nomination for the inspector general post has stalled in the senate, made the announcement to employees at his office. the ap sides a congressional aide who was not able to discuss the matter publicly. secretary of state mike pompeo the south korean mission in new york today. he was joined by nikki haley. they are in new york to brief the un security council on president trump's summit with kim jong-un and the dialogue with pyongyang. it could take several days to raise a tourist boat that sank in southern missouri last night killing 17 people. the duck boat is 80 feet below

the surface of the lake. ntsb is save -- investigating. range from a one years old to 70 years old. a kitchen knife attack passengers on a crowded city bus. 10 people were injured. it happened near hamburg. the assailants set fire to a backpack and then began to stab passengers. the attacker was overpowered outside of the vehicle then quickly arrested by police. no word on a motive. global news 24 hours a day on air and on tictoc. i'm mark crumpton. this is bloomberg.

julie: live from bloomberg world headquarters, i'm julie hyman. lisa: i'm lisa abramowicz. joe: i'm joe weisenthal. julie: stocks bouncing around on the narrow range on the day. joe: what'd you miss? from trade war to currency war, president trump taking to twitter to accused china of manipulating their currency. america's trade partners did not stop the president from the fed. he double down on his disagreement with the fed rate hikes. for ge.blems they are facing hurdles as they trend -- trim the cash flow forecast. lisa: president trump is taking tariffs to the next level saying he is ready to go with levies on a staggering $500 billion worth

of chinese imports. public and senators are flexing their muscles urging the president to reconsider. he invents, want to start with you, we were talking about how there is muscle flexing on the part of republicans. what are they actually doing to prevent president trump from going all the way? havethink what republicans done with they are free traders. trump policies have taken them aback. some have tried to see how is this going to play out? could this play out well for us in the midterms? trump is taking on china. people have been upset about how china has treated the u.s.. maybe we should see how this plays out. today we saw the house has

agreed that they will not put more pressure on trump to roll back the cte restrictions. they created a deal to ensure cte --zte can go back in business. that is going to be included in the must pass defense policy bill. we see the willingness to stomach the cost of not in favor ofe cte tighter restrictions on foreign investment reviews. joe: the tariff escalation has been a story for a wild. the new twist today is explicit calling out of currency manipulation on the part of the chinese and on the part of europe. do.e central banks

he is not wrong about this. but is it -- is there reason why other central banks can guide their currency more but we are not supposed to talk about that? >> it is always policy not to comment on the currency from the president or congress, especially the fed. the fed has dipped their telling that china has a controlled currency. they can manipulate their currency when under pressure. the easiest thing they can do to alleviate pressure is move the currency up and down. the latest move on china wasn't a manipulation of the currency. it was a quantitative easing. they have seen acceleration. they asked the banks to step up lending. ben bernanke was accused of this. about when sarah talked what congress is doing or not doing on the trade front, what

is the outcome of all of this? if the president is quite a talk about the currency is there any toquered action either censure these other entities he says that are manipulating or to do something to help out the u.s.? >> i think that is going to be the interesting part. stocks are little changed. there wasn't a huge impact on the currency itself. it was twitter posts. they do not seem to be a shift in policy. the treasury secretary is in argentina at the g7 summit. the currency and that communiqée could shift the paradigms. in that communiqué if there is language that is different then agreeing to refrain from devaluing their currency for competitive advantage.

likewe see a policy shift a lot of these trade issues, you have to separate the bluster from what is happening. that is what investors will be looking for. thing sir was talking about is how significant or not significant the move was in the dollar. it was significant. you see that it declined secure finley -- significantly against rival currencies in the wake of president trump's tweet. what is the word on the street? >> what this wise, the dollar had been trending higher, caught the market by surprise. a long dollar trade going into the weekend. it accelerated. one of the things you have to saying mind, trump is the dollar is too high, the fed should start raising their stop raising interest rates. his policies on tariffs are

creating inflation which is what the fed is mandated to fight against. inflation they have to raise rates. joe: how frustrated are the economic advisers about the incoherence of the message, and the fact that many of them probably have personal views about how economics should work that could not be more different? like larry kudlow has been dollar nowut king working for president trump. set the scene the challenges people in terms or bit have. -- or bit have. what the treasury secretary is there with all his g20 counterparts and he's going to have to explain, we still stand behind our strong policy.

the long tradition of a strong dollar. i don't know if you recall but in january mnuchin made remarks that said a weaker dollar is good for u.s. exports and not the worst thing ever and he got into hot water for that. he's probably when a find himself in the same position of trying to explain what trump might have meant and bolster some messaging to his g20 underparts that is going to be hard to rectify. the other thing, i'm just imagining this -- the fed officials. maybe jerome powell himself. this is going to make messaging strategy -- they're going to have to think about how the explain rate increases and how they can shift the perception they are under the political thumb of trump. he has thumbed his nose at them. they are going to have to double down and proved time and time again their independence.

