on sale. order today. go to leesa.com. >> i'm mark crumpton with first word news. an american guided missile cruiser and a russian destroyer came within 165 feet of each other in the pacific ocean today. the u.s. fleet said a helicopter was preparing to land on the uss chancellorsville when the russian destroyer traveling behind it speeded up and approached as close as 50 to 100 feet. crewvideo was taken by a member of the chancellorsville. ofaccused the russians putting the chancellorsville at risk.

unsafe unprofessional acts put our men and women at risk. thanks to their professionalism, there was no incident. our channel with the russians will be exercised as a result of this activity. >> the russian military accused chancellorsville of making a dangerous maneuver by crossing the path of the russian destroyer in the open ocean are these to the philippines. the united states is ending turkey's per dissipation in the f-35 jet grandma by next month. over the nato allies decision to go forward with the purchase of a russian missile defense system. patrick shanahan told turkey in a letter that there is still time for that country to change course on the missile system but it also laid out a timeline of

how cooperation on the next-generation fighter will wind down. vladimir putin says there are no plans to unite russia and belarus into a single state. speaking at the st. petersburg economic forum, he made the comments in response to a question on whether a merger was being considered as his last consecutive presidential term ends in 2024. sources told bloomberg in april that the coordination of a new state might be a way to sidestep the constitutional ban on food and another term. the u.k. labour party has dealt a setback to nigel's brexit party. bookmakers had made him a favorite candidate. the party is still looking to win its first seat in the house of commons. global news 24 hours a day on air and at tictoc on twitter

powered by more than two to 700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ scarlet: this is bloomberg markets the close. caroline: we are 30 minutes from the end of the trading day. this we the best trading day this year especially following the best -- worst trading week this year. the dollar is trading lower. there is so much hope the fed will step in to the rescue with a rate cut. >> gold futures are up as well. we should mention that the chinese yuan falling as much as one half of 1% earlier today. the governor told bloomberg that

there is tremendous room to adjust monetary policy as we try to figure out fallout from the trade tensions. 3%oil is now rebounding because it seems as though opec plus are on the same page. they are both concerned about oil prices. now time for our top calls. citigroup upgrading to neutral. next oppenheimer keeping its rating on zune video. estimates but it needs time to grow into its valuation. jeffries raising its

price target on eons me. the company remains one of the best stories recommends waiting for a pullback. this is a company that continues to rule. substitute that keeps impressing wall street. this company seems not to be doing any wrong. it seems as though not only do the numbers live up to expectations but deals, the hope of future deals for the restaurants look good. >> i think what we saw yesterday was they have put forward these are the minority estimates in their security styling the ipo. they even blew the doors off of those.

the revenue is slightly higher than expected. indulgeows investors to in the excitement around this category. there have been so few avenues for growth and hear these new products look like they are gaining traction and will be a growth business for a long time. >> the narrative is appealing. it is disrupting the meat industry. you take issue with the valuation because with a current market cap of the $6 billion, it is about the same as pilgrim's pride. >> pilgrim's pride has a revenue of $11 billion a year. it is very different. i think that there is so much uncertainty for beyond meat because other companies are seeing their success and will be trying to crowd into their space. we already know that nestle will

be launching its awesome burger in the u.s. later this year. tyson foods said they are going to launch their own plant-based meat product. when you have these established players who know how to scale quickly, you have to wonder how a newcomer is going to fare when it has the fresh competition. >> competition is going to matter when we start looking at a price point. these beyond meat burgers are not cheap. >> analysis from bank of america found that the average price went is $12 per pound. that is a lot. these beyond meat burgers are not cheap. a regular beef patty costs four dollars per pound. the way beyond meat is marketing itself, we don't just appeal to vegans and vegetarians, we appeal to omnivores who might just be looking a healthier diet. if you're going to try a new product when it has that kind of premium price, i think that's a

tough sell. the economics of scale will kick in and that price might come down but this could be a deterrent to trial in the near term. >> you are talking about jan to meet being available in grocery stores. the key is to be able to strike partnerships with restaurants where consumers won't know that it is a beyond meat burger but they will be eating it because it is a meat alternative. >> you look at the results this quarter, growth is strong and retail. something over 100 sent. growth in the restaurant and food service was over 400 sent. this is the fastest-growing part of the company. it accounted for over half of their sales. you can expect to see an arms race between them and their rival and possible foods in trying to get into the big restaurant chains this year. whopperible will have a

nationwide at burger king later this year. you can expect beyond meat to pursue those kinds of clients. hooking up with a restaurant chain instantly makes consumers more willing to try it. you trust mcdonald's and taco bell. maybe you are more willing to try beyond meat as prepared by them. >> thank you for joining us. up, a $683 million deal. this is blumberg. -- this is bloomberg.

