mark: i'm mark crumpton with bloomberg's first word news. president trump leveled criticism at germany as he threatens sanctions over angela merkel's continued support for a gas pipeline from russia. the president warned he could shift troops away from the nato ally over its defense spending to the president has cut as part of a white house press conference with visiting polish president andres duda. before the men spoke, a single f-35 flew over the white house to emphasize:'s plan to purchase the aircraft. mr. trump says the polish government will pay for the infrastructure to support the additional troops. he is also praising poland for

increased defense spending to meeting its nato commitments. president trump says the two countries have increased -- agreed to increase sales of natural gas to poland to demonstrate improving economic cooperation between the two countries. iran's president says his country does not seek war with the united states. but will give a "crushing response if it is attacked." he made the comment in tehran today as he met with japanese prime minister shinzo abe. the app -- the japanese leader is in tehran in a mission to calm tensions between washington and tehran. donald trump, jr. said he was "glad this is finally over" after speaking to the senate intelligence committee for around for -- for around three hours. he told reporters he did not change any of what he originally said because there was nothing to change. senators wanted to clear up what they consider discrepancies between his answers and the testimony of others in the panel's long-running

investigation into russian election interference in 2016. the world health organization is considering whether to declare the ebola out great -- outbreak a global health emergency. it has crossed into gonda where three cases including one death have been confirmed. a five-year-old boy is the latest victim. nearly 1400 people have died since the outbreak was declared in august. ebola is fatal in 90% of cases. global news, 24 hours a day, on air and @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, this is "bloomberg markets: the close." i'm scarlet fu. caroline: i'm caroline hyde in

london. we are 30 minutes from the end of the trading day. feels as though the risk off move in the market, particularly when you look at the nasdaq and tech stocks. nasdaq off by 4/10 of 1%, clearly you are seeing cautious trading, concerns about trade, about views being thrown against the gas pipeline by trump against mexico by trump. i thought it was interesting what is happening with facebook. notable that they seem to be reported by the wall street journal, uncovered emails that mark zuckerberg is aware of problematic privacy practices earlier than previously thought. this while responding to the federal privacy investigation. the euro lower on the back of that criticism coming from trump over the north stream gas pipeline between russia and germany. scarlet: we are seeing money flow into safe havens like gold, also u.s. treasuries. resulting in lower yields. utilities are another safe haven in favor. you can see the group up by 1.2%

of the group has a trailing 12 dividend yield of 3.1%. that is in its favor. keeping an eye on what is going on in hong kong. the index falling as much as 2%. a lot of concern after local police used tear gas to break up protests against the bill allowing extradition to china. caroline: let's return to one of the key things that hangs over the markets, trade tensions between the u.s. and china could complicate the rollout of 5g. at the sooner than you think tech conference, i sat down with the uk's digital secretary, jeremy wright. i asked how he is in two the united kingdom will be at the forefront of a 5g rollout when there is a question of huawei? jeremy:jeremy: i think 5g is hugely important. every country is wanting to be ahead of the game on 5g and we have started to talk already about those things we can do to make sure that we will be pioneers and 5g technology with all i can deliver. some of the testbeds and trials

projects the government has initiated, 40 million extra we are talking about this week deliver to testbeds and trials to work out what 5g can deliver to our economy and to our society. the transformation of public services, it may be able to deliver. of course, you also have to think about where you are buying the equipment from to rollout a 5g network. my view is that this is not solely about one company or even about one country. it is about how you develop a telecom supply chain in particular that is safe and secure. what do you need to do to make sure that whoever it is and wherever they come from that is supplying the equipment, they meet our requirement for safety and security. the more 5g does, the more important that becomes. i am focused on developing a system that will work for everybody including huawei, so we can make the right judgments about who should supply our equipment based on how safe and secure we need the system to be. thoserstand that for

telecoms companies waiting for us to deliver an answer on huawei, they are impatient and they say not unreasonably, get on with that so we can decide what to do. there are a number of factors to take into account, some of which are outside our shores, what other countries do has a bearing and we have to factor that in. caroline: how difficult has the u.s.-made things? jeremy: i would not say they have made it difficult. i think they are making decisions in their own interests as every government much -- must do. they are also making judgments and a hugely interconnected telecoms world. if you have huawei equipment that has u.s. ip or u.s. components within it, what the american administration decides to do will have an impact on what we consider when we come to think about huawei. i think it is a reflection of the fact that this is an interconnected world and interconnected sector. caroline: interconnected it is. and it is an interconnected sector with the rest of europe, with the rest of the mea, africa is an interesting point being

made by duncan well saying london is the tech sector for africa, south asia, not just the u.k. and europe. how are you looking at ensuring our connectivity remains stronger then it can be in the midst of the uncertainty after brexit and whatever exit we have from the eu that ends up happening? jeremy: conductivity means a lot of different things. as you are poll reveals, there are lots of things that affect our connectivity that the government has to think about. infrastructure is an obvious example. the other point in your question is significant. half the world is online now. that means half the world isn't. there are opportunities for the u.k. tech sector to help the other half get online, to be engaged. we need to think about what we do working internationally as well is what we do domestically, and what is a hugely interconnected world. caroline: part of my conversation with the u.k. secretary of digital culture and media, jeremy wright at the sooner than you think technology conference right here in london.