julie: this comes off of a tense nato meeting. we will see what comes out of all of it. sarahto bloomberg news' mcgregor and vince. blamessident trump rising rates for holding america back. this is bloomberg. ♪

julie: the fed finds itself on president trump's list of factors undermining america's competitive edge. he wrote the united states should not be penalized because we are doing so well. tightening now hurts all that we have done.

the u.s. should be allowed to recapture what was lost due to bad trade deals. duee coming -- debt coming and we are raising rates, really? is here with us now from washington. i'm sure he does this in his office. he reads the tweets been writes his notes as he is inspired. isn't the economy supposed to strengthen, jobs are supposed to grow, inflation is supposed to heat up? >> of course. youhe fed were in different could see the markets freak out. it is not a fed story, it is a market story. if the fed wants to erode market confidence start messing with the federal reserve. joe: walk us through that.

how is it going to happen that tweets from president trump question have a month -- an effect on anything could cause damage? >> he gets to a point fed governors. he could change the composition of the fed. he could continue to job own against the fed. you have in the house republicans who would love to curb the fed's independence. nothing gives -- gets people losingxious than independence. lisa: that they would be able to audit them? what are you talking about? >> several bills. one would diminish the authority of the new york city fed president. another bill would allow an extensive audits. it is not an audit of the fed's .ooks it is an audit of the fed policies. several other policies with

dilute the power of the fed. with arthur burns and richard nixon, even alan greenspan, you saw pressure on these fed chairman. we saw economic performance not looking good. joe: this is just my opinion. chairman powell does not strike me as hawkish. he seems to have some skepticism of the usefulness of the idea of the unemployment as we know it. be what president trump backfires that it makes people on the fomc more inclined to assert their independence through policymaking? >> absolutely. that is a great point. two scenarios. the fed says we are independent and we are going to raise rates whether we like it or not. the other would be if the fed starts to slow down. tariff war's get worse, the fed

gets reluctant to raise rates aggressively. the fed is would say slowing down because it is being pressured by the white house. either way you have to say that the fed's motives may be questioned more because trump has injected himself in this debate. joe: you can't unring a bell. julie: i want to come back to the audit the fed idea. this is something rand paul has been pushing for years was seen as a fringe idea. is there really a risk it is going to gain more mainstream support from republicans? what is the probability you will see any curbs put on the fed independence? >> it could move in the house. that removes a big advocate of auditing the fed. the senate would be the firewall. i don't see enough support in

the senate to do anything dramatic to the fed but it is out there. in addition to criticism from the right from conservatives, if the fed starts raising rates i guarantee you elizabeth worn and bernie sanders, and paul krugman , saying the fed is doing too much tightening. joe: i want to talk about the partisan dimension. during the obama years when bernanke you are yelling would go on the hill, the republicans were tough on the performance of the fed chair at the time. powell, youy, with still had that dynamic this week. democrats were not particularly harsh. rude lines of questioning from republicans. is this a permanently democratic institution? when republicans just don't like the fed? >> they don't like the fed. i agree with that.

from all i have heard powell has lobbied members of congress. he has good relations with people in both parties. what an irony. donald trump basically fires janet yellen, the most dovish fed chair in our lifetime. that is what he wants. he fired her. julie: i'm so glad great got that point. lisa: there are interesting aspects. the most interesting, markets just don't seem to be moving just yet. .hank you so much, greg we always appreciate your insights. coming up, a warning shot at bank stock. -- advising investors to ditch the big tech names. this is bloomberg. ♪

julie: too much love for tech.

warning toout a investors to exit facebook, apple, amazon, netflix and google. the so-called faang. is there something there this time? some charts with us ahead of a busy earnings week. earnings, there doesn't seem to be a lot of concern. >> one thing i would like to pull up is these threads between the implied volatility versus calls. we have is the top panel. alphabet.ebook, those are subdued slightly. the skew on qqq q is elevated.

it is like strategists are saying there might be some danger in tech but certainly not the stocks i know and love. lisa: nobody wants to admit there is actually danger. you can see people bidding up the stocks. this chart you brought is telling. it shows why people ought to be more concerned. explain what we are looking at. >> this is the heart of the case. and thethe forward spread at the bottom, the highest since 2008. >> the valuation gap between the big tech companies and the rest of the u.s. equities is the biggest since 2008? >> there are mitigating factors. these groups faster. they keep proving they grow faster. point, teche the

doesn't really have valuation see the s&pe as you 500 valuation support. , onhe event trade clears the stocks that have had this trade overhang for some time. joe: there is anxiety creeping in. >> it is either the perfect time or the most imperfect time to get bearish on the following -- ng. faa longest weekly losing streak since the start of 2016 when everybody was china hard landing, the possibility of cutting rates. great market angst. we have seen the pullback in the bleeding relative to the qqq q.

