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 the.

secondly, they will meet with the mike pompeo and russian foreign minister sergey lavrov at the second meeting which will have been today. the third thing is that they will make a joint statement and each, thenestions --in will be sitting down -- they will be sitting down with an interview by fox news. it should kick off around 7:20. the one-hour delay is true. everybody is watching the presidential palace in helsinki, where they have just arrived, looking forward to the joint statement and bilateral talks. in the markets, here is where we sit. s&p 500 pretty much going nowhere, a weaker dollar story, continuing to grind higher. the two and 10 spread 24 basis points, but all eyes on the market are on banks. we are joined by our bloomberg intelligence senior u.s. bank analyst. in terms of bank of america, it is a similar story with j.p.

morgan? >> so far, we are still going to the numbers. we saw very strong equities, trading revenues as well, the margin was one basis point light, a little different than what we have seen at some of the other banks. but again, we have to see what happens in their quarter interest margin, not necessarily margin.all the investment business tends to get hit faster than the core business, from the yield curve. >> while the management estimates, total revenue coming in it for .7 million, but when you look at the other segments, it is potentially not as strong? >> yes, and we also need to look at what is happening with credit and loan growth, in terms of where the loan growth is coming in. bank of america does have more commercial and industrial lending than other companies, so were they able to benefit from it. alix: so that will be a higher

rate story. is that going to be good enough? i think we will have to look at it in terms of -- of the reason i am talking about loan growth, it is core to the interest income growth, going forward. keep in mind, there are concerns about the yield curve. if they can get better growth in their loan portfolio and higher-yielding assets, the mix of that could help offset some of the concerns we are seeing with the flattening yield curve. keep in mind, the flattening yield curve takes a while to work into banks over all portfolios. it impacts the trading business earlier.s i alluded but bank of america is generally more exposed to higher rates, due to the commercial and industrial portfolio, because it is more tied to short-term rates. >> what did you make of deutsche bank? >> it is positive news, however

if you dig into what they said, trading results come in a bit weaker than the mid-july consensus forecast published by the company. that is really something we are watching, in terms of their overall revenue attrition. they have this rebuff going on under the new ceo, and have talked about accelerating that. how much of that is intentional going back on businesses, and how much of that is unintentional, just losing share. we talked about how there have that we havereship seen, u.s. back sticking shares, but they did not see anything separate or distinct from other have seen over the past couple of years. alix: the stocks are getting a bit of relief from that. we are joined by running shanker, for our bloomberg first take. mr.top story has to do with trump and mr. putin at the presidential palace in helsinki, having both arrived for their

meeting. this is what president trump had to say over the weekend over what he thought of russia. >> i think the european union is foe on what they do to us in trade. russia as well, china is also a economically, certainly. but that does not mean that they are bad. it doesn't mean anything. it means that they are competitors. alix: take me behind the presidential palace wall. what is the. first conversation going to look like? >> i think it will be setting the parameters of what they will discuss. let us face it, bob mueller's indictment of 12 russian government officials on friday changed the dialogue. set initially to be a summit come another are dialing it back, saying that these are discussions. but the overall -- a government that hacked into is democratic

process, the fact that there are meeting is pretty extraordinary. alix: is it just a meeting, just a win for the president? >> it is a win for president putin, because given all the difficulties in prime year and with opec -- crimea and opec and everything else, having him to sit down despite the mother indictments, having him sit down with the u.s. president -- despite the robert mueller indictments, it is extraordinary. alix: what struck me over the weekend in the interview with cbs, how he talked about the eu and china being foes economically, russia being a foe in certain respects. how do you begin to process but as an investor? >> i think it is confusing in terms of where policy is moving and who the u.s. is embracing, at least economically. right now, the markets are not really looking for much out of

this meeting, unless you are invested in russian etf's ar , or you are a ruble trader. that raises the questions of what the u.s. will get out of this area some are hoping that he could extract something along the lines of an oil out what boost, but i think there was already some speculation that that would happen when we were other. but what do we get out of this when trump comes home, and he gives us a briefing of what he about?in talked is there more to this than the political optics. and that is echoed by all the parties involved. so, we will keep our eyes peeled on the presidential palace, to bring any and lines and updated on the progress. we're taking a look at banks, discussing bank of america and deutsche bank. but i wanted to point out, the two day chart of jp morgan, what

happened on friday. they had stellar numbers, but the stock pretty much went nowhere. what do you make of that? what does it tell us about earnings season? >> it is all about loan portfolios and loan growth, as allison touched on this. what people really want to see over the long term, is how these banks are growing their business. we are not seeing it show up in their loan portfolios or on the deposits side. so the question is, how are they profiting going forward? jp morgan is probably the best of the bunch in terms of their performance so far. and you are seeing that they are not even getting a pop out of this. the bank of america numbers coming in this morning are a mixed bag, but there are falling in mortgage lending, but also investment banking. they were ranked sixth among the big banks, and they are not making any progress there, so where's the growth going to come from. alix: that is a good point. marty, that was below what

analysts were looking at. how is the economy? bety: the economy seems to doing very well. and jerome powell will only make that point tomorrow or friday. to me, the issue is forward-looking. of trade andmbeat tariffs, the prospect of a full-fledged trade war, you have to wonder when the economy will there areting to that certain size of uncertainty amongst businesses which are going to restrict capital investment, and this is not good for the banks and the economy. alix: and every ceo on the call would echo that. that it a worry, but there was no significant impact. i also want to take a look at our third story, it has to do with commodities. citigroup came out with their third-quarter results yesterday, saying that u.s. trade tensions have punctured the trust built up over decades with good faith agreements, which injects uncertainty. they also want up saying that trade issues should be resolved by the midterms?

marty: yeah, good luck with that. i think it in but who makes predictions on where growth will went up, where trade will went up, is guessing. alix: just to point out, marty, president trump and president putin, now seated in the presidential palace in helsinki, as the talks will be beginning, one-on-one with the two of them. later on, they will be joined by the secretary of state, and the foreign secretary of russia, sergey lavrov. a historic moment, as they sit down together. we are watching the body language to see what we can glean from that, because we know from both of them, it has to be excited narrowly important. marty: oh, yes. i think everybody will be trying to interpret the chemistry between the two leaders. again, anybody who really knows, is just guessing. alix: we will be looking for headlines.

