will include the russian the trolley him dependent economy. and how that will play with whether or not the president works to get the sanctions removed from russia. francine: kevin, what kind of reception will president trump get back home? said that the

president needs to address the indictments. , is there going a revolt in congress or will people let it go? many have called on the president to cancel the meeting. -- but theger largest u.s. delegation in history has just traveled to russia. what we haveoing heard from investor jon huntsman -- from ambassador jon huntsman. summit butis not a rather just a meeting. to be an effort to lower the expectations in terms of concrete developments from a policy standpoint that we would get out of this. tom: right.

has anthe new york times important article about general mattis. what is his task in helsinki? kevin: the new york times trying to keep the administration in line with the intelligence community. thee is no question that indictment on friday is still casting a shadow over this meeting later today. tom: right. heavens really our chief washington correspondent, thank you's much. many stories this morning. deutsche bank. this is the best day for mr. savings in his tenure. bank, this ise just what the doctor ordered. they need a monster quarter to restore confidence in an institution that has been reeling for the last several weeks. what does that tell us

about the desperation from the top? does he go after more cost cuts? does he focus on energizing trading revenue? >> i think he focus is very much on the latter. order after quarter, the big question is can it grow revenue at the same time as it makes its operations more efficient? mission when he came in was to pull back from the u.s.. that left investors really scratching their heads saying -- how will he generate revenue if he is pulling out of the dust economy and the biggest banking market in the world? guidance they are providing now on the second quarter and beating estimates indicate something is really working quite well inside deutsche bank in generating that revenue. thatnk this is a message

they very much want to deliver on. so: ed robinson, thank you much on short notice from london. good news for deutsche bank. euros per share. we have our team here at the palace. the press conference with the presidents will be in a bit and our special coverage will continue after that worldwide. please stay with us. francine lacqua and tom keene here in helsinki with mr. putin and mr. trump. stay with us. ♪ 2, down. back up.

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after calling the eu "a f oe" of the u.s. we're live at the farmer airshow -- farnborough airshow. good morning, everyone. we are having fun here in helsinki. this is "bloomberg surveillance" on the road with tom and francine. in a short while, president putin will meet with president trump. you wonder if mr. bruton will -- mr. putin will be the foe -- will be the foe. francine: it is whether president trump starts by asking putin about

those 12 indictments from friday. stay with bloomberg for continuing coverage from helsinki as we continue with today's historic summit between the president and the russian president. we will have live coverage of that news conference right here in just a couple of hours from now. tom: data, let's get to it. very quiet markets. nicelye bank lifting above 10 euros per share. helsinki, looking at international relations, it is a quiet market this morning. francine: it is. we had a down day for asian stocks, but now european stocks are gaining. u.s. futures also up. i think traders are looking towards company results after some mixed economic data out of china. that seems to have spurred some of the declines in asia, looking at dollar weakening against most peers. let's get to the bloomberg first

word news in new york city with taylor riggs. taylor: the trump administration is trying to dial down expectations for the president's meeting with russia's vladimir putin today in helsinki. the president's national security adviser john bolton says they expect no concrete deliverables to come out of it. president trump is under pressure from lawmakers of both parties to confront putin over meddling in the 2016 election. british prime minister theresa may says her brexit plan will strengthen the positions of aerospace manufacturers and protect jobs. may is speaking today at the farnborough airshow in southern england. she will announce plans for funding for the industry. aerospace companies have pressured may to lessen the impact of the split from the eu. european council president donald tusk is calling on president trump to reform the world order rather than bring it down. warned tradeusk

fights can turn into what he called "hot conflicts" after ansident trump called the eu american foe because of its stance on trade. gdp rose at anw annual rate of 6.7% for china and the second quarter, the slowest pace since 2016, trying to generate more than 1/3 of global growth. in paris, millions are expected to turn out for the world cup winning team's parade. team's second final, 20 years after the first one. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. tom, francine? francine: thanks so much.

half of my household was very excited about the france win. up above the logo where it says ffs and it says world cup winner, you add an extra star. tom: leading all of our practice was the wisdom of francine lacqua. how did you do it? francine: our executive producer did it even better. you didn't do too bad. tom: you beat jon ferro. nothing else matters. francine: there you go. i to our main story, the helsinki summit. we are right outside the palace were the main event will take place in a couple of hours. anne marie, what is the biggest concern for president trump? is it how he deals with the 12 indictments, or will he talk gas and pipelines with president

putin? reporter: good morning, and congratulations, francine. i like how you are leading against all of the men in our newsroom. president trump is already here, the vladimir putin will be arriving in the next 30 minutes, and at the top of the next hour they will be meeting directly outside. what is really overshadowing this meeting this morning is what is happening back home and washington, d.c. president donald trump is under a lot of pressure from congress, including members of his own party, to once and for all confront president putin face-to-face about election meddling, democrats going as far as to say the summit should be scrapped in protest of this. this should be the headline events, and following this, many from the administration are talking down and dialing down the importance of this meeting. the u.s. ambassador to russia saying it is not a summit, it is a meeting.

we even heard from the likes of , the of -- of lavrov foreign minister of russia, speaking to larry king of rt. skimmed three helsinki newspapers today. the language escapes me. i was really taken with how much square footage the first lady received. how is the -- how has the first lady been received on the trip? annmarie: i think throughout her trip through europe, she's received somewhat fairly well. i have to say and's helsinki say to say in health -- to in helsinki, there was a bus in the city square that said, "we all really should care." that is a knock on that coat she

wore. fashion isady's always first on people's minds. she wore a coat that said something along the lines of, "i don't really care." she has taken a little flat here in helsinki among the protesters. francine: thanks so much. live from thern presidential palace, a couple of blocks away in helsinki. here with us in an unfair -airitioned -- in an un space, thank you for joining us. the president said the eu is a foe. eu and brussels deal

with president trump? leaders are the eu always very watchful about what president trump says about the eu, and it is not only on trade, but specifically on what is perceived as perhaps questions over the security guarantees of the north atlantic alliance to the eu. any rattling language towards the eu is disconcerting, especially ahead of president trump's summit with president putin. they will be watching it closely. there is not much they can actually do. just watch the fallout and perhaps try to handle it afterwards. what will you watch out for in the body language between president trump and president putin? how will you know if the two men are close, or if president trump will try to toe a harder line,

possibly because of the 12 indictments? >> obviously the indictments are dominating the news cycle, so it is almost inevitable it will have some sort of fallout for impact on the way that the two parties handle themselves in the meeting. president trump -- president putin is always more guarded in his body lynwood them president trump. to wait forhave whether there is a joint statement from the meeting, and how long and how detailed the statement is coming to couch really how the meeting -- the statement is, to gauge how well the meeting went. tom: thank you for your hospitality. beret of monaco called -- ofer but i -- tyler beret

monaco called helsinki was livable city in the world. we are here to attest to that. what is the forward view for the city? >> this is certainly the happiest place in the world, according to u.n. reports. they measure things like trust and generosity and freedom. these are some of the things that swedes really pride themselves on. there's a lot of business opportunity here as well. tom: what is a new kind of business that has to resurrect finland's economy? >> using biomaterials like wood-based materials to combat some of these issues. that is one of the things that finns are really for.