they resume their uptrend or we see this correction where fa ang leads the way down. lisa: thank you so much. would you miss? lower,of fitbit sharply on pace for their worst day since may. abigail doolittle is here to tell us why. abigail, what is wrong with wearable exercise devise trackers? abigail: it goes back to president trump and his comments on trade. there was a report the fitbit unders, they could come 10% tariffs. that is the fear. this is a nifty product that could be terror left. , the revenueoblem picture, for revenues coming in

the not right direction, $2.2 billion, there is the year-over-year growth. -- seems relatively strong. julie: right after apple incidentally. apple is on the july 31. abigail: apple smart watch was on this list of possible tariffs as well. those shares lower 7/10 of 1%. parallel. interesting a smaller part of apple. joe: you mentioned it is not about and the mental so much as risk. it is not like people are particularly excited about fitbit. it is down 90%. >> i have a chart to show to illustrate your point.

'ed in 2015.po joe: there was no way you would see that rally. >> it makes perfect sense, to buy an entire devise to track your movements when every smart devices aiming to do the same thing while playing your music and doing your dishes. it makes you wonder. istheir new smart watch about $200. the older one, $50. the average is moving in the right direction. , --are that to the iphone what's the margins are not strong. quite shares are heavily shorted. which is saying something when you look at that. julie: indeed it is. market closes next.

, we remain in this tight range. an earnings driven story. a lot of news on individual basis. this is bloomberg. ♪

>> what you miss? >> we see stocks in a tight range and a lot of biggest earnings movers. not even after president trump criticize china and the eu for manipulating currency. julie: i'm julie hyman. joe: and i'm joe weisenthal. if you are live on twitter, welcome to the closing bell coverage. every weekday from four to 5 p.m. eastern -- four clock to 5:00 p.m. eastern. julie: we traded in quite a tight range throughout the day. this was the asset class that was the most immune to the various comments from the president. whether it was criticism of the fed raising rates or slowing the idea of potential he considering tariffs on as much as $500 billion of goods. or currency manipulation on china and the eu. stocks remain largely immune to

that topic this morning. week, theyn the finished with very little change. the s&p 500 was up 200 of a hundredths of a percent. 40% of the s&p is reporting next week, but today, we saw one company down 7%, but they beat estimates earnings and said they andd buy a provider analytic software for $2.6 billion. that will not be done until 2020 or 2021, that is perhaps why the stock got punished read honeywell saw growth in oil services and demand for business jets that were rising. not the case with general electric. trying to change the script when it comes to ge. the ceo is doing a lot of

messengers -- vested teachers -- vestitures. we will talk more about this with brooke sutherland and the skechers is down 21% when all was said and done. we broke the numbers on "what'd you miss?" yesterday and saw a big miss when it came's to earnings and a lot of downgrades ensued. the let's take a look at government bond market. that is really where the action is. to year yield is unchanged on the day which is interesting because all of the trump comments about policy and what the fed is doing and all of that. in theory, you would expect that it would have any impact on the fed, that it would be on the short end. traders do not think this is going to have a meaningful impact one way or another. we did see a very significant jump on the long and. major steepening today to the 10 year yield.

there is the 210 spread today and you see it jumping in the morning right around the time we got those trump's tweets. it is interesting he does not want high rates. >> but he got them. that is the biggest move for the treasury yield. let's take a look at currencies. another area affected by the twitter excitement this morning. you can see the dollar weakening sharply after president trump tweeted that it is either currency manipulation going on in china and the eu and it is not there and the dollar is getting stronger and going to hamper growth. you can see there has been bleed through. meanwhile, if you take a look at what is going on in china, the u.n. is also driving the actions on the flip side of this story. it is weakening against the dollar. actionsis also driving

on the put side of the story. they are stabilizing it with rumors that they were not trying to antagonize the president but rather coming in to support. it was a tumultuous ride that will pick up next week with more talk on currency wars. , a: finally, on commodities bit of a reversal today. he saw a lot of selling in commodities. today we got to green. oil gaining 1.5 percent, gold up a little bit, though not to very much. --per and palladium, aluminum, all of them are up. gettingintervention is a snapback in some of the industrial metals. green across the board. those are today's market minutes. >> for more on today's market action, let's bring in kim in

