than compounded. it is not as if we will have a tankard well up and that will be this end of the cycle. caroline: the market continues to brush it off. the oil disruption has raised energy stocks today. up 4/10 of 1% on s&p 500. energy leading the gains. technology is your key opera former. trade isng, given that there. scarlet: we are looking to broadcom announcing results after the close. worth noting that the major indexes took a leg higher in the final minutes of trade. we have a gain of 6/10 of one person for the nasdaq and the russell adding more than 1%. volume was a bit lower than average for the dow and s&p, at least 16% below the 30 day average. joe: it is striking to see the russell 2000 our performance. sessionsng, so many it has been underperformed. scarlet: let's take a closer

look at what to some other action was taking place in the markets. what were you watching, abigail? abigail: i'm going to talk about the risk assets but on a longer-term basis this comes from bank of america america lynch. he joined us for charting features. what we are looking at and yellow is the s&p 500 going back to january, 2018. in blue, high-yield bond index. in white, that investment-grade bond index. we see as the s&p 500 was putting an all-time high and a strong january, those bond indexes were sliding. as the s&p 500 climbed into its september all-time high, they were climbing a little bit but pretty tepid. out of the fourth quarter bottoming, a huge rally for stocks, investment-grade bonds and high-yield bonds. believe a steve to new all-time high is ahead for the s&p 500. emma: of course, the big move in markets today came in the oil markets.

both wti and brent crude's rising about 4.5%. should be able to show you a chart that shows as the highs of brent crude, the biggest intraday move since january. wti bouncing off a five month low. energy stocks were the laggard in the s&p 500. it led the s&p 500 today, all of this on the news this morning that tankers have been attacked in the persian gulf. something the trump administration blaming on iran. there is fear that the rising tension will lead to declines, but they are market watchers saying today's oil price moves were more muted. . than have been expected. that might reflect the weakness we have seen in oil futures through the year. most recently, in the last few weeks, oil down 20%. trade tensions weighing the other big thing in the u.s. is inventories which keep coming in higher than have been estimated. perspective on the oil move and the entire

markets team, we thank you. still with us, michael regan and ryan joining us. i want to go you -- go to you. you were mentioning earlier about how everything is about the fed and trade. if we don't get a rate cut as soon as june, do we need to have very strong verbal signals coming from the federal reserve that we could see one as soon as july if we will not see a fall off in stocks? brian: that's right. what the fed has been able to do simply through speaking and guidance right now is ease financial conditions. and stabilize the dollar. the dollar is weaker in june. financial conditions are easier in june. the 10 year between the three-month is not as inverted as it was at the end of may. yeah, all of these things need to continue to pursue. we are still dealing with the lag, the effects of what i would characterize policy mistakes last year. three rate hikes, we had good growth, it was clear it was

going to be transitory. we tried it to do three rate hikes. it did not work. now they will have two -- back away. joe: mike, if we continue to see a rally and a financial conditions ease, does that, in your view or the view of traders, take pressure off the fed? do they need to deliver? for does that because i verbal intervention or verbal easing we have already seen accomplish something on its own? michael: think it is accomplishing it as we see the gains in stocks. one of the interesting things i noticed today was david coston was on tv saying they do not believe the fed will cut in july. here is one of the strategists from one of the most well-known wall street banks saying we do not buy it. i do not think it is a slamdunk that is priced into the market that they will cut 80% in the fed funds future is pretty high. it seems like it is a done deal. i think if there is resolution of the trade issues at the g20,

which is probably a long shot, but if that does -- but if it looks like there is progress, may be the fed can push out that first cut if you meetings out. caroline: where are you putting money in the moment, where should people be putting money? should they stay on the sideline, should they keep standing, or should they put money into areas such as emerging markets? brian: do not think investors should be sitting out. this is a secular bull market. secular bull markets and with pretty expensive valuations and a policy mistake. typically from the federal reserve. that is likely off the table. the u.s. markets are likely to go higher. i still think we are in a growth and reasonably slow growth world. look for the cyclicals, look for companies generating true earnings growth. emerging markets start to look interesting. emerging-market valuations are cheap. you need a catalyst to unlock that value. dare we say we could be coming

