mark: i'm mark crumpton with bloomberg's first word news. a federal investigator says the helicopter that slammed into the roof of a manhattan high-rise building monday was apparently captured on video minutes earlier flying erratically after it took off. a video reported by a bystander and posted on social media shows the helicopter shortly after taking off from the east 34th street heliport making abrupt maneuvers, including a dive andre flying into the mist disappearing. the ntsb reporter said "we believe that to be the helicopter. it is something i still have to confirm."

he also gave a timeline of yesterday's deadly accident. of the information we know so far, that the helicopter departed with the pilot and one passenger from westchester county yesterday about 11:30 a.m. it landed in manhattan about 11:45 a.m. the passenger disembarked, the pilot waited at the 34th street helipad until about 1:30 when he departed for his destination in new jersey. the helicopter crashed on the roof about 1:40 p.m. mark: the pilot was the sole occupant of the helicopter and was killed when it hit the roof of 787 7th avenue in fog and rain. investigation's top concerns will be to determine why the pilot was flying in low visibility conditions. even though the supreme court has yet to decide whether a citizenship question should be included index years census questionnaire, the u.s. census bureau is preparing for either

outcome. bureau officials said today they are beginning a test to see how people respond to the questionnaire, depending on whether the citizenship question is included. public and have been pushing to at the question but opponents say it would scare off immigrants and skew population counts. iran is looking for u.s. concessions before it agrees to have talks on missiles and intervening in the middle east. iran's foreign minister u.s. can expect to stay safe while it wages an "economic war" against iran. the u.s. is considering more economic sanctions. according to a senior administers an official, the next move would be aimed at an iranian financial body used for humanitarian trade with europe. scotland's first minister says brexit and the horror show the british government leadership contest are signs that scotland needs to chart a different future path, probably outside

the united kingdom. in brussels today, sturgeon said increasingly scotland and the u.k. are on different political paths. she accuse the u.k. government of being immature and failing to provide to provide support to her trip to meet with european officials. >> apparently, they decided they are not providing any support to my visit in brussels. we have our own team here in scotland and the rest of it, but it says something pretty depressing. i don't know the details, so they would have to speak for themselves. "the peopleon added of scotland have to have a choice before it is too late to stop the damage of brexit being done." global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪

scarlet: from bloomberg world headquarters in new york, this is "bloomberg markets: the close." i'm scarlet fu. caroline: i'm caroline hyde. we are about 30 minutes from the end of the trading day. it has been a bit of a roller coaster trading day. in some ways, risk aversion, but now risk on just slightly when we look at what is happening in terms of nasdaq. get toseem to be able to a 60 day. -- sixth day. concerns about what is happening with the chinese trade deal. it is trump holding up the deal, so he says. scarlet: we will not get any

indication of movement until president trump and president xi meet at g20 at the end of this month. if you look at treasuries, they have been all over the place. right now, they are barely moving. up just barely. the dollar also little changed. wti has stabilized. support around $53 a barrel. it had a short selloff the end of may and early june at seems to have halted. new jersey's plan to slash $2 billion of hedge fund investments on simple. you pick the top managers, ask for reductions from others. but they can look across the country to see how long that can take. five years after california's biggest retirement plan decided to pull out of all hedge funds, its managers are still waiting to retrieve $150 million in asset management. for more on this exclusive report, we are joined by our guest. why is it taking so long?

>> it was 2014 when the largest pension system in the u.s. decided to dump hedge funds altogether. now we are in june 2019 and still waiting for the separation to take effect. a lot of it goes to a decent chunk of cash that still is and waiting for that to come back. the reason we are paying attention is it is one of the biggest pension funds. it is the biggest pension fund player in the u.s. so their experience trying to get out of hedge funds is in some ways instructive to the kind of experience others might face when they try to carry out this move. caroline: how much of this delay lies at the feet of it itself? sridhar: good question. already gotten criticism for the investments being made. for example, the investment in american media, the longtime

owner of tablets like the national enquirer. in fact, they have been saying we have been encouraging the funds to sell for several years but they say they are not distressed sellers and do not want to accept a haircut. as a result, we end up waiting and remain in this limbo. one week a back to 2014, they said we will be out of hedge funds within the year. it has not quite panned out that way. scarlet: not exactly. what can you tell us about it? not one of the biggest hedge fund out there. sridhar: founded by a former morgan stanley and goldman sachs trader. set up shop in new jersey. in hedge fund is $4 billion size and a lot of it is on the back of big-money miniatures like pension funds from california and new jersey and other places. they have drawn quite a bit of praise. in some online legacy media names, for instance.