marty, did they shake hands? marty: i did not see that, maybe we joined a little late. alix: if they shake hands, is that a good deal, or is it up takes? marty: it is just another sign. there are people who criticize mr. trump for shaking hands, and others who say that it is disrespectful, so it is all and the art of the beholder. alix: fair point. and you heard mr. trump saying over the weekend -- look, i will be criticized, no matter what i do. . that is a fair point we do have a headline coming across with president trump saying that he and mr. putin are in regular contact. and that he has come for substantive bilateral talks. we are listening to mr. trump their speaking written up. president trump: the semifinals were really spectacular, and it was really well done. alix: they are discussing the world cup, is that it?

president trump: most importantly, we have a lot of good things to talk about and things to talk about. we have discussions on everything from trade, to military, to missiles, to nuclear. we will be talking about china as well. our mutual friend, president xi jinping. president trump: i think we have great opportunities together as we countries, and frankly, have not been getting along very well for the last number of years. i have been here not too long, it is getting close to two years, but i think they will end up having an extraordinary relationship.

as i campaigned, getting along with russia is a good thing, not a bad thing. president trump: i really think the world wants to see us get along. we are that two great nuclear powers, we have 90% of the nuclear -- it is not a good thing, it is about thing. i think hopefully we can do something about that, because it is not a positive force, it is a negative force. so, we will be talking about that, amongst other things. russian] ng into

president trump: and with that, the world awaits, and i look forward to our personal discussion, which i think begins now. then, we will meet our team. you have quite a few representatives, you all have a lot of questions, and hopefully, we will come up with answers, most importantly. good to be with you. [translating into russian] president trump: thank you very much. thank you, everybody. thank you. thank you, everybody. thank you, very much.

alix: a historic moment, the two presidents meeting in helsinki at the presidential palace, shaking hands as a summit begins. as they head off into one-on-one talks. they will be joined later by the secretary of state mike pompeo, -- as russian monster well as the russian minister, sergey lavrov. it seems like there are trying to set the stage for something. productive i am joined now by bloomberg's annmarie hordern helsinki. talk about the headlines, how that sets us up for a conversation today? annmarie: on arrival, they decided to give a bit of a statement from the press. presidential putin talks about bilateral ties, that there is .nough they need to

pay attention to trump talked about everything from trade, military, missiles and nuclear, and president putin was nodding when president trump said that it was a bad thing that h both countries have 90% of the nuclear arms in the world. they will now go into a 90 minute long meeting, just them and their translators. then, they will have another bilateral meetings where they will bring in their teams and foreign ministers. i wanted to point out come. going president trump into the meeting tweeted that relationships between russia and the united states are bad. then come others who just arrived and they will now head into the meeting. what is likely on the agenda, is of course what they alluded to, ,rade, nuclear proliferation the new start treaty is set to expire in three years and it was put under the obama administration. quite a pill to swallow for donald trump, so he will probably call it a bad deal. there is syria, the iranian

backed troops in the region, ukraine and crimea, of course. when i was at the nato summit in brussels and trump was asked about crimea, he said -- it is a very interesting question. many are wondering if we could see perhaps mr. trump recognize the annexation of crimea, which of course, god russia kicked out of the g8. many are saying that we could see a path to a relief in sanctions. there was also the supply of oil and demand. considering donald has been tweeting a lot in the last six months, targeting opec, saying that they have artificially boosted the price of oil. alix: that was bloomberg's annmarie hordern in helsinki. here are set with me is bloomberg's marty schenker and romaine bostick. your take, marty? marty: not mentioned, is any discussion of the robert mueller indictments, right? on his list of things he wanted to talk about, he did not

discuss the russian meddling in election. i think the world, certainly u.s. politics, is anxious to hear what donald trump is going to say, and what kind of response you will get from the russian president. alix: is that a win for president putin? marty: i would say, yes. it is extraordinary that you indictmentecedented against government officials, and you have the president of the united states shaking hands with the person who directed it. alix: has it set them up for their talks? we can underestimate president trump all you want when it comes to that, but he gets to prove it in his negotiating tactics. he gets to prove it in his negotiating tactics. mardty: president trump wants to see something come out of this that is concrete, that he can describe as a win. so i think he is right, we will not get an admission from president putin saying

that yes, we did this. i don't think that is were he was to go with these discussions. the question is, what does he give up in order to get something back on syria for instance, or on oil? interestingreally to see him lean over and initiate the handshake between the two of them. yes, and again, president trump had said, he would get criticized for either doing it or not doing it there we had i think that is his natural is to reach over and shake his hand. alix: we talked earlier about how the market is getting confused, how to deal with the uncertainty. aboute people who talked a triple billion-dollar fund in australia hedging risks after buying the 30-year. what is in store, is that what happens when you do not know how ?o price risk romaine: i think so. there are some banks have seen, which have indicated that they

would be moving into the 30-year trade, and i think it says a lot about how the people view the economy, not just here in the u.s., but really about the global economy. when you talk about the relationship a u.s. has with china, and with europe, and the meeting today, you start to think about how the global economy will a just and reacts to all of these things, and birds the safest place to be. alix: thank you so much for both of you to sticking with me -- they can so much to both of you for sticking with me. the president's meeting at the presidential palace in helsinki, where president trump initiated a handshake with president putin, saying that they will discuss china, nuclear, trade, but off the table as marty shanker pointed out, was in the discuss the the 12th indictments. president trump say that getting along with russia would be a good thing, that they have great opportunities. the two have now gone into a meeting one-on-one with each

other, and later on they will have a press conference where they will take two questions each. i am joined from boston by my next guest, deputy global cio. the world is watching helsinki. as an investor, what do you watch? >> well, we will certainly be watching, with or anything comes up related to europe particularly. the has already been a fairmont talked about their. we will also be looking for any signs that this is just another negotiating tactic that puts the u.s. at a posture that we can get better terms on trade. we will also be looking as you said, on whether the -- on the nuclear discussions come and what comes of that, particularly on north korea. alix: those are really good, particularly when you look at the globe to reinvent as an investor, you cannot really make any decisions on that. , foru are looking ahead safety, so how do you manage that? lori: this year has been looking about looking at risk and reward

and this is just another chapter discussion. we have been reducing our exposure all year to emerging risk,s, tearing back reducing our exposure to europe, where the relative valuations are not just attractive. but on balance, we are still pretty. attractive we think the global economy will be ok in 2018 and 2019. alix: larry fink, ceo of , we spoke to him us was and here is what he had to say. >> if we implement this 200 billion dollar tariff war between china, i think all bets are off. >> meaning what? >>, we spoke to him us was and here is what he had to the gdp will slow down dramatically, we will have even more uncertainty about the world, and how the u.s. is being portrayed. alix: lori, when you were rotation and portfolios, you also have to look at ways to hedge some real downside risk, a way to hedge real volatility? lori: we do, and certainly a

couple of places we have been capital into cash, we have yields of approaching 2%, a pretty interesting place to park some money. we have also been looking at long-term treasuries as a way to get potentially be risking in -riskingfolio -- thde portfolio. when you look at the global economy, some $90 trillion, we do not think it is enough to derail growth. alix: so is this a time when we might perhaps see a selloff like we saw last week? and if so, where would that be? lori: it is absolutely the place where you want to be more opportunistic. we continue to see evaluations look pretty good. financials for example, they have certainly led the last quarter or so, but when you look at global recovery, some deregulation and relative valuation, we think it might be some time to put some money back financials.