to a confluence of factors? fed easing or fed on the sidelines, may some truce between the u.s. and china. chinese stimulus. maybe you start to get some of that. don't get me wrong, if we have a bad outcome on trade and we go further, that will strengthen the -- the dollar and not be good for ems. we buy when there is blood in the streets. the emerging markets, it looks like we could be coming up on a confluence of factors that is a tailwind for those asset classes. scarlet: the opposite would be technology given they have been the leaders. mike, you look at technology trades sharing -- technology shares trading. it feels like not long ago we were worried about antitrust and how it would halt their growth prospect. no one is talking about that anymore, are they? michael: no one had thought about antitrust at all in years and then all of a sudden, it was introduced like a lead balloon into the markets and there was a

nasty knee-jerk reaction the day of. i think people are realizing this will take a long time and at the end of it, it may not necessarily be -- be any big jake -- be any big game changer. joe: i want to go back to. . something you said earlier we have had this long bull market. basically about 10 years. we have had occasional many panics weather in 2011 or 2015, or q4 of last year. talk to me about how they prolong it by -- do they prolong the bull market by removing some of the excesses and preventing really big financial imbalances that could blow up the whole thing? brian: went ends up happening is valuations become more compelling at the bottom of those. policymakers have also found that they cannot proceed with their tightening. 11, 12,ng to remember 13, to your point, we were still dealing with the ecb raising interest rates in 2011.

then we had a deal with things like fiscal cliffs and government shutdowns. 2015, the fed tried. 25 basis points. four rate hikes next year. the markets had no way. dollar rallied 20%. it backed off. 2018, the 12 -- the trump administration put -- so we can do better than 2% growth and we have. we are growing over 3%. but it is not sustainable. the fed tried to raise rates, not sustainable, backed off, markets are doing well again. in a secular bull market, it does not mean you will not have volatility. volatility will come around every time there is a policy decision that unnerves the market. without inflation, and there is really no inflation anywhere in the world unless you live in one osiris or istanbul, there is no inflation anywhere in the world, why and it? joe: great question. caroline: where goes the dollar in all of this? if we see rate cuts, but the

u.s. continues to outperform, does the dollar still outperform? brian: the dollar has been stubbornly strong. you would expect if the federal reserve is backing off its tightening stands and it is in fact the end of the cycle, the tightening cycle i should say, and the united states is running pretty large fiscal deficits, you would expect some weakness in the dollar. and that is the idea behind all of this. can we get a stabilization or even some weakness in the dollar? that would be the hope, that would be the easing of financial conditions that would support capital to other parts of the world and maybe get this global economy a little more synchronized, like we had in 2016. that is the hope. i suspect they can do it without bringing forth inflation and that is why equities are positive right now. and rewarding this. scarlet: brian levin -- brian

levitt along with michael regan emma thank you. that does it for the closing bell. taylor riggs is stepping in next four "what'd you miss?" the team will look at broadcom results. should provide insight on the trade war impact as well as the state of the smartphone market. this is bloomberg. ♪ g. ♪

caroline: live from london, i'm caroline hyde. taylor: i'm taylor riggs. joe: i'm joe weisenthal. caroline: how u.s. stocks closed on the day.

they are rising higher. up 4/10 of 1%. joe: the question is "what'd you miss?" caroline: trade war's take a toll. how will qualcomm -- how hard qualcomm has been hit by the china-u.s. tensions? crude concerns, oil rises as the u.s. blames iran for a tax on two tankers near the persian gulf. meanwhile, chinese president xi jinping faces challenges as protesters in hong kong. first, breaking news. trump has just said that sarah sanders will leave the white house it would seem at the end of the month. she has been a voice of consistency for the white house. she became press secretary in july, 2017 through to the present day. we will see as to the reasoning of her departure but currently,

the white house is saying sarah huckabee sanders, who was originally an american campaign manager and political advisers, serving as the white house press secretary. now seems as though she is running for governor of arkansas is the latest in that news. perhaps ambitions greater than the press secretary to the white house. we will see how the white house digests this. joe: certainly raised her profile a bit. turning to the attack this morning, the trump administration blaming iran for attacks on two oil tankers in the middle east with secretary of state mike pompeo addressing the crisis earlier today. mr. pompeo: the united states government, if the islamic public of iran is responsible for the attack today. this assessment is based on the intelligence, the weapons used, the level expertise needed to execute the operation, recent attacks on shipping and the fact that no proxying group has the