it is forestry land, so material is plentiful. francine: it is interesting when you look at the history of helsinki. why was it shows that the place for president putin to meet president trump? >> there's not a lot of places around the world that can pull something like this off in just two weeks. it is a safe place. the logistics are right there. i don't want to say neutral because i don't like that word, but it is kind of neutral ground between the two countries. it is easy for everyone to access. tom: this is so important, that if you go to the leading church upe, the helsinki cathedral, until 1917 it was essentially a russian province. what does that relationship here in the eastern baltics of estonia, of finland, and of the

giant russian next to them, what is that tension in 2018? reporter: the baltics have been very watchful of -- guest: the baltics have been very watchful of russia and the last couple of .ears be aerospace, some near misses with russian jets flying without transponders on, various exercises, especially earlier this year the baltic sea. the relationship has been strained some of that is for sure. for one final question kati. on december 22, the sun basically never comes up, right? how does finish society develop -- how does finnish society develop in the winter? reporter: we huddled indoors. [laughter]

lots of blankets. tom: but societally for centuries, how do you deal with the darkness of december? reporter: you wait for the summer and the light. it is day and night. it is a good question, tom, but they have been used to it for quite some time. i imagine they are ready for it. and the infrastructure can cope. amazing hear how they celebrate, being here the last days. francine: thank you so much, kati come our helsinki bureau chief. dhand wasith otilia coverage in helsinki. we will have live coverage of the press conference right here. this is bloomberg.

♪ taylor: this is "bloomberg surveillance." let's get the bloomberg business flash. deutsche bank likely to report better-than-expected results later this month. second-quarter revenue profit significantly beating analyst estimates. restructuring action progressed rapidly. the lender is cutting jobs and paring back businesses in the u.s. and asia. there's a report that goldman sachs plans to name its new ceo this week, according to "the near times." david solomon -- "the new york times." david solomon could be appointed this week to replace blankfein. airbus may have some blockbuster

news to announce this week at the farm bureau airshow outside to $20 million in deals with asian airlines. close to $30 billion in deals with asian airlines. that is your bloomberg business flash. francine, tom? tom: taylor, thank you so much. greatly appreciate that from new york. we are speaking international relations here in helsinki. hand, teneo otilia d and also charlie.

also -- also charlie thelonius. ,om: there's tension in syria not only between russia and the united states, but iran and israel as well, the effort of tehran to make almost a path over to lebanon and beirut. that seems to be a core of tension. will this even come up in the discussion? >> from vladimir putin perspective -- from vladimir putin's perspective, it should. u.s. and russia have some common interests there, but some disparate interests too. francine: we were just hearing that he is worried that

president trump may give something away to president putin without realizing. what has the last week and a half taught us about the communication style of president trump? he says one thing, then it is not exactly what i meant. not because the eu foes. is actually making policy, or is it typical president trump's views about strategic issues? >> we probably see a mixture of the two in any type of statements that comes from president trump, especially if or whens private tweets he talks in interviews without necessarily prepared remarks. going into the meeting, the white house has a very generic focusing on bilateral relations and global security.

bit more focused on individual issues that they would like to discuss. charly, what do you worry about? you are you could give something away, something in syria or something on sanctions. is there a fault line that you think the president should not be engaging with was president trump? >> no, i think absolutely they should talk. talk to everyone. it doesn't mean you agree with them or go along with them, but you talk to people so you know how and what they think. then you can draw your and conclusions. francine: there's a concern that is president putin says this is all president obama's fault, is that how putin gets trump on his side? francine: that seems to be how trump operates. he doesn't know how to take responsibility for anything, and at the same time he likes being buddies with what we would consider opponents as opposed to

his allies, the europeans. tom: the shock of this trip began with the gentleman from norway being lectured by mr. trump across an eu table. tell me about the cohesion of eu.pe from the the swath of european nations, how do they feel the cohesion is going now after we hear europe is a foe? >> it may just draw people closer to realize, fine. europe have to do more on our own defense and a bunch of other things. in the long run it may push the u.s. and european the little apart. tom: this is critical. what critically does the eu need to keep europe cohesive? >> if you have a look at the

most recent developments in the eu, countries across the eu are already realizing that perhaps they need to do more to take care of their own strategic security. you can see this especially in eastern europe. countriesico, the that take, for example, countries -- take, countries like romania. europeans seem to be pulling together on security already. the question is how do they interact with each other? how do they make the best of the new plans for increasing the common european defense and whether they can pull a united strategy together? that is a question for the coming months and years. tom: i want to interrupt right now. i think this is wonderful. our margaret talev sending in email of mr. putin's updated

schedule. they are trying to figure out who is going to wait for whom. maybe it is a little bit like the queen walking with mr. trump about who gets out front, who is going to be first. we are seeing on the bloomberg the trenches of the pool trying to figure out that schedule. francine: it is critical when you are broadcasting to the whole world. each side will want their president to the first and things like that. importantck to an point. is there anything that president trump needs president putin's friendship on? is it how to deal with north korea, or how to deal with the middle east, syria, and isis? >> i think this meeting really is about laying groundwork for future talks. ath presidents see these as

confirmation of being the big guys around the world cutting big, strategic deals. they probably cannot reasonably cut a particular deal on individual topics come about laying groundwork for future talks where expert groups can be and left toher their staff, that can be possible. francine: charly, global trade is one thing global business worries about. how does trade fold into these geopolitics issues? >> we've seen that the eu and china are meeting today. they are now the two defenders of what we would consider open

global free trade. both have their issues, but it is rather interesting that these two are our strongest supporters of trade, and of course russia and the u.s. then having a little more restrictive now, and have a strategic goal of splitting europe and the eu, which has great impact on global trade. tom: this question is so important. i know it is 242 miles. i don't buy it for a minute. how far is st. petersburg emotionally from helsinki? biggest the region's great city. we are neighbors. let's do trade. phil servants talk to each other -- civil circuits that civil servants talk to each other. finnish and russian presidents meet. then again, you prepare for the

one-day that a russian president tries to invade again. tom: thank you, providing wisdom today. let me tell you what we are going to do three rest of the afternoon, perhaps your morning in america. an important press conference, mr. putin and mr. trump. farnboroughat the airshow. please stay with us with our coverage from helsinki.

♪ tom: good morning, everyone. francine lacqua and tom keene from a rooftop in beautiful helsinki. an extraordinary town, a really booming, positive tone as they

greet president putin and president trump. we will have special coverage after the press conference. thrilled to have our entire team here, margaret talev and kevin cirilli, and others helping out as well. financial news does matter, and deutsche bank matters with good news today. steven arons was coverage today. this is the news they have been waiting for. is this positive news today a surprise? reporter: it is certainly surprising markets. the stock was up as much as 9% today on the news, the most since april of last year. certainly good news for deutsche bank. tom: they need to move quickly. is the timelines that up for deutsche bank, or can they take a more responsible path up to

2020? there's still a lot of pressure despite the share of surge today. they still traded very low prices. there is still an overall decline in the share price, investors still demanding quick return to profitability. i think there's still a lot of pressure to perform and certainly reach the target unveiled. seeing jobe are also losses, cost-saving, trading a little better, net income better. yow much of it is actuall down to the current chief executive? steven: i think that is a very difficult question to answer, and we will probably have to wait for the official publication of the results next week.