we also like, believe it or not, the industrial and energy sectors. . when you look at energy stocks that have lagged in appreciation of the commodity. alix: fair point. picking up on financials, bank of america reporting today, stocks up a bit. their equity trading ended up beating loan growth by about 2% though. what do you make -- on the are solid numbers especially from the investment banking area, but if stocks cannot hold up, is it a financial issue or an earnings issue? lori: certainly come a financials of had a terrific run in 2018, and there are concerns in the financial sector about the yield curve flattening, so those things will weigh on financials, but we think the good.entals are quite again, we're seeing global growth, their loan portfolio looks to be in good shape overall, overall, deregulation will be. positive so we are looking to add positions. alix: it seems that financials

are selling off altogether, and they were trading on the macro risk rather than idiosyncratically. do you expect that to continue? or do have any specific opportunities to? lori: take? look certainly, when you at geographically, we are more of that differentiation. european banks for example, we think there will be under pressure, particularly some of the italian banks and even deutsche bank recently. there are areas globally, where we are less constructive on. we like the u.s. and some of the banks. alix: nasdaq closed at a record on friday, amazon on a record, netflix coming out after the bell, how do you position yourself with tech? lori: again, we are loosing for places where it is less about the banks, and more -- the fangs , more about the underlying software, or hardware. trying to find sectors where we can be more conductive, such as semiconductors, this is where we can be more involved. alix:

, more about the underlying software, or thank you so much,u will be staying with me here. coming up, commodities taking a concerns.ade we will have the global head of, duties research at citigroup joining us to discuss his commodities forecast, next. and, we will be taking a look at bank of america, the stock the markets8% in are equities beat estimates, and their loan book however, was only about 2% year on year. is this a market issue? jp morgan's was 7% year on year. more on that and the top stories also from russia. this is bloomberg. ♪

♪ this is bloomberg daybreak. i'm alix steel. to berkets do not seem paying that much attention.

the nasdaq was closing at a on friday. flat for european equities. in other asset classes, across the board, it is a weaker dollar the dollar-yen is slipping into negative territory. it was reaching resistance. points, the lowest since 2007. this is ahead of jay powell speaking tomorrow for monetary policy report to congress. crude rolling over pretty rough, down 1.6%. it was up earlier in the session. we get the report that saudi arabia is adding oil. more supply on the market, crude getting hit. bank of america, a mixed quarter when you look at the details. and investment banking and revenue came in better than expected. investment banking fees did

slump. the loan book was only up by 2%. is i going to be a demand issue? -- is that going to be a demand issue? also going to take a look at deutsche bank, european banks keeping stock stable as they wind up surprising, their second quarter earnings were higher than expected. euros and income before taxes of 700 million, above estimates. preliminary results point to stronger revenue than previously predicted. let's get an update on what is making headlines. kailey leinz is here. >> the summit is underway and health thinking. president trump and vladimir have begun a session joined only by translators. mr. putin at the beginning of the session that he expects to discuss trade and china.

there is evidence that saudi arabia is paying attention to president trump's call to increase production. they're offering extra crude going to buyers in asia. president wants to pump more crude before congressional elections in november so gasoline prices can come down. the impact of a trade war is hanging over china. show it is slowing down as expected. gdp rose at 6.7%, is slowest pace since 2016. china generates as much as one third of global growth. the best world expansion in years is reaching a plateau. global news 24 hours a day and at tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. the u.s. moves on global trade policy, you want to watch for deals to be struck for the

midterm elections, according to citigroup. u.s. trade actions have been unilateral and have punctured the trust built up over decades. joining us now is the gentleman behind the note and the global head of commodities. thank you for being here. great timing for me. you take a look at the brutal hit on commodities and you could see the clouds clear. walk me through it. at which commodities have been hit, we will start with soybeans. threat, the chinese have put restrictions on imports. the u.s. is losing market share and brazil is gaining them. there are a lot of farmers who vote for the president and there is going to beat movement for that reason alone -- there is going to be movement for that reason alone. we see the same thing on the medals.

we have all core earnings later today. zinc falling. alix: what is the rebound potential on a crop like soybeans? price goes more the down, the more upside there is. alix: with the exception of oil and may be gold and copper, commodities trade with their own supply and demand fundamentals. when do you expect that to kick in? and theyemain strong do so across most commodities. there are doubts about whether it is going to remain synchronized between emerging markets and advanced economies. signs are strong. we expect commodity demand to be underlying strength. alix: what about volatility? look at commodity volatility, what can we expect? >> it is a good investment theme.

we expect this to be a volatile time. you can see that pickup we have seen, nowhere near 2015. a nice spike. apart from soybeans, what commodity has the most upside if we get resolution? is going to remain strong. alix: like copper? >> copper in particular but across others as well. industrial demand is high and we expect underlying to remain high, copper is the bellwether. that is the one that counts. alix: when we get to the dow today with china, where it is fine. industrial production is all. how do digest that? -- how do you digest that? >> we're seeing commodities down, the dollar up a bit.

