trial of former campaign chairman paul manafort. he identified the five witnesses ina court filing today virginia. he said they are likely to invoke the fifth if they don't receive immunity. chuck schumer is calling for immediate hearings with secretary of state mike pompeo and other top administration officials to learn more about president trump's private meeting monday with vladimir putin. chuck schumer also addressed the wasident, saying trump being criticized because putin is a trained liar. mr. schumer: he lied about crimea, about an american plane being shut down, about athletes doping during the olympics, about russian behavior in the useukraine, about

of chemical agents in syria, about russian interference in brexit, and about russia's interference in the u.s. election. president trump tweeted that the summit went even better than with the nato allies last week in brussels. the federaluing government over the republican led tax overhaul. new york governor andrew cuomo claims the tax bill is and was crafted specifically to hurt blue -- states. theresa may's brexit strategy is in turmoil. she is facing criticism from her conservative party for agreeing to rewrite her plans. her defense minister has quit

the government. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in over 127 countries. i am mark crumpton. this is bloomberg. >> live from bloomberg's world headquarters in new york, i am julie hyman. scarlet: i am scarlet fu. joe weisenthal is off today. stocks are rallying. the fed chairman is sounding upbeat about the economy. what did you miss? from president trump saying he misspoke and he accepts u.s. intelligence agency's conclusions that russia

meddled in the 2016 election. risksvestors shaking off too soon? we break down the political realities of a trade war, next. is betting on e-commerce. what you miss? a rare oval office about-face after in tense outcry from capitol hill, including from some usual white house loyalists. the president now says he accepts the conclusion that russia interfered in the 2016 presidential election. bloomberg's political reporter is with us from capitol hill with the latest. it all pivots on that one word, would. he said he meant to say

wouldn't. of an extraordinary walk back. the president said he meant to say would instead of wouldn't. he said it's not russia. i will say this. i don't see any reason why it would be. the president is attempting to clarify this more than 24 hours after the remarks were spoken. during that time, he attacked the critics, attacked what he called fake news in the way it was covered. his equivocation yesterday on u.s. intel findings was a broader. it was not just one sentence. he also said putin was "extremely strong and powerful in his denial," and the president praised putin for offering to help the u.s. find the real hackers.

the president didn't even seem convinced by his own walk back. conclusionccept the that meddling took place. it could be other people out there. a lot of people out there. scarlet: get that equivocation in the president's remarks, is this going to be enough to satisfy the tide of critics we heard following yesterday's summit and press conference? we talked to people in the wake of that on bloomberg television who said it could do lasting damage. >> it will likely be enough to satisfy his traditional allies, republicans on capitol hill, avoide they are hoping to a confrontation with him. theyrday went beyond what are comfortable with. i think they will point to it acceptsthe president the intelligence findings. democrats, of course, have a

different view. chuck schumer reacting quickly to president trump's remarks, saying there was -- it was a little too little too late. really if the president believes his remarks, he should have said it to putin's face, and not 24 hours later. scarlet: does the president space care about russia and the basedents -- presidents care about russia and the president's ties to russia? >> traditionally, republican had a hawkish stance on russia. but the president campaigned against international institutions like nato, which has been a bulwark, and he talked about the need for good relations with russia. not an issue where voters punished the president for taking a stand that goes trends ofe historical

his party. >> what is next on russia? the president said the meeting was a good first. that implies there is more to potentially opportunity for more missteps or more misspeaking -- as the president put it. are there any more meetings scheduled between other officials question mark -- officials? -- there isg nothing scheduled at this point. the president said a good relationship would be mutually beneficial to the two countries. he said this meeting in his view advances the cause of peace. it's not really clear how that would work. on capitol hill, mitch mcconnell said he is open to bringing up legislation to dealing with russia and meddling. would by marco rubio mandate harsh new sanctions on russia on very us economic

sectors if the director of national intelligence certifies meddle in future elections. keep in mind, the dni has to certify that, not the president. >> we also have robert mueller's investigation going on in the background and we got an accusation of spying against a russian national, maria putin a utina, that she made connections with the national rifle association as well. about that onlk capitol hill? there has been republican resistance to some of the findings of the mueller investigation. >> and administration in tight meant by the justice -- the administration indictment by the justice department, the allegations are very

interesting. they say she used the nra as a vessel to exert influence over the republican party. this is one of many pieces of a broader russian strategy to use various pieces of the party to advance their agenda. it's a remarkable thing. and again, this has traditionally been the tough on russia, hawkish party. they seem to have softened their posture toward russia. scarlet: i am glad julie brought up the mueller probe and u.s. elections, because rod rosenstein, the man who appointed robert mueller, made a visit to the white house today. what did we learn from that visit? anything discussed? what are the ramifications? it's interesting optics given what happened yesterday in helsinki. >> it was a private visit.

