aggressive risk investment. >> that is the question. today it does. ,e actually rallied 21 points going back to the beginning of july. scarlet: you still have more decliners and advances, even on the major indexes closing up. finishing down, off by 1/10 of 1%. no carryover from yesterday. joe: interesting flip from last week. .e saw e.m. red we were scratching our heads, because during the selloff, emerging markets were catching a bit. they are going back to underperforming. scarlet: remember that divergence trade we had? it seems a queer back on that one. let's take a deeper dive with our reporters. >> i am revisiting those moves we have seen in oil today. both wti and rent plunging, the lowest since january.

you were just discussing this before the close. brent crude it below $60 per barrel. today, the inventory builds in the u.s., we saw total petroleum builds more than 22 million euros last week. that is the most in some 30 years. sarah mentioned earlier that we saw the u.s. crude production hit a new record. that sparked a selloff and what we have seen in wti falling into bear market territory. back to that high we last saw in april, following a good 20, almost 32% since then. there could be one silver lining on the horizon and the has come from opec secretary-general, speaking today who said he is alert to the bearishness of the economy. that might need we see partners moves to curb production cuts further. theor me, it is all about

continuing global bond rally. interestingly enough, they are buying into the equity markets. on a 10 year yield, we're back down to 212. earlier, we broke through the point, ending up unchanged, about 212 there for the day. interestingly enough, if you flip up the terminal, i spoke with ari of oppenheimer and he said that these companies can do well in this environment. we are charging the 10 year yield minus the 10 day moving average. very low yield. the most extreme reading since 2015. in blue, you're getting high beta, relative to low volatility auto-parts, following the yields lower. he makes the case that any backup in rates means that some of these cyclical companies and stocks have some room to find support at these levels. stock in s&p one 500, campbell's soup.

that is not something you hear every day. at the start of this year, they were down 50% from the high from last year, but since then, it has rallied up. 10% today. this is the best single day gain in 19 years. a lot has to do with the new ceo and the moves the company has been making to offload these brands to reinvigorate the stock. from snyder's pretzels and goldfish crackers, all of these stack rants, they are still seeing a lot in the core products, as well as some of the other fresh food sections. next week, they are supposed to have an investor day where they talk more about their turnaround plans, how they are going to deal with these assets and refocus on the assets that are performing well. keep an eye on this stock as we head into investor day next week. >> thank you so much.

still with us is chris of testers and sarah ponczek. i want to go with you, because we have not propped tech shares yet and in particular, the big tech names. on monday, it seemed like we were entering this new regime where you get the big names, facebook, alphabet, apple, amazon under a tighter grip. by tuesday, the story changed again. the doj is moving ahead with looking into these companies. how concerning is this for this big tech names? > i think investors have to pay attention. in terms of being concerning, it depends on which side you're on. i have been vocal in calling for some level of regulation. i am not a regulation fan, but you regulate every other form of communication in america. but there mail even, is no regulation about social media. clearly, it has had a powerful

impact in our elections, in global elections. there needs to be some level of oversight. these companies have to realize they need important leadership on the board and in the executive office to manage the power that they yield in this environment. caroline: are you bracing yourself for business level change and as a long-term investor, and deselect remain exposed? investor, i amrm exposed to these stocks and i care about them not for the next 91 days, but about the next 10-11 years. i want to see them operate effectively in a long-term. that means i care about issues like regulation, about the boardroom, about ceos and proper corporate management and oversight. we are very active as the shareholders in talking to these companies, pushing them and obviously, we're got hit with

resistance, because they like the dictatorship that the ceos have been able to build in these companies. it is going to be a real challenge, and they are global companies, so there got to deal with china, with the euro markets, and the eu definitely wants to regulate many of these companies. big picture, we rallied about 2% yesterday across the board, up substantially today. a few different storylines and maybe easing of mexico tension. powell seeming to help. the people you talked to, do they seem like this is a different environment than you were in a week ago, do they feel like this is sustainable, or is this, just use a cliche? >> when i speak with investors throughout the day, it feels like they are the most divided that they have been all year long. some are very gung ho, saying when you think about trade, it has to get resolved.