bit here andttle there, you cannot generalize. the drop in oil prices is a function of saudi arabia ineaming that we want prices the $70 range but not $75 to $80. the reason is the danger of a disruption to supply lifting brent above $80 a barrel. is still a trade related issue. the fourthentioned quarter, you can see and overshoot in the 80's. with oil, what else is happening? you mentioned saudi arabia, we had a selloff last wednesday. is that a situation that is wrapped up in headlines. selling, ask who was you cannot find anyone. the factor was machine trading. there was a china factor as well because oil had been resistant

to the selloff and resistant for good reasons. we saw libyan production go down. sought u.s. trade production, it is not just aggressive with respect to overall relations. it had sanctions. that sanctions element was let's bring down import levels to zero. these sanctions are a part of it. the middle of last week, we had pompeo talking about we are not going to go to a zero threshold. a pre-elections modification of the strategy. saudi a realization that arabia cannot put enough oil into the market. alix: before we get to the investor take, what did you make of the headlines that president trump will access petroleum reserves? >> i would like to see what the

results were of the last test. the government did a test. we do not know the results. the thing does not work the way it was supposed to. we have it meant to feed into pipelines going north. those have been reversed. where is the oil going to go and is it going to be part of the , thestion in galveston houston channel? i suspect somebody has not done his homework on that subject. alix: hang tight with me. still with us is lori heinel of state street advisors. you heard and make the case for metals and soybeans. how do you feel? we agree the backdrop globally is constructive for commodities. we have been adding to our positions and commodities. we see it as a diversifier in

our equity positions. alix: is any of that going to be an inflation hedge? some degree, although we are not worried about inflation per se. it is about global growth, trying to diversify bets against global growth and looking relative valuation, relative to equities, we think commodities is a good place to put dollars. inside theu come bloomberg, this is the brent spread for the calendar year 2019-2020. what do you see happening over the next few years? >> we expect volatility as well. the problem in the u.s. is not that there is an obstacle to drilling. there is an obstacle to taking the oil out of the permian basin. that is the fastest-growing part of the u.s. energy sector. fromd a major contraction $13 to five dollars in the

spread. the major factor on that was disruption to canada. by 350,000e down barrels a day because of an accident. that meant that refiners were moving away from canada and toward wti. over time, we expect this to blowup. not enough take away out of west texas until the end of 2019. a think that could go out to $18 to $25l beer -- a barrel. brent att is like a $80, wti at $50. >> it is the magic number for u.s. producers. alix: thank you so much, ed morse of citigroup and lori heinel, state street global advisors. up, lloyd blankfein is

said to be naming david solomon as his successor. more on this in wall street beat, at next. this is bloomberg.

♪ >> this is bloomberg daybreak. i'm kailey leinz in the green room. , bank of, walter todd america shareholder. alix: we turn to wall street be, were we cover three things. first up, the deutsche bank surprise, it surprises investors with second-quarter earnings higher than analysts expected.

old wall street to new wall street at goldman. will preparenkfein to step down and is said to pick david solomon as successor. the world cup data. we are done in predicting the game's outcome. joining us is jason kelly and lisa abramowicz. this is a historic day, trump and prudent meeting. we do not have a negative story on deutsche bank. >> i was talking about the wall street be, because, why wouldn't you? someone said, is that the segment where you talk about deutsche bank? out and issuance that they did beat estimates across the board. this was an announcement they gave few details. they're going to release details next week. the stock jumped the most since april of last year. there are a lot of questions here. >> people, investors are desperate for good news here.

alix: it is not going to take a lot. in mind, lisa is alluding to this, you have bankers leaving, you have questions around what businesses are going to invest in and be in and it is a tough market out there. >> in fairness, just for the sake of not looking by guest, -- , this wasg biased positive for deutsche bank. we do not know how much can be attributed to him and how much is due to the market circumstances. alix: 100% in terms of market circumstances. parts of the business performing well, he is delivering on some things there were not able to be done before. >> that is right and it will be interesting to look at the results in the context of the rest of the bank results, we have bank of america this morning.

week.o come next we will be talking about deutsche bank again at this table, i am sure. alix: we need to talk about it. this is the worst kept secret in wall street. andblankfein will step down the new ceo will take the reins. the new york times will be reporting it today and making it official. >> this is not a secret as you know. the timing is interesting it willgoldman has said do this at the end of the year. the speculation is that solomon once to get his people --wants to get his people accelerating in their new jobs. what do you make of this? question is, what is lloyd blankfein going to do? he is not going to retire and he said he feels like he is witnessing his funeral.

it is a fascinating shift for him. he is going to be there to guide david solomon through the slot. what does he do? he is not going to go into politics, he said. >> i would not count that out. he did an interview in the last said, i wouldd he love to be the mayor of new york. i do not want to run for it. we will see. alix: in the meantime, this has got to be a tough position for him. talk about, lame-duck ceo. this is it. i also think it is interesting to get this shift from trading to banking. david solomon is an investment banker and lloyd blankfein is a traitor. it is trying -- is a trader.

it is trying to shift to a more bank's focus -- a more banking focus. it is also interesting he is handing it off to a renowned dj. alix: with no hair. the last story, also to do with goldman sachs. if you want to get the world cup team right, you go to goldman sachs. they're going to predict the scores and the simulations and they lost. >> strike one for the humans. interesting, we talk so much about machine learning, how much they are investing in this. what is more important than the world cup? what i found interesting about this is the machines kept getting it wrong. that croatiadea was going to do anything close to what croatia did. >> not only did they keep getting it wrong. the more complicated it got, the

more wrong it got. the more data they fed to their programs, the more wrong they got it. it raises the questions about the modeling that is driving investment and the trading we see. >> that is interesting. that they said inherent randomness is one of the reasons for the failure. with the trading, you have the passive etf spirit you're not having the same relationship you would have. >> you know what else is random? life. you do not know what someone is going to tweet or release in terms of tariffs or economic data. >> that is what i was going to say. back ande should step say, this was a great world cup. >> amazing. >> amazing, like the countries that ended up going so far, the quality of the play.

it really was exciting and we saw it every day on the terminal. you hadng floors, people peeking not to set the scores. alix: i would say having your tv on the world cup the whole time, david westin was in croatia and sent us a picture today of this beautiful area where he watched the game. they lost. jason kelly and lisa abramowicz, thank you both. boeing ceo and expressing concerns about u.s.-china trade tensions. watch us tv and online, look at our charts and interact with us directly. send us a question or ideas. this is bloomberg.

alix: companies weigh in on the

effects of a trade war. dennis muilenburg says he is concerned about the possible fallout. guy johnson sat down with the company ceo at the air show to discuss the outlook on global trade. >> we are concerned about the discussions right now around trade. our business thrives on free and open global trade. going topeful where find solutions as alternatives to some of the discussions. this is important to us. alix: joining us now is brooke sunderland. have they seen any affects yet? >> they say they have not but important is the key word. companies,u.s. boeing is abominable to trade tensions with china. boeingk at the list -- is vulnerable to trade tensions with china. you look at the list of companies that china is going to be loathe to target.

