data. you had acceleration in wages, but this will not sustain time. >> and there you hear the closing bell. dow, as we mentioned, in the points. by 57 the nasdaq up by a quarter of 1%. but we were talking earlier big tech names are falling in today's trade. >> exactly. us, of course, is the president of the global strategies. what did you make of apple starting to talk about the pain of tariffs? well.ard it from ford as will we hear it from more companies? going to think you're hear more and more of that, because what the tariffs are chain, and thee supply chain was clearly not taken into account in tariffs. as you know, the president said to ford that if there was a problem producing in china, it's good news, because ford could shift the production over to the

united states. ford was, no,m they were not going to produce in the u.s. either. is the crux of the problem. you do not shift production to the united states. going to lower production globally overall. do.that's what tariffs it does not divert production. it reduces it. to the extent the ford example, the apple example is followed by companies, you see overall a big depression in terms of the until theowth situation resolves itself and we end. the trade war to an and as was said a few minutes ago on your program, if the are increased, to $267 billion, there's going to be impact on global economy and growth rather than inflation. expect, however, the drop is going to be felt on the output side and employment side rather than in crisis. >> so what do you do if you're

here?estor you lay out a number of concerns. the concerns have existed for a on the trade side. but what do you do with positioning? how do you play this? >> you do two or three different things. whether wait to see there are any gems to pick up on the emerging market side, joe. moment, there are some countries and, again, in one in bloomberg opinions, i had written saying, look at countries which are high receiving foreign direct investment. example is brazil. to countries which do very poorly on that side, like africa. countries where the deficit on the current account of the balance of payments is small or a surplus, as in russia, turkey.s like that's very go. domestically, the united states,

you are going to look at value opportunities. you are going to become more defensive. and the fixed income side, i am a big believer in the highest u.s. fixed income, the treasuries, german bonds, and we have had for four years people 10-year yield is going to shoot up. it just hasn't happened. expect the 10-year yield to come down. so there are a few opportunities for you. arein a few months, you going to have a lot of distress debt and distress equity to pick up. some cash on hand. and it will become of good use year-end or the first half of 2019. thank you for your time. now, switch gears. marijuana, a merger. acquirelion deal to south american i.c.c. labs, sending stocks even higher. a growthhe latest in spurt by aurora, purchasing at

least 10 companies in the last two years. for more, here is our cannabis reporter. m&a, what does this deal signal for you? small deal,latively as you say, about $220 million u.s. the southmportant to american market, giving them exposure to uruguay, which was the very first company in the world to legalize recreational use of marijuana. has about 70% of the uruguay market, also has licenses in company. this gives them the opportunity to be the established market leader in south america. it's, as i say, a relatively small deal. i think it indicates, as you see pot stocksin in attractse index that canadian cannabis companies, up today. exuberance in the sector that all you need is one deal to send stocks soaring higher yet again. >> yes. today they gained 8.5%, after

days.g the last two when you look at some of these names, to what extent are differentiating, versus just piling in because they have some link to marijuana? >> yeah. there still isn't a lot of differentiation happening in this sector. stocks all tend to rise and fall as one. lately there's been a lot more than falling. that will start to change. post canadian legalization, once real financial results, there will be real winners and losers. seem toeantime, they do be moving as a group. i.c.c. labs, the company that hadra acquired today, revenue of $19 million in the past year, june 30. and it was bought for $290 million canadian. are so farluations ahead of the revenue and profits that these companies are reporting at this stage. very speculative. >> so between this deal today

and the investor reaction to it the reaction to big casheal and their pile, the impression i get is that what investors are looking scale and that there's no revenues yet, for the most part, evenal profits yet, not real business yet but the sense startingve is when the guns happen on the business, who is going to have the scale to own it? scale and exposure to the international market. all the buzz is around the canadian recreational market but it's really the international medical market that's going to be the major driver of growth the future.n there are more than 120 publicly traded cannabis companies right in, almost all listed canadian. there's a -- in canada. many of them are very small, any revenue or profit yet. and so there's going to be a tremendous amount of consolidation over the next little while. i think the question for some of these smaller companies that run up in tandem with the bigger stocks is whether they're