also, the fed is probably going to cut. there is a possibility you get both of them, then you have stocks in a bullish scenario. on the other hand, you have many people looking at the economic data, saying we are getting mixed signals. it is a little weak. probably not we can off to move the fed. we still see a gap. that means that the markets might have to come back to where the fed is, if the fed doesn't cut, and of the same time, maybe it doesn't get solved. it is a difficult position to be in, because it is almost as if you see two very different events going on and you have to get the calls right in order to figure out where the market is going to go. caroline: let's see what the cio says. chris, you're talking about how the fundamentals -- the fact that earnings look to be supported going forward, what do you do now? do remain as you stand, do you take on more risk? people, onould tell

your bloomberg terminal, it wti go, and look at the right hand longer-term side. you can see a lot of red numbers. investor, iglobal like to describe, we are aggressively neutral rid we are literally right on top of our long-term asset allocation mark. we are not tilting defensive or aggressive. because of the uncertainty that joe and sarah have just mentioned, trade in the near-term, but i am even worried long-term. we just had a sidebar down the screen about taiwan and what the u.s. government is doing in taiwan. what is our relationship with china? are we friends or foes? -- that is impacts the second largest economy in the world, so how do i navigate this kind of environment? scarlet: great points, and i

look at the wei screen and if you look at the percentage change, everything in europe and asia, a lot of red. is the only nasdaq major index in the red over the past 12 months. thank you so much. that does it for the closing bell and for me. romaine bostick is checking in where the team will have much more on the fed and trade. this is bloomberg. ♪

♪ caroline: live from new york,

i'm caroline hyde. romaine: i am romaine bostick. joe: i'm jim wiesenthal. caroline: the stocks managed to rally again. two days of gains. joe: the question is, "what'd you miss?" caroline: top policymakers are getting ready to cut rates. trade and transport. boeing's talks a china megadeal may be in jeopardy. high-profile crypto case. first to the fed. the dallas fed president says the mechanisms for rate cuts depend on key evidence and talks about the decision-making process behind such a move. i think it is early to make a judgment. we are going to be very vigilant about understanding these high and trade tensions.

most importantly, see if they and so, i think it is too soon to make a judgment as to whether we might take an action. i would rather be patient and let events unfold. investors have priced in three rate cuts and economists over the weekend basically joined the consensus that you are going to cut rates. the have been in the watch and wait cap. what would tip the balance for you? when would you think you need to make a decision? >> i would need to see some evidence that there is a deceleration of the economy. we have expected that growth would slow from 2018-2019. we are so seeing a tightening of of market and our measure core inflation is now at 2%. we think we will end the year around 2%. i would need to see some evidence that there is a worsening in those trends. we may see it. i am on watch as to whether we

see a further deceleration. >> cost-benefit, what is worse? cutting early or waiting too long? >> it depends on where you are in the cycle and what our stance is. our stancessment of is we are in the neighborhood of neutral right now. cut, that would be me making a judgment that we need to add stimulus to the economy. that might ultimately be a judgment i need to make, but if on the other hand, you have got a restrictive stance and decide to cut, that is different. if you are highly accommodative. they are pretty much at a neutral setting and the question i amhat is a question open-minded about.

the downsides on the last five or six weeks have increased. i am watching it carefully, but that is the judgment and the question i'm going to be asking. >> the federal reserve decides winter raise rates, but markets decide when to cut them. how much pressure do you feel from markets right now? >> i have spent my entire career in the market. i have learned that markets can change on a dime. for example, there has been a dramatic change in the market since may 1. the last five or six weeks. as we've seen, you can see a genetic change in a different direction over the next five or six weeks. what is happening to the curve is in response to heightened trade tensions. tensions could be reversed in the next several weeks. i have learned to watch markets, but i don't want to overeat or overreact to what you are saying.