coming up, if you are searching for protection against unexpected risk, guess what? there is an etf for that. we will bring you the names from the black swan event. this is bloomberg. ♪

scarlet: if you want to get a read on where asset prices are headed, one way to do that is to check out etf flows. here to provide etf intelligence is eric balchunas. the latest flows show there is more risk on but it is not completely risk on just yet. eric: i call it the hangover. where the fed comes out, they are dovish, and there is a crowded that goes back into hyg and j and k, and we did see that. but there are still flows into things like shv, which is a

short-term treasury bond etf. it is like cash. there is still that delayed. but it appears as though we are in the transition and it is going to a more full risk on. i have been saying all year, this is back to the future in 2017. in a weird way, it was like may was 2018, put into the middle of 2017, because we are going back to that 2017 feel good feeling investors have in the flows are showing that. caroline: one about the flows into one of the most momentum areas in the market, the most risk on areas of the market, perhaps some of the most antitrust focus areas of the market like tech? because up and under stress as we have seen the regulatory authorities way in? eric: if you look at tech and communications, especially the headline risk with antitrust issues, there is a little bit of outflows and our performance by tech. what i find interesting is i look for an etf that is along on the market but did not have communications or tech. the only one there is maggot

which is the gop stock tracker etf. i was not going and looking for anything political but that is what it does. tech and communications, they do not contribute to the gop at all. that is more a democratic -- scarlet: no political information. eric: ironically, even though the dems are pushing for antitrust, it is maga that could benefit because it does not have exposure to any of those faang silicon valley names. caroline: the downside -- scarlet: the downside is that the do -- they do not get to participate in the upside. ga has been awful since it came out because of the lack of tech. on the flipside, is esg. esg is heavy tech. i would say maga and esg are inverse. when you have tech and play, sometimes i like to see what is going on. if antitrust ways down the market but the rest of the stocks look ok, look for maga. scarlet: stay with us.

we like to point out how the etf industry has something for everyone including those who want the upside of u.s. stocks. as well as protection from unexpected downside risk. if so, check out flown. the ample fat black swan growth and treasury core etf trades under the ticker swan. it's goal is to protect investors from so-called black swan events. situations where something deviates beyond what is normally expected. the events are difficult to predict. swan seeks uncapped exposure to the s&p 500 while shielding against a possibility of significant losses. swan does this by investing 90% of its assets in treasuries and money long dated, and the call options known as aleve options on the spider s&p 500 etf. they treasuries and the funds holding provide a mix of maturities aiming to reflect 10 years on average. swan made its debut last november and so far has outpaced the s&p 500 over that time. twice a rebalances

year, has $80 million in assets, and has an expense ratio of 49 basis points. swan gets a green light in the bloomberg intelligence traffic light system with no warnings. that was scary because there were quite a few black swans and there should not be many. eric: a lot of white swans over the past decade. these etf's that do downside protection, the irony is they tend not to do well until there is a sharp selloff. not a ton of assets. this is outperforming with 70 million. scarlet: it has got the great ticker. caroline? caroline: great ticker, great animation. there were even green swans, pink swans, i am intrigued. one would you start to see -- what classifies, it is hard to say, and unexpected risk, when have we seen the etf are performed to a certain extent when there has been downside on unexpected risk? eric: this is brand-new. it has not had enough time to have that experience. last year we saw these are

perform, the downside risk, the etf's that have a hedge. the problem with some of them is when the markets are going nicely, there is typically a drag to them because of the cost of that hedge. people don't want that. they just don't really like the trade-off in a good market. if we see a downturn, i would look for some of these products that do that hedging to see some flows. the question is, can they chase it in time to catch it? scarlet: you are talking about market timing which is dangerous. eric: and universal and always in play. scarlet: no one ever learns their lesson. eric about thank you so much. every day ond me etf iq on -- at six a clock p.m. in london. we have about 15 minutes before the market day closes. losses, aking at second day of losses for u.s. stocks. it is a global phenomenon. we saw weakness in europe and asia. caroline: europe sold off, asia sold off. you are looking at the hong kong dollar strength.

we saw equities get slammed as we saw protests erupted in that city state. clearly, concerns about trade, concerns about geopolitics, concerns about china versus hong kong. money going into the haven bond. y going into the haven bond. the latest innovation from xfinity