drop in see a major valuation once reality starts to kick in. >> all right. joining us from toronto. thank you so much. we want to turn now to cbs chief executive les moonves leaving media giant after months embroiled in a now settled legal battle, also amid allegations of sexual harassment. denied thoseas allegations. here's some moments of bloomberg's coverage of his exit today. most likely scenario is that either cbs or viacom other, over the course of the next 12 months, and the two companies merge. and viacom, this is almost inevitable now. want to sell both companies. themng them together makes worth 20 to 30% more that they individualnd as sales targets. i think it's inevitable that they will come together at some term. >> most investors were not necessarily bothered by the

allegations, as problematic as they were, as much as they were les moonvesthat allowed cbs to be put in the situation it was in, because he had to have known these allegations were going to come importantly, the board would have known. and the fact that they didn't do something to position the of that put cbs shareholders in this position. >> our north american research director. will more executives go? >> possibly. actingow we have the c.e.o. i suspect he will get a look by the board. i think they'll also look company.he but there are a lot of les moonves loyalists throughout the company. he'd been in charge of the for so long. his imprint is all over the country. what really remains of the company or the businesses that he really was personally invested in, they got rid of the radio, the outdoor business, and kind of kept the core t.v. and

showtime businesses. so there will probably be more here.s the company however, is in generally very good position. levers tocouple of continue to drive growth here, with or without les moonves. syndication, there are growth drivers for this company. but clearly they're going to strong c.e.o., presumably something that has kind of the vision thing going. not necessarily just a programmer, but somebody can figure out how this company fits in a consolidating world. there's a complete rethink coming up. but as you said, there's a lot working for cbs right now. ofcbs vulnerable in either those areas? >> in this consolidating marketplace, the answer is yes.bly even the walt disney company felt they did not have enough globaln the entertainment business, so they go out and spend $71 billion to rupert murdoch's assets. that tells you you can never when you'reo big competing with the amazon of the world.

i think both viacom and cbs are in decent position in the short term. viacom has work to do to turn around. they certainly need to be part of a bigger media technology company. ofall eyes on verizon in all this. we thank you, of course, from bloomberg intelligence. >> all right. a big week for economic data. here's what i'm watching. you can go on to the terminal see this chart. my league, on bloomberg news, pointed out something curious, which is that age growth, as we mediocre, butof expectations for wage growth are at their highest in 15 years. gives? i have a theory that it has to do with this blue line and that is consumer belief about the strength of the labor market. when people are asked, do you believe it's a good time to find a job? that number is surging, basically since 2001. words, it is true that wage growth is still fairly slow standards.al but people do think the job market is very durable.

security.job they feel if they were to lose their job, that they would be able to find another job quickly feels like -- that has an income effect. getting paidf more, knowing you're going to keep your job. >> i've got to go back to what during today's press briefing. kinds ofught out all charts to support the idea that trump -- he said there was a pickup in prices but being overpowered in wage increases. i don't know that we have seen that. >> the consumer is feeling good. even though it's true that wage as big,ay not be lately people say they're feeling good. itbut not buying enough, would seem. let's take you to breaking news. earnings report. it's falling in postmarket $208 million,use just ever so slightly higher

than the estimate. line.lly back in there's a third quarter loss here. adjusted.ter and overall, it seems that 2018 shy of where the market wanted. bringing inng we're 1.1 billion dollars. toseems, though, many want see 1.11 billion. the marketto satiate appetite. now, coming up, raising the stakes, president trump is gamble that the world will line up behind him when it comes to china and trade. it pay off? next. this is bloomberg. omberg.