you look at semiconductor companies and technology companies. boeing is going up against a china competitor. a company aircraft is china is trying to encourage, trying to take a piece of this market for aviation. their planes are set to hit the market in 2021. china has every reason to create an opportunity for this competitor. alix: when it comes to commodities, if they do not buy u.s. soybeans, where else can they buy them? in this case, can they go to airbus? >> they can and you have seen orders for airbus from chinese airlines. you've not seen that activity at boeing. boeing says that is because they've taken so many orders last year. we're going to have to see if that holds up. both boeing and airbus are aware

of this possibility of a chinese competitor. that is why you have seen them investing in all parts of the market, we saw that deal with embraer. they are trying to get into smaller, regional jets that they thought were previously unprofitable. the idea behind that is to plug all of the holes in the industry and not give any opening for comax to come in. alix: i was listening to the airbus ceo interview as well and what is next? what happens if it is airlines? like, we use u.s. steel and u.s. products to make the planes. -- if iat simple operate in china and i buy all my stuff from you, i am immune? thatat we've seen is exposure from supply chains is a

lot more complicated than your average person realizes. a lot of companies will make a part in a different country, send those back to a different country to make the final product. that is what we're seeing. on the industrial side, manufacturers have been localizing processes and that is to avoid disruption in the future. , a lot ofge production is in house. alix: thank you so much. appreciate that. nicholas gartside on where he sees the opportunity in fixed income as the curve continues to flatten. this is bloomberg. this is bloomberg.

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president trump and russia's vladimir putin begin their meeting in helsinki testing campaign pledge to revive ties with russia. its of america delivered highest quarterly earnings in a decade while deutsche bank sees results above estimates. the sees a trade deal by orlando let larry think to the % market pullback on a trade war. welcome to the bloomberg daybreak on monday, july 16. happy monday. david westin is in a much deserved location somewhere in croatia on boat. the market really does not go anywhere. s&p futures flat on the day. dollar yen one of the only currencies higher as dollar weakness was a prevailing factor as the yen cannot seem to get a bid anywhere you go. 210 spread a little steeper maybe on the margin. 24 basis points. all of that into jay powell's

testimony tomorrow in front of congress. oil rolling over down by almost a full 2%. for thellish at least third quarter. president trump is in the middle of a one-on-one meeting with vladimir putin in helsinki. anne-marie horton takes us through the latest. palaceey arrived at the restatement each. president couldn't saying it is time to talk about bilateral ties and sore point in the world saying there are many. resident from saying what they will become about -- talking about, trade, nuclear. he said the united states and russia have 90% of the world's nuclear arms. the two should hands and headed into a meeting where they will be for 90 minutes with their translators. no one else in that meeting and the following meeting when they bring in the rest of their team. we do know that putin is with syria advisor, likely to

on the agenda as well as nuclear proliferation as well as ukraine and the subject of crimea. the energy markets as well. mr. putin and mr. trump, their summit underway. want to get some analysis with nick wadhams, bloomberg foreign policy reporter. the standout was the handshake. president trump leaning over his chair to shake the hand of vladimir putin. how does that set us up for these talks? nick: i think the big question is what will happen on that one-on-one meeting when it is the meeting -- the leaders in the translators. at if anything president trump is willing to give away. the challenge with this relationship has been that there seems like there's very little for the sides to talk about. russia meddled in the u.s.

election. that is the assessment of the u.s. intelligence committee and a couple days ago robert mueller filed indictments against 13 russians for doing just that. you then have crimea. russia took ukrainian land and the u.s. slapped sanctions on the country. these are really geostrategic foes at the moment. it is unclear where they can find common ground and what president trump will be willing to give vladimir putin. nick: president trump said they will discuss trade nuclear issues and china. did not mention the presidential race. did not mention the mueller indictment. what did you make of that? nick: that echoes a theme going back since the start of president trump's time in office where he said when he has met with a vladimir putin he said i raised the issue but what you .xpect him to say in response

a couple days ago he said there is not going to be a perry mason moment where he corners vladimir jujitsu anderbal gets them to fess up to the whole thing. this is not something president trump regards as a useful line of discussion. alix: thank you, nick wadhams. great to get your perspective. joining us is jeff dennis. garside with us as well. jeff, come inside the bloomberg take a look at this. russian equities have seen steady inflows. those green bars, russia etf flow and then you have the russian equity in next best equity index. what is the market pricing in? jeff: i don't think the markets particularly concerned one way or another about the summit itself. the market has been one of the

better performing emerging markets. ofhink that is a question pretty cheap valuations. obviously partly cheap because of the political constraints and political concerns between the u.s. and russia. recentces despite volatility have been pretty strong. there's a good case for russian equities generally and i don't think the market is looking for dramatic news out of the summit. that would change the markets mind about the opportunity in russia itself. alix: could you make the opposite argument in that there potential upside catalyst if something does come out of the summit or do you think it's a regional view? i think geoff: there could be some upside if you got more positive conclusion for the summit. what is get the market at a multiple level lower is really the sanctions that have been

imposed on russia on russian companies. several years now since the ukrainian crisis in 2014. that just does not seem very likely frankly. ruble.t is in the , if youond market commence on the bloomberg you can see russia's five-year credit default spread. i love the title. default swaps grind lower. .s there enough compensation nick: i think there is enough compensation at the current .pread level the presence of sanctions really stops that spread tightening a lot from here. alix: the same question i asked

upsides tonsidered the fact that you might see president trump offer something or be a headway made between those leaders. nick: very much if you are at the risks it may be a low probability event that will be a high impact one. the other side of that is when any kind of movement from the sanctions it seems like that will probably be positive for the local debt as well. alix: you still like russia. what other areas of emerging markets you like when you still have a stronger dollar and you wind up having earning estimates from emerging markets rollover a little more and not have the same kind of upside for u.s. equities? geoff: we think the dollar is going to go down over the course of the rest of the year. it started to come off the top little bit so that is a key part of our constructed view about em

equities in the second half of the year. there is a potential for earnings downgrades. not least because of the impact of the stronger dollar and pressures on the market in the first half of the year but generally we have a preference for emerging europe. we like russia, parts of eastern europe as well collectively. the markets in korea, indonesia. we like mexico a lot and our general call we are making his value over growth. financials and energy over technology. there are a lot of things to do in the em in our view. russia is one of them but a critical part of our case here is a gradually declining dollar mark.und the 125 best 125 we will find emerging markets will struggle. alix: what em debt has the most upside? nick: a couple of areas. when you look in asia, high credit rating. places like indonesia you got 8%