there was a little bit of scrutiny cast on them. more of a spotlight on them ever since american media association came to light, the jeff bezos situation. that has led people to ask questions because it is the money behind american media. caroline: talking more broadly, why are pension funds actually exiting the hedge fund holdings anyways? sridhar: the x factor. the hope they will be able to outperform markets, but they are not doing that like they used to. hi sees -- high seas. too much complicity. hedge funds used to be this mythical, magical source of supersized returns. that does not seem to be the case anymore. it went from next to nothing to almost $3 trillion in assets into decades on the back of money from pension funds. when that starts to reverse, we

have to see there could be a cause of concern in the industry. it is happening quite yet? not in the way we should be concerned about. but at least it started extended. not seeing the drop we have been seeing the last couple of years. caroline: putting it all into perspective for us. we thank you. great story. coming up, better graphics, cloud gaming, and new titles all on the menu at the electronic entertainment conference in los angeles. that is up next. this is bloomberg. ♪

caroline: gamers are gathering in los angeles at this year's electronic entertainment expo or e3 kicks off her but it kicked off on saturday, setting a state of play for what video gamers can expect. better graphics, more gaming,

fresh titles. joining us now on the phone is ted. good to happy you with us. so far, but as the number one thing that caught your attention? >> the number one thing that caught my attention are things that affect the larger market. these things often go undetected by the major media. because they are not flashy, not a game, but it is the advance of processing power by the semi conductor companies that allow the games to play. for example, the last few days, i have been at an amd analyst summit, and they are releasing cpus that do not need graphics cards to process e-sports type games. it creates the potential market for gamers that have lower budgets to expand by hundreds of millions of players. scarlet: what the major media

doesn't focus on and we will confess to being one of the major media outlets is whether there will be hardware or not. sony will not be at the event. microsoft and nintendo have both said they are not planning to release any new consoles. there is a lot of focus on streaming. it is that point i'm interested in because you have sony and microsoft getting ready to team up to announced a new initiative together. talk us through what that means for the industry at large because that sounds like a game changer. ted: absolutely. car gaming is a game changer. the reason it is a game changer is because it lowers the barriers to entry, i like to call it, for someone to try gaming. once people tried gaming, they generally stick with it. with cloud gaming, you have so many opportunities for companies like google, microsoft, sony, perhaps cable providers, and other companies that have not announced yet to almost send controllers for free that will

work with a sufficient service and just another thing in addition to these graphical lower the will barriers and expand the address of the marketable gamers. caroline: what about the gaming companies, the makers of the games? how does it change their economics? they still have the huge went out must have buys that cost a lot when you buy them online or in the shop? ted: i did not catch that completely, but i think i see where you are going at. the game companies, this is a win win win. their addressable market expands. the people that have the right processing power to play their high-quality graphics games expands, and also with cloud gaming, there is the potential to get people to try games with new business models where they

may be paid by the hour or demo the game and then go into a normal transaction for the game. the cloud gaming technology really opens up a whole bunch of different business models from paper graphics, paid by time, pay for the entire game, a number of games, and it opens up a huge door for the business people at these games to maximize the profitability and revenue. scarlet: which game are you most excited about? if you had to narrow it down to one game. "cyberpunk"y the game. that has the most excitement. zelda 2 was announced. it is hard to pick one. so many awesome games out there but the cyberpunk game looks amazing. caroline: we thank you. we will look out for it. for more, do not miss our interview with take-two's ceo tonight at 5:00 p.m. eastern on

"bluebird technology." -- "bloomberg technology." emerging markets are on a tear. so is the south african rand. good economic news. this is bloomberg. ♪

♪ caroline: this is "countdown to the close." i'm caroline hyde. scarlet: i'm scarlet fu. joe weisenthal joins us at this hour as he does every day but from d.c. this time. you are watching inflation data. joe: this morning, president trump once again going after the federal reserve and saying, look, inflation is really low. that is great. the thing is he is right. there is no evidence. we got the wholesale inflation

and it was pretty mild. caroline: i thought it was interesting. talking down the dollar or talking up the euro because we certainly got a take on the fx markets once again coming from trump. scarlet: he always comes back to his original theme, which is he wants the federal reserve to lower rates. if we look at how the industry itups have performed today, is pretty mixed in terms of such a performance. telecoms also doing better, gaining 0.9%. on the flipside, capital goods, utilities down about 1% were so. health care as well lower by 0.6%. with that, let's get a check of how the index looks overall. let me move there because we have a move up at the open. since then, me entering lower. week -- me entering lower -- mea

ndering lower. losses,urn to modest searching for direction. moments away from the coast, let's take a closer look at the action with the markets reporters. abigail or luke? luke: i will take it. looking at small caps. readingthe strong fip and it did not mention tariffs at all, the report, small caps underperforming once again today. this is the norm, not the exception since the trade war restarted on may 3. this may surprise people considering last year, march 1, small caps proceeded to outperform the index for the next four months but they certainly have this time. barclays downgraded small caps, cut its price target to of0 from 1560, a downside