>> from our headquarters in new york, i'm caroline. >> and i'm joe. a snapshot of how u.s. stocks closed today, because we were a mixed trading days. trade tensions ramping up, dragging down the likes of apple. but we did see the s&p, nasdaq in the green. what did youon is, miss? >> president trump doubles down threats, signaling he's ready to tax all imports. claims, white house economic advisor says wage overpowering inflation. and lesson from the financial we look at the health of the global financial

system 10 years of the collapse. now, president trump is making a 505 billion bet on china. on friday, the president doubled earlier tariff threats, telling reporters he was ready imports.l chinese chinese trade data that was released on saturday reflected the standoff. the u.s. roseth to a record high, while global slowed.rowth for more, we welcome the senior fellow at brookings institute from washington. any sense of when we will start to see tensions between china u.s. actually bite economically? >> they are starting to bite already in many parts of both economies, not just in terms of you think about many american corporations that run supply chains through china, they are facing dissergses already. restrictingterms of

american imports, but making life difficult for american businesses. we've heard a great deal from american businesses, lining up u.s. trade their representatives, to try to make their case for lower tariffs. but those messages from american businesses and american families are eventually going to be their higher costs of products. they don't seem to be resonating house.halls of the white >> obviously businesses aren't thrilled about the idea of changing up their supply chains or increasing costs, anything like that. but nobody can ignore the u.s.ve strength of the consumer and how important u.s. consumers are for global demand. they'll juste that deal with it and build more factories and increase theytment in the u.s. so can sell domestically without having to deal with tariffs? little going to be a difficult, given how integrated supply chains are around the world. the great benefit of globalization, you know, greater financial and trade linkages countries has been that businesses are able to source

andr components intermediate inputs from other countries, and create much more supply chains, which means cheaper prices for american consumers. certainly one could argue that there are costs in terms of employment, in particular sectors of the economy, but i it's going to be very difficult to reverse that trend to aobalization, go back time when countries were producing a majority of goods within their own borders. certainly there are consequences and certainly china needs to be taken to task for certain issues, where it has not played fair in terms of its economic and trading practices. unfortunately, trading tariffs on the u.s. trying to take china alone, not the most effective ways of getting china to change its practices. >> so what exactly is the most effective way? hehad larry on last week and said china just needs to say yes. of course a lot of folks saying beinghe u.s. is the one inflexible. at what point do we reach

here?ing >> the problem here is that what fortrump seems to want is the chinese to capitulate in terms of all u.s. demands. of demands in lot terms of better protection of intellectual property rights, a access to markets for foreign exporters. and there are many countries the world, major trading theners of china, including european union and japan that all have a similar beef with china. aligning with these countries might have been a more effective to correcting china its ways. but trying to get china to basically capitulate makes it harder, even for reformers in china, to do what needs to be done and i think it creates this very difficult political dynamic, which is going to mean that neither country right now down.ck mr. trump wants to look tough. chinae president of cannot afford to look like he's

giving in. reached a point where we have created a situation where basically it's a game of chicken. countries are potentially at risk for causing economies.he it is going to have a negative effect. >> senior fellow at the brookings institution, we thank you. wars taking another victim industry.o cars. they cited unpredictable market conditions that only threaten to get worse. let's bring in our reporter, craig. this is the ramification of what about. just talking >> absolutely. and up to this point, a lot of the trade risk for the automotive industry has been of theoretical, where you have the investigation, the same type of investigation that was to justify the steel and aluminum tariffs. stillve nafta, that we don't really know what exactly is going to come of the changes

that the trump administration has agreedhat mexico to, what canada might agree to. but this is a real definitive, issue for us to sort of sink our teeth into, because we we haveituation where the tariffs put in place, that with chinas put in, imports, and volvo is really in this trade war, jeely. it's owned by it's also trying to ship some south carolina to china as well. >> like you're the man who has how the auto industry is being impacted by this. about the curious valuation issues. they wouldn't pull this back if they thought they would get the think theyhat they deserve. but this was an i.p.o. that was going to be outside of the u.s. >> right. listed inng to be sweden and hong kong as soon as this fall. realhat we've seen is some pressure put on the valuations of companies.