softbank is in talks

to buy new bank. goldmaners include sachs and sequoia capital. zoom video got off to a first -- fast start. beat analyst estimates. fedex is not renewing its u.s. domestic contract with amazon. fedex calls it a strategic decision. the decision means fedex domestic air service will walk away from the dominant e-commerce company when the rise of online shopping is filling record demands. scarlet: barnes & noble turning a new page. they have been purchased for

$476 million is the assumption of debt. shares have soared on the news. elliott management acquired waterstone not too long ago. i suppose there is a blue white with what they are going to do. the ceo ofoing to be barnes & noble. they are not merging he's just to run both. they have had a little time to work with waterstone and this guys whole strategy has into make them dissenters. he encourages local managers to help the stores blend in. cafes in places where you can gather. barnes & noble already does these things. they will have a story time for kids. it will be interesting to see if they can adapt more to the local community.

to make them feel more like a neighborhood place rather than cookie-cutter. a lot of the ideas are the same. wax are the revenue streams the same? i went to one in piccadilly and listened to a talk that i did not walk out with a book. day, ife end of the you're not coming out with books or other novelty items that they sell, they are not going to make money. that is the bottom line. waterstone to said that their revenue from e-commerce is about five cents they are very depended on the physical location. barnes & noble has 900 stores right now. they are still in all 50 states. they have a lot of locations. waterstone's a little under 300. this is a much bigger operation

they are taking on. >> will e-commerce ever be an to focus oney want or have they decided -- we do the tangible setting. >> we talked to the ceo and that's what he said. to focus on or have theywe will ship you a e about physical space. that's an area that amazon has been trying to get more into. they have opened bookstores and gotten into whole foods in grocery. they do see value in the physical space as well. >> are they still in the textbook is as well? >> i believe that has been separated. >> this is the retail operation. >> exactly. >> a quick check on the markets, we are in rally mode this friday. the nasdaq up. continuest tin use --

to rise. thatcan't believe it ipo to five dollars per share. this is bloomberg. ♪

this is the countdown to the close. >> joining us as always is joe weisenthal. it is jobs day. number came out and it was disappointing this morning, you saw the sharp move down and rates. you saw the modest drop in the futures and i was like that make sense.

this really strong rally ended his tapered a little bit but it is still impressive, it's really remarkable. the data wasn't that good. cuts counteract in bad data, isn't that exciting? that it's completely priced in for july. >> people think it's a done deal. >> it's pretty much a lot of gains across the board here. you have 22 out of 24 sectors in the green. software and tech leading the way. you have a lot of cyclicals. in the downside, banks and utilities. >> rate cuts look so pretty for all. -- don't so pretty for all.

>> we peaked at 11:00 a.m. and we have been hanging in there for the rest of the session. >> still phenomenal some of the moves we are seeing in the latest ipo's. janave been talking about to meet and others. >> we have been talking about how it's the best week of the year coming after the best -- worst week of the year. we are moments away from the close. i have been watching petroleum many kano bonds. the state owned oil companies bonds are the worst performers in the index. bond pricesmuch the are tumbling, yields rising at a time when we do see constructive discussions between the u.s. and mexico. meanwhile, let's talk about pentax the fact that it has the

most debt of any major oil company. downgraded and it now needs one more downgrade to be kicked out of certain indexes. you can see the debt load exceeding 100 billion dollars. creating a problem this company especially for gets downgraded to junk. >> i'm going to talk about one of the biggest raining stocks and it's not beyond meat. it's alumina. the space, this is the company everyone is talking about. is predicated on a note out this morning saying that their proprietary survey of a bunch of laboratories showed that alumina remains a clear winner in the market for dna sequencing machines. they have always been the leader in this market. it came out with a new product

in 2017 that didn't sell as well as others thought it would. there was a lot of concern that they were not getting the sales in the u.s. or china. >> for more market analysis let's ring in sarah. bad news when it comes to jobs but it's being interpreted as good for the markets because you have the fed put. the reasonzing but investors are telling me that bad news is good news is that 75,000 is not good especially when you have a net revision of 75,000 the two months or however, it is still slow growth. he would rather see decent economic data from here not

great. you don't want to see more bad data deteriorating further but if you get decent economic data than it keeps you on this path where the fed may have to cut sooner rather than later. it is amazing seeing the rally we are seeing. have been asking for different iterations. for the most part, people consider bad news as good news but many people said that news would be bad news. clearly people are levering up into the weekend. >> as we head into the close, i this chiefng in investment officer for city private bank. i think there's too much enthusiasm to be honest. we had a pessimistic view going into the week. i think maybe that was part of it but what i think is more important now is what happens to earnings.