the company filing today is not very detailed, so it is hard to say if it is anything to do with the new ceo or if it is your luck. for example, it did not say that credit spreads have been is not a good thing. we will need more detail from is it can take any credit for the results. francine: right, but do we know if at this point he has the backing of big shareholders? he's new at the job. he needs that backing if he's going to make a difference. steven: i think he does. what i've been hearing from people is that they are going to give him time at least. if the bank now produces surprisingly good results, that is certainly going to help him and give him some tailwind.

i do think he's got the backing of investors. they want the share price to rise as it did today, considerably. i think you could say they are backing him at the moment. tom: steven arons, thank you for the briefing on deutsche bank. a good set of headlines today and a share price appreciation. right now we need to appreciate our first word news. in new york city, here's taylor riggs. taylor: president trump is under pressure from american lawmakers to confront vladimir putin at today's meeting in helsinki. the event takes place three days after a grand jury indictment of a dozen russian intelligence officers over meddling in the 2016 election. president trump told cbs news he may ask putin to extradite the agents to the u.s. the leaders will meet one-on-one with only the translators in attendance. the trumppredicts administration will reach agreements on trade before congressional elections in

november. the bank called u.s. trade actions "brutal" and said they have punctured trust built up over decades. still, citi expects trade deals to be complete in the next few months, good for commodities such as soybeans and copper. officials from the u.s. and north korea are meeting to discuss the return of remains of american soldiers killed in the korean war. the u.s. called the talks "productive." northntagon estimates remainsill holds the from the war that ended back in 1953. there's evidence that saudi is offering extra crude volume to some buyers in asia. the president wants opec to pump more crude before congressional elections in november so gasoline prices can come down. global news 24 hours a day, on

air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. tom, francine? francine: thank you so much, taylor. we are live in helsinki, where donald will meet with vladimir putin today. meeting will start in . couple of hours still with us in brussels is teneo's senior vp of intelligence. what is and what should be the vladimir putin and game -- putin end game? will he make a concession on ukraine? won think putin has already

because we have the meeting. this is something he has really wanted, a face-to-face meeting with trump, and trump gives him now that meeting. before the meeting even begins, i think putin has got one already. on the trump side, what is it he really wants? it is just uncertainty. this may be his foreign policy, uncertainty. francine: has it not been very difficult for a sitting u.s. president to isolate a russian president completely? if you talk but don't come to eight deal, it wouldn't be a win for putin, or would it? >> trump gives a symbolic victory. people in europe really look at these powers and how they behave, how they talk, as real action. so words our deeds, words are action in foreign policy. it is not just any other

meeting. tom: this is incredible. clinton-yeltsin, but i want to go to george herbert walker bush. he got up in a car with a loud speaker at the time, and there was the collapse of the soviet union and all of that. what will be the loudspeaker that president trump uses this time? >> i think he will tweak something. this is his loudspeaker, a much more powerful loudspeaker -- tweet something. muchis his loudspeaker, a more powerful loudspeaker than any leader has ever had. what is it he wants to say about this? it is not necessarily so much a meeting between the united states and russia. it is more like a meeting between trump and putin. this is a face-to-face meeting. whether we call it a summit, i don't know. usually summits are more prepared. we know what to expect. we don't know what to expect

from this meeting. i would call it a meeting from aders. francine: what kind of deal could these two leaders strike? what do they see eye to eye on? >> first of all, i would like to agree with juhana that for president putin, the primary foreign policy goal is to at least appear if not to restore russia as a global power state, the main value of this meeting is that is it -- that it is actually taking place and russia being on par with the u.s. when it comes to global security matters. what therobably kremlin would like to see as an outcome of this meeting rather than going into the details of resolving individual crises. what they will be looking at is

to provide some sort of joint communique from the meeting saying that the two countries have a strategic interest in looking after global relations. perhaps this is something the white house can also agree on, reaching up to russia rather than confrontation. otilia, let me ask a first principles question. as we come to this meeting, how alone is mr. putin? who are the russian allies that can back them up, or is it russia and mr. putin alone? >> for president putin, the basis of his image is that he is the strong man who handles everything single-handedly. russia does not necessarily need a backup of an ally in this particular meeting. in fact, it is better for them to appear as the sole power on

parity with the u.s. but certainly they do have their includeshery, which , butal asian countries probably not strategically important in this meeting. francine: what does this mean for finland? what does it mean for the leadership of helsinki? >> for finland, this is an opportunity to host a significant meeting, or summit depending on the viewpoint. it is raising finland's profile as a facilitator of dialogue. but then this meeting is a very unusual one. how to post it is significant in itself. there's all kinds of logistical challenges here as well. this is a very unusual meeting in diplomatic history. this is something truly special, i believe, and i think it will be recovered. tom: tell us about the academic fervor here. mentioning this being

the most livable city in the world. you can't do that without economics. you are at the university of helsinki. is there burgeoning academics, particularly in stem research and engineering? help -- a hub. tom: how do you compete with oslo and copenhagen? >> by collaboration. we do all kinds of things together. tom: [indiscernible] francine: let me ask you about how much support president putin has back home. this was an earlier question by tom keene. just by showing up, there is a deal between president putin and president trump, is

this a positive back in moscow? 's rating has come down quite considerably, so the kremlin -- his rating has come down quite considerably, so the kremlin actually does need something that will play well with the domestic audience. it is certainly going to be a win, regardless of whether there is some deal struck or not. the fact that the meeting is taking place, that can be spun very well by the kremlin to domestic audiences. dhand, thank you so much. on thes great insight tensions mr. putin faces back in moscow. we will continue our coverage. aunesluoma is here with

us from the university of helsinki. joining us now is tori clarke of our moscow bureau. we are thrilled he can be with us here today. what is the play that mr. putin has to play back home? mr. putin has been playing the surrounded by enemies card for quite a while now. is being hindered by western interests. so having a big meeting with president trump really does play well back home. it shows respect from the west. it shows that one of the world's leaders is meeting him one-on-one and looking to talk. but overall, how should one speak to president putin? if president putin gets the

respect he wants, will he be more on board with the u.s. and in general the west's interest in the middle east, and how to do with north korea? is this maybe how president trump gets him more onside? possible. is of course, russia borders north korea, so having a weaponize north korea is not in russia's interest. russia has had a lot of skin in the game in syria for quite some time now. we've already seen the u.s. style back on syria -- the u.s. dial back on syria from previous administrations. we are looking for them to discuss this. but as we've heard before, there are not likely to be any major deliverables from this meeting. the meeting itself is a deliverable in and of itself. tom: i like that idea. aside, but with your

decades of experience in moscow got to ask: what is mr. putin's relationship with the self constructed and directed media? the media voice from the summit plays to moscow and across the world. give us the tone of that. media have been playing this is a very favorable moment. we've just had the world cup that is being played as a triumph. russia is riding high. so the mood for this is that it is a sign of respect and that russia will come out looking good. as you said, the media is well controlled in russia, and they are playing a slightly cautious tone, but very favorable for the president. we've seen on russian

tv a pretty strong anti-american propaganda. will it stop, or will it be toned down after the summit in helsinki? orrey: i think we are going to have to see how this plays out. the media and russia has occasionally -- the media in russia has occasionally taken swipes at trump, but in general the media has been favorable to the u.s. president, saying he is held back by interests in the united states that are opposed to russia or are trying to keep the president from improving the relationship with president putin and russia. clark, thankrey you. let's get back to juhana. fromyou look at the tweets president trump, a lot of them were actually on the media, the fact that the media want this to fail come and maybe have played