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caroline: this is countdown to the close. i'm caroline hyde. scarlet: i'm scarlet fu. joe weisenthal joins us from d.c. as he always does. there was more data to sift through cpi this time. joe: yesterday we got a producer prices, today we got consumer prices. all of these numbers are noisy. you have to look underneath the headline to see what is really moving the data. but ultimately, it is like, there is not that much inflation. core cpi coming in below

expectations, yet again. and of course, the last powell press conference, he characterized the mild inflation readings as being influenced by transitory forces. ofso, i guess the transitory those forces is continuing for a while. if you are worried about inflation, there is not much in this report to backup your view. caroline: it really adds fuel to the fire of the thought that we will get a rate cut. that was not enough to off state the bigger concerns that seem to be about trump, whether it is the gas pipeline between germany and russia, or mexico. large,think by and people do expect there to be a rate cut at some point in the fairly near future. but it is not everything. we are not getting huge selling by any stretch. obviously, kind of a negative mild tone to the market all day.

looking like two days in a row. scarlet: it is a defensive tone to the market. when i look at the industry group performance, you see it backed up with the utilities, the best performer by far. up by 1.2%. you have more defensively minded sectors doing well. we saw treasuries and gold also advance. caroline: yeah, suddenly we have a hated -- haven bid coming back into play. you would have thought a bond yields relatively low, being driven down again. on the downside, chip stocks, front and center. it seems to be as though technology was really getting hit the hardest. joe: when you see chips like that, the worst performing, remember, tech's high beta but chips are perceived to be right there at the center of the tension of the trade war. it is kind of a reminder of how much trade anxiety lingers in this market and probably for good reason. scarlet: we have been down through the trading day. losses nonetheless. it is mirrored around the world with declines in europe and asia. we have seven minutes to go

before the market closes. let's take a dive into the action with our markets reporters. emma: i am taking a look at lululemon, the athletic wear apparel. it is due to report its first-quarter results in a few minutes after the market closes. expectations are high. analysts suspect the company has had a strong start. the key metric is of course same-store sales. the company has put in a very strong performance over the last five quarters. if you look at this chart, you can see in the last five quarters, same-store sales have grown by more than 10% each quarter. the expectation is they will make it a sixth consecutive quarter in that regard with rising some 11.4%. that is the estimate. the analysts saying they are expecting to see country -- continued momentum of products in innovation and goods execution p company also saying it has been expanding into menswear and internationally. analyst investors will be

looking for any update on those areas as well. the company has performed pretty well, very well so far this year. lululemon stock up 40% year to date. that is far outperforming the wider retail index. abigail: hopefully lululemon does not pull a david busters. very different companies but david investors did report their first quarter comp sales. down one point 5% versus the estimate of up .5%. the dining and entertainment company shares plunging down 23%, the worst day ever since the company ipo'd in 2014 on an above average volume. 2400% above. pretty amazing. this is the graphic dashboard. great way to see what is happening. the stock at a 52-week low. we have analysts downgrading. that looks cheap. however, not a lot of growth. we take a look at a five-year chart since the company has ipo would. we see a nice again but we see that stockett clinging to

support. if below 38, you could see a breakdown for dave and buster's on top of today's 23% plunge. romaine: let's go back to the chip stocks. this has been the story of the day. it has had nothing to do with trade. we have seen the philadelphia semiconductor index down 2.2 percent, quadruple the losses we are seeing in the broader market. this started with a note out by evercore isi analyst downgrading a couple of stocks including price targets on several others including micron, carradine, and webster digital p they said webster digital continues to see the most downside risk. there was a recovery and -- in to prices and demand being priced into this market for the second half. we are seeing increasingly from analysts saying that is probably not going to happen. evercore isi analyst said they are not expecting that recovery into the second half of 2020. this seems to be the issue, the

demand is not picking up, prices are not picking up, and until investors get more clarity on when the rebound will come, you will see pressure on the stocks. scarlet: thank you so much. for more market analysis, let's bring in sarah ponczek asset reported. we have a few minutes to go. romaine told us about the note that dragged the semiconductor stocks down. it feels like we are in wait and see mode. there are narratives bouncing around. we are waiting for something, i guess the g20 meeting? sarah: the g20 meeting or the fed meeting. the fact of the matter is, for the most part, earnings are on the backseat. we are through to see when that will happen. typically macro news drives trade. there really is not any macro news or anything new that is coming out. you look at volumes today, volumes pretty much all day, 20% below the 30 day average. yesterday, the markets were flat. really seeing modest declines. nothing crazy whatsoever.