i don't know that it had a connection to what happened in helsinki. i don't know that we have a readout on that. but rosenstein has faced a lot the president's staunchest allies who have shifted from the investigation itself to the investigators. is caught in the middle of that. he wants to uphold his responsibility to carry out the investigation in a fair and but he is facing pressure from his own party to bring it to a close. the investigation has gone on 14 months which, and historical terms, is not that long. it has already yielded five guilty pleas and many indictments. the investigation into bill clinton took about seven years. feelings, have strong

but it has not gone on for too long yet. historical perspective. thank you so much. historical perspective. thank you so much. our trade wars just the latest excuse for companies , or ouro spin reports terrace something the markets should be worried about? tarriffs something the market should be worried about? ♪

scarlet: what did you miss? easy tors are good and

win, at least that's what trump assured people on twitter in march. but many have retaliated with trade barriers. second-quarter earnings season kicking off, an increasing number of companies are signaling to the white house that winning may not be so easy. bloomberg is compiling trade related forecast from around the world. brands like harley davidson and are warning they may have to shift production offshore. but some companies are getting a tariff bump, and they are who you might expect, steel , for example. aswill update this list president trump and the trade

partners try to solve the trade deal. it plays outow during earnings season. the question is what if any economic impact the white house trade agenda could have. our markets being too complacent, or are they too glued to the headlines? our next guests have different takes. peter, let me start with you. you have said the last couple of days, reaching out to your contacts in d.c. and watching the markets carefully, you have said the market needs to start treating trade wars as trade wars, because by all indications, the president is not pulling back. >> we think we will see economic impact and it will hit small and midsized companies first.

they will have more trouble reacting to it. it may take more time to reach data, but it will be real and it will impact the economy. beener companies have responsible for about 70% of job growth in the u.s. and they get hit first. julie: terry, i want to bring you into this. obviously, we have not seen much market reaction to this on the whole. bonds have pretty much moved sideways. there are some signs and signals that there are talks going on. that the euports may be softening some of the auto tariff stances. what do you think are the chances we don't get a worst-case scenario? i think the chances are reasonably good, but i am not being sanguine about that.

i think.s.-china front, you get an inflection point by the end of july, and i say that because that's when the next $16 billion of tariffs are set to go forward. if we don't have a paz before then, an indication that -- paus e before then, an indication the u.s. ared getting ready to renegotiate, my view might change somewhat. at short-term issues. the united states does not do a great job of talking about doing -- why it's doing what it's doing, but you can easily find out publicly why they are doing what they are doing. by and large, they want more cooperation on the metals asues, and they want,

secretary mnuchin said last week on the hill, lower tariffs. there is some evidence, including what you pointed out, lower tariffs on automobiles, that that message is starting to get through in a lot of countries. i think right now we are going to continue to have trade war in the sense that the status quo will be disturbed. for the next few weeks, it's that what we will get is the worst-case scenario. you point out that there is a believe that the president can be checked by the rest of the government, or congress. but everyone is gearing up for reelection and there's not a lot of pushback. >> and we have the supreme court nominations. i think washington is not as focused. market, and to the

i think it's a mistake. i think people are too complacent. today was a sign -- when japan and the eu struck a deal, that there is a real risk that some of this will come back to frankly bite us as people start doing trade deals away from us. we have to be careful. we have to make sure we fit into the world power. that is not the message coming out of d.c. right now. we have bitten off more than we can share with russian summits, north korea, so many things going on. i think things will get far worse by the end of the summer. julie: what does far worse look like? one person said a couple of -- maybe 1/10 of a percentage point of gdp. >> i think small businesses are going to get hurt and it's going

to cause disruption. will start moving pieces around and i don't see how that helps the u.s. economy. i think it is going to have the opposite effect. it will derail a lot of benefits we have seen from the tax cuts, that will hurt to the economy and get passed into the market. scarlet: terry brings up a good point when he says there are all these other issues. how confident are you that the u.s. is negotiating trade deals as trade on its own versus pulling and other issues like .orth korea, or immigration to what extent can trade be negotiated on its own and separated from these other ?horny issues >> it's never the case that issues reside in silos isolated from every other issue.