a greater part in disruption with world leaders. helsinki has a free press. will they go hard and how both leaders portray the media? >> i think finnish media has been worried about trump and his views on freedom of the press, the fake news in all of his rhetoric has been very unhelpful in this sense. we've been worried about russian freedom of speech for quite some time now. what is new now that we are almost equally worried about about thee are president of the united states and his views about freedom of speech. atlantic" magazine in america quoted a finnish poll, and i was thunder struck that president trump is less popular here than president putin. response to is the

angry a harsh words from the president. do you look at president trump as a one off one term or two-term president? or do you see a return to his rhetoric? francine: i need to interrupt because the prime minister of the united kingdom is just talking about farnborough. let's go to her. day in every part of the world, people are applying -- are flying in planes powered by british built engines. they land with wings built in wales and northern ireland. our capability and some of the most complex parts of aircraft including wings, engines, and advanced systems, is first rate. outside of the u.s., rolls-royce is the only company with real capability to design and build large civil aerospace engines.

this expertise is nothing new. it is built on a proud tradition of innovative aerospace technology from farnborough, brookland, bristol, derby, belfast, southampton, to name but a few. nowhere do we recognize that terrific history more this ye ar than the celebration of the 100th anniversary of the raf. we can all feel incredibly proud of our position as a leading aerospace nation. by working closely together, government and industry have ensured short we remain at the forefront of civil aviation and that our air power is second to none. i want us to build on that and inshore we not only retain our prominence, but in an increasingly competitive industry, we make the most of opportunities ahead. opportunities i set out not only an hour ambitious proposal for

our future with the eu, but in our plans for an open, replacing -- open, outward facing britain. we have a white paper detailing our plans for an economic and security partnership with the eu that sets up the right to deal for the u.k., honoring the democratic decision of the british people, protecting the integrity of our precious union, growth, protecting security, and maintaining british jobs. we will take back control of our ourers and our laws, and money, but anyway a way that is good for our business and future prosperity. we know from discussions with you and other industries how fortunate the border would not just jeopardize the uniquely integrated supply chains and processes on which millions of jobs and livelihoods depend, but how divergence in regulations

could result in tests for different markets. countries such as world -- companies such as rolls-royce export 80% of their product. know just how vital precision engineering is in aerospace, where the error rate for performance must be practically 0%. these standards have been such an important factor in your safety and the astounding reduction of deaths in air travel. these are conditions we seek. to do anything else risks the integrity of the united kingdom, reneges on the bills last agreement, and will not deliver for britain is a global trading nation. at the heart of our proposal is the creation of a u.k.-eu free-trade area for goods

supported by an upfront commitment to ongoing harmonization with eu rules on good and agricultural products, a new business friendly customs model of facilitating customs arrangement as if we were a combined customs territory, removing the need for customs check and controls between the eu, while allowing us to set our own tariffs for countries outside the eu. the partnership would be underpinned by reciprocal commitment for a joint consistento have interpretation of the agreement and resolution of disputes. we will also, as i said in my mansion house speech, informed areas critical for the aerospace, chemicals, and medicine industries. the european chemicals agency, the european medicine agency.

the u.k. has been a key contributor of expertise to these agencies, and it is our manufactured products circulating throughout europe and around the world keeping people safe, flying safely, providing essential medicines, and enabling everyday activities. what we are proposing is a solution that respects the referendum result and puts forward what is best for british ourstry, and line with modern industrial strategy, and what is best for our global trading ambitions. we are leaving the european union and forging a new future for our country. as we do so, i want to ensure that the u.k. remains one of the best places in the world for aerospace companies to do , to continue as world leaders in innovation, to make the most of the huge opportunities that exist. this is an incredibly exciting time for aerospace. not only is there huge growth potential, but many developers taking place have the potential to transform the way we fly.

other countries around the world are racing to develop their industries and respond to the demand for cleaner, greener aircraft and technological advances such as automation and unmanned air systems. the u.k. already has a leading-edge. we are home to some of the biggest names in the industry. are small and medium-sized companies demonstrate phenomenal skill, energy, and innovation. many of those companies are here at farnborough. produmax, whose parts can be found in airplanes, where they play an essential role moving wing flaps, and aironet. but i want us to do more. already we are backing industries around a 1.9 billion euro investment for research and

our commitment to a runway at u.k.'sw, but also the first spaceport in scotland. today i want to announce a series of further measures to boost british aerospace companies large and small up and down the country and inshore that britain remains at the cutting edge of industry. along with industry, we are jointly providing 343 million pounds of investment for research and develop projects and to boost productivity. from developing the technically advanced aircraft, creating new and more efficient engines, to the manufacturing of cleaner, fighter aircraft, this is some of the most innovative projects being developed today. this includes joint investment research and develop projects supported by the aerospace technology institute and ukri

including 13ojects small to medium-size businesses and 12 resorts innovations in university guess -- 12 research ers and universities. some of the projects this money will support our exploring truly exciting aviation developments such as the electrification of flight, which could lead towards a cleaner, greener our power -- greener air power of the future. i want britain to be at the forefront of such innovation. we will start working with industry on a potential aerospace sector deal, capitalizing on our work together to tackle various to growth and increase

competitiveness. we will look to you to demonstrate how the aerospace sector can further support the , regional strategy prosperity, and delivery of the government's skills and priorities. we will also seek to embed a women in aerospace charter to build a more balanced and fair industry for women. finally today, i want to announce the publication of the ,.k.'s combat air strategy which confirms our commitment to maintaining our world-class airpower capabilities and will boost an industry which generates billions in revenue for our economy and supports thousands of jobs in every part of the u.k. we will invest in new technologies, support cutting-edge innovation, collaborate internationally, and initiate the program which will deliver the next generation of capability. we will work in partnership with industry to achieve this.

today i can announce the government will join with bac systems, leonardo, and rolls-royce to fund the next phase of the future air combat initiative through a partnership known as team tempest to help secure the long-term future of our combat air industry as we lay the groundwork for the successor program. taken together, these measures amount to a significant boost for industries promoting jobs, innovation, and skills. elsewhere we have seen just what can be achieved when government and industry work together. the successful collaboration and airbusbardier was originally supported by over 100 billion pounds of investment from the u.k.. this will sustain jobs in northern ireland well into the future. i was pleased to hear that jetblue will be acquiring at least 60 of the aircraft, which

could deliver billions to the u.k. economy. just as the government will back you, i want you to work with us, particularly through organizations such as the aerospace growth partnership. let's work together to build a leading aerospace nation, a nation where post-brexit, we are considered the best place in the world for the aerospace industry to base its business, a nation more innovative than anywhere else in the world where we nurture the next generation of designers, innovators, and engineers. last week we saw the spectacular past over buckingham palace come a demonstration of our historic raf planes alongside those that you some of the most advanced technology in the world. together, along with its proud history, i want to ensure that we can have a bright and proud future. thank you. [applause]