crise.-- cameron are we making too much of president's ability to influence the dollar and the treasury markets with some of his tweets or are the real -- are there real policy implications? >> there's a lot to unpack. my first reaction, and i think it is the right one, is a somewhat cynical view. talking about trump's views on the dollar and his views on the fed, no one is talking about his performance in helsinki. it is a classic misdirection. if you do not like the narrative, do something outrageous to change it. we see it with someone like elon musk and the trump -- i tip my hat to him. he is a master at this sort of strategy in social media. social media makes it easy for him to do that is well. the equity market price action, yes there are companies specific issues but for better or for

worse, it has just been trump being trump. that works up to a point. line is sort of a white you're not supposed across when you're the president of the united states. because it turns you into the president of turkey, to talk directly about monetary policy and what the central bank should do. it's easy to say trump is a real estate guy and those guys don't like high interest rates. fine. to point to jay powell and the fed and say a let him do his job. it is a case of -- i tend to think this was a misdirection. if this is the start of a new campaign, you have to be worried. it is in some ways similar to the situation we had in january where you remember stocks ripped in january. great earnings, everyone was happy, and the trump administration starts talking down dollar. edition interview, if you will

a big bearou saw steepening in the curve, which is what we have today. a week or two later, you have equities going flat. julie: so should we be worried or should we not be worried? >> we need more evidence. that is the short answer. feelssk is that mr. trump like he can push things until the market calls his bluff. that may be the case. i certainly think that because of this and also because of valuation concerns that equities had a great run. i think there is certainly something to be said about taking trumps off of the table -- caps off of the table. joe: let's talk about today's action. have the stocks subdued, the steepening, the dollar selloff, put the pieces together and explain what the common thread

is. >> dollar and the curve steepening is the function of the trump tweets. aboutrness, it in tweet the stock market. expects thereally fed to change its path anytime soon. >> is anyone around? it's summertime. volatility is going sideways. aret's safe to say we looking at another two years of the president trying to tell the fed what to do. are you supposed to build up your risk premium? >> hold on a second. a lot of people were saying the common tone on the street was that if anything, jerome powell will take a more hawkish stance to take his independence rather than go the other way. this could actually push him to move faster. the you subscribe to that? >> i think powell and the fed will try to do the right thing. --t will be >> ye of great faith. >> that will be to manage the

economy in the best way they can. let's not forget mr. powell have i -- has a long history of isvate equity, banks, and he no doubt coming under political pressure when he was a younger individual. suspecting -- i suspect he knows how to deal with this. >> there's also the idea that the president was asked about this in the interview, there have and fist pounding things throughout his policy. even when he was a candidate he stuck with trade. the fed has not necessarily been running a scene. -- has been one of the central tenets. cameron: trump the president loves low interest rates even though the the candidate hated interest rates. anything expecting exciting out of the tech earnings next week? cameron: that is sort of out of my wheelhouse.

julie: what about effect on the market? if they are good, the stock market will go up, if they are not, it will go bad. pretend to have an expertise i do not have. julie: thank you cameron crise, for being honest read coming up, to conglomerates -- honest. conglomerates, honeywell is and others- falling are topping estimates. we will have interpretation next. this is bloomberg. ♪

>> i'm mark renton with first word news. president trump's attorney

michael cohen secretly recorded a conversation with mr. trump during which they spoke about payments to a former playboy model. that is according to multiple media reports. had aman claimed she nearly year-long affair with mr. trump beginning in 2006 shortly after mr. trump'son was born. -- trumps son was born. the fbi seized the recording during a rain on cohen's office. mr. trump has denied the woman's claims that the two had an affair. the white house says it is not considering supporting a call by russian prater to -- russian president vladimir putin for a referendum in ukraine. theia's ambassador revealed two leaders discussed the possibility of a referendum in ukraine during their helsinki summit. the white house announcement came as plans for some of this fall between president trump and president putin in washington

focused on national security. in south korea, more prison time for former president -- the former president. another eight years in prison funds.sing state he is serving a 24 year term for her role in office. mostations that one of the respected u.s. cardinals andatedly abused boys adults sexually raised questions about who in the catholic church new and what pope francis will do about it. the positives considering the accusations including a new case reported today. allegedly of evolving -- involving an 11-year-old boy. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg.