3.5% from current levels. the interesting thesis is the trade war effects u.s. small caps more. we know they don't have as many export sales. is three times -- their import exposure is three times larger. they are small so they do not have the pricing permit to negotiate so the suppliers eat some of the cost and they don't have the pricing power to build up the cost along to consumers. abigail: as u.s. stocks shuffle in the u.s. around even, a big rally in china. some of the big chinese internet names really are performing. these are tops for the nasdaq 100. perhaps on some relief around trade, despite the war of words between president trump and president xi's officials but we see the strength. lots of the stocks bumpy.

standing up is a winner, considering the uptrend out of 2000 continues to be in play, up more than 6000% over that time period. we see lots of strength. the stock is up 2.7%. take a look at this very close to its 52-week high. street.on the we move over here to valuation, trading at 22.4 times. a small premium to the group. considering they are expected to put up nearly $78 with a profit this year growing at 65% year-over-year, this might be the one chinese internet stock to take a look at of concerns about a trade war ease a little bit. emma: exactly 24 hours ago i was talking to you about the today frenzy we had seen in the stock of beyond meet following it's better than expected earnings report on friday morning. today, cutting that gain in half.

now just about 26%. the reason, a bit of profit-taking after yesterday but it lost one of its remaining bowls. the analyst at jp morgan cutting to neutral from buy. he says the stock is too expensive. the today frenzy that we saw friday and monday just too much. he says $10 billion enterprise value that we are seeing is now 27 times estimated 2020 earnings. really a valuation call, saying any hiccups in the stock can lead to a meaningful correction. 400% from thethan ipo at the beginning of last month. analyst action looking at one buy, 8 holds, no cells. -- sells. scarlet: a remarkable story. now for analysis, let's bring in gina, chief equity strategist

for bloomberg. when we look at the market today, everyone is looking ahead to the catalyst, whether the federal reserve or some kind of headline on trade. when it comes to the federal reserve, pricing and 75% odds of a rate cut on the july 31 meeting. pretty remarkable. it is a matter of when, not if. >> yes. i think there are a number of economists starting to question that notion an assumption. i would jersey has been talking about it all day, suggesting maybe we are getting a little aggressive, saying the fed will be able to cut by july. the data is not that bad. inflation is relatively minimal but will they be in such a rush? also, rapid recovery just over the last week to within a few ticks of all-time highs would suggest maybe the situation is not that dire. obviously, a lot of moving parts you have to track. joe: as you point every recovery. what does that say about the

degree to which investors are concerned about china trade which have been one of the main stories behind the may fall? gina: they are still concerned about it and also concerns that we may not get a rate cut. it is not clear what the equity market is really thinking. obviously as of the begin to last week, the equity market was taken off guard by the prospect you may have a rate cut. our models suggest if you get a rate cut, you have upwards potential for the pe multiple closer to 20 times the earnings on the s&p 500, which is remarkably higher from where we are today. the offset is of course trade and no one knows how to price trade because we do not know where things are headed. you can make a lot of onerous assumptions with the guts to the , but china isk instituting policies to support those so a lot of mixed news right now. the trade overwhelmingly is something of a headwind because it is starting to provide a little bit of downside support. caroline: just 2:15 to go.

now let's go to the senior portfolio manager. your take first on the fed. one or two cuts this year? >> yes, i think one to two cuts is likely in the second half of the year. scarlet: one to two cuts is likely at the end of this year. what would prompt the fed to make that move as opposed to just sounding sufficiently dovish for investors? >> i think they will look at the data, and there are many straws that would suggest we are seeing decelerating growth and also that the financial market is really a little bit too tight even though rates are very low. they are struggling for the real rate of interest, and that will be lower. joe: what do you expect to see at the june meeting? most people don't think there will likely be any policy move, but there is a press conference. what can powell say tooretically at the meeting give investors some insurance

concerns are being taken seriously. margaret: observe and evaluate the economy and also i think from a theoretical viewpoint where should interest rates really be? they have abandoned the track they had last year and say, where should they really be at a minimum right? i think that will tend to suggest rates should be lower than today's low rate. caroline: interesting calls there. your take on where money is being put to work. feels like catches on the sideline. looking at the small caps, they are down further. have we seen money moving in as one might anticipate doing trade concerns? gina: there is a desire to move into small caps, but investors are pushing into small caps for a number of reasons. the first is there is not a full risk on tone. yes, last week was very strong in terms of risk on but you still have risk going into