a good example of that, i think, and i have written, is that as north korea continues to be indirectly linked to the trade , as long as china keeps up the pressure to denuclearize, they have better conditions on trade than they would otherwise. there has been no recent discussion of that in the united states government, but the president linked those issues some time ago. i think theregh, are real focuses on trade. tot i think investors need understand is that the trump administration and congress at-large are united on the goals of wanting a fair deal for intellectual property in china, wanting an end to the metals in a and controlling that

way. the disagreements are on tactics. so far, there has not been a critical mass about wanting to the administration on tactics. i think if the president goes forward and tries to impose auto tariffs, that might be a bridge too far for congress. you saw a little bit of that .ast week in the senate chairman brady was indicating exactly that. to dovetail into my own analysis. whatever autos are, they are not national security related. note: that said, we have seen too many bridges too far when confronting this

administration. gentlemen, thank you. up next, a good earnings report earns united health care little praise. we will tell you why. this is bloomberg. ♪

scarlet: would you miss? united health care is the worst performing health care stock today. our stock reporter joins us now. is this simply a case where expectations were higher than what they were able to deliver? >> yes. -- they were projecting beat what analysts were projecting, but that was not good enough for investors. they missed the highest estimate

we had on the bloomberg and medical costs were higher than anticipated. has beaten the average of analyst and adjusted earnings projections up for every quarter since 2009. that helps bring some perspective. that is why we are seeing a reaction in shares. the key support level has helped to the stock so far. julie: quickly now, what is going to be the main growth driver for the company? have been diversifying and investing in their health care unit. they have been acquiring surgery helped, and that has drive units. to a: all right, we will see about a recovery.

at the broader markets, it is all green. stocks have recovered from earlier weakness. high.sdaq intraday this is bloomberg. ♪

julie:

that didn't really happen. in a few moments, the company is coming out with subscriber growth that trailed estimates. still closing down 5%, but really carrying earlier declines. amazon, which we talked about, again, different story than yesterday. we spending jumping 89% in the first 12 hours of the event. that is according to estimates from feed advisor. on the comments triggering in its shares. the cup in sluggish results. a lot of concern about as here.

disruption because of google and facebook for example. goldman sachs described the sales a slump as the worst in north america since the recession. johnson and johnson had 20% .rowth in the second quarter earnings beat estimates, although it is trimming the forecast for the full year because of currency effects. the stock is closing higher by 3.5%. let's take a look at bonds in the wake of the testimony before congress from jay powell. he will speak before the house tomorrow which tends to be a little more fiber he. we saw the two week verse -- fibery. we saw the two week verse rising on the day. we did not see the same movement in the 10 year yield. there we saw a bouncing around. the tenure -- 10 year ounce around and ended up printing -- bounced around and ended up finishing the day unchanged.

interesting the dichotomy between the two-year and 10 year. scarlet: let's look at the currency world. you have the dollar gaining for the first day. this is the bloomberg dollar index. you can see the move higher there against all of the g10 currencies. his lookl reiterated of the economy in his testimony. the pound was a worse performer against the dollar among the major 16 currencies. under pressure today on signs that theresa may is the two rewriting. -- isjority in deteriorating. question.ty is in commodities, we had to keep an eye on oil because of the steep selloff demands the attention. crude stage a rally today.

overall for the last two days, little change. was one point it 5%. it dipped below the 50 day moving average, but it held from its 100 day moving average. charging -- trucking a similar path. also, metals declined. some are contributing this to the stronger dollar. gold, do we have gold up there? no. old is at a one year low. traders are exiting gold etf's as well. marketre today's minutes. julie: let's bring the ceo and founder of this data company. we saw movement today based on jay powell's testimony. was there anything in there that changes the narrative? he sort of signaled some level of flexibility on the part of the fed. >> we moved into a regime where

the new communication around the fed is tiny adjustments around the trend where we know we are getting the quarterly rate hikes. i don't think there was anything dramatic. easy to basis sports here and there. -- basis points here and there. a lot of investors are looking further ahead. quite a few are talking about the recession 2020. the yield curve is having a slow because of the expectation. is we going to get data that going to be strong enough to really say, that's prediction is too early and could lead to the yield curve steepening. essentially the whole curve shifting higher. that is a debate going on right now. if we have stronger data, the narrative will happily push into the background. julie: as we get the various data points, it seems jay powell is trying to be as transparent as possible. he gave an interview which is fairly rare -- has been fairly