julie: "what'd you miss?" a tale of two earnings. honeywell looking like the industrial darling of the year posting robust growth numbers across all of this businesses. that is expected to continue next quarter. that said dent -- that sent the stock rising. flannery still has work on his company. brooke sutherland is here to discuss. maybe it is not fair to compare them but it is inevitable when both are out with earnings. you see a much healthier company and one that is still just not there with ge. >> i think it is totally fair to compare them. the big thing for ge is they are performing poorly at a time were industrial companies are doing well. we see a very strong industrial backdrop of the companies reported earnings so far. they have all been good. ge is having all of these challenges. >> they beat their earnings

expectations and people are treating them like they are doing absolutely terribly. can they not do anything right against shareholders? >> i think the headline number does not mean anything. there are so many adjustments to that so after their november 13 presentation, they said we would be more transparent and earnings. what they rolled out is this convoluted -- is just as convoluted as it was before. is theple care about cash flow. on that front, they cut their guidance. and if we compare ge honeywell, are there specific lines in which they are in the same business and honeywell is doing well and ge is doing bad? >> both aviation businesses are doing well. onge, it is dependent aviation being perfect in order to meet its earnings guidance. they don't have a narrative do sell to investors because of the rest of the business after it sells on health care and in baker hughes, it has been a

struggling power business that will happen for the next couple of years. energy renewable business that is growing but they are not in the right part because they sell wind power and not solar power. and honeywell's case, it has other growth input. joe: so the portfolio of ge is not where investors are. and there are industrial companies with good portfolios in the space is the story? >> exactly. isie: in the ge portfolio not changing that much more, right? they made the major changes and now they're kind of stuck with that stuff. >> they have said it's is what they are doing and that is the end of it. but, they are taking steps -- some investors are speculating that we could see more down the road. do you need aviation to be paired with power? ge is already very strong in terms of synergy between those two businesses.

a gas turbine at the end of the day is an engine. there are overlaps in terms of supply chain, basic infrastructure to support given sort given sort of a different market dynamic, how well investors are willing to give -- willing to support those being packaged together, we will see. >> i'm struggling to understand what this means for its $114 billion of debt. this is a debt behemoth. it has been used to pretty high investment-grade rating. and what point, as it continues to reshuffle the composition of its portfolio, does it get downgraded and have to be higher bond yields and all of a sudden gets stuck in this vicious cycle? a lot of people are scratching their heads as to why the rating agencies have been so patient on this. it is not make a lot of sense. if you look at the ge

fundamentals, they are not remotely close to where the adcs -- without rating agencies say where they are. that it has an even now ratio of 2.5. that is not a growth even now ratio. look at growth, their numbers are more in the three range. there is a clear disconnect with what ge says and what moody says a are looking for. i don't have a great explanation on why we are not reaching the divide. joe: on honeywell, the stock is bound nicely. industrials and honeywell included have sold off on concerns to trade and slowdown in the global economy, china, all of that stuff. in earnings, do they shed any light into any of the macro questions of industrials? brooke: they were both asked about it and they have similar responses. ge gave an estimate for the impact for the tariffs announced so far and said it would grow

300 million or 400 million impact. half of that is mitigated by that ways of mitigating and honeywell did not give specifics, but they said it is something they are hyperaware of. they meet about it weekly, one of the most important things they discuss and both companies are looking at alternative sourcing aspects. >> that was perfect. it really helped me understand the movement. sutherland, bloomberg opinion columnist, thank you for being with us. but so isy is strong foodstamp use. we have more on this disparity. next. this is bloomberg. ♪

julie: "what'd you miss?" data point,t enrollment in the u.s. foodstamp program fell to nearly 40 million. when you put that into context, as a share of the population, it is back to where it was as the economy emerged from the last recession. from washington with more details is read picker. thank you so much for joining us. there's a disconnect between low unemployment, what looks like a very healthy economy and this high foodstamp use of a percentage of the population. one of the reasons you found behind this level? reasons are a couple of why use has been high. even as we seen the economy surge forward. one of the reasons is that more

people who are eligible for snap are getting snap. that is due to things like being able to enroll online and that has helped a lot of people be able to get those benefits. secondly. the though you are seeing lowest weekly jobless claims 1969, jobs are only one section of the needy. you have seen this economic research, but it is taken a -- itfor those benefits has taken a while for those benefits to reach. >> i feel like it has been a highly politicized figure because you have people on the democratic side saying this is evidence of a two-tiered recovery where you have the weakest part of the economy still feeling a lot of pain even as the wealthy continue to get wealthier. then, you have republicans are saying this shows entitlements are out of control and anyone can go and apply for ford stamps