correlation between the market and earnings is as high as it's ever been in the market is saying we anticipate continued growth. there are a lot of headwinds for that. the headwinds being trade and the tailwind being the fed, until such time as we have clarity on what's going to the firsth trade, three months of 2019 -- we are waiting for clarity about what's going to happen in terms of the u.s. economy and the global economy. wax what about what the fed does? >> the fact is we would expect the fed would do this when you have a sustained data problem. it would not be due to an externality like trade. if we assume trade was not going to be resolved, that would be

the base case. it would be odd for us to be looking at a couple months of data and saying we have to act right now. they are probably not going to cut in june. what if they don't cut in july? >> that would cause a negative reaction. remember trading volumes are modest and volume has been low. in aact that it is priced certainty that there will be a cut in july it's remarkable. >> people are starting to a knowledge the fact that it is possible we see a rate cut in july however i would say a good amount of people i spoke to today still believe the market is potentially getting too far ahead of itself and we might not see july that it is more likely

we see september or december if we do see economic data deteriorate even further and if trade doesn't stay in place and we see that feed through the data and earnings. if you think about whether or not a fed put completely mitigates the effects of trade, it mitigates the downside. you have a supportive bed but at the same time, if you do see businesses starting to pull back , stop hiring stop spending, that affects economy and their profit. either way, you are going to have a negative effect. >> it's quite amazing we are getting such a big rally. we have a tweet risk over the weekend and volumes are openly down i percent. a chart at a conference and showed all of the people who are selling. up of the global flows went

for the first few months of the year. the u.s. exactly the same. we are seeing enthusiasm,, volumes come off, rises rise. >> what are your clients saying? what are they asking you? >> in addition to what i do now, what we are telling them is we want portfolios to be materially safer. rotate to different sectors like health care and consumer staples that will have earnings rise regardless of whether or not there is a recession mild or otherwise. we want them to do that now. >> joe: are people worried about the weekend risk? >> i think of are hopeful that we don't get the tariffs in place monday. we have had such counteracted

headlines coming out, on the one front it says a notice is going that we are going to get tariffs monday. on the other hand, president trump might flip that on the weekend. it is hard to gauge. caroline: and gauge the mood of the president and how we will find him on monday. we're looking at risk on. we have had the best week since the beginning of november today. >> you have the major indexes up by 3.9%. for the dow, 4.7% for the week. this is with the decline on monday. four days of gains. caroline: can you even believe that monday was as harsh a selloff as it was? joe: was it monday? scarlet: that's right. then we extended it. fullernday, we got the opening the door. powell focusing on trade. caroline: fed beats trade and antitrust issues. joe: it is like rock paper scissors. scarlet: one day seems like one

week in terms of the news. let's dive deeper into today's market action. >> the story of the day really is the expectation for rate cuts later this year. right now, based on futures trading, traders are pricing in almost three rate cuts by december. each one of them is 25 basis points. barclays has come out and say they expect 150 basis rate cut and an additional 25 basis point rate cut. it is a trade issue. even if there is resolution between the u.s. and mexico, right now people are not seeing longer-term inflation. taking a look at five-year year breakeven rates, it is the expected inflation rate. it is the lowest since the employment report that came out

earlier today that fell below the lowest expectations. romaine: let's take a look at the electronic signature company that went public in 2018 to a lot of fanfare. after the company came out with a second quarter billing forecast that came below estimates. it did face its full-year revenue forecast. butaw pretty good reaction, a lot of the movement you saw in the shares today have less to do and more to do with the broader issue. pivotal -- down more than 40% today. a lot analysts saying it is not fair to put bochy sign -- docusign in that same basket,

saying their issues have more to cycle andlonger sales not necessarily winning demand. that is what a lot of analysts said. , he lookedtsche bank at the market reaction today and said it was overdone. he puts a lot on the moment and sellers saying the fun of -- the company's fundamentals starring solid. caroline: not a great day or week. we thank you. sarah, i want to turn to what we're hearing about how david is informing his clients. what do you make of the energy turnaround in oil? people are little tentative when it comes to energy. thinking it will catch up to oil prices. over the past week, we've seen oil prices come down.

energy is one of the worst performing sectors of the year. ,hen you think about oil prices you have saudi arabia saying they are pretty much going to do whatever it takes to make sure there is not a global supply u.s., energythe companies are nuts global exporters as well. if you believe in the energy sector at this point, you can get in. however, it is a cyclical part of the market. joe: what do you make of these -- is there any market signal from the crazy action you're seeing with these ipos? is it just that these are exciting companies or does it tell us something out the state of euphoria? >> it is a combination. some of the companies we have and somestory stock have come out our fundamental game changers in the industry with large sustainable business opportunities.