you've seen german car makers have real trouble because they're also in the thick of this. about b.m.w. they have a plant in south carolina that is their biggest world, that's really going to be hurt by the presence of these tariffs. down in alabama. you have a situation where this is really crimping multiple companies. that are in the u.s., it's because they're shipping in parts or... toso they also are trying ship s.u.v.'s from the u.s. to china. retaliatoryof the tariffs that china has put on us, those s.u.v.'s are caught in middle of that as well. >> this is the real world effect conundrum.the tariff we thank you. now, coming up, the president boasted on twitter how high comparison to unemployment. does that relationship matter? we'll discuss. bloop. ♪ bloop. ♪

>> what did you miss? walmart is getting hit by the shortage in truck drivers. they plan to turn it around by doubling spending on retaining drivers by year end. here is more as our retail love thiset -- i story, because we've been covering the truck driver shortage for a long time. bring it home to a specific company, walmart. what specifically are they doing bottleneck? >> here's what they're doing. we've been covering this for a while. i've been trying to get walmart sort of talk about, what are they doing? they have one of the biggest private fleets in the nation. doing is, for the first time ever, rolling out as much as $1500 if an existings, driver is able to bring in a new driver who stays a certain amount of time. doing more advertising on the radio, even a national

t.v. ad. there's a lot going on. >> what about more pay? >> not yet, no. walmart already pays -- walmart has been raising their pay, so i'm not saying they're not -- raisingsaying they're their pay today. they have been raising their pay annually. told the pay has been raised, the per-mile pay every year. is, otherroblem carriers are raising their pay three times in one year. tougher.etting so walmart has to do a little bit more. they already -- their pay is already at the top of the scale, though. >> i'm curious, how do you compete with that? when you see these other companies not only offering better pay and better incentives, how does walmart compete? >> the most important thing for is theiris how regular schedule. at walmart, a lot of the drivers i talk to, they're on a five-two system. so thigh are out on the road five days a week. but they know they are guaranteed is their days at home.

so that's what's really more thertant for truckers, is quality of life. how much time am i going to be with my kids? getting lifestyle perks rather than always just money. >> yeah. there's a lot of things companies can do rather than just move the pay scale. that said, walmart, of course, employeesall their more per hour, their cashiers and shelf stockers and all that. are just rising for walmart across the board right now. >> this is a great real shining of the light on what is happening on the economic data. reporter. retail coming up, life after lehman. the been a decade since crash shook the market globally. we're still seeing the fallout. more on the lessons we have learned, ahead. this is bloomberg. ♪ this isn't just any moving day.

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mark: florence has become even stronger over the atlantic ocean. forecasters at the national hurricane center says the storm intensified rapidly this morning to a potentially catastrophic category four hurricane, with maximum sustained winds near 1 30 miles per hour. florence's strength is expected to fluctuate, but it will still be a dangerous storm by the time it reaches the coast of south carolina or north carolina on thursday. north korean leader kim jong-un wants to meet president trump following the controversial summit in june. sarah sanders told reporters

today the president has received a letter from kim. >> it was a very warm and positive letter. lettert release the full unless the north korean leader agrees we should. the primary purpose of the letter was to request and look to schedule another meeting with the president, which we are open to. the: according to senators, white house has begun the process of coordinating another meeting ahead of north korea's invitation. officerdow list police who said she mistook her neighbor's apartment for her own when she fatally shot him has been arrested on a manslaughter charge. she was off duty when theurning to apartment when the shooting occurred thursday. the mayor says the officer parked on the wrong floor of the apartment complex's garage.

>> we will get all the facts. no one is going to get x your credit for showing -- extra credit for showing something on social media when it is not true. let's think about the family. if anybody has real information, we will take it. let's get it as quickly as we can and get this behind us. mark: lawyers for the family has been calling for her arrest for the shooting, saying the fact she remained free days later showed she was getting favorable treatment. global news 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts. this is bloomberg. trump'ssident celebrating the august job numbers on twitter, writing "the gdp rate is higher the union unemployment rate for the first time in over 100 years."