rare for a sitting fed chief. is there too much -- is there a thing of too much transparency? jens: my company had these about the previous chair not thing that specific. he certainly has his own way of communicating and a different day -- different way of transparency. says we don't know, we are looking at the data when we come in. that has not moved the market, situationould be a where his transparency creates volatility. we are meeting the dual mandate right now. we have unemployment where they want, inflation where they want. it's when they have the deviations is when it gets trickier. scarlet: i wonder what extent he wants to make monetary policy boring again. for 70 years we have had it out there because of treading into uncharted territory. not make trying to

headlines day in and day out. you talked about the yield curve and people are looking out to 2020 and predicting a recession. our people coming up with a narrative to explain why the yield curve continues to fight and? flatten.attened -- i met with a number of investors over the last couple of weeks in europe and there it was a big story, position with this recession coming on. but, there is also exiting going on -- back fitting going on. maybe it is because european yields are negative. maybe that is dragging the curve down. there are a lot of external factors affecting the shape. i think it is difficult to say in the past this shape of the curve has predicted a recession. i do not think it works like that. i think the very simple point i want to make is that we have physical -- fiscal stimulus in the pipeline.

spending is going to get more juice in the second half relative to the first half. it is hard to see any data slowing, in addition with stimulus getting more, i just that we haven't talked about the trade discussion. that is the wildcard. i'm very happy with that. at the we missed the trade discussion. julie: let's ask you about china as well. it shows flowing of growth they'r -- there. i want to ask you about the trade effect on china as well as the u.s.. is the trade war going to exacerbate the issue and cede back into demand for u.s. products? jens: we have something very interesting going on in china. we like to pull up the two-year of the united states, but if you look at the two-year in china, they touched 4% last year when the economy was doing well. now does 3%.

with a very dramatic divergent yields and chinese yields. that reflects concern that the economy is slowing, and that trade tensions will not help. even from a political into anive, this feeds unusual dynamic. if the chinese policymakers can say the economy is slowing because some nasty stuff happened because of the u.s., that is a scapegoat mechanism where you can perhaps get away with the economy slowing and not anything for edge. we have to keep an open mind for that. we have had incredible it rolls frankly speaking. it would not be a huge surprise if it is hard to keep it going. maybe that is what is kicking in now. you can see interest rates predicting that. they are also letting the currency move. if they were worried about overstimulating the economy,

they would not let the currency move like they are doing. a lot of signs are pointing the same direction. scarlet: you talk about people wanting to position for a recession in 2020. what do you see for the position in the protracted trade war? currency latin america gained while asian currencies fell. the correlation between asian currencies and the rest of the european currencies it is the lowest in january. our people picking winners or are they trying to avoid losers? jens: i think that is a good observation. we have a pretty unusual situation where we have had significant weakness around china and the currencies having a notable move. had a similar move. there is something going on around north asia having underperformance potentially extending a trade tension

escalation. that is similar to going into this year. it was a story about global wewth doing great, and now have the opposite. if china is slowing, dragging down the rest of asia, that is really going to but a question around global growth. scarlet: maybe feeding into the 2020 recession idea. thank youexante data very much. "what'd you miss? -- this is bloomberg. ♪

>> i'm mark crumpton with first word news. a day after meeting with vladimir putin, president trump is going back on, to made during their joint press conference in helsinki. during a white house meeting

with congressional leaders, the president said he has full faith and support and americans intelligence agencies. >> i have felt very strongly that while russia's actions had thempact on the outcome of election, let me be clear in saying that i accept our intelligence community's conclusion. 2000a is meddling in the 16 election took place. >> the president says he misspoke when he said he does not see why russia would have interfered in the 2016 elections. russia is trying to undermine democracy. those words from paul ryan. he told reporters the u.s. imposed tough sanctions on russia, but it does not have to stop there. >> if the foreign affairs committee think there are other

sanctions we have not placed upon russia, i more than happy to consider those. >> the speaker says he believes the russians did interfere with the 2016 election, and his intention in congress is to " make sure they don't get away with it again." more migrants and refugees have arrived in spain this year than those reaching italy. the migration agency says more than 18,000 people have reached spain so far this year. they have reported a rise in the number of crossings sustained in reese -- greece, while all rivals in italy are down 8% in 2017. mgm resorts international is suing the victims of a las vegas music festival to block any potential compensation plans against it. the owner of the hotel is asking a federal judge to say the company is not liable. one man opened fire at

festivalgoers killing 58 people and wounding about 500 others. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. scarlet: united continental reporting results and adjusted earnings for the second quarter. $3.23. analysts are looking for three of the six. they're just coming in child the highest estimates in our survey. was also revenue higher than the expected $10.72 billion for the quarter. metric that people focused on when it comes to these airlines, was 3% higher than the same time a year ago. they also boosted their forecast for the full year. previously they were anticipating seven to 850.