the fact of the matter is a lot of people are saying we will wait and see. sure, we got the data today that may add fuel to the fire, give the fed more onus to talk about a potential cut next week. until we hear from jerome powell, see what the fed says, see what is going on with trade into the end of the month regarding the g20, there really is not much to do. caroline: there is, though, what to do is sell off chipmakers. and energy, and some of the more trade related sectors. is that going to be the theme that we see in the headlines rather than the fed, we will see that pressure selling? sarah: you would imagine so, especially because if you look at the rally we saw last week, the areas that rebounded the most were also the areas that had gotten beaten up the most in the lead up after we started to get more headlines about u.s.-china trade talks falling apart. also about u.s.-mexico tariffs which never took hold. the onus has been -- really the

narrative has been over the last week that people feel like things are may be getting a little better. as we get closer to the g20, maybe we do believe a lot of investors believe that something positive could come out of it. today as it relates to the trip as romaine pointed out, much is due to that note from evercore isi on-demand. we saw that take in effect. you have to imagine that part of the reason we are seeing a lack of demand or that we could see this lack of demand continue into the future is the idea that we are seeing the tech ecosystem, the supply chain broken up over in china. the trade war has become a tech war as many have put it. and that you do have tariffs and place and more could go in place. it is absolutely top of mind and investors are keeping a close eye on what is going on headline wise. joe: as we head into the market close, i want to bring in sean matthews, the chief investment officer of capital management and former ceo of cantor fitzgerald.

thank you very much for coming on the show. you heard sarah talk about that improving moods. even with a two day we have, still pretty close to all-time highs. to have aors right positive outlook on things? sean: i think people are looking at the second half of the year and assuming it will get better. i am not so sure that is the case. by and large, you have an earnings picture where people are hoping earnings will get better for the second half of the year. that is driving part of the reaction currently going on, the rally. you also have everyone looking at the fed as a backstop. the fed is in a position where they are being forced by the market to think they have these, so if it is by july, i think risk assets have problems. reality is they will ease and the july timeframe and there is an 90% chance that will happen. scarlet: what happens when we get data that pushes us, pushes the opposite scenario? does that matter? shawn: absolutely.

the bond market has been pushing people into thinking that there are problems with growth. we have a dichotomy between the two asset classes and certainly i think the bond market has had the picture right. that may be poor going into the second half. management is set to benefit in terms of downturn. what you do when the -- what do you do when the market does not believe? >> if you look at the last six weeks, we've had a 6% decline and the bond market moving around aggressively as well. i think you look to participate in the face metals which could

rally based on a tariff conclusion or at least the framework, but i'm not sure that will happen. i think you should be cautious and preserving your capital in the market just moves too much because we live in a new world of high volatility and low-volume. it is a trading market right now and you have to ink those thoughts. >> we did not see that many big moves, at least when it comes to the dow. you are looking at modest outperforming versus the big cap indexes. let's take a closer look at some of the market average with our reporters. -- may nothave big have been big moves for the equity.

weeks a bigger stockpile than expected. suggest economic growth and the fact you have oil lower and investors tend to take profits, it could be a tell. , you see that they tend to trade last year in it somewhat correlated factor as risk asset beating the way prior and been leading the way lower, , the s&p 500 down slightly higher. oil,, again, another risk asset. is rising for a

second day and rising for the last 10 sessions. in that time, the trade war having investors look at higher ground. increase the biggest in two years. gold is the favorite the next 12 trait given the environment and we may be looking at lower environments both here and in the u.s.. if gold gets to $1400 an ounce, --will move to $17 an ounce $1700 amounts. -- an ounce. down. kbw bank index you can mind, we have the

mortgage down the conference where they gave a forecast here, theree ceo paul saying are trading revenue, as well as some of the investment would actually drop. jamiele weeks ago, we had dimon similar things and on top of that, you have concern that the feds may be poised to cut rates and that will hurt the lending side of the equation. lower rates having a direct impact, some analysts saying there could be a silver lining. or bankshe parallel actually outperformed. a big key is the lending rates go down, that prolongs the banks and of course, loan growth. if the loan volume goes up, that

could account for weakness and activitynting on m&a and moving a little more to automation. thank you very much. today is another day of the dollar. many in the market expects earnings to get better the second half. will that happened with the to profit?l managing concernsave expressed over the fact we could see an extremely strong dollar. last week, we did see that start to turn a little, we solid -- we saw it fall.

some saying this is a turning point, but you look at a dollar surging once again, you have to is a sustained move or actually seeing close to a absolutelynt, but investors, when they see the strength of the dollar, that could be a concern for multinational companies going already dealing with tariff issues, but many believe if you start to see a weaker dollar, we could see a domino effect and central banks around the world start to cut interest rates as well and then the dollar just remains strong. >> lululemon has just come out with earnings. it rose 16%,d better than what analysts are looking for.