yields. that looks good to us. in latin america you are looking at brazil at double-digit yields and 7.5 on a mexican bond. the risk is the dollar does not shrink than and if it stays still you get a great return from those bonds. alix: you don't even have to go down. both of you are sticking with me. blackrock shares are relatively flat. bank of america trading higher after reporting second-quarter results this morning. can they keep the upside? we will talk about the results with greenwood capitals cio. ♪

kaylee: there's evidence that saudi arabia is paying attention to president trump's call for opec to increase production. the saudi's are offering extra crude volumes to some buyers in asia. the president wants opec to pump more crude before congressional elections in november so gasoline prices can come down. businesses in north and south america to try and written -- try and win approval for its merger. the buyers are german gas maker and buyouts from capital partners. there's a report that goldman new ceoans to name its this week. according to the new york times president david solomon could be appointed as early as today to replace lloyd blankfein. that is your bloomberg business flash. on financial firms

out with second quarter results. bank of america shares rising up by over 1% after reporting the highest quarterly earnings and over a decade and beat estimates on trading revenue. shales sought outflow from equity products that overshadowed the asset managers process -- positive results. you've had about one minute to go through bank of america so what were your biggest takeaways? >> for bank of america one of the key things that stood out was deposit growth. theirt to see was that core deposit growth. that is an area that maybe was a little disappointing at the margin and some of the banks we saw last week. so obviously deposits are something we are watching not just in terms of overall growth but what we are seeing in terms of the cost of those deposits. that is basically how much are you passing on from fed rate hikes. alix: what about loan growth? >> on average coming in in line with expectations.

we would have hoped for some acceleration. going to want to hear more about that. commercial real estate looking like it held up better than expected. there's some concern about what's happening in the cycle. what's happening, bank of america does talk about their responsible growth and 10 to be on the conservative side. growth is relatively faster in that product. i think it raises some questions. alix: on the call what would be your question? alison: my question would go right to those products. in terms of cn i we've seen acceleration in the industry data what's happening in their portfolio, what's happening in customers. sometimes they could be a difference in what's happening in large corporate and the debt market. with happening with commercial real estate growth. we want to hear more about what's happening across business lines. we pick up and wealth in are costs coming

in less than expected? we're hearing about rising competition. as morning a story about barclays with an online bank when -- what are they doing to combat these competitive pressures? alix: allison williams. think you very much. now on the phone is walter todd, greenwood capital chief investment officer. he holds jpmorgan in bb&t. also nick garside as well with me. walter, your take on the results. walter: we are pleased with the results. a bottom line beat on the eps. better efficiency ratios. there's been some discussion loan growth.f it is consistent with what we've seen pretty much from other banks. .hat low single-digit

bank of america seems to be executing well. if you are a believer the u.s. economy can grow in excess of 3% this is one of the most levered ways to play that in owning bank of america. alix: what we saw with jpmorgan on friday the quarter looked great. that pretty much went nowhere. pretty much flat on the day. do you feel like you're in a position where tanks will be rewarded for their quarters or as an investor you have to look at it through a macro trade lens? walter: i think we're trading right now on the macro. the impact of all of these crosscurrents on trade and so forth and global growth on the yield curve has been discussed this morning. the flattening yield curve is impacting the way banks are trading in the u.s.. we got to get beyond that for banks, investors at least, to realize what banks are doing. bank of america will grow earnings of 30 plus percent.

it is frustrating from that aspect but these stocks are up. outperform -- i think you have to get beyond some of these macro headwinds for investors to recognize the growth they are putting up. alix: come inside the bloomberg it is that to 10 spread 24 basis points. how flat does it get? nick: eventually it will go to zero but the risk from here is it probably stevens. if you think of bits of the curve the front end is fully priced for the fed to go a couple of times this year, couple next year. they've been dragged lower with all those trade tensions around the world. expect the curve to steep and of the something like 50. alix: how quickly do you see that re-rating?

nick: that is the trade for the summer. we are starting to see it slightly lower trade tensions. slightly better economic data. let's be honest when you look at --gdp in the u.s. it's got nine blockbuster number. all those things together you and that ish of 3% a pivot point today on the curve. alix: 50 basis points would be really nice for where we are now. what would make you at your position in banks like bank of america? walter: we have pretty good exposure at this point. we would love to see that widening. i think banks would outperform in that environment. i want to make the point it's a bit of a misunderstanding about how much banks can make money even in this great environment. every time the fed raises rates banks make more money. deposit data's were mentioned.

deposit data is 50% for every 25 basis point hike by the fed they're making 12.5 basis points so they can still make good profits in this environment. they would benefit from a steepening yield curve. alix: is there any bank you don't own that you are looking at? right: we don't own citi now. probably the cheapest big bank. that is a name we have looked at and are evaluating. alix: i appreciate the analysis. nick garside is sticking with us. china cooling its economy slowing. we will break down the data overnight.

alix: china's economy is cooling as gdp increases at the slowest pace to thousand 16 in the second quarter and adding to signs that the best world expansion in years maybe plateauing. join me as michael mckee. also with us geoff dennis. you couple that with friday's number, -- mike: we are watching the impact of tariffs, the trade war that china may be getting into and the lag effects of tightening the chinese prom last year trying to deliver trying to move some of the shadow banking system out of the financial system and what we are seeing is a growth trend that is weakening. a chart here from bloomberg that shows the growth trend from our now cast which measures monthly changes in gdp moving down significantly. we're talking about growth in

the upper sixes and they will meet the target of 6.5% this year. we are seeing a slowing before trade data starts to be affected by the trade war. seeing lagged effects of tightening. alix: for emerging-market investors, to you like china? geoff: technically we are neutral. we don't dislike it or like it greatly. is,way we look at it michael is right you have not seen the impact yet of the escalating trade war. we need to see how escalated it gets over the next several months. tohink the important thing remember is the chinese economy is getting bigger. gdp overtime is getting bigger. it will continue to slow. this is the ongoing soft landing we've seen in china for some time. the challenge is are we going to

see an upside blip or acceleration to the downside. we probably don't see either of those. if growth doesn't slow to much which is one of our concerns, we're going to see some easing of that tightening that occurred last year michael mentioned including reserve requirement cuts. this is a bit of a blip on the way down as opposed to being something to be very concerned about in our view. the: the feedthrough says -- down to the prudent actions of xi jinping, not in prudent actions of mr. trump and that has been the source of volatility. the question is can they deliver without upsetting the economy and we know there are a lot of problem companies in china. the most recent reserve debt for equity swaps. gets on that debt off the books and that is not going to stimulate growth. it may load some companies down. at this point people aren't sure