[applause] that was of course the prime minister of the united kingdom saying the brexit proposal sets out the right deal for the u.k. she also talked about what the u.k. once but it is a fresh week, monday, and yet she has another crucial vote. resigned last week. the primeigh point of minister's speech for me was early in the speech where she listed every single town and city in the united kingdom involved with what she called a process.ess trade who was she talking to when she mentioned every single little village? talking: i think she is

to the lawmakers. it is very clear she is trying to make sure that if it comes to a vote against her that she gets the vote. good morning. we are seeing live pictures of a plane touching down in helsinki. a couple of reporters that follow vladimir putin are on the airplane with him. the russian president just arrived. traveling motorcade with the russian president. the host arrived before. tom: vladimir putin has arrived. people have lined up. not a packed crowd along the street. down the presidential palace. of you thisll morning and particularly good across to all of you america and on bloomberg radio and bloomberg london as well.

francine lacqua and tom keene from helsinki. this important meeting, maybe we will call it a summit. francine: we are trying to figure out exactly what the leaders will talk about. our guest a moment ago saying that vladimir putin already wondering because he has the legitimacy of his country no longer isolated. we still need to figure out whether president trump inadvertently is advancing vladimir putin's geopolitics. they will probably talk about syria and the million-dollar question is whether president trump will talk to vladimir putin about the 12 indictments from last week. great guests with us this morning. there are mcdowell can give us mcdowell can give us perspective. fromobert hormats

kissinger associates. no one has been a student of the domestic economy and its relationship with russia as much as robert hormats. you have seen other helsinki summits. ambassador hormats, how is this summit different? s: it isor hormat different in a number of ways. in the past, the concerns faced really came from formerly the soviet union and then russia. the coldcularly during war, the soviet union. as you reported, there are a lot of apprehensions in europe on whether the united states and whether the united states for lease at the eu. and we have a president that does not seem to be an advocate of the kind of post world built up over the last 70 years and

that has been successful in strengthening america's hand vis-a-vis moscow. and now moscow sees a lot of fragmentation within the eu, within nato and the atlantic alliance. oft can strengthen the hand vladimir putin. past american presidents have tried to make sure there was a united of alliance when they wet in to speak to russia. ambassador, i will ask you a very undiplomatic question. this president is a harsh critic of your former employer, president obama. what does president trump get most wrong about obama diplomacy with russia? havingdor hormats: worked with president obama come i actually worked all the way back with president nixon who had strong views about how to

work with russia including -- how to work with russia as well as president reagan. whereas president obama may have made some mistakes, let us stipulate that he had, i don't think he ignored the russian hacking, he did take some steps. presidentume that trump is correct, maybe he could have done more. the real problem now is what is going to go forward. we had 12 indictments going down. these were not political but done by grand jury's. americans looking at the evidence. the question now is what is to be done going forward? not what obama did or did not do. that is where the focus ought to be and that is a question in this summit or conference or whatever they will call it. that can threaten our democracy,

not just as it has in the past, but in the midterm elections or future elections. moreover, these are things done by the gru that the indictments say was doing this. this could also happen in which couldpe fragment governments there and fragment the european alliance. this is the thing we ought to focus on. what is being done to deal with this problem today and tomorrow to protect our democracy and democracies around the which cod world? tom: we will continue this good conversation as mr. putin arrives in helsinki. to the unitedgo kingdom and an important heiress they show which of course means guy johnson. aerospaceimportant show which of course means guy johnson. faury is the guy

at airbus that makes things happen. he is the coo. he has a pretty complex job out there. good morning. it used to be that when they came to airbus come all of the complexity was in the engineering. the operating environment was pretty straightforward. things were ticking along quite nicely. is the complexity with airbus now dealing with a more complex operating environment? engineerg to ask the this. guillaume: it is a fast-changing environment. many thingscase for including technology, the market, and the environment. of ramping things up has become challenging. see this as

advantageous to airbus at the moment? president trump picking a trade war with beijing? it is important that we keep going in and open market. a free market is essential for aviation. we think there will be no winner if there are trade wars around the world. developingkeep going global business with many partners around the world. europe you worry that will be dragged into this? it has been washington and beijing. the president seems to have an issue with berlin. relationships have become more testy. the car sector has been the most obvious victim of this so far but you guys could be next. is that something you talk about a lot? guillaume: we don't think so.

we do business across the world. the interdependence of our supply chain. we buy in the u.s. and sell in the u.s. we want to keep going in that direction. consider linking nations and people as our business. gu your supply chain isy critical to what you do. : i don't have to tell you that. are they starting to feel some of the pressure coming through? is there a worry about aluminum? how much attention are you paying to the supply chain at the moment? guillaume: the growth in the this is notates --

only linked to trade but also production capacity. these are the problems that we like to manage. you bring up 50-60. that was the challenge, going higher than 60. you have a pratt problem. get theyou going to narrow bodies to the next stage? stage is: the next already going from 50 to 60. it will take a bit of time. there is a strong demand. we like to look at the long-term. demand is high so we do not think 60 will be enough. it is the beginning of the next decade. manufacturer has to

solve current issues with the big ramp up. this has to be done in a way that is good enough so when we commitments for customers, that we can deliver. guy: there is a big transition taking place in management. cfo is stepping down. is this slowing you guys down? the world is a pretty complex place right now and you are going through one of the biggest management changes the business has ever been through. how is it going? guillaume: airbus is a company that relies on a number of sectors. alreadyrt of the team as part of airbus helicopter. new generation

coming, some from inside. there was a strong management team in airbus. summer coming from outside. airbus is managing quite well. i am very happy to take over on the airbus side. that is the nature of moving forward. faury, thank you very much indeed. the coo of airbus. a fascinating conversation. they are trying to figure out the complexities around the engineering of building these airplanes. from farnborough, back to you in helsinki. francine: thank you so much. from helicopter to helicopter. we are hearing the helicopters arriving in helsinki. touchingesident putin down just moments ago. the leaders are expected to meet in the next 40-45 minutes. still with us is robert hormats

and gary mcdowell -- and daraugh mcdowell. deal with to get a president putin, what would it look like? policy?s make foreign when the president tells us that , is that a floe american foreign-policy? the notionhormats: that the eu is a foe to me just makes no sense at all. over the last several decades, every american president coming reagan, income of ford, carter and obama have all supported the eu for one of two reasons. one, because it is a strong

trading partner. the trade imbalance could change but the eu has been a strong trading partner that has afforded the role-based system at the u.s. has been a leader of for decades. and a strong eu in terms of the american security. what president trump says about makes nooe makes -- sense in terms of our security has. the problem is it sows a lot of doubt in your. and it strengthens pollutants goal ofputin's fragmenting relations. problem.he big one outcome of this would be for president trump to step up and he reinforces support for nato and also for the eu. given what he has pleaded and

said, it creates a lot of doubts. putin makes vladimir think that he can divide relations. this is very dangerous for american security. what i think is so important here and missing from the huge coverage here in helsinki is the place of the russian economy. what is the state of the russian economy right now? a --. putin comes here, is is it a buoyant russian economy? >> that depends on your perspective. i would not call it buoyant. it is doing better than it was expected to do. oil prices are at a higher level than they were expected to be. all of which is nice for growth at this point. the are facing a lot of problems.