not going past the expected analysts estimates, while it is higher than it has indicated, does not come try. a little bit shy of what analysts are looking for. >> i want to go back to shawn matthews. talkingheard trump about the dollar or at least he is not a fan of the exchange rate with the euro. where do you see it going from it aand how much is hindrance to higher profits? >> i think it has probably peaked, so you see it go down a little bit, but one of the issues out there is investors have been buying assets.

you have a bond market that has been rallying because people have been looking at a yield which seems really attractive. you have negative returns that peopleually worse and are buying assets, thinking we will prolong the dollar, so it is a good trade for us. once we start to see the dollar put, that means it will real fear in the micro place -- marketplace. see the dollar fall over, does that mean it is time to get into the emerging markets? >> i think they have value from

a relative basis. they will always look at the commodities and see what is going on, so oil probably is going to bottom out. >> let me recap lululemon once again. comparable sales for the sixth straight quarter, but if you look at the forecast, it misses the analysts estimates. nevertheless, lululemon still bouncing around. that does it for the closing bell. we will look at hong kong markets as the protests continue to grow. this is bloomberg. ♪

here is a snapshot of another down day for your stocks as trade trumps the hopes for the fed. >> the question come up with did you miss -- the question, what did you miss? >> [no audio] >> keep fighting a controversial extradition bill. ofnwhile, week cpi ahead viceweek's fed meeting and

president mike pence discusses the outlet of trade concerns. >> we start with hong kong in turmoil. thousands gathering to protest a bill that would allow exhibitions from hong kong to mainland china. the issue being watched from the rest of the world. a british investment banker on hong kong, absolutely no rationale to stay in hong kong. you would move to singapore or move your assets. is reason you are seeing it there is a massive liquidity shortage. >> joining us now from nelson, current

, want to start with you. any process to prevent it from passing? unity you are seen across, young and old, businesses, social groups, religious groups is really decades.nted in it has been 40 or 50 years since you have seen this depth of unity and fighting for special status. we have are reducing the protests have exceeded in their immediate goal in delaying the amendment bill, the question is can they hold on for the coming months to really prevent this? the chances are looking better by the hour.

we saw a little bit of movement, pretty significant. and how doke of that you think it will play out over the next few days? i think it is a temporary spike you are seeing come up much -- you are seeing. was partlyt deliberate on the part of hong kong and i think they want to curve speculative behavior. similar to the pboc in china. if you look at the spread between the u.s. and hong kong, that has narrowed substantially. >> that is some of the market effect. the water economic effect at play here.

in many ways, hong kong has been ahead for decades because of the legal system. now that it seems to be going it is aher then selective, how does that affect the economy in hong kong? thexcellent question given unique location. we bardi had conversations with , areasconsidering moving of investment offering safer destinations. not just as a center of trade, but center of finance as well, it significantly raises fear and worry among executives who are considering it.

it has captured the attention of executives who are generally not focused on these issues. >> i want to ask you from a longer-term perspective. you point out that there's not really much stress right now. -- over time, a perception of hong kong as a safe haven and place to do , can it be confident further down the road? >> i think i point out some of back toss and looking the financial crisis. pretty extraordinary measures back then. they are buying local equities and raising rates, so they have

demonstrated they are very much committed. i think one of the more substantial risk over the longer-term is not so much the hong kong dollar breaking its -- peg.t's paid for you could see china try to push. i think it is extremely unlikely given china has had a difficult five but that could change to 10 years down the road or longer. >> what are the chances the u.s. asernment could stop trading a separate customs entity? [no audio]

developments in hong kong. the hong kong situation has not entered into the dynamics of huawei in the u.s. china trade talks, but if protesters are able to maintain their position and if the hong kong which is later council continues to push forward, it could very easily become another upon in the broader relations and it could be a key area of support for the administration from the u.s. as the situation develops. >> thank you. i want to thank eric nelson.

up, u.s. inflation trailing forecasts. this is bloomberg. ♪

>> headline inflation falling short today. measure and the venture -- the fed should cut interest rates. take a listen. they are long stocks, long fixed income. dose are, that is what you

into the first rate cut. the trades are already in process. the question is, how much farther are they going to go? >> for more, let's welcome a yellow at the mason institute. when i saw this number, you got persistenthat the low inflation is exactly that, we have moved from a phase where we talk about it as transitory. how do you view it in how does that affect the narrative. at any seem to be looking environment of low employment and i think this is a genuinely strong labor market will stop it is wonderful and what economic

policy trust and four, but the negative side is it makes the performance the past decade look much worse. shirt --uch further short the past 20 years. >> unemployment in the mid-threes, people have been talking about we are at full unemployment. i think since 2014, maybe earlier, so what is it saying about policymakers ability to gauge the economy if they could be that far off. we have a chart going back showing how far we were missing potential unemployment. >> i think that is right. the notion you would accept policy based on something like that where you will go forward on the idea where you know the

unemployment rate will take off. off -- not really take that is not really clear, but also we have not seen mistakes. is worryingy that about inflation and too indifferent. ofone of those costs premature tightening is the effect that it could have on wages and you have an interesting chart showing wages by different sections. it turns out a lot of the acceleration is at the bottom. if itetimes people say were markets are strong, where's the wage growth? it is not as strong as it was in the late 90's and there's a long way to make of the ground that we have lost him a but since