how additional stimulus might be needed and that may be driven by the tariffs. alix: how does that wind up shaking out when they're still the macro issues when you end up having gdp not dropping off a cliff but consistently lower? mike: but you are seeing is a shift in relative importance within the chinese gdp data. we saw consumption rise over the first half of the year while investment fell. they have been pushing some of the local entities out of the market with this deleveraging issue and they could bring that back if they need to. right now we are waiting to see where they go with that. consumption rising as part of their efforts to rebalance the economy. alix: goodbye to china holds up? geoff: the most obvious ones that are vulnerable to a chinese

slowdown would be korea and taiwan which are both growing decently as you implied in your introduction to the segment we've seen strong global growth so those economies did improve of the last 12 months. we expect 6.6% growth this year with a bit of downside risk. areent -- korea and taiwan most vulnerable. weakness in commodities could impact economy like malaysia. the economy that's most isolated is india. alix: retail sales on deck. this is bloomberg. ♪

alix: this is bloomberg daybreak. the fast in. as news as all eyes are on helsinki and mr. trump and mr. putin meeting in historic

summit. nasdaq futures are up by six points after the nasdaq closed at a record. s&p futures go nowhere along with european equities purdue much flat. european banks of 3/10 of 1%. good news came out of deutsche bank. they look for the second quarter. the big mover is going to be oil. the dollar is a little flat on the day. retail sales. month and 4/10 of 1%. 1.4% from .9%.to gas, thatut autos, number a little later coming in 3/10 of 1% but may did have a solid revision up. the retail control group coming in flat. i feel like this is a relatively mixed results. manufacturing in the empire region that were stronger. month on month you back out

autos 4/10 of 1% but that retail control group coming in backing in auto and gas. raines,me now is laura chief u.s. economist and nick garside still with us as well. is the good number just a gasoline story which grip that out and it is a low offer? laura: i think would you are describing parsing this number 10 different ways is what we tend to do. impact onok at the gdp, which is what so many investors and market watchers are looking at, what we are really seeing is a consumer that does not give us much reason for concern. retail sales volatile. a really strong member last month. tax cuts are doing their work. and we haver market

a lot of consumer optimism. all of that seems to be fueling a healthy pace of consumption. i think the cast story means when we are adding it up on a quarterly basis probably we are not going to gdp the headline number being so strong would imply. alix: where we saw a lot of the games are restaurant sales building material stores grew 8/10 of 1% health and personal care saw 2% plus increase. . saw a drop the climate clothing retailers as well. how does that set us up for the back half of the year for the consumer? i think laura: right now it is about consumer optimism and that is because we don't have the wage growth. the fact that we are seeing the investment in building materials it speaks to a robust housing not beenat has terribly negatively impacted by the rising rate environment.

vacationnerally strong schedules the summer. one of the reasons gas prices are higher. higher demand for leisure that is reflected in these numbers as well. all of that meese -- all of that speaks to consumer optimism. we are seeing a consumer that has be impacted by all of these trade headlines. alix: i want to get your take, and the. we have yields on the highs of the session. how do you look at these numbers? nick: when you look at it that is a good number. it is indicative of a consumer in fairly rude health. you're right to point out the gasoline effect. when you think of it oil is up from a year ago 50%. even with that it shows consumers are in good shape actually spending more and it means when we look at gdp in a few weeks a way -- a blockbuster number.

alix: you mentioned we have this in the trade effects. this of tariffs could factor through to household appliances. can the consumer withstand that? they can withstand if the question is what impact will it have. laura: when we look at the things that support the consumer , the jobs, the confidence, the wealth effect from solid asset accumulation. we just don't have wage growth. we are going to probably start to see wage growth in the second half of the year and into next year but the reality is the consumer is so important for our economy. we are seeing the trade policy uncertainty impact business investment. seeing it in the ceo surveys. starting to see measures of manufacturing optimism come off of their highs. our economy is still basically healthy. when we look at what could disrupt it it is policy

uncertainty and when the consumers start seeing it our economy is overly reliant on the consumer still. alix: that leads us to tomorrow and jay powell's testimony. here's what he said for the marketplace interview last thursday. he said the administration says what it's trying to achieve is a lower tariff. if it works out that way that will be good for our economy. if it works out that we line of having high tariffs that can be negative for our economy. he said i sleep great at night the economy is doing well. you want to buy some etf's or high yields? how do you deal with the fed chair who will say something like that? nick: when you look at it, he is right. the clarity any of us have on trade just is not there. in a sense you will see what comes out. when you look at what has been announced so far, the direct impact on gdp actually is fairly

miniscule. probably the greater impact comes through the business conference -- business confidence, consumer confidence angle. we got the first signs of that. it is by no means widespread. risk you want to be taking on when jay powell is saying things are great that there's a big but there. nick: it depends on where you want to take that risk. when you go back to credit markets and things like high yield investors we would argue are still paid to take that risk. 3.5%,ield spreads around and minimal probability of recession. a shrunk economy, consumers still spending. no reason that spread could not 3.5% higher.

laura: i think trade is a big focus. yield curve inversion remains a big focus. saying the consumer confidence is something we can take for granted to me is concerning. it does not take much to shift the wind. i really see a consumer that is, at the same time optimistic, frustrated in not seeing the wage gains. going into the latter half of the year we could get more uncertainty. especially around how the -- managesminishes to push from here. you both very much. i really pleasure. we turn to taylor riggs who has been monitoring the conference call for bank of america and blackrock. give us the lay down of the highlights. taylor: brian moynihan talks a responsible growth. bank of america has been focused a lot on cutting expenses.

responsible growth has been a key thing and that is something brian let off with. talking about cost discipline often saying their main priority besides investing in their business does remain share buybacks. i want to talk about the tech investment. they said due to tax reform about $500 million in technology they want to be investing over the next few quarters and that investments in technology drive client adoption and make clients more loyal customers. we heard a little more from the cfo. he said the trade war could be and trading.sales he says he's not rooting for a trade work that there is volatility and they are doing volatility and they are doing

their job well they can help clients navigate through that. i have not heard from one client who said i need to be in this.