the economic advisor said the tweet should have said 10 years, but as the comparison even matter at all? why are we comparing unemployment rate and gdp? we bring in our u.s. economy reporter. these are obviously comparable things, but is there a way to salvage this idea? >> completely meaningless comparison, but it is interesting because kevin hassett added more mystery because apparently someone else told donald trump about this statistic, implying he did not come up with it on his own. one of his advisers was passing along the statistic wrong. idea thatck to this gdp in an unemployment rate do not have a logical relationship. you have to look at gdp growth versus the change in unemployment rate and that gets you into the whole debate about monetary policy, with the fed is

doing with interest rates. that is the important thing. the chart shows exactly that. the white line shows the change in the u.s. unemployment rate. it is flipped upside down. you can see that tracks gdp growth very well. this chart is showing you -- this is how we come up with estimates of potential gdp growth in the first place. the way to define it is when gdp growth is growing than the potential rate, it pushes unemployment rate down and vice versa. this shows you if you draw a straight line through that zero level for the unemployment rate, you get kind of a 3% potential gdp growth rate over the entire sample. if you look at the most recent expansion, those two lines have emerged a bit which implies to that potential gdp growth rate has come down to more like 1.5%. this is the big question going forward into next year because

the fed is looking at gdp growth and saying we are going to get a big boost from fiscal stimulus this year but then it will tail off next year if that fades. that is why the and implement rate will not go down much more. if it does, it will go down even further and the fed will be trying to raise interest rates higher. trump was notg try to make a point about the implications for the fed. >> probably not, but this is what he should be hearing from advisers. is the fed going to raise rates and choke off the expansion? caroline: should have been there with kevin, the chart is not as beautiful as years. maybe something to learn in the future. thank you for breaking it down for us. lessons from lehman. it has been 10 years since lehman brothers crashed and said the world into financial crisis. we reported it from the front lines. >> i think it is a very serious situation.

we don't yet know how it will play out this week, but one of the most storied firms on wall street is now gone. >> we had a historic day on wall street. lehman brothers, which is survived railroad bankruptcies of the 1800s and the great depression, and the collapse of long-term capital management a decade ago, filed for chapter 11 protection today. a new order on wall street emerges as wall street digested the seismic changes of the last sex months -- six months. regulators take control of fannie mae and freddie mac. bank of america open its doors to merrill lynch and lehman brothers goes bankrupt. >> they must be tired. the hearing started at 9:30 a.m. almost five hours. that was the democratic head of the senate banking committee chris dodd wrapping up effort questioning the bailout plan.

on equities. take a look at the dow. down 700 points, 9644. down, well down through that 10,000 level we first came up through in 1999. >> it comes on the heels of a global stampede out of equities that point to western europe where the dow jones dropped 600 index and the biggest one-day drop since 1987. in london, nearly a four-year low. germany dropping. banks as topple led by the infection has spread around the world from europe to russia to brazil. caroline: wow, it makes you feel old. a decade later, many are left wondering could we survive another financial crisis? we will bring in jennifer. where were you when that was happening? >> that was a pretty awful time.

we were really looking at a situation where folks that the economy was going to collapse, but that didn't really happen. what happened? >> absolutely. at the time, there were a lot of fears about how we would survive. it is interesting to look at it 10 years later, one decade ago, what changed? and what changed for the biggest financial firms in the u.s.? we have seen folks beef up their capital profiles, heavier on deposits other than more short term funding. the entire way they do banking has had to changed as a result of some of the reforms and public backlash. an interesting decade. joe: obviously, so much concern over the last several years about can we survive another crisis? that does a lot in terms of risk appetite and free use of lending and investing. do we still see residual nervousness on the part of banks

about loosening up credit, or after 10 years, things are back to normal on that front? jennifer: i think you definitely still feel it. we hear it on the earnings call. bank of america taking a really risk-averse approach and saying they want to take away from risky types of lending. you see in the types of lending sources. they rely more on deposits. you are seeing goldman sachs, the most wall street of wall street banks, turning to consumers for retail deposits because that is a stable source of funding. no, i think you could look at any of the big banks and see this is very top of mind. >> that is the big banks. has some of that risk transfer to other sections of the financial system? jennifer: absolutely. we have seen so-called shadow banks kind of rise up in certain quarters of the market. mortgage lending is dominated by nonbanks. broker-dealer