there is a lot of enthusiasm built into these business models. some of them are going to deliver. in the market that some people are willing to pay for sustainable growth. you get a forward view that is very rosy. scarlet: how much faith you put into -- oh, we have breaking news. back of: this on the potentially some experts -- exits from the business. uber says its operating shapes will step down. repeating that this is a company that has gone public. when you see that exit occur, you see the leadership changes, but after a tumultuous debut, it is planning the way with two top -- a major leadership overall. the chief operating officer and the chief marketing officer both leaving uber. scarlet: mover shares trading a bit lower.

at an a how much you can read into that, but nonetheless, it is down 1.4% in extended trading. the chief operating officer has been sheltered from the public spotlight. he was subject to an internal review after racially insensitive remarks last year. joe: in the note to step, the ceo saying marketing is so important to our business and our brand continues to be challenged. obviously, we all know the challenges that the company faces and part of why the company is making a shift. scarlet: we will be following closely and bringing more details later. i want to go back to what i was going to ask you about earnings. so much of this depends on what companies say. we have no idea how this will turn out. whether it is china or mexico. >> that is a great question.

you step back and ask yourself how much of this is subject to china or mexico. technology, the manufacturers of software, about 15% of their revenue is associated. these are the types of risks have. there's a bifurcation of the market. going into this next week, is everyone going to be talking about -- is it going to continue to be the fed? , particularly when we look at the bond market. >> people will be paying a lot of attention to both. i don't think we're supposed to get a fed speech next week, so

we could see that fall off. the following week, we have a fed meeting so that will come back into focus. next week, we will probably be getting a lot of focus. especially if those tariffs do not go into effect monday. they're probably not going to go away completely. be a lot ofly will headline risk. joe: seeing the state of the economy, industrial production, if we are looking at further evidence that indicates a real slowdown -- caroline: we also get chinese data over the weekend. we'll see how china is affected by it all. scarlet: thanks to david and sarah ponczek. reiterate, the breaking news we had on uber, the coo and cmo are stepping down in a leadership shakeup.

they are now making changes to the top lieutenants. it is a major leadership overhaul and as we mentioned, the coo had already been the subject of an internal review. there was some discontent. two longtime uber executives became trusted allies. one had been working for uber since 2012. he will lead operations. pretty big portfolio. that doesn't for the closing bell. romaine bostick is stepping in next for "what'd you miss?" where we will continue to discuss the management shuffle at uber along with talking about jobs and trade. this is bloomberg. ♪

♪ caroline: live from bloomberg's world headquarters in new york, i'm caroline hyde. romaine: i'm romaine bostick. caroline: here's a snapshot of the rallies. ridesharing shakeup. after a rough public debut, the and cmo arer's coo stepping down. eight jobs report fuels hopes for a rate cut. as a deadline nears, president trump expressing optimism that a deal will be reached to avoid tariffs on mexico. let's get straight to the uber news.

breaking the fact that the coo and cmo will be leaving. i think he wanted to take more direct control over the company, had two longtime executives in mind, then ok, you're losing the scope of your role, so they are stepping aside. romaine: just to be clear, the people leaving, are those positions being filled? >> internal executives are being promoted. on the operations side, andrew mcdonald, who has led much of the ride-hailing business already, is taking a bigger role. an operative who has been a uber leading policy and can indications is expanding her role as well. the ceo said in an email that now that the ipo is done, he can get more personally involved in the business. doesn't have to spend time on the road. >> that is really the message.

much outside of the company because his job is talking to prime minister's, apologizing to everybody who wanted to hear it and then trying to woo investors to the company. the message of the email was certainly, now i am coming back, i'm going to run the company myself and caroline: of course you mentioned, he has been embroiled in a racially inappropriate comment. >> there were comments around a commercial and whether the diversity of the commercial represented their audience and those became a big question. there was an investigation. he didn'tately said need to leave, but that tainted his reputation. he is a new executive in a company that had a lot of leadership that had been running the business for a long time. romaine: a lot of the reasons he had to be out there as the public face, those issues have

not gone away. >> they haven't gone away, but i think that public diplomacy is not the same clip it was. there was a time when i would be coming on the show and talking about how it was one country after another and that is not happening right now. joe: one thing that happened this week was uber shares touched $45. they didn't quite and the week at that level, but they are back to where the eighthy ipo did. ipo'd. to where they think there are a lot of people in uber corporate that have wealth tied up in the stock, so they care a lot about the valuation. they know they need to keep operating and hope that, like facebook, the market here is a company out. romaine: the stock was down today, but the market was up. >> that is true.