defensive types of investments in the equity market. small caps are a perfect example. small caps continue to lag. it was not a robust rally for small caps. a lot of skepticism with regard to margins and the dollar started turning over, which is one of investors's perennial arguments for a get a lot ofid, we questions on small caps. frankly, as long as the tone is still this confusion with respect to trade, it will prevent risk tolerance from elevating small-cap performance. today,: small caps obviously the worst performer. the major indexes, all changed. the s&p movewe saw 1% from intraday low to intraday

high. usually when you have these days where we are meandering, it is more like 10% below average. let's take a closer look at what drove some of today's action. i too am thinking about yields. this chart is the 10 year yield. it goes back about a year. for much of 2018, the 10 year had been about 3%, then we had the flight to safety, then we saw bonds rally going from about 3.25% earlier this week, close to 2%. we see a strong trend channel from flips in terms of buying and selling. we have this big rally going to 2% or thereabouts. this chart suggests that those

who have made big profits on bonds in april or may may continue to take profits. net-net, wethat could see the 10 year yields go back to 2.4%. stocks took a bit of a breather today. that could be understood given the extent of the gains over the past week or so. instinetillary over at looked into how common of an occurrence this is. the answer is not very. it has only happened three times before since the start of 2017. on this chart, the white line is the s&p 500 level. as the five day rolling change. after very large

decline. what is interesting is they have never coincided with the s&p putting in new highs. maybe that is the question -- maybe that begs the question, maybe we do need slower gains to take out those new levels. >> i've been keeping an ion t-mobile and sprint. investors are becoming more doubtful that t-mobile's takeover of sprint will actually happen. both stocks declining today. t-mobile'sthe spread offer price and where they are trading now. it is the widest it has been since may 17. the news today was a group of 10 states pursuant prevent the deal -- states are suing to prevent the deal saying it is anticompetitive.

last month, the chairman said he was minded to approve the deal. the doj, what they are going to do. all we know is the head of the ftct there thanks at the concession that went far enough. scarlet: still with us, argue patel of wells fargo and jean adams. i want to shift gears a little bit to technology. at the start of last week, there were anti-trust concerns, whether this was something that would halt growth. that seems to have changed overnight after the fed made clear it is ready to move as needed. how do you look at technology? how should we view them as vestments right now with all these questions? >> big companies under antitrust pressure, political pressure,

there is the uncertain they may need to restructure to satisfy government criticism the rest of the second has a very high -- criticism. the rest of the sector has a very high growth path. joe: one area that got hammered chiphipped stocks. -- the stocks. do those present an opportunity given their weakness? margaret: i think they do. we have seen some activity suggesting there's a lot of human chip -- a lot of value in the chip sector. i think we will see a bright outlook for the year and beyond that. tech prettyroline: much flat but we did see the big giants in the green today. in your perspective, how much

more juice is in these stocks and how much are we seeing headwinds? >> the tech sector at large is really the story of divergences. it is not the story in the 2016, 2017, 2018 cycle which was all tech stocks rising. instead, you will have winners and losers in tech. exposed toemendously higher cost pressures and trade risks. some exposed to antitrust, others not exposed. you have this environment where policy is pretty dramatically impacting potential, you have to be careful especially in this sector which has clearly become the most beloved sector in the s&p 500 this cycle. scarlet: many would say tech is undervalued. what parts or pockets of the market could be undervalued

especially if there is no fed rate cut,? -- rate cut coming? >> some of the communications stocks, energy, trading two standard deviations below five year average. there is some dependency. reignite would be a widening of the yield curve spread. there's a little bit of codependency on what is truly undervalued or what is not. there are pockets that are undervalued not the sector at large. the defensive stocks are overvalued compared to recent history but investors are willing to pay up. often times, it is in the eye of the be over -- the eye of the beholder. joe: one of the areas that outperformed today, emerging

markets gaining. i feel like, for years, we've been wondering, one will there ofsustained outperformance u.s. equities? do you see signs that the rest of the world could durably outperform the u.s.? u.s. is: i think the moving strength to strength and will continue to outperform. i think the u.s. is going to increase its lead over the rest of the world as far as growth. by 1% on -- eem up by 1% on today's trade. that does it for "the closing bell." romaine bostick is stepping in for "what'd you miss?" this is bloomberg. ♪

' i'mline: live from london, caroline hyde. romaine: i'm romaine bostick in new york. joe: i'm joe weisenthal in washington. end to the five day winning streak. under scrutiny, sprint and t-mobile face another legal challenge to their merger as the probe into big tech kicks off with a spotlight on google and facebook.