2016, there has been a significant explosion in wage growth among lower income workers and people who are going to be less favored by employers and to me, that is really important. missing thes you unemployment target for so long is not just the cost for people who do not have jobs and the rest of us. it would appear it is also in terms of lost wage gains. >> should the fed from your perspective it indicated and cutting rates as soon as june and july? >> we see the have been wrong in the other direction so many times, absolutely. >> do you think that will come about with the markets in july question mark

think it is entirely possible. jw mason, we thank you. wish we had more time for your perspective, the markets certainly agree with you. coming up, comcast turning its new e-sports empire in the hands of a 29-year-old as it invests in the future of gaming. this is bloomberg. ♪

>> i am mark crumpton with first word news. president trump threatened sanctions over angela merkel's gasinued support for a pipeline from russia. he also warned that he could shift troops away from germany over its defense spending. the president made his comments at the white house as he held talks and a press conference with the polish president. a tremendous amount of their energy will be supplied by their pipeline having nothing to do with germany. poland said we would like to have a facility and have you come to that facility, so we are going to be there with a limited

force and we appreciate poland doing what they are doing. >> that he didn't say which companies or governments could face sanctions, the president's comments generated a swift response from moscow, which said mr. trump was engaging in nothing other than blackmail and a form of unfair competition. a hong kong leader urged to return to order at the end of a day that saw police used her gas to stop protesters from storming the legislative chamber, where lawmakers intend to take up a bill allowing extradition. >> to the protests in front of the legislative council. any violence will not be tolerated by our enforcement authorities. violence also gives rise to consequences.

>> the legislative council of the -- delayed its debate after protesters swarmed the government complex in hong kong, prompting scuffles with police. protesters called for lamb to withdraw the bill, which they argue would low up the legal wall. former foreign secretary boris johnson appeal to conservatives, insisting he could run the country and says he does not want a no deal brexit. fortressed that it is vital the u.k. to leave the eu with or without a deal. day onnews 24 hours a air and at tictoc on twitter. i am mark crumpton. this is bloomberg. two years ago, comcast

decided to pay a $20 million franchise fee to start the philadelphia fusion, and e-sports team. off, the ceosking 29-year-old son is taking over the future of the industry. chris, it is an amazing business story where you talk about the guy who is leading the way. he helped form this first team. has been into gaming and computers since an early age. >> he told us a great story about competing in a nintendo competition and he lost and he cried. teenager playing star wars games online and today he is not the president of e-sports for comcast. they are building a $50 million arena in philadelphia and doing deals with south korean companies. majorre trying to become

players in this emerging is this. joe: how big is this? you hear a lot about it and is still feels like another world away from other sports. howfast is a growing, and significant are some of the numbers? ] >> it will climb about 27% this year to $1.1 billion. you've seen huge companies sponsoring, media rights. these matches are airing on abc and espn, and ticket sales. you can go to an arena and see tens of thousands of people cheering. eat popcorn and hot docs like you were at a baseball game. romaine: i am fascinated by the people who play this. unlike other sports teams, apparently these people all live together, eat together. do they live in a mansion somewhere? >> some of them are roommates.

this is a culture that has developed specifically to e-sports, which is a team house. in the case of the philadelphia fusion, they all live in an eight bedroom house. they have a chef. they wake up around 11:00. gamer morning as they call it. in many cases, that is because they have been streaming all the world.ns around that is just the way they like to live and work and train. you would think this place would look like parties all the time with 10 young people all living together, but they are hard-working, very dedicated athletes. joe: i want to talk about something else in the world of gaming. intoix is not getting streaming games directly, but they are trying to launch wargames based on some of their titles. or maybe it is the other way around, titles based on games. how is netflix thinking about

the gaming opportunity right now? >> a couple of announcements today. a couple hit shows, stranger things, dark crystal, are becoming videogames. this is a look at netflix broadening its licensing opportunity. they will get licensing opportunities and netflix is making a movie based on a tom clancy game. this is a convergence of this the you culture with mainstream culture. joe: definitely something to watch. thanks to bloomberg's cris joining us from l.a.. you can hear more from the magazine's reporters and editors every saturday and sunday on bloomberg television and radio. coming up, the chief of staff to vice president pence joining us. he will talk about the administration's push to get the you mca through congress. this is bloomberg. ♪