[laughter] they give her much. now, the jobs report was disappointing. u.s. employers added 75,000 jobs, the fewest since february. the chairman of the council of economic advisers told bloomberg that it was below their own estimates. he maintains a strong outlook for the labor market. >> there is a little bit of job slowing, but we are looking at controlling for that. a three-month average is probably next month going to look at the 180 range, which is what we have had the last two years. joe: here to take us through the numbers and what they mean is martha gimbel, the research director for the indeed hiring lab joining us from boston. thank you very much. what do you make of these numbers, because it is interesting, a lot of the business was expected to be in manufacturing, but it turned out

that public-sector employment was mild. down the report, what stands out to you? >> i would in focus too much on the one-month public sector numbers. what i do think is worrying is that the goods sector has been slowing down for months, but this is the first time we've seen that weakness extend in the year-over-year numbers. we have been expecting to see slowdown, given the trade tensions, but if that starts spilling over to the rest of the economy, that could be worrisome for job growth. caroline: what about the worrisome effects on wages as well? many feeling that that is not growing at the clip that it had been. is that an issue? i think that the wage numbers are some of the most worrying numbers there. if we see the slowdown in job growth, with accelerating wage growth, we could think of this as an economy nearing full employment. but an economy that is having

slowing job growth and decelerating wage growth is an economy that is running into trouble. joe: looking at not only these numbers but over the past two months, it seems like a lot of the numbers have been erratic. i'm talking numbers on the payroll side. more of a steady decline rather than this up and down. is there anything to read into that with regards to how the economy is performing? >> i think it erratic numbers are hard to interpret. that is why we have been looking at these year-over-year growth numbers. the decline that has been concentrated in the goods sector but is spreading into the service sector. that is making me more worried about the jobs growth. looking at labor force participation. it has not gone anywhere in years. part of that could be due to demographics and even prime age

labor force participation rate, kind of disappointing. what do you make of that, that those numbers are supposed to start picking up our once again? disappointing i think the prime age numbers other ones to focus on. there are improvements starting to slow down. all the numbers in this report are combining together to send a yellow signal about the economy. i want to be clear, it is yellow, not red. we have average job growth of about 150,000. notre worried, but terrified. caroline: one does not a trend make. how long a time frame would the fed be looking at before we start to see any reaction? >> the fed is going to be looking at those changes year-over-year and looking at the fact that the three-month

moving average of job growth is heading downward. the fed had made that that the as a market would continue has any fast -- in the past. romaine: thank you. martha gimbel, research director at indeed hiring lab. president donald trump saying there is a good chance the u.s. will reach an agreement. is ang us from mexico city latin america economy and government managing editor of bloomberg news. where do we stand right now on the mexican side of the equation? we are on the officials right now hoping to accomplish and when? we have the first minister in washington right now having conversations with the u.s. administration trying to see if they can postpone implementation

of these tariffs. that is the short-term strategy. trying to see if they can perform this. they already made an offer on the table, which is they are going to be sending 6000 troops to the border with guatemala trying to administration they are serious about trying to have a tougher migration policy. we'll see if that is or not. joe: for domestic popularity, how do moves such as tighter enforcement of immigration play? mexican voters care about that, do they like or dislike the idea of him seeming to cave to trump? >> it is a tricky situation. he is a left-wing politician.

he has said that migration is a human right, that migrants should be treated respectfully and now the u.s. administration is asking for a tougher stand. the reality is that mexico is trying to have a tougher stand. they are not going to be aggressive. he is a very popular president. his popularity is north of 70%. in tijuana where the president will give more details on the measure. he is trying to, at the same time, keep the base happy and get an agreement with the u.s.. caroline: what about future agreements? this calls into question the so-called usmca or ineptitude .0 -- or nafta 2.0. >> mexican leaders were thinking that the next -- that they would

be ratifying this agreement in mexico and the u.s. now we are trying to see if they avoid these tariffs or not. we need to have potential retaliatory measures. we haven't seen anything yet. we haven't reached that stage. what mexico can do is apply tariffs where the u.s. president is very popular. joe: thank you very much. giving us perspective from mexico. coming up, from a disqualified winner to a horse racing without a writer, the belmont stakes brings this years is our triple crown season to an end. we will be talking of i potential winning pick next. this is bloomberg. ♪