stepping on the leverage loan side. smaller banks picking up risk on commercial real estate loans. as the big banks -- the hammer was brought down on them by regulators. now, we have seen other guys that in and pick up some of that slack. joe: looking at the nonbank financial institution line continue to rise and rise -- i imagine it is less regulated and harder to bail them out -- could that be concern? jennifer: that is a good question. context -- banks are still responsible for safety percent of all global lending. they are still -- 60% of all global lending. they are still the majority. they are still really important to this market. the chart is a great one and does show the rise of nonbanks, but big banks are still where a lot of the action is that. they are less regulated, big banks have to go through planning and be super clear about if we do go under, will

get paid and who won't get paid. we don't see that same disclosure in nonbanks. >> was in the lehman crisis more about the capital level than reserves or was it more about confidence? when we look at that line on the screen, that is something that would scare me a little bit. jennifer: a little bit of both. the capital requirements have gone up. banks are safer. my colleague had a great story on the terminal that talked a lot about this" it danie -- and quoted daniel, it could be better. capital is up but it could always be better. caroline: adam has a book out that is saying, you have to remember, this is not something that happens. incredibly rarely. joe: 100 years. >> ok, well, it's only been 10 years. joe: 40 years from now, hopefully. caroline: exactly, and how

technology has advanced. thank you, great breakdown from jennifer. coming up, gone -- the company snap loses its chief strategy officer. we will have the details next. this is bloomberg. ♪

ofoline: snap is losing one the few remaining leaders of the team that took the company public. the chief strategy officer is leaving to started his own investment firm. sarah frier is here visiting. awesome to have you here. i remember when snap went public and it was thought he was the idol in the room, having the banking experience. what does it mean he is leaving? sarah: he was considered the

equivalent of sheryl sandberg at snap. he built the business from nothing but he truly did not have a lot of public company running experience. he was an investor, a banker. so you want to go back to what he is good at and snap is opening up, having the possibility of someone who can be more of a chief business officer who can figure out how to scale this business because they have had trouble with all of this volatility since going public. joe: what do they need? they need users, right? sarah: they need users, growth. any need to be taken seriously by advertisers. in order to get advertisers to take you seriously, you need to become vastly more popular every quarter and that is what people are looking for from snap. >> i thought khan brought a little of that to the table. i thought early on he was making moves with these ads he was creating. they have some pretty good

reviews. sarah: in the beginning, it was about these flashy campaigns. every cmo want to have the cool new things with snap. you can turn your face into way taco from talk about or pour gatorade on your face. joe: i cannot believe that is not a huge moneymaker. sarah: those things are time-consuming and you need to see him return in investment when you do them. snap's advertising model has shifted from this one off, really expensive campaigns to these self-service ad models where anyone can buy an ad, kind of like facebook and twitter. the problem is you need to make that bigger and bigger. your really need to sell it as much. ads he wasthe doing, worth a resonating with users? sarah: you could do that now still but it is more of a

bidding system, an automated bidding system. what snap needs is they need to have a cohesive plan with their leadership team. i spoke with evan siegal about how he is trying to grow up as a leader. he is trying to make sure all of his managers are on the same page. we have almost completely different team running the company now than we did at the time of the ipo. evan is really trying to figure out how to take this to the next level and not fizzle out as a company and make sure people take us seriously the way they would others. caroline: that share prices have been fizzling out. sarah, great to have you in town. we hope to have a more on. we are staying with silicon valley with a quick check of the latest business flash headlines. uber is ramping up its efforts. it has hired its first ever chief marketing officer. she was the first officer at the

exhibitor -- distributor. apple unveils a series of new products. by the end of the year, apple will have launched three new iphones, apple watches and several other devices. it all begins wednesday. the largest regional bank in the u.s. has survived short-term loans with 51% interest rate. it offers the loan to checking account. the bank says it worked closely with regulators in developing the product. regulators are trying to prevent payday lenders with more expensive loans. that is your business flash update. now, biotech companies have been going public and a blistering privates year, even as investors are pouring more money into younger startups. here is our health care stocks reporter, tatiana. it is interesting at the same time we have really deep private