caroline: bloomberg has learned that google is speeding up hardware production away from china. that allows the company to avoid u.s. tariffs and the government in beijing. google has moved the production of motherboards to taiwan. that the 737l says max 8 will be back in the air by december. the plane has been grounded since march. the agency says administrators -- the agency's administrator says it is not possible to give an exact date for the return, but it is making changes to the software. is urgingire trader

investors to buy stocks. newmarket highs after an interest rate cut. he is counting on the tariff battle with china increasing the likelihood that the fed will cut rates. that is your business flash update. the white house making a major push to get the usmc through china. that as president trump said tariffs on mexican goods are not off the table. that extra page of the deal brilliantly,that had such respect to people, i held it up to the sunlight and it was closed and you are able to read it to the sunlight. that was not anticipated, but you knew enough of what it said. i didn't do it on purpose. wehave a lot of strength if decide to use it. maybe we will and maybe we won't. now, chiefg us

washington correspondent as well as chief of staff to vice president mike pence. thank you very much for joining us. the administration making this push on the usmca, trying to get it through congress. right now, what is the main selling point to congress in trying to get his vote moving? deal that the president negotiated with mexico and canada is a better deal for dairy farmers who provide access to markets in canada, is better for auto manufacturers, because it requires a larger percentage to be manufactured in north america. it is better for laborers, because it sets a minimum wage for laborers here in north america. in a lot of ways, it benefits a lot of traditional democrat audiences. when we talk to democrat members of congress, i think they support it. the question is whether speaker pelosi will give it a vote.

that is the political concern that a lot of americans have, because they believe this deal is better. studies show that will generate just -- it will generate tens of billions of dollars, tens of thousands of new jobs in the united states. economically, we think it is good. the question is whether or not the politics and investigations and where we are with democrats -- >> i have a lot of sympathy for you right now, because i have been reporting and that protester outside the white house is making it difficult. this, because president trump said -- and our this in my notebook, he said mexico is actually easier to deal with right now from his perspective than the democrats. he talked about the democrats and making a pitch to them. when you look at a number of democrats you think you'll need to get this through, are you

still optimistic that speaker pelosi will get this voted on the head of the august recess? >> there are a couple questions there. we were encouraged last week with negotiations with mexico. they made significant gains to try to secure our common border. question, weour think we have enough votes to pass usmca in the house. we know we have enough to pass it in the senate. the question is that under the trade promotion authority, speaker pelosi has the ability to decide when she brings it up for a vote in the house. do question is less about have enough votes than what do we need to do to encourage speaker pelosi to bring it up on the house floor for a vote. ownis going to need her conference to do that. that is the course of action we are taking. the vice president has been traveling to districts represented by democrats in congress to make the case for their constituents to ask

speaker pelosi to bring it up for a vote. joe: usmca aside, how would you characterize the relationship between the administration and the mexican government? government,mexican we were very encouraged. last wednesday, the vice president asked the delegation to come for a meeting to make sure they understood how significant a concern the national security element is for the united states. what we saw the last 48 hours was significant for them to reach an agreement with us. there is a large level of cooperation right now. what the president said is that ultimately, this is a result more than a process. when you solid hundred 44,000 month,nsions last hundreds of thousands of family units coming across the border, the president says, this has to stop.

ultimately, we dictated what actions they need to bring that to a halt. joe: what -- >> what you say to the republicans who are still with , but they are concerned about the impact that tariffs are having on their bottom line. is the message be patient, is it too bad, what you say to folks who are uneasy about those tariffs? .> there is an understanding if you look at the midwest, unemployment in iowa is at 2.4%. the economy in america continues to grow. economy underhe 4% for 15 months in a row, it is a phenomenal record of growth in jobs. there is a lot to be excited about. the reality is, if your member last year, how about we remove all tariffs and all barriers to

entry across the table, and that is not a bid they were willing to accept. he uses tariffs as a way to leverage the playing field. joe: looking domestically, d c any prospects setting aside trade where something can be passed on a bipartisan basis between now and the election or is that shot? >> i'll think it is shot. i'm not that pessimistic. acknowledgment we are polarized and it is going to be hard, but i think there are several policy areas where the two sides can come to an agreement. it could be drug pricing. there is going to need to be a budget deal to keep the government-funded. there are going to be opportunities to come together. right now it is very polarized, but there are still opportunities were the two sides can come together. think even much joining me in the studio and chief of staff

to vice president mike pence. romaine: time for smart shirts with abigail. where we look at the timely topics. i understand you are taking a look at long-term charts. we are checking back in with , theity investments regional brokerage consultants. the last time you visited us back in the fourth quarter, you showed a powerful chart of the s&p 500. let's take a look at that long-term monthly chart and what you think is happening now. a lot of these moves, you have to look at the big picture. 1940'sent back to the and you fast forward to their children and you get that break here in 1982, 1980 23 2000, you get this massive movement and is driven by their children, the baby boomers. their children, the millennials kickoff in 2013.