they recently had to hike vat. president putin has promised social spending. reform which has prompted a lot of pushback. people are taking to the streets. we have seen his approval rating falling precipitously since the start of the world cup when the pension reform was announced. while the economy is doing better and there is no danger of a severe economic collapse, it is not going fast enough to pull living standards along with it to make up for the doctrinal lost years they have site -- they have had since the commodity crash and for ordinary russians to see that in their own pocket. francine: ambassador, and may have to cut you off because we are waiting for some blackrock

earnings. but on friday, as president trump was meeting with the queen of england, a grand jury 12 russian intelligence officers for their alleged role in the election meddling in 2016. will president trump confront vladimir putin and if he does not, how will the republicans react back at home? hormats: i do think the economy is doing better. putin'ss one of full their abilities. he should be asked to back off on ukraine and force him to move back. and second to make some concessions on syria. syria is a very expensive part of russian defense spending and

i hurts them to spend some 20, particularly the air force activities. and number three, if he wants to get the sanctions reduced, he will have to address this question or should be addressing this question about the indictments and the question of russian meddling. the question is and tom put his blameson this, trump obama. the real question now is to get the russians to understand that there will be penalties to be paid for attacking our democracy and in the current environment, the ability for the united of the unitedwill states to reduce sanctions and improve the relationship economically will depend in large part on ukraine and not just on syria but also to start changing their ways in terms of their hacking and their dissemination of false information in the united states. he cannot just blame it on

obama. 91 -- 911 onblame previous administrations even though a lot of that was developed by osama bin laden in past years. the future depends on getting -n previous administrations even though a lot a hold of what the russians are doing, getting them to stop it, and making sure we do not give up our leverage until they do. tom: let me reset for us. agh mcdowell is with us and ambassador hormats is with us. you do a motorcade in finland is what we are watching. the leader of finland during world war ii -- the police cars go right down the sidewalk but they do it in such a gentle and family way. moving the people out of the way. i believe mr. putin is coming right by our rooftop studio. francine: we have a wonderful

vantage point. i see a couple of taxis coming through. 15-20 minutes away from president putin arriving. there may be a positive for security reasons -- there may be a pause for security reasons. we know president trump is still at his hotel. getss vladimir putin closer to the palace, president trump will make his way over. daragh, i want to come back to you. chancellor merkel will be watching this summit. germanyl the leader of and some say the leader of europe, what will she be listening for? she will be listening for any more language from president trump regarding the eu, nato, and the u.s. support for those institutions.

that is important to step back from. i agree with the ambassador that the comments we are hearing from the white house about eu being a foe are all something we have welcomed in the kremlin. putin's foreign policy that thiswar has been view is not to moscow's advantage. this is something that russia will receive quite well as an opening for itself to conduct the kind of foreign policy in europe it has wanted to which is based on why lateral is him rather than engagement with these large blocks. mcdowell with us -- h mcdowell with us and

robert hormats. and itsw, blackrock earnings. here is taylor riggs. the world largest asset manager out with its earnings. $6.66. that is above estimates at $6.55. and the second quarter showed a little lower. at $34.7 billion. we are also looking at inflows. $17.8 billion versus what we have at $34.6 billion. headline numbers. six dollars 66 over for the second quarter earnings per share. francine: taylor, thank you so much. cirillius now is kevin who will be in the news conference, the press conference with-- at the palace

vladimir putin and president trump. how much do we know about how the meeting will take place? is it one-on-one with only translators? and how long could it last? kevin:is it one-on-one with only president trump will meet for about 90 minutes with vladimir putin ahead of their larger delegation meeting. they will each- be accompanied by their translators. a commute -- the community is concerned about the format. it is unusual to have such a lengthy meeting without there being anyone else other than a translator in that particular meeting. senior administration official senior administration officials have said the president will raise the russian meddling and in addition, they syria.scuss ukraine and a lot of folks will be paying particular attention to the press conference scheduled to

york in the 9:00 our new time. 4:00 hour here in helsinki. and whether or not president trump will make any concessions of the easing of sanctions for russia's annexation of crimea. that has significant energy implications that many people in the republican and democratic parties have backed the president. the politics of this and the russian meddling is casting a significant shadow over this. francine: tom, we have a great vantage point. we send team reporters on the ground. one of our pressure reporters -- one of our russian reporters is with vladimir putin. they are in a special vehicle. time that thisst

limo is being used abroad. believe this is american made. kevin, the press conference will be interesting. compare and contrast this press and itsce's protocol methodology with what we saw at checkers if you days ago. we have been in a hold here already for almost an hour and we will continue to be. the global press corps. until we had over to the palace. regardless of the media optics of any of this, when these two leaders take the stage together, that will be quite significant to say. and it comes at a time in which the economic implications are so significant. at a time when au

representatives are in china right now negotiating on trade. euat a time when representatives are in china right now negotiating on trade. there are so many moving parts with regard to the economic and energy sectors. tom: kevin, thank you so much. back to work. with robert hormats. as you mentioned earlier, his public service to the nation across both parties going back to president nixon. history here in helsinki is so symbolic. the helsinki cathedral which was nicholas church until 1917. the czar alexander statue in front of it which the finns decided not to tear down. russian-finnish

tension. ambassador hormats: for quite some time the russians have had a lot of influence over finland. finland remained a neutral country which is why so many of soviet-american summits were held in helsinki and that legacy has remained as we see today. helsinki is a comfortable place for the russians and it is a comfortable place for the united states. finland is now much more closely anchored into the west. it still has some credibility in moscow. there is a history. numerous summits have taken place here. now go out of their way to say that they are in the western camp but they still need to maintain good relations with the russians. nns are conscious of

what the president says regarding the baltics. relations with lithuania and toonia are very close finland. they will be watching to make sure the united states does not give away anything in terms of military maneuvers to protect the balkan states. that is a very important part of finland's security. tom came ambassador, to you and asked about whether president clinton -- president putin was going to blame others. what would be a mistake on the west side? side?the u.s. is there a danger of president trump having away something to president putin? yes, there are definitely some risks. he could say that your presence

in syria is expensive for you, although we do not have a lot of people there, only 2000 -- but he would make this point. the eu as your competitor, it is your fault, as you have said. he could do everything. think to make trump that he can work with the russians and it does not need in europe as much. that would be the narrative of putin. trump really needs to come back very strongly. most american presidents would say, there are 12 indictments here and you, mr. putin need to come up with a plan to convince me that you are going to stop doing these kinds of meddling through your gru and other military entities in russia. but the problem is, the president has said that these are a non-issue. so putin would say, well, clearly, this is not that important to you, i do not

really need to do anything because you don't care very much about it. the president should not give up anything on syria or ukraine. we should work out some arrangement on syria. tom: ambassador, we have to interrupt right now, we have some important united kingdom headlines here. francine: the prime minister's spokesperson briefing reporters and saying that president trump taught by minister may that he would ring up the sunday script skripal case with vladimir putin. the case of the poisoned spy. so, very quickly, will president trump bring this up? i mean, this is a huge deal for the united kingdom, it is also why theresa may has been ?tonewalling russia >> well, as the ambassador

mentioned earlier, it is on unusual summit, one-on-one between president trump and president putin and their interpreters area so we probably will not know if the issue is does ring asut it to the issue of that western structures and the eu, generally. does ring as to theit is important to note tt last week, we had a united kingdom citizen killed on the united kingdom soil by a russian chemical weapon. and it was barely a feature summit, thee nato bilateral summit between the premised are of the united kingdom and the u.s. president. part of that is duterte best part about is due to domestic political turmoil here in the u k. tom: general mcdowell, -- mr.agh mcdowell mcdowell, thank you again for joining us.