they can change on a dime. romaine: that was an exclusive interview with dallas fed president robert kaplan. running us is a senior economics editor for bloomberg to talk more about this. we heard kaplan. where the option market stands right now. ready bond market stands. cuts?g in three full rate i'm sure you're here to tell us that is completely irrational. >> actually, no. i'm not a traitor in the market, but it strikes me that it is going a little too far in pricing in the cuts. so of the things i got them thinking this way is what jay powell said in chicago about how monetary policy would be appropriate for whatever the economy holds in store. actually, he never said -- he didn't even use the phrase rate cuts.

i think a lot of it is people are assuming that the economy will deteriorate. the fed will rate and see -- wait and see. the same way they were on the upside in raising rates, they would be gradual on the downside . kaplan told mike mckee that markets turn on a dime. the fed does not want to be turning on a dime. they want to be judicious and -- you can fault them for being too hawkish, but you can also say, they can't be seen as the market is safe, we will make sure we are giving you plenty. joe: we got a love fed talk this week. probably more coming. have we learned anything new? as you point out, a fed chair saying we are going to watch the data does not exactly -- is not exactly news. >> no. naturally, they're going to hedge themselves. they will give you both sides. that is why the fed watchers at

bloomberg -- and we have a lot of them -- are looking for the nuances of the conversation. the fact that powell started forcefully in his remarks was taken very seriously by the market. you can go down the list of all the speakers, and there were many of them over the last two days, and it is hard to find anything definitive. full there was one of the few who got out in front and said, i would favor more combination. caroline: charles saying i'm worried about inflation and that might be my concern and maybe vindicate some accommodation. overall, is there potentially a preventive strike, some kind of insurance policy. the other flip side of concern is 2.5% doesn't give you a lot of bandwidth if we start hitting session mode in the u.s. the concern has

been that the rate is low enough now that there is not a lot of room to cut if the recession hits. you certainly don't want to be raising rates -- you don't want to hit your head against a concrete wall so it feels better when you stop. >> [laughter] caroline: nice analogy. joe: maybe you do. thanks to peter coy of "bloomberg businessweek." you can hear more from the magazine's reporters and editors every saturday and sunday on bloomberg television and radio. coming up, first it was fedex, now it is ford. more on china i've been on u.s. companies. boeing is in talks for a chinese megadeal that could be derailed by the ongoing trade war. we will talk about that next. this is bloomberg. ♪

in talks toeing is negotiate one of the largest orders with chinese airlines. bloomberg has more on the applications of the trade war. george, it was a really interesting scoop, the fact that they could be selling hundreds of these planes to china. would it be derailed and how? >> i don't pick it will be the real. when you look at boeing and

airbus, boeing actually looks like a slightly stronger product line. the 787 has outsold the 83 50. they have a different market position. we think the chinese will want to be flying these fleets and we think that underscores the idea that chinese airlines cannot continue to expand, cannot do business without boeing. china would like to avoid owings products if they can. joe: this is the key thing. we know that china -- it will take a long time, we like to develop its own domestic aviation industry. in the meantime, they are growing. there are two big layers and regardless of what is happening anxiety over the 737 max 8 and other safety questions, the fact of the matter is, they have to buy boeing. >> i think that is absolutely true. probably one of the interesting points about this would be that the 737 max 8 may the a part of

why this deal happens now. the chinese airlines could come back to boeing and say, we think you all us for numeration for having the 737 max 8 grounded. boeing could say, how about no cash changes hands, but we give you a great deal on some wide-body airplanes. there could be negotiation including the max. romaine: is this the type of deal that would have to be signed off on by the u.s., by the u.s. government in some fashion? i am wondering if it could be derailed by politics. >> traditionally, these deals are not signed off by the u.s. government. the chinese government does have to sign off after the airline's order it, but the u.s. government does not traditionally. romaine: thank you. that is the brakes george, -- that is bloomberg's george. trade tensions escalate, this marks the latest action toward a u.s. company.