with the meatless mania intensifying, we will hear from a pioneer in the clean meat meats.the ceo of memphis when he tweets, wall street listens. we are not talking about president trump, but the editor-in-chief of china's most prominent newspaper, global times. romaine: another industry under antitrust scrutiny. a group of states are suing to block t-mobile's proposed takeover of sprint. the state attorney general from nine states and the district of columbia filed the lawsuit in new york where state attorney general leticia james addressed the action. >> a fabulous group of attorneys general from nine states filed a multistate lawsuit in the southern district of new york to halt the proposed merger of telecom giants t-mobile and

sprint, because when it comes to corporate power, bigger isn't always better. romaine: here to take us through the implications, a bloomberg intelligence senior analyst for antitrust litigation. we know the doj seemed to be somewhat favoring the deal. but now you have the state suing almost preemptively i guess. do we have any parallels we can draw? >> no. usually what happens is the states piggyback on an investigation with the doj or federal trade commission and if they sue to block, generally the states will join. -- it is few and far between and the successes are few and far between. this is perhaps done to put a

little pressure on the department of justice which may yet be undecided, or just take -- joe: how solid are they on the matter of law? >> i think they are quite solid. first is proving there is harm to the market. i think actually they will have a fairly easy time getting there. the problem will be, if the department of justice doesn't approve this deal with a remedy and you have a bolstered remedy coming from the department of justice, that is going to be litigated as well. are a little bit harder and i think that could be an uphill climb. isoline: the spotlight

squarely on technology the ceo of uber was speaking to us earlier. havee biggest challenge we is a common challenge with some of the large technology companies out there, which is that there is an increasing regulatory berg -- regulatory burden on some of the tech companies, some of it deserved. i think we are becoming such an important part of everyday life. caroline: he's saying, look, there's more regulation for them. what are you seeing in terms of the amount of focus coming from capitol hill? will we get any sort of real policymaking from it all? beabsolutely, this seems to bipartisan. some similar motivations. i think it is likely there will be some regulation.

it is unclear to me what sense of that regulation will be. i think privacy regulation is most likely but there could be antitrust regulations or just general big tech regulations. the hearings that have just started at the house judiciary committee, they are basically aimed at gathering facts to understand sort of the environment and what legislation is needed. i think something will be coming. -changing.times a jennifer, thank you. coming up, lab to table to meal. we are joined by the ceo and cofounder of the food technology company memphis meats. this is bloomberg. ♪

. caroline: quick check of the latest business flash headlines. morgan stanley ceo james gorman will be surprised that the trading revenue beats the first quarter figure. he said the last two weeks have been quite hard for the trading business. he said macro trading was especially challenging merger business was "lumpy." ofgermany, several employees deutsche bank are subjects of a tax investigation. the former ceo and former co-ceo are subjects. plungedf beyond meet today after rising almost 600% in the first few weeks as a public company.

recommendation -- goldman cut the recommendation. timenterprise value was 27 next year's estimated sales. not the onlyeat is company serving up alternatives to your favorite dinner. memphis joe: -- memphis meat says the lab table concept will ensure quality, nutrition. the company is backed by bill gates, richard branson, and most recently another investment. we welcome uma valeti, the ceo and cofounder of emphasis meat -- of memphis meats. uma: we are a food company

seafoodmeet, poultry, directly from animal cells. cells from animals and identify the cells that can renew themselves. what we do is really identify the high quality of cells that will make the cut into high quality meat. we isolate the cells, then we would them in a clean, controlled environment and feed them essential nutrients, similar to what a baby calf would eat like vitamins, amino acids, minerals, sugars. within a matter of 3-6 weeks, delicious meat is harvested and cooked. the efficiency of adding from is just amazing. we've done a lot of products.

as your do you see likely customer? obviously with something like beyond meat, the target is people who maybe do eat traditional meat and want to cut back a little bit. what you are serving is actual meat or something chemically the same as traditional meat. do you see selling to traditional meat eaters or vegetarians who want to eat meat but are concerned about the environmental or animal suffering aspects? you put it really well. this is real meat. people who have loved eating meat for thousands of years recognize this is meat. it is something that is part of our cultures whether you grow up in india, china, the u.s., anywhere in the world. we started this tradition of

growing and eating meat at almost every gathering we have. when we think about our potential customers, we see a high interest from people who are, let's say, 55 or under. to 70%.erest is 50% it is very interesting, even in those over 55, the interest is 50%-plus. it makes sense because this is meat and when people taste it, that is when the magic happens. it is also blurring the definitions of who is a vegetarian or vegan. if a person is a vegetarian for environmental or ethical reason, you can detach meat production from slaughter for the first time ever. romaine: this is scientifically fascinating area there's a customer -- fascinating. there's a customer base that might not care as much about the science behind it. it will just here lab grown meat

meat, and that may turn them off. how do you sell it to people who might be skeptical of the science rather than fascinated? uma: this is something we wreck as -- we recognized. we started the company over three years ago. this was still thought of as science fiction. every startup wants to introduce their product and say, here it is. we started talking about it really early. in order for us to demystify this to anyone who thinks about meat, ord meat, clean other names that are popular, they have to experience this. see it being cooked, taste it.