julie: it strikes me odd that the airline highlights things related to public relations new the top of its release saying they receive the best of the best award from the lgbt chamber of commerce and the national business inclusion consortium for commitments to diversity and inclusion. they also announced a million dollars in grants to benefit organizations and each of its hub communities. interesting they are putting that forward. scarlet: preemptively making the case for what they are doing on the reputation side and diversity side. julie: "what'd you miss?" a u-turn in tech stocks. netflix,ay because of but instead the nasdaq closed at a record high. sessionssect today's and what trends we see in stocks. i want to start with our guest because you were here at this , but we have not had

this discussion on netflix for some of these stocks. it didn't happen. was how much wall street came to its defense. there seems to be a barrage of notes this morning trying to make a bullish case for the stock, for the long term. you only had one downgrade this morning from deutsche bank. you still have about 27 buys on the stock. the consensus seems to be this is a one-time blip, and netflix still has a pretty large competitive advantage over the disney's of the world and this will somehow, down the road, justify the stock price. scarlet: and you make the point for investors and netflix, especially bullish investors, it is kind of a religion. you have to believe the story netflix cells or you don't. in this case, netflix pointed out it exceeds its own forecasts, except when it doesn't. it gets a pass from investors.

>> it does. either you believe in the netflix story which is it will grow into this global entertainment but he missed, or you don't. if you believe it, what is the difference between 130 million subscribers or 131 million subscribers. the issue is, they have already been spending at a rate that assumes they will grow into this 200, 300, 400 millions of trevor level. if it takes them longer to get million of subscriber level. if it takes longer to get there, maybe it's not bad. julie: we will see how long it will last. , we broader level, romaine: have seen broader hits to momentum etf's in particular. romaine: last week, looking at once of the may momentum ones, they had three weekly outflows.

if you look at the main factor index that's bloomberg tracks, ume pure equity moment factor, it's rebounded a little heading into earnings this week, but they were still a lot of signs that folks are jumping off of the ship. i should point out with netflix, when you talk about ownership and believe, a lot of hedge funds have jumped off ship as well. you had about 10% of the stock held by hedge funds, that dropped to 7% as of a week ago. are seeing other institutional investors and individual investors rotating out. some of that might of had to do with the stock doubling, but he gets to the issue of how many folks are in the stock because they believe in the company. and also, how many are because of their -- are there because of the momentum. scarlet: momentum drives and reinforces it. julie: shira, if you

talked her people that look at the stock, how do you assess that? shira: if you are investing in netflix, it is not a value play. you're not trading at something that trades in a hundred times the forward revenue because you believe in the cash flow. you have to make a bet on the base. do you think it will be this global entertainment behemoth or not? there are people that jump in and out all the time because it is going up. with the stoxx going up, folks get off the train. scarlet: yeah nevermind the story driving its. both of you, thank you very much. bowman has been announced as the successor for goldman sachs. this is bloomberg. ♪

♪

scarlet: goldman sachs has named david solomon evidence new ceo -- as its new ceo. he begins on october 1 grade the long anticipated announcement comes as second quarter results for the firmware lower than expected. joining us with more is stephen kindle of bloomberg news. there is the sense that this was accelerated a little here. the reason i point this out is because goldman sachs was celebrating its 150th anniversary next year and people were thinking on it. they were letting him retire when he was ready to. yes, they had a little bit of a disappointing quarter in terms of trading revenue, but i think

there is anticipation that things will be volatile this year. they thinkt quarter, trading will be strong this year, and that goes against the narrative. the narrative they want is that goldman is making this transition. thisof them signed on to and are joining the interviewer. they are making this transition. if trading remains strong throughout the year, that hurts the storyline. i think they want to get in front of that, make the transition to the investment banker, away from the traitor. this is a simplification just solomon came up to the investment bank. it does not necessarily mean that is what each one of those wants to do. but, that is the narrative for investors. julie: it is a convenient one for them. because yes, convenient it is a volatile year, but also because it is where investors are going. have been giving higher multiples to bank of america.