it's bring in bloomberg's auto reporter from detroit. record ofhad a track doing these types of fines on other companies. even predating the current trade war. what evidence do we have that the current fine is directly related to what has been going on with the u.s. and china? >> as one of the analysts told us, there are no quinn is in china. you are right. finedars ago, they general motors for antitrust violations. they are investigating fedex. they have put other companies like google on their watchlist. clearly, there is pressure being applied to brand name american companies ever since president trump put a ban on business with huawei, the tech giant out of china. scarlet: we have seen is playing out before -- caroline: we've seen this

playing out before earlier. they put a ban on a different carmaker. this is something they are not afraid to use. >> they are unafraid to use it. gm is very big in china. they are the two leading foreign automakers. ford not so much. they have struggled in china lately. they are a smaller company, they have a large manufacturing complex where they have this joint venture, but they are not the major player in china. millionimately, $23.6 is not a huge fine, but what does this do for any company thinking about investing in china, or the future of u.s. try -- or the future of u.s.-ch ina jv's. >> here in detroit, they just want this trade war to be resolved quickly.

no automaker can avoid participating in the world's largest auto market. detroit isa that doing well is with their luxury vehicles. cadillac and lincoln both do better in china than the united states. detroit really wants this to be result. keith nine, telling it straight for us. coming up, the sec filing suit. why 18 messaging app is feeling the heat from the federal government next. this is bloomberg. ♪

mark: i am mark with bloomberg's first word news. senate majority leader mitch mcconnell wants president trump to delay imposing tariffs on mexico. mcconnell wants the president to wait until he can personally make his argument to republicans in congress and warned that mr. trump can't take republican support for granted. sources who attended a republican senate lunch told bloomberg the meeting was tense and there is frustration among senate republicans, who say the president doesn't understand how tariffs and that they will hurt american consumers and businesses. the trump administration trophy as new restrictions on travel to

cuba will hit hardest at the cruise industry at the start of the critical summer vacation series. major cruise lines immediately dropped stops in cuba from their itineraries and rerouted ships to destinations including mexico . the cruise line international association says nearly 8000 passengers already on cruises or book for future trips were affected. the president says ireland shares america's concerns that allowing china's huawei technologies to help build communication networks threatens global security. the u.s. is pressing its longtime alleys -- allies to ban the tech giant over concerns china will use the company to conduct espionage. mr. trump met today with ireland's prime minister during his first presidential visit to the country. the prime minister confirmed ireland shares america's concerns. some further

information from the u.s., to give us a security briefing on that. mark: amid escalating trade tensions with china, the trump administration has launched a global effort to keep huawei from controlling future 5g telecom networks, citing cyber security threats from the chinese farm. the european union has taken the first step toward disciplining italy over its debt. that sets up a fight with the government in rome and paves the way for an initial penalty for as much as $4 billion. the move is just the first in a complicated process. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts over 120 countries. i am mark crumpton. this is bloomberg. joe: the u.s. securities and exchange commission has sued messaging app kipp two --

messaging app kik for illegally selling digital tokens called kin. they responded saying, we welcome the opportunity to fight for the future of crypto in the united states. we hope this case will make it clear that securities laws should not be applied to a currency used by millions of people in dozens of apps. for more, i want to welcome andy bromberg, cofounder of coinlist, a platform for projects to run their coin sales, and stephen palley, a partner at anderson kill. thanks to both for joining us. andy, i want to start with you. you are in the business of token sales. of course, you emphasize doing it by the book. , is the sec applying securities law correctly here? andy: it is a complicated question. what you will hear from experts

is it is a fact and circumstance analysis. they are not black-and-white. you have to look at the facts and circumstances. the sec is mostly talking about whether kik violated security laws in the 2017 sale of kin. what i think is more interesting is this is signaling the sec has gotten comfortable with their understanding of the stakes. they initially started not doing much and enforcing clear, broad cases. they moved onto small cases. this is really the first large, non-brought case the sec is pursuing. that indicates they feel confident. romaine: when you look at what the sec has done and how they are starting to move into this space and you look at the argument that kik has made, as well as folks like fred wilson, that this sudden necessarily be regulated by the sec, how do you define the threshold between what should account for a security versus what is simply a token? stephen: the law is fairly