-- food stamps and rely on other people to pay for their food. can you give us anything concrete speaking to either side? reade: something that is important to remember is that enrollment has declined in recent years. there are a couple of reasons for that. it has declined because the economy is getting better. that is important to remember that that is helping foodstamp enrollment. in a way that unemployment and foodstamp enrollment are not those great job numbers, tight labor market, all of those things help people get off of food stamps. secondly, it is that decline has partly been due to these work requirements we have seen in the before the recession, these able-bodied men and women who were aged 18 to 49 and were not disabled were only able to be on food stamps without a job

for three months. during the recession and following the recession, the job market was hard, and estates were allowing people to stay on --p enrollment for welfare for longer than that. as the recession has ended and gettingomy is better, states stopped extending those work waivers. people are starting to fall off in that way. >> think you so much for breaking that down. a really industry trend. thank you to read pickert -- re ade pickert. greed --bank has a the twoo pay sec claims units improperly handled securities and represent shares of ford companies. that reportedly lead to inappropriate shortselling and profiting around dividend play outs -- payouts. deutsche bank admits no wrongdoing. bloomberg learned that york capital management's offer $350 million by a -- for its private

equity fund. they are trying to be doubt three other bids for the firm. buyer is pulling up the mo contraceptive implant off of the market. this comes after the fda tightens the company with civil and criminal penalties if it did not tell patients about the products serious health risks. they said the safety of its implant has not changed, but it will stop selling the device due to weak sales. more than 16,000 women are suing bayer over it. nike is getting a sales boost from the world cup. the finals between france and croatia was the first in which both teams were sponsored by nike. most of the players were -- war soccer shoes. were wearing nike shoes.

from new york, this is bloomberg. ♪

mark: i'm mark crumpton with your first word news. the situated press reports the cia confirms the agencies acting watchdog who has been accused of retaliating against whistleblowers, is resigning. christopher sharply, whose nomination was for the inspector general stalled in the senate, made an announcement to employees at his office. the congressional aide was not authorized to discuss the matter publicly said the senate was not prepared to a dance his nomination until a resolution to complaints between two former cia complaints turned whistleblowers. cities across southern iraq

amending better public services and public jobs. testers gathered at the square and tried to remove the barbed wire on the bridge leading to the greens on where the government sits. the associated press reports a number of protesters were beaten and arrested. angela merkel said nato's collective defense clause applies to all members, not just big countries. to haved she is glad montenegro in the alliance. her remarks came as a response to president trump's remarks earlier this week. he said the membership of their country means montenegro's very aggressive people could start world war iii because of nato's mutual defense pact. the european union's chief negotiator says a legally operative backstop agreement for the irish border is essential for withdrawal deals to be achieved with the u.k.. michel barnier says the issue

must be settled. he said there must be an insurance policy to address the issues of ireland and northern ireland. something he said he discussed with the new brexit secretary. asking, we're not asking for a border between us and ireland and the rest of the u.k.. goods because on the u.k. wants to leave the single market and our commercial policy. we cannot afford to lose time on this issue. mark: he said he believes the backstop proposed by the commission on behalf of the union is technically workable in his words and can be improved. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries.

i'm mark crumpton. this is bloomberg. julie: were reported that apollo global is in talks to buy life point house. we're seeing the stock react -- life point health. we are seeing the stock react. the shares are surging my 18%. we are looking how the stock did this year. it has been down this year pretty sharply. by by about 4% over the past year. the stock is now down to 7%. seeing quite a bounce in after-hours trading. down 27%. 27%.wn seeing quite a bit of bounce in after-hours trading. there are claims that apollo would merge with their regional

hospital partners and that deal could be announced as early as next week. we will keep an eye on it and bring you any other details. joe? joe: "what'd you miss?" if the trade escalates, traders will have to navigate through volatility and risk. you veryguest, thank much for joining us. it has been hard to figure out what the real connection is between the trade war headlines and rhetoric and what is happening on the market because risk assets have held up pretty well. where do you see the most location in most opportunity? >> earlier this week, we created an interesting tool for clients calling it the trade risk radar. we are trying to capture various asset prices that we think are being affected by various components of the trade war. some of the assets are in volatility space, some are in rates.s or in

this is along the dimension of china, nafta, europe. one of the things we found total valuewas chain which includes the global price indexrs' versus the u.s.. almost everything has spanned out compared to where it was two months ago. the two things that stand out are the fx eyewall, which has not moved. joe: the china atf. >> yes. yen which has sold off over the last two months or so contrary to what one might have thought. if this was becoming a broad, globalized, risk issue. joe: are traders or investors at this point getting compensated for taking that china exposure

volatility risk? >> that is a great question. the way we think about it is, because no one knows how this is going to play out, there is no real president or empirical analysis you can rely on and say this is what it looks like. instead, we think about and we line up different outcomes or scenarios, not be too focused on getting a precisely right on validity terms, but try to figure out which asset might be mispriced relative to the risk that is associated with them. spreadi, we think a put for them is somewhat mispriced for an escalation. in the trade war. on the other side, ew see, the -- atf, that has come back in the last few days and a spread on that is interesting from the other side.