firms have said we want to be less risky. they have been getting the premium, goldman sachs was liking. whether they want to be less risky or not, let you like -- not, they like it attention. scarlet: goldman made money on a trading business and now that you have an investment banker leading the firm, does that mean goldman will shrink? shrink the trading business. or, will they let it continue as is and growing the other parts of the business? they have plans laid out to grow the other part, do more corporate lending which hopefully gets more m&a business and more consumer lending business. there's only so much they can do. if they wanted to pull back on trading, it is still the largest of the revenue this quarter, the largest part of the business. they would have to be a dramatically smaller firm, which

they do not want to do if they pull back from trading. there is a limit to the amount of move they can make. this move is a little bit of a storyline they want to keep going. julie: if that is the storyline they want to keep going, what do you think is the david solomon adjust tow does that the previous one. stephen: it will be more of a lending business. it is still going to be a risk-taking business. one of the questions you have is whether they will be a little behind, maybe they are a little behind the eight ball. they waited all this time for trading to come back. blankfein held onto the business. now, they make the switch. they are going to do more consumer lending when maybe the consumer risk is rising. scarlet: stephen gandel, think you so much for your comments there. we're going to talk about cigna

and the new ceo. after the break. this is bloomberg. ♪ two, down and back up.

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>> president trump said he misspoke in helsinki yesterday when he said why he does not see why russia interfered in the 20 u.s. presidential election. during a meeting with congressional leaders today at the white house, president told reporters he said he meant he does not see why russia would not be responsible. he also said he accepts the american intelligence community's conclusion that russia did interfere in the 2016 , but he denies that his --

it was the first boat testing how congress will react to the president's remarks. the senate majority said by america's intelligence agency. >> i trust our intelligence community. i trust their assessment that there was russian meddling in the election. i also trust the investigation so far, which i shown no collusion with the trump campaign. and, russian intelligence activity leading to the election. thehuck schumer said president's actions leave many more americans to suspect there may have been collusion. he added "what else would explain president trump's actions and protestations in a foreign company." robert mueller has asked the judge to give immunity to five people who may testify agnes weeks -- testify at next week's trial. mueller did not identify the

five witnesses. he said the five are likely to invoke the right against self-incrimination if they do not receive immunity. he didn't mention president trump i name, but the former president barack obama took a mad strongmen politics. he spoke at a ceremony in south africa marking the 100th anniversary of nelson mandela's birth. he opened his remarks by calling today's times strange and uncertain. adding that each day's new cycle is bringing more disturbing headlines. >> we see the other loss of shame among political leaders where they are caught in a lie, and they just double down and lies more. >> the former president said we see much of the world " threatening to return to a more dangerous, more brutal way of doing business."

global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. scarlet: we want to bring you breaking news. julie: we want to bring you breaking news. probe may leave to tariffs on uranium. this is according to three people familiar with the matter talking to bloomberg. we do not have much more detail on that. this adds to the suite of tariffs that have already been introduced to the u.s. on various other parties. we will have more on this story when we -- we will bring you more on the story when we have it. i also want to give you a recap on what happened in today's market. we saw an interesting turnaround. stocks were very little changed. , afterell's testimony it, stocks took a dive.

scarlet: "what'd you miss?" cigna is working on regaining its luster. its plan is tapping into e-commerce to turn the corner in the slump. it has to keep up with multi-traffic trends as well as disruption in the jewelry industry. joining us now is the ceo and, jenna, it is almost one year in the job as ceo. when of your priorities it's changing the culture there. u.s. spent 25 years at proctor around ae turning number of brands. your job is to turn around the company's corporate culture. what are you doing to fix that? jenna: we launched our pastor brilliance transformation plan in march after i had been on the job for about six months. i spent my first six months studying the business, speaking with stakeholders inside and

outside of our company. we have three key tenants in that plan. customer first, which is about bringing innovative new merchandise and shopping experiences to customers. the second is on the channel, connecting seamlessly e-commerce and the in-store experience. the third is changing the culture to be more agile and reinforce diversity and inclusion as a core tenet of our strategy. julie: i'm curious on the last one. a internal corporate culture. the previous ceo stepped down because of health reasons, but also following the heels of gender discrimination cases. how do you go about turning that around, especially now since there is a lot of attention being paid to that? what are the concrete steps you take in that situation? jenna: it is important to me. diversity has been a homework of my career. i do not see it as an hr policy or a nice to have. it is a fundamental business strategy.