we get this huge move up and this could last much longer than anyone expects. that is great perspective that we typically don't have. holding at that 50 a month moving average. let's turn to real estate, which is a more defensive sector. you have some interesting points to make about this. >> i went through every sector. this is one sector that is doing something no other sector has done recently. it is breaking out. it is breaking out highs. you might remember, real estate investment trusts were not a sector until recently. butave this nice move up, for three or four years -- it has been six years with no movement. you have not missed anything yet. this is the beginning of what looks like could be a nice uptrend. >> is that possibly a cautionary signal since this is a more defective sector?

let's bring in your gld chart, because gld would be somewhat defensive. itnot only is it defensive, might be a sign of inflation to come, which no one has thought about for decades. it hase about gold is done everything hr can do in 10 years. we have got expansion, peak, recession and the dreaded trough , which has been going on for six years. the interesting part is we are trying to curl sideways at the end and we keep challenging 1300 on gold. not atcan see, we are 1300, but it is yet another challenge to that high. >> but about the bottom? >> the good thing is, this is positive on the weekly and i always tell people, when in doubt, zoom out. if you zoom out and changes from weekly to monthly, that is flat as a pancake on the zero line for five years. something is about to happen. we just are not sure what yet.

>> thank you so much for joining us for smart shirts. remain, caroline and joe, back to you. romaine: i'm going to pick it up for here. breaking news related to the mueller investigation and the house investigation into what is going on. a house panel voted to hold william barr and commerce secretary wilbur in contempt of congress for withholding documents. not really to the mueller investigation, this is related to the 2020 census. they are voting to hold william barr and the commerce secretary in contempt. kongg up, protests in hong are evoking memories of that 2014 umbrella movement. we will talk about how the protests are similar and what it means for the business community. this is bloomberg. ♪

romaine: now to asia, the protests roiling hong kong over the bill that would allow extraditions to mainland china. the bill woulded demolish the legal wall separating hong kong from china, but it may be just the latest escalation of tensions. shery ahn will bring us her expertise. we are approaching the anniversary, the 22nd year of the handover from britain to hong kong. hong kong was going to be autonomous, connected to china by its own laws and rules. there seems to be some concern that that is not necessarily the case anymore. 1997 was the handover. we had a constitution that would guarantee the freedom of hong kong, until 24/7. slowly, we have seen beijing get in the way. in 2014, when i was covering protests in hong kong, the issue was that beijing wanted to have a say on which candidates are up

for election in hong kong. protesters did not get their way. beijing did. really with not much repercussion to what happened back then. we have seen in 2016 several hong kong book sellers disappearing internationally. those sellers of books that were very critical of china. we have seen in april of this year, nine liters of the pro-democracy protests, the umbrella revolution, being convicted on public nuisance and other charges. this is very worrisome for people in hong kong. many feel that the transition -- it is always meant to be two different ways of running these two countries. it was meant to be one country but to systems. slave but surely, it seems to be one system. how are we seeing the integration into mainland china

and how quickly is it happening? >> we have seen china take efforts to integrate hong kong. this huge redevelopment of the bay area, which would connect hong kong and macau to a city in china. we have seen this effort to reintegrate hong kong into the mainland of until about 24/7 in deadline. this is really striking a key chord among hong kong protesters, although the pro-beijing government now says that this is necessary in order to stop hong kong from becoming a fugitive offenders haven. we had the beijing leader saying that this is necessary to close a legal loophole and even a holding chairman -- if you were in hong kong, you would know he redeveloped an area in hong kong. he had this to say about this bill. as soon as you mentioned,

everybody sees red. everybody worries about it. it is the right thing for hong kong, but the way the government went about trying to sell it to the public was wrong. that is what has caused people to come in. this is why people feel this freedom's are being eroded. this is one of the big criticisms of this bill and of course, we're seeing protests continue. we don't know exactly what is next as the debate has been delayed, but the vote is expected to go through in the summer. caroline: such great perspective. meanwhile, you don't want to miss this. up heats up ins the first conservative ballot in the u.k. joe: and i will be

looking at economic data. u.s. jobless claims coming out tomorrow. romaine: opec report released tomorrow. caroline: that is all for "what'd you miss?" romaine: bloomberg technology is up next in the u.s.. joe: have a great evening. this is bloomberg. ♪

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technology." coming up, facebook under scrutiny again. ceo mark zuckerberg may have been aware of problematic privacy practices. plus, crowd strike makes its public debut but falls -- shares fall. we would hear from the firm's ceo. and china's unicorn