instead of focusing on saying this is the best trade, we have been telling clients to try to have this portfolio view and take exposures on both tales if things change. the other trade that we really like is the vix which is where you sell to buy a cost spread which lines up attractively. who explain that for those -- seagull trade, selling a spread, what is the idea you are in terms ofs volatility? >> there is negative carry associated with owning options. the macro believe think thereel, we is a floor to volatility for the foreseeable future. because of the floor, we are willing to sell and fund the cause and what's we want to buy

on volatility. if you are doing something like buying the cause, you end up losing the entire printing nothing happens -- premium if nothing happens. joe: so you remove the bleed away saying you're not to worried about it. >> exactly. there is a floor that gives us confidence and helps us fund the other side of the trade. joe: tons of talk about yield curve steepening, but the dominant story is the ongoing flattening. what is it telling us and what is the opportunity there? >> we did deep dives into the yield curve earlier this year and our take away was that the yield curve goes inwards before a recession happens multiple times in the past, though research suggests that this is not something that's will result in the u.s. -- will result. in the u.s. it worked a little bit better than elsewhere.

and it is changing over time. our focus is, how do we use it. the most interesting signal from our perspective is if the yield curve re-stevens, and especially bull stevens, which means -- steepensns -- re and especially bull steepens -- inversion and flattening stop, rather than looking at that, we would rather show upbull steeping and turned negative especially when it comes to the yield curve. joe: so don't read too much into it now, but if we see people buying hard on the short end, historically that would say caution on risk assets. >> that's right. arerussian outfits with why

these things rallying, and that is has all of the fed is telling us that things are getting bad. thank you very much for joining us. julie: coming up,'tis the season or maybe not. scientists found that climate change could have caused a disruption in the four seasons. we will have those details next. this is bloomberg. ♪

julie: "what'd you miss?" climate change is a major concern, especially with the u.s. dropping out of the paris record. scientists have concluded that humans are pushing seasonable temperatures out of balance for the first time.

here's our climate reporter. eric, what does this mean? how do you define or figure out if seasons are getting out of whack? eric: collecting temperatures for almost 40 years. november will be 40 years. this is the first time somebody has been able to take this rich, temperature data and tease out the signal of human influence from the natural variability of how the earth works. what they have found is that the whole year is warming. but, summer is galloping along faster than winters are been a part of the atmosphere that is a few miles above us. it matters. analysis, by some of the same people, that emerged in the 90's when the scientific community first decided that in y was driving

climate change after all. julie: first of all, let's get to the how in a moment, but when you talk about the dichotomy of what kind ofres, seasonal implications does that then have? eric: it depends on where you are talking about. studies isy do these that they get their data and they can predict from the basic physics on what should happen if the sun were changing the amount of potency it was putting out, volcanicwere more activity. that would have a bigger impact on the whole earth's system. gulp of is true for big carbon dioxide as we have seen in the last several decades. that is what they see. they can predict from the physics what it should be and look at the data and say -- julie: that is what is happening. , humanfingerprint of man

triggered climate change, that they are seeing, is causing this particular phenomenon. so now what is the question. in that u.s., on the federal and congressional level, there has been resistance to that conclusion. eric: one interesting thing about the paper that is a typical is that they took a group of scientists who were respected professionals but are also folks who do not get published in the main journals and two are usually selected by republicans to represent a certain point of view at committee hearings. this article that was published yesterday in the journal science served to double perch -- excuse me, a double purpose of fact checking these congressional hearings and saying this stuff that is entering the political record is really not stuff that holds up to our scrutiny. julie: does it seem like it will

get a hearing on the political record? eric: right now, the united states is driven by pretty strong political points of view and climate change is a very strange topic in the united states because of the decades of research. scientists understand quite well with great precision what is happening and why it is happening. for some reason, in the last 20 years, the climate conversation in the united states has sort of -- i'm not aral venture what to call it. politically divided and climate change just got to be one of the main topics that americans like to fight about most. really, the matter who is in the you can listen to

the rhetoric coming out of washington and not hear a lot of true think about climate change from anybody. julie: that is why we would like to talk to you about the science of what the blood coming out with. eric, thank you so much. continuing on the climate change issue, leaders are coming together to address the issue as trade tensions heat up. not long after the u.s. withdrew from the paris climate records, -- records. down with one woman as she explains the focus of the summit. >> one of the key focuses of the one planet summit is green. we need to find a way to use public money in a different way so that we -- it can be used to attract private money and then that can be directed to projects and different types of society and even to reinvent capitalism.

one of the ideas, for example, and one of the concrete actions his land degradation -- is land degradation. mixing fund that is public and private money to fund the fight against but the shouldn -- but typically -- you should find a reward on social and environmental impacts. have other examples. six major sovereign wealth funds can together and wrote investment guidelines that were more respectful and focused on the environment and social impacts. we're hoping that they will now start investing concretely in those projects.