diverse teams think better. more diversenting customers as well. we have 50% of women on our order of directors. we are thrilled to be in that group. i have more than 50% women in my see sweet. 75% women in our company. 70% of our store managers, we are by and large a women powered, women led company. scarlet: let's talk about the customer side. what specific customer demographic does cigna deed of -- need a do a better job of reaching out to. gina: millennial consumers are important. and are the most important interested in the category, particularly young men. they're getting married at the same rate as their parents did. they are commemorating an

engagement with diamonds at a higher rate than they did then gen x. they're just getting married later. they want a very connected journey. alstom and start online as their shopping journey. while, more than 90% and up in the story. making sure we have a brand equity and education to life across a variety of mediums is important. julie: even within millennials, would be women who aren't gets ready to get married but can afford to buy them selves gifts and there's this trend called self gifting. scarlet: find themselves jewelry. or would it be latinos who you could reach out to and grow that market? gina: both are very important audiences. women self purchasing is one of the fastest-growing parts of our category. that is women of all ages. pre-marriage and even to celebrate a great promotion or milestone birthday. more and more women are buying jewelry as gifts for of friend.

-- for a friend. also, the hispanic opportunity is tremendous. over $1 trillion of buying power in that community. more interested in jewelry from otherr age typically then multicultural groups. scarlet: how old would you say? gina: a lot of young girls getting years produced early on, first communion is definitely a big moment. the senior at age of 15 -- celebration at the age of 15 is of big moment. they talk about there are too many stores in america. what does it look like for you? signet has a built itself by being a consolidator of different brands. we see it as a competitive advantage, but we continue to optimize. we have announced we will close over 200 stores this year. that is out of 3600 total. our stores are very profitable.

we have them unreasonably short and in a variety of great locations. we have a large number of off mall locations. you might be surprised to know that over a third of our case stores are in off mall locations now. this analytical approach and optimization is something we have been doing for a number of years. julie: do those tend to perform better? gina: on average, the aggregate is performing better for us. we have a number of great mall stores as well. scarlet: diamond is considered a highly considered purchase. people take months to figure it out. you have this machine made diamond that can reduce the price of the stone, does that change the way the customer thinks about buying diamonds and becomes a more impulsive purchase than one that requires a lot of planning and budgeting? gina: i think you got it exactly right. it depends on the occasion. we are finding from customers

that for a bridal purchase or a special birthday, graduation, a real diamond with its authenticity is what customers are looking for. potential he, there could be a growing trend to synthetic diamonds for other occasions, maybe fashion purchases. when a diamond might seem to be too much. but, we have not seen a lot of uptake in that yet. , thank youna drosos so much for your time. ceo of signet jewelers. despite successful fundraising to fix the nation's roads, bridges, and airports, little has been done. more on why these billions of dollars are not funding public projects yet. "what'd you miss? -- yet. this is bloomberg. ♪

scarlet: we have news from gene munster, the noted analyst. he is writing an open letter to the ceo and founder of tesla. tois calling for you on musk apologize and says perhaps the ceo should take a break from twitter. he said elon musk is shaking anda investors confidence tea perhaps needs to die litvack and not gone social media as much. breaking news from texas instruments as well, the ceo resigning due to violations of the company's code of conduct. this is related to personal behavior not consistent with our ethics and core values but not related to company strategy, operations, or recording, in a statement from them. we've seen a wave of them of these actions on corporate

america. chairman will resume the roles of president and ceo on an ongoing indefinite basis. his appointment is not temporary in the board is not searching for a replacement. rich templeton will take back over at texas instruments. sharearned a dollar 40 a -- $1.40 a share. dei is losing its ceo here related to conduct violation. rich templeton is stepping back in as ceo of the company. we will continue to bring you more developments on this pretty big news as the shares their fall by more than 1%. scarlet: "what'd you miss?" a major disconnect on the money raised and infrastructure

adjustments. ande's a much needed update perhaps an entire overhaul, but the money is not finding its way to public projects. joining us now is our infrastructure reporter, julian. the phrase public partnerships -- public-private partnerships is something we're hearing a lot about. funds don't necessarily have a place to put that money. >> billions of dollars have been thrown into these infrastructure funds. blackstone recently reported that it raised 5 billion for its first infrastructure fund and is working toward the $40 billion fund. they want to spend a something like 70% of the money in the u.s. and a lot of other funds like a european zone in the market now with its first european fund. as these guys put money into projects, the projects aren't really there. julie: why aren't they?

there is a lot of talk for infrastructure projects. scarlet: the federal administration has talked about the infrastructure. where are the projects? gillian: the plan was not picked up by congress and was not looked at until after the midterm now. what all of these funds are turning their attention to is cell towers, existing energy pipelines, and today we reported one fund is putting a plant in the market. the funds have been raised to tackle these public, private partnerships will tackle these privately owned deals. scarlet: what is the flaw with public-private partnerships? it sounds good in concept, but in restitution it seems never to work out. this is not limited to what we see now. this was the case during the obama administration as well. gillian: there are a lot of government layers that need approval. the timeline takes too long.