joe: it is the 150 for a 12 -- belmont stakes tomorrow. this year, there is no chance for a horse to go down as a triple crown winner, but there is a lot of stakes in the 1.5 mile run. ,ere to take us through bloomberg editor and horse expert, david papadopoulos. it is a really long race. that is the one thing we know about the belmont. does that mean it is a certain kind of horse that tends to do well? >> that is right. distance, a mile and a half is a rare distance and horseracing. decades ago, it was common. today, these horses have never run it before tomorrow and after tomorrow, they will essentially never run it again. it is not like anybody breeds for this kind of distance. it is just, do you have a horse that happens to fall into it? i have a certain style of course i like. romaine: you have single out one

horse, intrepid heart, and you think it is giving you the feel. >> he is very well bred for it. he is sired by previous winners. they have sired a horse that came within a whisper of running this race. he comes under pressure quickly. he struggles to keep up with the leaders when you're going faster in shorter races. what tends to happen in the longer race, they go slower, the race becomes much more manageable for him. he just gallops along at his with him -- rhythm, while the faster horses become pressured. you guys know way more about this than i do. anyway, we will be watching. wish we had more time with david. coming up, bulls, bears, and doubles. smart the pioneers of

data investing. this is bloomberg. ♪

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first word news. president trump says there is a good chance the united states and mexico can reach an agreement and avoid tariffs, but in a tweet, he warned that if there is no deal, mexico will begin paying 5% tariffs on all goods sent to the u.s. starting monday. negotiators resumed talks in washington today and as we have been reporting, the mexican president says he is optimistic and feels the tariffs will be reduced. a united nations official says he is running out of words to describe what is happening in syria after eight years of conflict.

a spokesperson for the u.n. office of humanitarian affairs spoke to reporters today in geneva. >> we are seeing a military escalation, no doubts about that. after eight years of board syria, every time that we reach the limit of the language we catastrophes about , i recall these words being used here, we see every -- we see even worse. >> the associated press assigns observers, rights groups and residents who say attacks have stepped up with residential areas, hospitals, markets, crops and infrastructure all having been targeted. more than 4 million venezuelans have left their country. numbers rose rapidly after dozens of nations said nicolas

maduro one his presidential term in an illegitimate election. held talks with emmanuel macron at the palace in paris today and reportedly discussed stricter rules containing online injurious conduct. on the agenda was a set of guidelines, named the christchurch call, named after the new zealand city where 51 people were killed in a mosque attack. much of the attack was broadcast outrage andg public debate on how to better regulate social media. global news 24 hours a day on the air and @tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ emerging assets got a boost from today's weak u.s. jobs data, which reinforced that the fed is going to cut rates.

em stocks rose for the first day in four, while currencies we just -- resumed their gains. half of his personal portfolio is now dedicated to value stocks, compared to no exposure years ago. her to have you. emerging markets have really stunk for a long time, relative to the u.s. are a were else. why do you think they may be a place for a turnaround? >> there is no such thing as a bargain in the absence of fear. bargains our markets and investments that have inflicted pain and losses and in so doing have created an environment in which people don't want to own them. invest and time to at a time when underperformance has been prolonged? take us back to 2008. and when relative valuations are cheap. emerging-market stocks are about half the multiple of the u.s. and the value side of the market

is only 30% as expensive as the u.s.. romaine: are you only focused on emerging-market stocks? what about debt and currency? >> i like emerging-market debt. emerging-market debt has a higher yield than u.s. junk bonds, which makes this sense, it is a must half of emerging-market debt is investment grade. that represents a bargain but the deeper bargains are on the equities side. caroline: it is a gross generalization to say emerging markets are a specific country. where in terms of country, sector, assets? >> i like diversification. harry markowitz once said there are two free lunches. diversification and inversion. i believe in both. i want to own the emerging-market economies broadly, but i want to overweight the ones that are most over favor. that would mean russia and turkey. why would you want to own those?

because they are cheap. because the markets in those countries already priced in for really bleak outcomes, for really powerful headwinds. you don't need good news for these markets to soar. all you need is the bad news to be less bad than expected. joe: let's talk about the flipside. let's take the mean reversion perspective. for u.s. equities, which are 3% off their all-time highs, despite mediocre labor data, despite trade wars, despite the government going after big tech, what do you think about u.s. stocks? >> u.s. stocks are price to reflect a complacent expectation. shocks would likely do damage. lies the challenge. the market is shrugging these things off. the past rate hikes, the trade war, tariffs, you name it.