blackrock is struggling with those etf inflows and outflows. here is eric schechter with more on that. >> thank you so much, as you mentioned, i am here with the ceo of blackrock mother world's largest asset manager. they reported what nobody could describe as anything but strong earnings this morning, a lot there to please investors. 125 basis points or more of margin expansion. of three point $6 trillion, and perhaps most impressive, continued double-digit revenue growth. best $3.6 trillion in asset management. we really are going to turn to flows, not just etf flows, but not inflows, long-term inflows of $14 billion, the smallest for

blackrock since the second quarter of 2016. what is going on? >> you did your homework. angst, eric. i think as we said in the press release, it was a good financial quarter. we saw clients worldwide pause. as to who are confused what direction the markets will go. eric: this is what they are telling you? >> absolutely, and i am traveling everywhere, as you know. clients are questioning the whole foundation of investing. the foundation of globalization. as we talk about this conversation of trade and tariffs, they want to hold back. the best part is that we had very strong earnings. throughout the s&p 500.

we believe we will see strong earnings in the second quarter. we are growing at a rate of 800 billion dollars of stock repurchases, we have a record number of m&a's. the backdrop is that we are shrinking the amount of equities. we have record earnings, and yet, markets are potentially unchanged. eric: does that surprise you? larry: oh yes, if you had told me that we would have a record amount of m&a, record amount of earnings and a record amount of stock repurchases, i would have said that the market would be at 10-12%. that markets are essentially flat. the s&p 500tead of being a 2800, it would be a 3100? yes.: if you strip out of the number of tech stocks that have done really well, it is actually poor. let us go deep into the flows. the overall macro number does not tell you what is going on. we saw a lot of churn in our

index equity business. that is where we saw the outflows, about $13 billion. very low. we saw investors pull out of what i would say, emerging markets and other areas. in any to remind you, cash, for the first time since 2008, is earning you a return. they're earning two plus -- >> why is that important? larry: you can pause and earn money. eric: people can afford to wait? larry: yes, and this is a huge change in the marketplace. people have forgotten about that. you are earning about 2% now in the money market fund, similar to the five-year treasury. you could cause. and by the way, equities are not up 2.5%, so you could be earning money in cash and -- >> should people be housing? does it seem like a wise thing to do right now? larry: dust should they be

pausing? it is probably a good idea to pause. if you are focusing on retirement and your pension fund, you should never pause, he should be continuing to investment. it really depends on the time on the horizon. flows $4 billion between and commitments and alternatives , in our liquid alalts. when you break out all the flows. eric: money is coming in some places and coming out of other places? larry: yes, but we have seen huge churns, and if you strip of the index business with low fees, our flows were that are them with the headline is. as an aside, $13 billion in institutional outflows. ishares is a good example of where you saw. eric: the etf business? business., the etf we saw it a medic slowdown in june.and

we are starting to see an uptick in july. our view is that etf growth, we anticipate $10 billion-$12 2033.n through we expect etf to continue to grow for four reasons. represent great value. they are becoming more and more of a great trading instrument. i have been telling you about fixed income etf's for the last five years, and they are starting to catch on. they are now being utilized for tools, so many investors using exposure. and most importantly, the biggest trend, and it is continuing, we are seeing them being utilized by more wealth management, as we see the transition from brokerage to fees. so we believe that etf growth will continue. eric: chemical back to market

sentiment for a moment? you say that investors -- can we go back to market sentiment for a moment? you say that investors are confused. why do you think they are confused? where thei said, fundamentals are strong, we have a four plus percent gdp in the second quarter, as i said, record earnings, record stock repurchases. that is like nirvana for investing, and yet markets are changed. they are having a hard time divesting. the whole change in globalization and trade, and i will continue to be a big issue, until there is better certainty. and you know, markets hate uncertainty. eric: we have had uncertainty for the past 10 years. how does the uncertainty today compare with the uncertainty that investors have known since the financial crisis? larry: after the central banks

of the world stabilize the banking system, i would say that there was less uncertainty. we of this they had eurozone issues and all the other issues, regulatory issues, but in my 42 years of investment, the one thing i have felt certain about, is mobilization is good -- globalization is good. international trade is very good. and we are now raising those questions. i think the foundations of international investing are being questioned. havenk until we better understanding about this, you will see clients pause, keep their money in cash, unconstrained bond funds -- maybe if we see a great alternative product, they might not continue to do that, but have --, clients are they have a wait and see attitude. eric: how would you describe your state of certainty? larry: i think these are important questions to be

answered. eric: but do you feel more uncertainty than you have felt at any other time in the past 42 years? larry: know, but in the last five years, do i believe it is a more uncertain period of time? yes, i do. the question i am raising -- >> is this 1994, when the markets were very concerned the federal? reserve eased when they should have been tightening, and they got it wrong too? larry: then we had a five-year bull market. the market may be wrong right now in that gdp will continue to grow, the trade conversation is not that difficult for and i'mional commerce, in a and asset repurchases will continue -- m&a and asset repurchases will continue. if that is the case, maybe it is

a good -- will we see markets up, would you call this a tariff war? larry: we will see what happens with the next $200 billion proposal that the market has done with china by the end of august. right now, it is talk. let us see if there is a resolution on that. on $50hy aren't tariffs billion of chinese goods and tariffs on steel and aluminum imports, and tariffs being imposed on the europeans, retaliatory tariffs on u.s. goods, why doesn't it constitute a trade war? larry: because it has a small impact on global gdp. but symbolically, it is having an impact on investor sentiment. that is what we are seeing right now, we are seeing investors positive until there is greater

certainty. eric: what about bonds? you mentioned that you could earn 52%? larry: funds are fine that she --ld earn upwards of 2% bonds are fine. i could be in low duration bonds, cash, credit -- low duration credit funds, so you are being paid now to take some risk in the short end of the curve. the question is, are you being paid enough in the long end of the curve? in the long run, no, you are not. eric: if i am 2.8% on the 10 year, i am not being paid enough? larry: no. eric: what about the inversion of the yield curve? larry: i think we will see an inversion of the yield curve sometime this year. but i do not believe it means that we are going into recession. eric: why not? larry: because we have a federal reserve has stated that they are on the path of two or three more

tightening's. we have an eeoc that said that the -- a pboc that says that they will not do anything until 2019. we have a bank of japan that .ays that they also will not so we have a diversion between u.s. interest rates and a european and japanese, which is where the dollar is strong. so we will see more flows into dollar-based assets most importantly in low duration cash, and that is exactly what we are seeing. eric: ok. but again, i am having difficulty taking all of these discrete pieces of information and adding them up into a picture that tells me something. they areyou think two quarters from now, at the end of the year? larry: well, we believe at blackrock about 2018 will be a strong year for gdp, mostly reform.of the tax we believe that 2019, the u.s. economy will begin to slow down. if we implement this $200