kailey: this is bloomberg daybreak. coming up later today on bloomberg markets, imf post chief economist. and now to your is this flash. the european union has delivered an ultimatum to airbnb. the company has until the end of august to comply with consumer rules or face a regulatory clampdown. the eu wants airbnb to present holiday home prices in a more transparent way and the company's terms have to be more understandable. papa john's board is putting distance between the pizza chain and its outspoken founder for using a racial slur. he's being removed from all marketing materials. he still owns about 30% of pop

in john's shares. trade wars are making a bargain in the u.s. production expected to reach an all-time high. tariffs from china and mexico threatened to curb demands. hog prices expected to fall among 8% last year. alix: lots of creative ways to eat that bacon. larry fink says investors are not buying at a crypto currencies yet but that is not nothing blackrock from looking into the technology. he shut down with erik schatzker for interview. >> i've not heard from one client looking to buy a crypto currency at this time. when it becomes more legitimized. when it has the true open nature of it that you identify who the players are on both sides, that is when we will probably look at toas an alternative currencies. aware.t now you are

>> we are looking at how they perform. that type of data to understand it as we think about other products but right now i can tell you worldwide i have not heard from one client who said i need to be in this. eri one of the things people associate with black rockk: is a environmental social governance. you take the trouble to write a letter to ceos every year that touches on many of those issues. furthermore you go at greater length in your chairman's letter. the problem you run into and i know you are well familiar with this, is that people can interpret or perhaps confuse what blackrock has to say about those issues with politics. how do you avoid creating the impression that you're playing politics with your clients money?

>> as by repeating what we are doing. we are an asset advisor not an asset owner. we are advising clients as to what they should be doing. offering choice, but we are not playing politics and never meant to be. i do believe that message is getting out and i do believe the reaction to my corporate letter has been profound. if you read most germans or seals letters they talk about their corporate purpose. we find out over the next year they live in that purpose. they are providing more transparency to the investors talking about their long-term strategy and how they are trying to manifest that. i would say what we are trying to do is open up more transparency. in terms of how we vote as an independent committee that does their voting it is on a case-by-case basis.

we believe we need to have a hired tradition or -- fiduciary with responsibility and executing that. team toted we raise our about 75 people more than double anybody else in terms of corporate stewardship and i do believe corporate stewardship is becoming more and more important corporations are being asked by society to do more and more. i'm not asking them societies asking for them and we are making sure companies are listening to society and that is number are doing our job one is investing in companies that perform well and if companies focus on bsg issues there isong horizon evidence they do better than companies that have governance issues companies that have a big social issue so actually what we

are doing is raising the bar providing more transparency building a better understanding of how companies navigate their businesses and i believe the outcome will be better performing. -- you areu're not not pulling back from a commitment to stewardship? larry: i think it is the right thing to do. investors across the board, 90 plus percent are very thankful that we are pushing this there were always a few that are not theibly happy but overall response has been positive. i'm hearing from many people within our firm, our employees are actually very excited to be associated with a firm that is raising these questions so i would say if you look at the ability of hiring people and hiring millennials we have never been in a better position. this year we had 250,000

blackrock to come to for a few hundred jobs. so i do believe we can make a difference. we can make a difference for our clients, employees and hopefully we will make a difference in all the societies in which we operate. alix: part of bloomberg's interview with larry fink who also said equities could drop 10% to 15% and gdp could slow in 2019 if we see a trade war. president trump and president putin preparing to go into the second lateral meeting. more on what i'm watching next after a historic handshake. bloomberg users can interact on gtb go. this is bloomberg. ♪

alix: the handshake. president trump and put in

helsinki. anne-marie horton joins me with the latest. lavrov and mr. pompeo meeting. look at me expect? annmarie: we have putin and trump meeting alone with their respective translators and we have another meeting before they all join in one collective meeting with many members of their team. president donald trump says he hopes they can have extraordinary ties and relationships with russia. president clinton was saying they want to work on these bilateral ties and there are best president trump said they have 90% of the nuclear arms in president putin nodded on and they shook hands. likely they will be discussing, looking at who can has brought with him, one of the top things

they will be discussing his syria. putin has brought his top adviser on syria likely they will talk about the iranian backed troops in syria. the two do not agree on this and on friday president erdogan, the present -- turkish president was talking about a serious summit.

about a serious summit. coverage of president trump and meeting inutin's helsinki. traders, how does that filtered through? >> i'm not sure much of it filters through. i think the timing of this is lucky on that front. we are just really getting into the thick of earnings season how the banks -- this is a period where we can lose the macro, focus on the micro.

one month correlation among s&p 500 stocks. it is back to 2017 levels. we expect to see this side of earnings has investors marched it beats of their own drummers. help me juice it up i feel like that's the story of every quarter. >> you have to play that off of their able to grow internationally like crazy. i feel like there's this disconnect with netflix. greatnot finding as much new content on netflix. you look at emmy nominations they are through the roof passing hbo and cutting into .asic cable in that front it's a similar story to amazon in terms of spending to try to generate to keep this global mode. we will see the extent to which they're able to grow that. it seems like the street and the company are onside for how big they could be. downgrades and cautions.

it is up over 100% this year. his generation. do you see how that went? luke, when you take a look at earnings will we be an end position where be to going to be rewarded i don't know if that is going to be the case. there are some idea people are going to be looking ahead to end of cycle flattening yield curve, all that stuff. at a certain point in time you ,ave to think earnings momentum which is starting to kick in like the folks that performed thatlast week, generally will be reflected throughout the course of the earnings season. some of the structural growth stories, basically the nasdaq 100, they've been getting really bit up and the only group that had multiple expansions since the january 2016 for the s&p 500 have been tech so folks are willing to pay up for next --r's earnings on these big

which raises the risk that they have to show strong outlook going forward. thank you very much. set up for bloomberg daybreak. , head of u.s. equity strategy. why she's urging investors to cut back on risk. in the markets, not a lot of action in the equity market. nasdaq futures a flat after closing at that record. european bank stocks up 2/10 of 1%. the story from the resides in oil. really getting whacked despite the weaker dollar. crew down over 2% as saudi's tried to deliver more oil to customers in asia. this is bloomberg. phones have made our lives effortless.

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jonathan: equity market uncertain global -- as president trump sits down with putin in helsinki. rising.ail sales a stable economy setting the stage for the testimony. and goldman sachs reportedly said to take another step toward entering the post -- era. about 30 minutes away from the opening bell. the prize action muted going nowhere. after two weeks of gains. to 11711.r up -- 2.84. the main event, president trump sitting down with the vladimir putin. weighing in on a historic summit. >> i think this meeting is about laying groundwork for future talks.