pockets, people still want to go public. >> exactly. public seen them going at a blistering pace with 38 ipo's this year, significantly higher than last year and 2016. just below the record number of 85 ipo's we saw in 2014. if you look at the dollar amount, about $4 billion this year and that is comparable to what we have seen in the early 2000 weather was a lot of excitement about it. joe: we know in some areas of tech, there is a ton of private money available. is that the case with biotech but not the same deep pools of private capital like we would see for software companies? tatina: there are because biotech is one of the areas you can get high reward for the high risk you are taking. a perfect example would be madurna therapeutics. a private company that has

stayed private for years because their investors have been so generous with it. doing therapies on messenger rna's, changing the paradigm today. they said they reached a valuation of $7 billion. if they were to go public next year, it would be the largest ipo in biotech history. >> going back to the specific types of therapies. when you look across the landscape, are there some themes about hot areas of therapy that people are excited to invest in? tatiana: today, it resumes two main categories -- cancer and rare diseases. cancer because we have had a lot of breakthroughs in the past few years with drugs from bristol-myers, or merck, as well the clinicsg it in with these promising clinics.

you have a small number of patients you could charge a lot for therapy. caroline: we will keep a close eye. thank you for that break down. don't forget to check out our page on bloomberg.com/promises. we report on the future of health care in the financial forces behind it all. coming up, president trump is open to meeting kim jong-un again. we will discuss what it means with the u.s. relationship with allies, next. ♪

caroline: time now for going ahead with shery ahn. the white house announced north korea's kim jong-un is asking for a second meeting with the president. a very warm letter with hold but that is not seem to be much progress, we were hearing there was not much progress.

something is going on? shery: it depends on who you ask. the president would say no, because the chinese have not helped in enforcing sanctions. we have seen president trump cancel that visit from secretary of state pompeo to pyongyang. in some ways, going soft but it is interesting to see that he is thinking about another meeting when working level meetings have not worked out so far. whether it could work out in the u.s., washington, we don't know. we were thinking maybe new york but we are not hearing much. joe: trump obviously holds his own negotiating skills in very high regard so even if the underlings cannot come up with a deal, in his mind, perhaps he and kim jong-un have a good relationship and can get it done. shery: you have to look at the complexity of the issue. this nuclear issue has been going on for decades now. yes, they had a june summit in

singapore, but what came out of it? even mr. pompeo said they are still creating nuclear materials in north korea. so, we have to kind of see what could come out of another meeting. the only thing concrete we actually got were american remains being returned to the u.s. but even that, very few remains. we have to look forward to what is next. >> do we know whether south korea or china are involved? shery: at this point, we don't. that is really interesting because japan at the beginning of president trump's tenure, japan seemed to be having a bromance with prime minister shinzo abe. that seems to have fizzled out. now we are hearing that abe is holding talks with vladimir putin in the eastern economic forum. caroline: while this goes on this week, we will also see big military relationships, the

engagement between russia and china. shery: this is really interesting as well because russia has never really invited anybody outside their closer inner circle. china is sending more than 3000 troops to russia's far east with the border with china to carry out these military exercises. ,resident xi going to russia the first time a leader is going to that forum. caroline: plenty to be digesting. shery: president trump is changing the geopolitical dynamics in east asia as well. caroline: thank you. don't miss this because philip hammond is due to take questions in parliament. michels a day after barnier said a deal with the u.k. is realistic and possible. joe: i will be watching economic data. this --on't miss

argentina announces their rates tomorrow. joe: have a great evening. this is bloomberg. ♪

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and free shipping too. sale prices are available right now. go to buyleesa.com today. you need this bed. emily: i'm emily chang in san francisco, this is "bloomberg technology." coming up in the next hour, snap loses its chief strategy officer. khan says the best is yet to come for the company but it's time for him to start a new story. warnings that the price of applpruc