resources and proficiency to act with such a high degree of sophistication. us, professor brenda schaefer, senior fellow at the olanta council global energy center where she is a specialist on energy and foreign policy. thank you for joining -- joining us. what did you make of his statement earlier today? >> thank you. i do not think secretary pompeo would make this statement without really concrete and explicit information. the iranian regime wants us to think there are two choices. these art -- either no sanctions or war. there is actually so many options in the middle which include extended sanctions, surgical strife, limited confrontation, but definitely the iranian regime is trying to up the ante and make it appear to the u.s. administration that they are are only two options, either no sanctions or war. caroline: one about the

optionality of how hard it is going to be getting oil supply? what they seem to be threatening is the straight of hormuz. they did not attack ships within it but just at the entrance. could this be a significant supply shock to the oil market? brenda: of course, with the attack on the saudi airport, the attack on to other tankers that were in the uae, bring this picture together. yes, at least iran is trained to create the impression that there is a concrete threat to security of supplies through the gulf of hormuz -- straight of hormuz. the u.s. has the capacity and when it will be necessary to keep the waterway open. the big question we should be asking ourselves, with this threat to the center of global oil supply is not why has oil gone up today? but why hasn't it gone up higher? this is hitting the center of oil at a time when a russian ne is knocked out and

now physical hits on the main waterway of oil. taylor: i wonder if this speaks more broadly to our approach to iran? if this shows that it is working or if the attacks last month and the attacks today show that our coercion attempts are not the right approach? brenda: i agree with you that this is an upgrade in iranian havey or. i would say this is an act of desperation. this is the thing you do at the last minute. clearly if there is a concrete threat to the straight, this will bring the u.s. to take action that is going to keep that straight open. this is not something that the u.s. would tolerate. using their own difficult ammunition at a very early stage in the game. joe: talk more about the policy response we may see forthcoming from the u.s. nothing obviously imminently, but if there were to be more

tensions, more attacks, what might we see the u.s. to do in response? brenda: i do not think at the current regime in iran understands the trump administration, especially on the iran question. i think they are looking at what happened last fall, before the nut -- the beginning of the sanctions on iran when all the declarations of the trump administration about getting tough on iran, they gave extensive waivers to eight countries. this highly disappointed saudi arabia. there seemed to be a risk because saudi arabia was continuing with the cutback. i think the iranian regime has it in their heads that the u.s. administration is scared about high oil prices. i think that's wrong. i think november was two weeks before the midterms, different oil spike versus summer 14 months, 15 months before they'll let -- the next election. i think the trump administration

is very serious on getting results and is not afraid about an oil price spike. taylor: -- caroline: where does this put europe? those that remained within the nuclear agreement with iran have been trying to ease their economic pain. they have not been efficient about doing that. does this put europe into a bind on how to treat iran if we see u.s. labeling iran as some sort of adversary and a threat to norwegian tankers and japanese ones? brenda: bright, and think we have to separate one we talk about europe between european companies and european governments. i could say the same thing for turkey as well. in number of governments that have been against the re-imposition of sanctions, have wanted to preserve the nuclear agreement. you are seeing serious compliance on the side of european countries, even turkish country -- companies which was an important market for iran. the sanctions are working,

despite with the governments are thinking. the companies are saying we do not want to be cut off from the u.s. market. they are not willing to risk the , they have worked better than anyone anticipated. a lot of it had to do with this being the second round of sanctions going back to the sanctions that were imposed under the obama administration. the mechanisms were in place. compliance is much more serious. i think i ran -- much more serious than i think iran could have imagined. joe: what does iran do then? obviously, the efficacy of the sanctions having devastating effects on the iranian economy, where do they go next? what do they try to do to create a breathing room or space? brenda: i think we will see more of these kind of attacks. i think they will become a new normal, it will be part of our middle east summer. i think -- and often iran uses its proxies.