they are shrugging them off, because the marketplace perceives these as a nonevent on a long-term basis. the market looks past crises. it asks, is this going to matter in a year, in 3, 5 years? market tends not to look ahead farther than that. i like to ask, is this going to matter in 10 years? today's trade war and tariffs are going to be a non-issue. it will have a bearing on how the chinese or u.s. or mexican economies grow. 10 years from now, we will have an entirely different political regime and economic circumstances. the stock market is complacent from our perspective. ,f the bond markets freak out the treasury market reflecting fear, is that the right thing to be seeing? >> it has been said that the stock market has a high school diploma and the bond market has a phd. caroline: the bond market loves

to say that. >> the bond market looks ahead to puthink a better way it is the stock market looks at what can go right, the bond market looks at what can go wrong. if you have a bond market were ,he yield curve is inverted yield curves inversion predicted six out of the prior six bear markets. no -- excuse me, recessions. no false positives, no false negatives. since then, it has predicted five out of five. if something has a 1000 batting average, you had better pay attention. does the inverted yield curve addict a recession? if history is a guide, it does. more pertinent might be, does an inverted yield curve cause a recession? i think it is causal. i think it causes recessions. the fed isnal that

behind the curve and we heard powell say not too long ago, i don't see anything wrong with the economy. by the time something wrong with the economy is self-evident, it is too late. that is something that i think central bankers miss. romaine: you don't think the fed has the capacity to bail us out this time? >> i wouldn't go that far. this indicatort has a batting average of 1000, but it won't always. the simple fact is, they have got to act sooner rather than later. i am hoping that they cut rates in june and again in july or september, because the bond market is telling us they are behind the curve. long and is yielding less the long andt end, is telling you people are happy to lend money for next to nothing and not happy to borrow

money for next to nothing. romaine: we will have to leave it there. we could talk to you all day. chairman of research affiliates. coming up, a robot rally? a robotic suit system that sends stocks higher. we will speak with the ceo on the product next. this is bloomberg. ♪

caroline: the head of the people's bank of china says there is tremendous room to adjust monetary policy at the trade war gets worse. he spoke to bloomberg in an exclusive interview. he also said the u.s. decision to raise tariffs cuts those away. >> a tariff is really a double-edged sword.

it is hurting chinese economy and the u.s. economy. especially the u.s. consumers. mitigating the pain inflicted by cord cutters, at&t and dish have been suffering subscriber losses and they are said to be open to a merger that would combine their satellite services. this was proposed nearly two decades ago, but was shot down because the deal was said to hurt consumers. today, it is a whole new ballgame with competition by the likes of netflix and amazon prime. are presented its declined to comment. a billionaire is scooping up trouble at barnes and nobles. elliott management has agreed to buy the chain. but britishlliott bookstore waterstone's. that chain's ceo will run barnes and noble. that's your business flash update. joe: a robot rally.

shares of rewalk robotics tripled this week after the fda ok'd the company's latest device, a robotic suit system meant to rehabilitate those struggling to walk after suffering a stroke. .oining us is the ceo of rewalk thank you very much for joining us. seligson's -- exoskeletons sound like sci-fi, but this is something has the potential to benefit people. >> for the paralyzed community, there are about 500 people who can walk today in one type of exoskeleton. the big news for our company is the fda this week approved a new system for people that have a stroke. this will help them learn to walk again. romaine: so this is a rehabilitation device for the stroke victim? >> very much. there are 17 million people in

the united states and europe who have had strokes. approval, arefda they making it determination that this is about the efficacy of it? that it works well enough and should be out there? >> the fda approval is based on safety. that is what that data has. we brought this out of harvard university and their several there arepapers-- several published papers. caroline: this is not your first piece of increment. before you had rewalk, which is where the name comes from. the trouble has been getting insurance to finance this. why are insurance load to do it -- loathe to do it? >> slow is probably the right word. if you are a german citizen, 90% of people are covered. united states, the v.a. led the way. for the u.s. insurer, the first group that stepped forward,

sydney -- cigna changed their policy this last february. on the rewalk side, we have people that would like to walk again but that is not worthy insurers are. look at the portfolio of a company, i need success, i need performance financially to drive us. this product has coverage. re-embracement pays for this but it is economical and clinical for these to be a vital economic play for them when we start selling in next week. time thatexpect over the cost of your technology would drop or be more like other medical products in which the laws of supply and demand feel like they don't apply and go up or stay the same overtime? >> bringing a product to market is expensive. that tends to slow down.

you will see the types of systems will be different. rewalk is about $100,000. -- restore sells for 20,000 $28,900. the math is a lot better. this is a wearable robotic. a small, flexible component that fits on the lower leg. romaine: maybe we can take a look. you brought someone with you? someone who has the advice on now. maybe you can tell us what you are looking at. >> if you look at the young man that is walking with this, you can't see this, but inside his shoe is a device like this. this just goes inside your normal shoe and there is a cable so you clear the ground. functionally, this uses cables, like on a bicycle. it lifts your toe and your heel and it is doing this with sensors and software that is taking a sensor on the healthy

leg and telling me paralyzed leg what to do. you get symmetry, speed match and distance match. we saw the picture of a lightweight, less than two pound component on the lower leg and a battery pack on the ways. caroline: our viewers are investors. you said in your statement the pathway is now their to become a breakeven or even profitable company. do you have a timeline for that? >> we haven't given out a public forecast, but you can look at where we are and where our expenses are. it is in the next two to three years. i will the stroke that penetrate because it is a much larger market. there is nothing else like it. technology canis work for multiple sclerosis, for stroke, people who need something in the hip and parkinson's disease. that is the long version of the company.