i think our goal is to get out as quickly as possible why we do this, how we are doing it, and what we are doing. we introduced the beef-based ball. of thehat, we picked two most popular species in the world. chicken, most popular in the u.s.. because weked duck wanted to show -- this is very relevant globally and more duck is eaten in china than the rest of the world combined. caroline: we are seeing pictures of the cooking going on. you are saying people have got to take it. when can we? when will it be in the shops? uma: from the day we started the company, we have been talking about it everywhere.

all our tastings, we have invited reporters. we wanted people to taste it and immediately share their experience. that is one of the reasons why people are recognizing the potential. this is not for everyone right away. they have to get comfortable with it. they have to see their friends eat it. for the last three years, our entire focus was showing that we can do it with desirable species. now, let's move down the cost curve and start scaling production. we want to get to market as soon as possible. i would say it is in the near future, and the next -- i will stop there. in the near future. joe: i want to go back to the philosophy and the way you will market this. we live in a time where there is a lot of skepticism toward week tech, algorithms -- toward big

tech, algorithms, not seeing where things come from. why should we feel comfortable by a new generation of food that are cooked up in a lab that we don't really have any transparency into? uma: that is the exact reason why i think this will be adopted really well, because of the transparency from day one. the consumer cares about where food comes from. it is clear that consumers want to be excited about the process by which food gets there and not merely tolerate a process in place. merely animals, they are tolerating it. if you are given the option of raising meat directly without slaughtering animals, that is amazing. caroline: uma valeti, right here in london. romaine: some quick lose -- some

quick news, the house has authorized a lawsuit over attorney general barr --the mother report.

mark: i am mark crumpton with bloomberg's first word news. the nation's roman catholic ships opened a conference today in baltimore about confronting the sex abuse crisis. how willing are bishops to give leah experts a role in holding the clergy accountable? new guidance pope francis issued last month requires priests and report abusee to and coverups to authorities. the house has voted to authorize a resolution that would make it easier to sue president trump's

administration and potential witnesses. and whiteliam barr house counsel don mcgann for defying subpoenas. it would also empower committee chairmen to take committee action to issue subpoenas without a vote of the full house as long as they have approval of a bipartisan group of leaders. the helicopter that slammed into a roof of a manhattan high-rise building on monday was apparently captured on video minutes earlier flying erratically after it took off. a video captured by a bystander shows the helicopter shortly after taking off from the east 34th street teleport -- heliport making maneuvers. an investigator told reporters this afternoon, "we believe that to be the hot -- to be the

helicopter. that is still something i have to confirm." he also gave a timeline of the accident. >> the helicopter departed with the pilot and one passenger from westchester county yesterday at about 11:30 a.m. it landed in manhattan about 11:45 a.m. the passenger disembarked. the pilot waited until about 1:30, when he departed for his destination in new jersey. the pilot crashed on the roof at 1:40 pm mark: the pilot was killed. one of the investigation's top concerns will be to try to determine why the pilot was flying in low visibility conditions. sweden's foreign minister has criticized the united states for jeopardizing a decade of efforts

to secure the iran nuclear deal. speaking on the sidelines of a meeting in sparkle -- in does not, she says increase the credibility of the u.s. as a partner to any new deals including north korea. >> i think it is counter productive what the americans of done. it took 10 years to negotiate the iran deal, the jcpoa. i think it is still very viable tool to control that iran does not acquire nuclear weapons. alsorves its purpose and it can be verified that they live up to what they have committed. mark: germany's foreign minister added that if iran were to withdraw from the agreement, it would go into international isolation, putting the country

back where it was before the agreement, including all of the sections. hong kong is bracing for more strikes and protests in the midst of annex latex -- of an escalating standoff over a proposed bill that would for the first time allow suspect in criminal cases to be extradited to china. that would potentially affect employees with the more than 1400 multinationals with regional headquarters in hong kong. the say it could affect regional autonomy. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. romaine: few companies in silicon valley have attained multibillion dollar valuation as quickly as brett. brex founderw, the

and ceo, joining us right here in new york. when i saw your company, when i first heard about your company, you are basically offering corporate credit cards to smaller startups that may be can't get traditional financing from a bank. what are you giving them that they can't get from american express or mastercard? >> what we realized while living in silicon valley is that there were multiple startups there that had raised millions of dollars and either they couldn't get a corporate credit card -- they didn't necessarily want the credit, they just wanted stuff -- wanted something to pay for stuff day-to-day, or they had to personally guarantee the card. a lot of founders say, it is a big risk to start a company if i have to put all my personal assets on the line as well.