well-established and has been in howeyat least since the case in 1947. an investment contract is an investment in a common enterprise with the expectation of profits. it is a principles-based regime in the united states. i agree that this is a facts and circumstances analysis. i am not sure the people who say they want regulatory clarity from the sec really want the sec to be providing more regulations. perhaps the flexibility we have with the current regime is actually better. caroline: talk to us about the so-called clarity potentially we will get from this and what the ripple effects might be. are there other potentially smaller ico's that have been less in the limelight because they have less prominent backers that could be effected?

andy: absolutely. i think a unique circumstance surrounding this case, it is playing out in public. response,hed their indicating they were investigating seriously. after that the sec sued them publicly. that means we will see clarity publicly at that is really the first time. to stevens point, there is a lot of flexibility now. judgment in what ends up happening could be good or bad for the industry. it is hard to say which way the courts will come down on this. i do think a lot of token issuers are realizing this is a critical moment where the results are going to define what happens going forward at the project that have already raised. joe: the official line from kik and its backers is this is about decentralization, innovation, building an ecosystem of people using kin. the sec says this is about

bailing out a failing company. could both be true? stephen: absolutely. what's particularly interesting to me about this lawsuit is it allows you to paul back the covers on how the sec works, how an investigation operates. this lawsuit followed basically a year and a half of investigation that involved over $5 million of fees. there were subpoenas. the sec already has all the documents. they took testimony. they know what kik's position is because of "bloomberg technology's response. they have quotes from emails that say something like this -- the whole point is to make our legal department happy, not the users who are actually investors and could care less if they got a sticker back for their $10,000 investment into kin. if you read this complaint, i wondered if the sec lawyers laughed as they wrote part of this because the facts are bad.

i think if you are on the other side, you are going to say, the facts are irrelevant, you have to look at the legal framework. tick, thisn and seems like the extreme end of this debate. i wonder if there is a sense among folks looking to do an ico , whether this would put a chill on that until this case is resolved. andy: i don't think so. i think most issuers are looking at this the way they have been the last couple of years. the good ones think, how can we run this compliantly and exercise the most caution? people agree the law is pretty well thought out on a lot of these issues around running their token sale itself, so people are comfortable with running those token sales as offerings of securities. at the same time, there are a lot of issuers that ran token sales in more questionable ways that the sec has been discussing.

trying to push these questions off. that is not a position anyone wants to be in. i don't think it has chilled the idea of a token sale. it has made it more evident you need to be more careful and be in absolute compliance. caroline: coinlist helps bring transparency to the descent ico's. how many are coming to you at the moment? we felt it completely fell off a 2017-2018 massive rush into ico's, then the dearth we had after the selloff. are you seeing good quality companies coming through? how many are you likely to see in america in the next 12 months? andy: we are seeing a lot. not as many as 2017 or early 2018, but roughly the same number of high quality projects. a the end of 2018, there was big drop off in the ico market around the time the crypto market crashed. a lot of people canceled sales.

what we are seeing now is those high quality projects are coming back to run token sales again. the bottom part of the market has dropped out, the bad issuers running unregistered offerings. those are not coming back. there are fewer token sales total, but the number of high quality issuers are roughly the same. i would expect dozens of high quality issuances in the remainder of 2019. thatcritics would say current sec regulations are stifling innovation. from your perspective, is innovation still possible? andy: i think innovation is possible, but challenging. what is not challenging is how to run a compliant token sale at the beginning. where questions exist is what happens later on. after the offering, when do these tokens become non-securities? when can you transact them freely? that is the hardest part. i don't think the stifling of innovation is happening around the token sale itself. the kin will definitely