this is certainly something that affects many families and i'm sure they will be helpful. -- hopeful. this is bloomberg. ♪

romaine: as the china trade war continues to escalate, tom mackenzie spoke with the governor at his headquarters in beijing in an exclusive interview. take a listen. >> i think at this point, we have to come up with some idea of overcoming the tremendous to the cult he ahead of us. difficultyendous ahead of us. i hope that we can solve our differences through mutually respectable negotiation. >> talking of negotiation, you

will be heading to the g20, meeting with the u.s. secretary of treasury and having a discussion with him. is that an opportunity to get the talks back on track? what would you be hoping to achieve? >> i will meet secretary steven mnuchin this weekend in japan. talknk we are going to global economy of course. issues. g20 but also, we will discuss the topics that commonly interest both sides. i think it would be a productive talk. was tom mackenzie speaking with the people's bank of china governor. interestingly, amid all the tensions between china and u.s., and online special retailer jumped after raising $212 million. revolves debut cams at a

challenging time for retailers. here is what we heard from the companies ceo. >> we have been building our business for the long-term since day one. we have been through two recessions and emerged stronger each time. we have approached retailer differently. we are doing everything with technology and intelligence us a remarkable result. that is why a lot of these legacy brands aren't doing well. they don't know how to connect with the younger generation. caroline: from one e-commerce theany connecting with younger generation to another. targeting millennials and generation z, depop. talk to us about targeting gen z. how difficult is it and how different is it? , we loveing gen z

doing it, because they are the future. they represent code-5 percent of the population -- they represent 25% of the population. they are different to the previous generations. caroline: in what way? >> they are digital natives. they were born with a phone in their pocket in a way. and they individuality have high demand, because they are used to amazon, to be delivered quick. they are definitely demanding, but they really love individuality and creativity. let's talk about your app. it is for e-commerce. how does it work? marketplace where people buy and sell fashion. as we said, we are focused on gen z, some 90% of our users are

under 26 years old. we are allowing them to build businesses. andelieve they will shape transform the fashion industry the same way that airbnb has done it with hospitality or that spotify is doing with music. them toat by allowing build businesses in an easy way. romaine: back in april, bloomberg did a big feature story about the fashion industry and all the changes and they profiled a young woman who was 21 years old who was selling on instagram. she said she couldn't sell on instagram, then she would go to depop. how do you get that sort of user away from instagram, away from the bigger potential competitors and onto your platform? >> instagram and other social media where you share your moments, your life, your experiences, depop is a place where we build businesses. we make it easier for them to open a shop, get followers and build their business.

it andt is the way we do we do have a lot of people that are using instagram to promote themselves and do pop to build their business. caroline: $62 million has been raised. -- of the investors congratulations, you will be scaling. you offer 13 million users. as instagram starts to allow you to buy directly, how do you scale in the right way to be the to ensure that you are primary place for people to build businesses and sell directly? >> we are basically building a platform to connect and market buyers to sellers. we are building tools for our sellers to be able to sign up in an easy way by partnering with shipping providers and being able to manage your shop from your pocket. backin terms of -- going to the increased commerce --

obviously, romaine was talking about people selling on instagram. instagram itself is in the early days of rolling out its commerce potential. there is going to be one more click. how do people discover your platform and see that there is a better alternative? years, wepast experienced strong organic growth, which means that, because the gen z's love our platform, they have been sharing their experiences -- romaine: what about us camera can we's -- what about us, can we shopped there too? [laughter] >> yes, we are very inclusive. even though we are targeting gen z, we are hoping for anyone who likes fashion. caroline: thank you for joining us. ceo of depop. up next, tariffs on mexican goods could take effect monday. joe: i will be watching numbers for ppi coming out tuesday. romaine: don't miss the report

coming out tuesday. caroline: that is all for "what'd you miss?." romaine: bloomberg technology is next in the u.s.. joe: have a great weekend. this is bloomberg. ♪

emily: this is bloomberg technology. big tech and the u.s. government are preparing for major antitrust battles this year. we will talk to the lawyer who took on a microsoft in the 90's. plus, google wants restrictions on huawei lifted. a top government official in charge of the u.s. stance on huawei will join