sooline: why is brex capital-intensive? you have raised $300 million. techthink, as a fin startup, raising capital is part of our business for a reason. we lend money out. $100 this year, we raised million debt line at barclays but we still need to put some equity to work. the second part, i think our customers feel more secure and safer if they feel that the company giving them credit is highly capitalized. i think those are the two main reasons. for any fintech, being highly capitalized is important. joe: how do you gauge the credit

worthiness of these startups, many of which are growing incredibly quickly. what kind of information do you need from them and how do you use that information to determine whether or not they are worthy of lending to? henrique: we don't bucket all smb's into one category. we understand startups are different from e-commerce, different from retail. we try to understand the reality of each vertical. the thing about startups, the health metric for a startup is if they have enough cash to survive over the next months. we get access to their cash balances. if they have cash, we give them a limit. if they don't have cash, we don't. romaine: talk about customer retention. i understand the appeal of this

if they are smaller companies. as the companies grow and mature, how do you retain that kind of customer and prevent them from going to a different kind of financial company? henrique: the credit piece of it is i would say just a third of brex's value proposition. small companies come because it is easy, we give personal guarantee. the reason we stay is the technology. we rebuilt the entire core credit card processing system from scratch versus traditional companies that have old systems built 30 or 40 years ago. that allows us to build a lot of functionality, my's a lot of processes -- optimize a lot of processes. it is super easy to do your expenses. no more typing stuff into the

app. the technology piece of brex is what keeps companies as they grow. joe: why is it called brex? when you hear it, you think brexit. bettere: i wish i had a story for this. as a startup, you're trying to find a dotcom domain that is fairly cheap. joe: i love it. that is a better answer than i could have imagined. thank you, brex founder and ceo henrique dubugras. coming up, democratic presidential candidate john delaney's fight to reach the debate stage with just two weeks to go. this is bloomberg. ♪

joe: the first democratic presidential debate, just 15 days away. joining me now it's one of the democrats running for president, former maryland congressman john delaney. do you believe you are going to make the first debate and, if not, would drop out of the race? john: we are going to make the debate. the first two debates, you can make it either through polling or the donor criteria. we have made it through both. we are going to make the debate and talk about how we have plans to fix these problems. romaine: can you talk to be a little bit about some of those plans? the big thing in the room, with regard to the economy, how you would steer it differently than

it is being steered now. a formersomeone who is ceo, started two businesses, i know a lot about the economy and how to create jobs. a lot of workers are struggling. half the american people can't $500d a $500 of -- expense. people can't afford basic necessities. a lot of my economic policies will be focused on the worker. my dad was a union electrician. things like increasingly earned income tax credit, which is the best tax policy for helping hard-working american, launching a large-scale national infrastructure program. we've had a lot of promises about infrastructure for a long time. in congress, i put together a large bipartisan coalition and improvehere's a way to

infrastructure and invest in a whole new energy infrastructure. i've launched a large-scale national infrastructure program. i'm going to do things to help wages with things like the earned income tax credit. reenter the transpacific partnership because i think the united states has to be competing globally and i think this president made a huge mistake tearing up that agreement it those are things that will continue long-term economic growth and put workers at the center. caroline: i hear you in terms of economic policies. i'm interested in your health care proposals. not too long ago, you were booed by california democrats because you were criticizing medicare for all. we know, a big winner during the midterms for democrats was health care policy. and: that is why i spoke up

showed the courage i think to tell the truth. we did win on health care and i want to get back to that message but the message has to be based on common sense. the problem with medicare for all is not because it provides universal health care. i am for universal health care. i have a proposal called medicare that does that. the problem i have with medicare for all is that it is a single-payer system and it makes private insurance illegal. 150 million americans have private insurance. i think it is a terrible idea for us to run on making people's health insurance illegal. won by saying we would fix health care. care, gives better everyone health care as a right but it provides options. i think things like cancer and