the funds have a limited time lend whether it is three to five years, and they waste two years putting energy into a project. westchester was going after that one and it recently fell apart. putting a lot of effort and money into the deals don't have a lot happening, and they are spending money on deals that can happen. julie: since these partnerships are slow, are there just write it partnerships, and is there even a that in the infrastructure projects? gillian: there is a mass portfolio of assets. shipe's one public partner that has been sold recently. if you look at other things already privately held, things like puget energy, there are so many assets in these private

funds that have been looking for new homes and often in other funds. this is a story published in bloomberg business, we talked about the international airport and how there are these lofty goals. none of it came to fruition. walker's through what happened and what is next for the airport? gillian: that is one still on the runway. that has been in talks for two done and they have something so this is a real .ublic private partnership better for them to get the private capital raised. julie: thank you so much. i want to recap the news we got out of texas instruments. the ceo is resigning on conduct violations. i seem to remember there was another chipmaker ceo stepping

down recently. he also stepped down related to conduct, a consensual relationship with an employee. we do not have more details on crutcher's misconduct, we just know he is stepping down. rich templeton is stepping back in. rich templeton has spent his career at texas instruments. the reins over to brian kutcher -- crutcher. permanentking it on a basis. they are not looking for another ceo. scarlet: he is resuming presidency on an ongoing indefinite basis as chairman. -- as well as chairman. they chose someone least disruptive to the business looking for continuity over everything else. in contrast to what has been going on in intel where they are looking for a replacement. julie: we will keep you posted on this story. texas instruments shares falling

on these headlines of it. this is bloomberg. ♪

julie: the texas instruments ceo has resigned due to code of conduct violations. this news coming out in the past few moments. rich templeton, the longtime ceo will reassume his duties. anon inined by bloomberg technologies. what kind of disruption will this cause? if templeton is stepping back in, maybe that will minimize this? knows thempleton business inside and out. his retirement is going to be a

tad bit delayed. to compare and contrast this to the intel situation. in this case, you have the having the incidence being comparable, and you have a longtime familiarity of the ceo -- of the company coming back with the ceo. --redator self on consistent they prided themselves on consistent implementation. their strong executors and very disciplined. rich templeton coming back changes very little. wheree that to intel brian krzanich had made a lot of moves, changed leadership, and prompted a long time insiders to leave the company, that is a very different strategy. to be far is likely

more significant than any potential impact. scarlet: he got rid of any successors or competition to him and they are looking for scratch that's looking from scratch. when it comes to texas instruments, we do not know what code of conduct he broke year. that is not clear right now. way in what silicon views as except the ball behavior and not. anand: the behavior i can't comment with respect to it, we don't know it, but if behavior like this is happening in the valley, boards are more sensitive to it and can extend to the decisiveness. interest oft in the

all of the stakeholders involved. julie: as a scarlet and i were discussing, if we learn more excuse me,conduct, i'm dropping year, if we learn more details of these allegations and the violation of the code of conduct and when it occurred, it can have inflammations -- implications for templeton himself. the company also came out with numbers which i want to mention as well. they reported earnings share of a dollar 40 -- $1.40. they also trying to reassure investors that there is still -- that they are still performing. they were not scheduled to come out with earnings until july 24 read we previewed the earnings to the company and this is from an earnings perspective. nothing will change here. this is a high quality executor in the analog space specifically.

anand: they are focused on autos, and industrials. the market share is high. they have been gaining share and they are very good in that to discipline capital returns. in that regard, i don't think there's any change at all in the execution of the company. a bloombergnd intelligence, thank you for joining us. coming up, what you need to know for tomorrow's training day. this is bloomberg. ♪

>> shares of texas instruments down. is as the pending ceo steps down because of code of conduct violations. rich templeton retakes the reins as the chipmaker. >> morgan stanley report second quarter numbers before the bell. >> and don't miss, the house financial services committee tomorrow. bloomberg technology is next. >> have a great evening. this is bloomberg. ♪

emily: i am emily chang in san francisco. us is "bloomberg technology." in the next hour, hour interview with president trump's 2020 campaign manager, also known as the secret weapon who ran 5.9 million facebook ads for trump and 2016. his strategy for reelection amid concerns about the russian meddling. amazon lost his footing after a rough start -- fi