billion tariff war between the u.s. and china, all bets are off. meaning that gdp will slow down dramatically, we will have even more uncertainty about the world, and how the u.s. is being portrayed. -- thing i will say >> hang on a second. the u.s. imposes an additional $200 billion on tariffs opposed by the end of august, that will cause gdp to slow down dramatically, you say? and that will do what to the financial markets? larry: i would say that the financial markets would go down in that scenario. the: so, given all of this, economy is growing, you say, at about 4% or faster this quarter. how good a job is the president doing in managing the economy? larry: in the short run, it is doing fine. i am a globalist, eric. i believe in the foundations of

how the u.s. has built its relationships. eric: but why put all these things at risk than? larry: the president has a different agenda, than i believe is the right agenda at this time, related to trade. i believe we should reevaluate our trading treaties with some of our partners -- some of them are very old and it is time to reevaluate them. i would do it in a much more private way. i would work it out, treat my withl partners and allies the idea that we can work it out together. eric: ok. that is not the approach that the president has? larry: taken no. no. in the markets are showing that. that is where the markets are virtually unchanged. eric: so, once upon a time, you sat on a council that steve

schwarzman chaired and advise the president. that counsel has since been dissolved. throughave channels which you can communicate these concerns to the president or to members of his administration? larry: we certainly have open channels to talk to anyone we wish to worldwide. eric: and what are you doing about it? how are you communicating these things? isn't it important, if you believe as you say you do, that these things matter? consequences for the economy, that they have consequences for investors and for the wealth of americans, and furthermore, for the wealth of your clients and constituents around the world? surely, you would want to do something about this? larry: eric, marcus will speak louder than anyone single voice. we have channels, we have reviewed our channels. this week i am talking to members of congress on many things. dialogue,e an open we last week, you know,

spent time with other countries and had open dialogue with leaders of other countries. so, rest assured, we are having conversations. but i woul unlike some people, i will not talk about them. eric: you and i will continue this conversation. i have to hand it back to my colleagues tom keene and francine lacqua for some news.ng tom: yes, bank of america earnings are out. >> second-quarter earnings shares coming in at 63 cents, net income of 33%, about 6.8 billion dollars, helped in part tax code changes and improved operating performance. he got comments on the ceo, saying that operating leverage drove earnings higher this quarter and responsible growth continue to deliver as a driver for every area of the company. as you know, we also looking at efficiency issues.

but second-quarter earnings per share, the headlines are that they are higher. francine, tom? tom: thank you so much. it is a perfect day here in helsinki, because of the american distinction that president trump brings, the strength of our financial system. away from here, we see today the idea of deutsche bank struggling , and finally some good news, and yet, powerful and dynamic profitability at the american banks. francine: deutsche bank is maybe not a linchpin of the strength and influence of the european economy, but maybe it is a kind of bigger picture of the fre-nemys, the fron relationship you see between the u.s. and donald trump. tom: not a large crowd here, but

we are seeing and people line up to watch mr. putin go by. the press waiting for mr. now, as we begin the summit. -- we have been talking to robert hormats, a kissinger associate, and former ambassador. the financial summit is something you wrote about in your wonderful book about a decade ago. america's domestic banking system and our diplomacy. how are those two linked. ? robert: it is a great question. certainly, there is concern, not just with the economy today -- larry fink pointed out quite accurately, the economy is doing well, a lot of stock buybacks and positive things in the aggregate, but the mystic mounting overullin

a period of time, which has to have some impact on long-term interest rates. but the other part of a problem that links into exactly what will be happening and is happening in europe, is that the united states economy depends increasingly on the global economy. in terms of american profitability and trade, in terms of the investment environment as well. if the global economy deteriorates, if globalization betweens, particularly the u.s. and europe, but elsewhere as well, if we go into a trade war, into an investment war, if we have bigger problems with the eu because of tariffs and china and others, that will have a very negative impact on the u.s. economic outlook, which over a word of time, will also have a negative impact on the financial outlook. therefore, what happens in helsinki? does the president stand up for a liberal, global economic order?

does he stand up for supporting the eu? does he put pressure on putin to stop undermining the global system? that will have an impact on markets, and the financial system. so, ambassador, has president trump shaken the new world order, or has he just diminished the influence of the u.s. in the world order? it is unclear to me which? larry: he has undermined at the's interest in global system, or their ability to lead the global system, because he has cast doubt on the wto, he has disparaged cooperation across the atlantic, he has pulled out of the tpp. he missed the point of that america's strength from a national security and economic point of view, depends on strong, political and military alliances, but also strong ownerships.

that is a part of the global system, which has served america's interest quite well. he has shaken the order by disparaging these institutions and indicating that the united alone.could go it if there is one lesson that larry fink talked about, and that i have emphasized is, the global system has been imperative for growth in the united rates and elsewhere, and he needs to strengthen that system, if we are going to preserve our growth at home, and though corporation we need to deal with global and financial trade issues. tom: please stay with us, right now, our team is looking at another motorcade coming down the historic boulevard here. it has a certain trumpian cast to it. francine: a vladimir putin took this very route with the russian his russian-made

limousine that he has taken, and now you see the beast with president trump arriving. it is surprising to see many his russian-made limousine that hefinnish citizee streets, trying to get a glimpse. i thought there would have been more people, maybe there will be more people further down the boulevard. tom: i would do want to point out, there were substantial protest, orderlyi thought theren more protests down the street right by the same train station here, one of the great train beauties of the world, built near world war i. the protests wrapped around two city blocks and went up to exactly where these motorcades are going now. i was a just a compare and contrast -- if the president has a little more hardware with ms. motorcade. president putin ran a relaxed. francine: yes, there are

substantially more cars and entourage of president trump. let us go to our correspondent, she has been covering this all week and she is now in front of the presidential palace. you got the first grams of president putin arriving at the palace and out of his car? >> yes, he was just hear about 15 minutes ago and he came directly from the airport. it is a bit striking for him, he has left almost every foreign leader he has met and had of head of state since he has been in office, chancellor merkel, president obama, but he arrived on time for this meeting. this meeting is quite historic. , he president trump arrives will be following in the likes of other u.s. president-elect president ford when he met brezhnev, bill clinton when he met boris yeltsin -- that is

also when clinton invited russia into the g7, making it the g8. quite a turnaround now, with the president saying that he wants russia back in the g7. they are coming up behind me as you can see. -- we see the, motorcade now. thank you very much, annmarie hordern, for your reporting from the presidential palace, not too far from where we are now. here,e find extraordinary is how extraordinary this is. it may mean that there is no kind of real policy being set in place. if it is a summit, there is more of an official status. anything that president trump could say or do could be locked

in. quickly very , the two moments with prime minister may, the reset after that meeting with president trump. francine: and let us not forget that 12 officials indicted by a friday.ry on will president trump bring it up to president putin? i know that there will be questions about that a lot in the news conference. tom: we will continue our coverage through the day from helsinki. we say, good morning. this is bloomberg. please stay with us. ♪

♪ >> we will do just fine, thank

you. president trump and russian president vladimir putin meet as trump calls russia a foe in certain respects. deutsche bank sees results considerably above estimates. a metro deal, -- there could be a trade deal by the november elections, and china's economy slowed, triggering a global worry. steel inday, i'm alix new york, my colleague david today.is off president trump is believed to have already arrived at the palace in helsinki, and vladimir putin has also apparently arrived at the palace for a series of meetings today. the meetings seem to be delayed for about one hour. this is a rundown. be trump and mr. putin will speaking one-on-one with their translators. there is no time limit to