socially and projects. >> we talked about the u.s. not dissipating any longer. there are global events that one has to be aware of like brexit, trade tensions. how is that affecting if at all the efforts? brune: it means that we need to make even more efforts to make sure that action happens. it means we have to be extremely proactive and accelerate. we need to mobilize as well more. this is why the united nations, the world bank, bloomberg, and france came together. together we can attract a lot of action, organization, leaders from around the world to accelerate action and make commitments. also, stop changing the way they do business, the way they also manage their cities.

what we also want is greater accountability. is there areings other threats. people are still wondering is all good, but what is the impact in my real life. showwhat we need to do is by partnering globally, global collaboration can have an impact on people's life. it is the only way of proving that it is still relevant and still credible. this is the object of the one planet summit as well , defend, and show that materialism can deliver for people to make it relevant. julie: those my interview with the french secretary of state

for the ecological and inclusive transition brune poirson. breaking news coming from reuters who interviewed steven mnuchin. he issued a warning to china over the weakness of the currency. essentially echoing the tweet we got from the president. he said the treasury is monitoring the chinese currency for signs of manipulation. he made these comments in an interview in south follow ahead of the g20 summit which is happening over the weekend he says. he says the yuan's weakness will be looked at on the report on currency manipulation. but, don't they always review -- joe: they always review it. even with the recent weakness, he is suggesting -- a he also said having stronger u.s. dollar was in the longer-term interest of the united states.

so i wonder how much is also an effort to try to push against president trump's tweets on one hand and edify them on another hand. joe: a savvy operator or something. [over talk] >> it has served him well. we bring you everything else as it comes out of that. "what'd you miss?" bargain-hunting in the hamptons involves more than just crunching. the numbers are small part of determining the value of a hampton area home. in a market based on the whims of the ultra rich, the formula for price hikes berries for every property. james. us now is it is friday afternoon and we all fantasize about going to our beautiful $3 million mansions in the hamptons. what goes into evaluating the values of some of these homes? >> it is a funny question because everyone has a different answer. a lot of brokers like to tell you different things. the real question is whether or

not you are paying what they houses worth in a place where worth is determined by exactly what you say, whimsy. we contacted zillow and we have them give us median square footage, price per square foot in different long island destinations to give a brief actually values mean out there. julie: so stag is the highest median price. then, bridgehampton and southampton. james: this is about what sold as opposed to what is on the market. you have to take into account that there are these gigantic mansions that are sitting on the market. joe: i was going to say because it feels like there are marvel housing markets -- multiple housing markets. homese these waterfront that i imagine could sell for $25 million or $30 million. you see the numbers there and they say they look like normal house prices. i imagine it is tough to average

them altogether. james: exactly. what we try to do is control for a couple of different things. i took the zillow data and i also talked to brokers for anecdotal comparisons. $10 million,past these are all one-of-a-kind houses and it is impossible to compare them. i was going to say for field research, did you have to suffer through the hamptons? [laughter] test out a few pools. james: digging through hedges, that sort of thing. absolutely. >> [laughter] the long lenses. julie: is this something you see in other markets when you get past the threshold? if you are in new york city, there are a number of properties above that level. are you told they are all unique or is this one of the few markets unique to a vacation market where it is so difficult to value high-end homes? james: a lot of people in the

new york city market for instance will argue that houses above $40 million or $20 million are all unique. certain extent a but there are a lot of comparables when you go to check them off. when it comes to vacation homes, it is about personal preference. some people want a small house on a giant property and will pay for that. some people want to the opposite and will pay for that as well. >> just keep showing us pictures because that makes me ready for the weekend. beautiful. wind, brees, going for a swim. julie: there's visualization going on. james, thank you so much for setting us up for the weekend. joe: coming up, what you need to know for the week ahead. this is bloomberg. ♪

--doma this alphabet report don't miss this alphabet report. joe: on wednesday, president

trump will be meeting with the eu commission president on auto tariffs -- president, and i'm sure auto tariffs will be on their talks. julie: there are a lot of earnings on the gdp as well. >> a most excited for tech. that will determine the whole tone of the market. that is all for "what'd you miss?" >> "bloomberg technology" is up next. joe: have a great weekend. this is bloomberg. ♪ retail.

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emily: i'm emily chang in this -- in san francisco. this is "bloomberg technology." bullish sentiment is growing around bitcoin as the price hold a key level. our investors shaking off worries about safety and regulation? china for looks at investments as escalating tensions between the world's largest economies. we will bring you where he will expand his portfolio. club player