alzheimer's, these things are curable if we have the right health care system and we are making investments in research. the problem i have with medicare for all as a single-payer system is that it will take money out of the health care system. thece, germany, sweden, netherlands, these are places that have well admired universal health care systems but they don't have single-payer systems. this isforward and said bad policy and politics. we have to get back to talking about common sense solutions. joe: 23, 24 democrats in the race, all with serious ideas. how would you stand out? john: most of the candidates are running on not real plans or, to sonics dashboard, to some extent

or, to some plans extent, dishonest proposals. i think senator warren has real plans. we need to fix infrastructure. i have real soon oceans -- real solutions to issues. in congress, i was one of most bipartisan members. i know how to get things done. we spent too much time talking about this stuff and not enough time solving these problems. i'm all about solving problems. right, thank you very much, john delaney, democratic president candidate. thank you for joining us. caroline: coming up, as the u.s.-china trade dispute continues, wall street is discerning china's next move from twitter.

this is bloomberg. ♪

caroline: when he tweets, wall street listens. we are not talking about president trump. we are talking about the editor-in-chief of the global times, one of china's state-run newspapers. his tweets from the investigation to fedex to the warning to chinese students studying in the united states. the ambiguous spacey occupies -- space he occupies. >> i have access to some accurate information for the nature of my job, but i can't governmenthorized by to release the information. >> it is fair to say that

officials will be passing you information with the knowledge that you will be likely to tweet about them? >> to be honest, i don't know. the officials and i have a tacit understanding. i think some of them know i will publicize the information. >> chinese officials have been talking up the economy but the economic data shows pretty clearly that we are facing a continuing slowdown in the chinese economy. our officials exaggerating the weatherl for china to the storm? >> the loss is bearable to china. some people believe it doesn't matter to have some losses. the chinese economy is still growing. we don't have negative growth. in addition, the size of our growth is still remarkable in the world. >> if trump goes ahead with additional tariffs on all chinese exports to the u.s.,

what tools do you think the chinese government will reach for in terms of retaliation? >> china may target the u.s. services sector operating here. trade in services is not the same as the trade in goods. the u.s. has barely talked about services but china knows this is a fast growing area for the american side. romaine: that was the global times editor-in-chief speaking exclusively with tom mackenzie. for more on what china's next move could be in the trade war, let's bring in shery ahn. he has about 52,000 twitter followers come about a third of the amount that joe weisenthal has. what is the general tone of his twitter account -- not joe's. shery: who cares about the tone of joe weisenthal. >> aw.

shery: he has tweeted 1200 tweets so far. he joined in august of 2014. he has 19 million followers on the chinese platform weibo, but all the official forecasts about the china trade talks, he doesn't post on weibo. caroline: what do asian policymakers say about this -- do beijing policymakers say about this twitter feed? shery: they are trying to distance themselves. , they saidere asked that -- that was prompted by the fact that when he tweeted on may 13 that china may stop purchasing agricultural products and energy, restrict u.s. , manye trade with china

scholars were discussing the possibility of dumping treasuries. when he sent out that tweet, we saw boeing plunge and fall the most in almost four months. investors following very closely what this person has to say. fromwhen we get a tweet someone connected like him, someone part of state media, to what degree should we interpret it as, here's a well-informed source versus someone who is sending a message that clearly the government would like out there? shery: it is very interesting because he struggles with that question himself. . he says he doesn't know if government officials are expecting him to tweet about it that he gets all this information, he tweets about it. i guess the only thing we can do

is follow his tweets and see if many of those forecasts come to be. the latest forecast was about an hour ago when he tweeted, from information i have access to, there is no sign that china is relaxing counter matters -- relaxing countermeasures. will there be a breakthrough at the g20? i dare not be optimistic at this moment. romaine: let's talk about the g20. this is a couple of weeks away to there's pressure for xi meet with trump. do we know if the chinese are looking to broker this meeting? shery: no, just yet. i found this interesting coming from the president, his tweets, talking about xi needed to come to the table or raising tariffs

of 25% or more. my thought, why are you trying to corner xi jinping, you need a way out. now he is saying today that he's the one who is holding up the deal. i do wonder if the president is trying to create a crisis through the 2020 elections. i'm going to ask the analysts we asia".ing on "daybreak: i'm going to be watching "daybreak: asia" with my family tonight. caroline: don't miss this. we will speak to commerce secretary wilbur ross at 7:00 a.m. eastern joe: i will be watching economic numbers for you, cpi out at 8:00 a.m. tomorrow. romaine: bloomberg technology is

up next. joe: this is bloomberg. ♪

♪ -- >> i'm vonnie quinn in new york in for emily chang. this is "bloomberg technology." holding up the trade deal with china. meantime, apple is already --ing up with a trade deal to keep out of china. we will speak to a top lawmaker