introduce some clarity. joe: we will have to leave it there. thanks to andy bromberg and stephen palley. coming up, taking aim at tech. we will hear from congressman hakeem jeffries of new york. this is bloomberg. ♪

romaine: house democrats are prepared to issue subpoenas to top tech executives as the antitrust investigation ramps up. kevin cirilli spoke about the issue to congressman hakeem jeffries of new york. jeffries is also the chairman of the house democratic caucus. we want to make

sure the current practices of big technology companies like facebook are respecting the privacy of the american people, because these are entities that are holding the most intimate details of the lives and personal details of everyday americans in the most intimate way possible, and we have got to make sure that is being respected and that the privacy rights of those americans are not being undermined. from my standpoint, that's an important objective to pursue. kevin: yesterday i interviewed the chairman of that subcommittee, and he said it is a balancing act of purpose -- of respecting the contributions the big tech companies have provided to the american people, economically at from a service perspective. shareholders are uneasy about this investigation. what's your message to shareholders? rep. jeffries: the house democratic caucus is not going to predetermine the outcome of the investigation.

we are going to follow the facts, be guided by the law, and proceed in the best interest of the american people. my view has always been that subpoenas should be a mechanism of last resort, not first resort. thewe do hope to secure cooperation of the big tech companies at the highest level possible. kevin: mark zuckerberg -- should people trust mark zuckerberg? rep. jeffries: the american people need to hear from mark zuckerberg. it seems one could reasonably conclude there is absolutely no reason to trust mark zuckerberg at this point in time, given the repeated instances where something inappropriate that facebook has done has been exposed to the american people. apologize,forced to which he does in a public fashion. then there is another incident of facebook of using -- facebook of using the trust of the american people. can anyone trust mark zuckerberg

at this particular point in time? that is ultimately a question the american people will answer. kevin: another big question is whether or not congress or regulators should break up big tech to better protect consumers' privacy. where do you stand on that? rep. jeffries: all options should be on the table, but we should proceed with caution so as not to disrupt the social media market, which has contributed in many profound ways to the ability of americans to communicate with each other. and so i think chairman cicilline and chairman nadler are going to proceed with caution and be guided by what's in the best interest of the american consumer. kevin: switching gears now on another area that democrats, you being a member of leadership in the house democratic congress -- the issue of impeachment. where do things stand? rep. jeffries: in my view, we

should continue to proceed with our investigation. the house judiciary committee has indicated they will conduct hearings on obstruction of justice, abuse of power, and the culture of corruption that appears to exist at 1600 pennsylvania avenue. that is the correct approach at this time. we should be guided by the constitution, and we are in fact in gathering mode. once we gather all the facts, which will include the unredacted mueller report, the underlying documentation, and securing the public testimony of bob mueller, then we will be in a better situation to decide how to proceed. kevin: you still think you can get mueller to testify publicly? rep. jeffries: in my view, he should. this is an incredibly significant investigation he presided over. it lasted for 22 months. he produced a comprehensive report and millions of taxpayer dollars were spent to do it.

we now need to hear from bob mueller. 2.0, itn usmca or nafta sounds like you want to get to a yes, but the tariff talk is making it more difficult for democrats to get on board. rep. jeffries: trump's erratic behavior as it relates to tariffs have made things more difficult for the american consumer. these tariffs are an attack on everyday americans, working families, middle-class, senior citizens, and could cost upwards of $800 per american family should he go through with these reckless threats. that's a problem in itself for the entire economy. , housespect to the usmca democrats, led by speaker pelosi , have consistently said, we want to get to yes, but we need to see greater labor and environmental standards as well as an enforceability mechanism, particularly as it relates to mexico, to ensure those

standards can be brought to life. kevin: you want to be speaker of the house, governor of new york, senator of new york, or mayor of new york city? rep. jeffries: i have the greatest job in the world -- kevin: you got to give me something. rep. jeffries: i am committed to the institution of the house. i have learned you have to focus on the job you have, do that job to the best of your ability, and the rest will take care of itself? caroline: not budging there, congressman hakeem jeffries, chairman of the house democratic caucus. now it is time for smart charts, where we take a look at timely topics. let's turn to mike mcglone of bloomberg intelligence. >> today with me i have todd alleged --ical and technical analyst with strategas. looks like you are a little bit bearish. think ist i interesting, as equities have tried to find their footing, is

oil has shown us nothing. 20% off the highs a few weeks ago. are's most important is we nowhere near an oversold condition using the momentum indicator on the bottom. i think there is more room to decline, potentially back to the $42 lows. mike: this autumn scares me. how often do you get bottoms that just hold? todd: it is rare. i think what we should work off of is when you go back to 2014 and 2016, you had oil in a steep decline. what you saw was things getting less worse. ultimately that led to a nice rally. we do not see that in 2019 just yet. i think if you do get that retest to $42, then you will start to get the positive divergence. mike: let's talk about something that's going up, the next chart on gold, one of the best

performers versus crude oil, one of the worst performers. todd: let's take account of the environment. stocks a little sloppy in some corners of the market. treasuries are overbought. was left is commodities. gold is the one that interests us most. it has been sideways for five years, finally starting to percolate. 1375 is the level to watch. you can finally get the breakout. that would be major for that commodity. what is most impressive about gold, relative to the commodity spectrum on the bottom panel, it is outperforming all of its peers. energy, agriculture, industrial metal. so if you are playing commodities, you want to play gold. mike: that's what scares me, when one commodity goes up, the others go down. todd: absolutely, it has been a bear market. that's the pattern you look to come out of a bear market. if a major move is about to

happen, this is the type of chart you want to see. the bigger the base, the higher the space. a tinderbox looking for a spark, maybe. todd: that's one we have to watch. we have been bitten by it before. 1375 is really the key level. mike: thank you very much, appreciate the enlightenment. maybe next time we can see improvement. passing it back to you, caroline, todd -- i'm sorry, caroline, joe, and romaine. romaine: delivery by drone -- amazon's latest way to get items to your doorstep fast. this is bloomberg. ♪

romaine: breaking news on fiat and renault and the potential combination. we are getting word that fiat has reached a breakthrough with

france in the talks with renault to create a new auto company. fiat is near ape luminary record with renault. we should also point out that renault's union says it is not obvious a deal with fiat is opportunistic. caroline: we will watch that after hours. a latest business headlines. shares skyrocketed after regulators said it could start selling its soft exoskeleton. a system called restore is designed for people who have trouble walking after a stroke. shares more than tripled before giving back some gains. -- -- amazon has unveiled a futuristic plane drone for deliveries. months, amazon will start testing it for deliveries of household items up to the weight of five pounds. it looks pretty cool. joe: the most interesting thing about this -- i don't really

care about the delivery aspect -- is all the systems that would allow it to come into your yard to deliver. that is pretty cool. that's kind of what they are trying to do with the autonomous car's, but maybe if you do it on something smaller scale, it opens it up. montana or in wherever -- i don't know how they are getting back to brooklyn. caroline: amazon primarily tests their drones in the united kingdom, it makes and develops them in the u.k. not london. this is why the sensors are so important because they can dodge or clothing line, people, dogs. joe: this is stuff 5g is going to be important for, to enable all the real-time information. caroline: google is already there. don't miss this. the ecb announces its rate decision, followed by a press conference from mario draghi. joe: i will be watching economic

data. numbers for u.s. jobless claims come out at 8:30 a.m. eastern. romaine: beyond me reports its first-quarter earnings after the bell. caroline: that's offer "what'd you miss?"." joe: bloomberg technology is up next in the u.s.. ♪

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taylor: i am taylor riggs in new york. this is "bloomberg technology pure cow big tack in the firing line of the u.s. government. apple and google face new scrutiny over the dominance of the app stores and the fees they charge to developers. plus, our drones the key to amazon locking down his deliveries? we take a look at the commerce giant's plan. and going the distance. pells f