it could be terror targets instead of oil infrastructure. people, embassies, throughout the world, europe, anywhere, in order to create a fear. i think these are the kind of tools that you can only use ones. we saw this in 2006 during the israel-lebanon war when --entially, iran overused you sent your medium raise missiles, once it is done, the threat is over. there are not that many more tools iran can pull out of the toolbox. taylor: thank you, brenda schaefer, senior fellow at the atlantic's global energy center. i want to bring you breaking news on broadcom. these are numbers we were looking for. they are cutting their full-year revenue outlook for the quarter they had missed on the top line, a beat on the bottom line. it is at full year revenue being lowered to 22.5 billion dollars

from previous estimates of $24.5 billion. from aportantly, a quote ceo saying we see broadbase slowdown in the demand environment as part of continued geopolitical uncertainties. they are seeing the effects of export restrictions on one of our largest customers, i would make a guess that they are referring to huawei. they are saying their customers are reducing inventory levels and therefore, we are taking a conservative stance for the rest of the year. i think that says it all, as we know in that quarter, huawei was banned. broadcom gets 50% of their revenue from china. caroline: one to watch. and the effects of the trade tensions. let's have a look at the other political news. the white house, sarah huckabee sanders, has indeed a said she will be leaving the trump administration, or the white house has informed fs that. turbulent 10-year she has had.

near disappearance of the daily press re-thing. but she was there from july 2017 after the abrupt resignation of sean spicer. she has managed a rather effective carrier of president trump's message. she will run for governor of arkansas. this is bloomberg. ♪ s is bloomberg. ♪

caroline:caroline: a clarification, trump has said a sarah sanders will leave the white house as press secretary. he says he hopes sarah sanders decides to run for the governor of arkansas. president trump delivering remarks on a second chance hiring at the white house. we will be listening into the conversation he is currently having, and we will keep you

abreast as to whether he says anything about the departure of his press secretary. taylor: i wanted to bring us breaking news blue apron. they have done a reverse stock split that will be effective tomorrow, june 14. the company saying while the shares are down 13%, but the company is saying that the river stock split between a one for five and one for 15 is to regain compliance with the new york stock exchange continued listing standards. over the last three months, off 30 per -- 36%. joe: you never want to have to do that. caroline: shares are off. we will keep you posted. a quick check of the latest business flash headlines. president trump says tim visited the white house today. he did not say why. the government is investigating apple and several other big tech companies for possible anticompetitive behavior. earlier this week, the president

said the u.s. should follow the eu's lead and sue big tech firms. biggest meat processor in the u.s. wants in on a fake meat crave. tyson foods is coming out with a burger made with half angus beef and half protein. this year.ut nuggets bloomberg intelligence as the substitute meat market could arise from $684 million in revenue last year to $10 billion in the next decade. the world retirees risk running out of money a decade before they die. that comes from the world economic forum. a report says retirement account balances are not increasing fast enough to cover rising life expectancy. the problem is worse in japan where women have a 20 year savings cap. that is your business flash update. joe: coming up, some are arguing that technicals are pointing to another search for bitcoin. we will speak with an early cryptocurrency investor about

the state of the ecosystem. this is bloomberg. ♪ berg. ♪

united leave that a rent carried -- near the strategic strait region crucial to global energy surprise. secretary of state mike pompeo spoke to reporters at the state department. >> it is the assessment of the u.s. government that the islamic republic is responsible for the attacks that occurred at the gulf of oman today. the assessment is based on intelligence, the weapons used, the level of expertise needed to execute the operation, and the fact that no proxy group operating in the area has the

resources and proficiency to act with such a high degree of sophistication. mark: the attacks occurred at dawn about 25 miles off the southern coast of iran. senators are reacting to president trump's assertion that he would be open to accepting of foreign powers help in his 2020 campaign. in an interview with abc news, the president also said he wouldn't necessarily support such an offer to the fbi, what the bureau's director has said should be done. both democratic and republican senators were stunned. for action on a mandate to report any such conduct to the fbi. >> that president trump has chosen to say that in an interview on the record after the mother report, after all the allegations about his campaigns potential involvement with russia, i am shocked.

i thought i was done being shocked at anything he could or would say. he has once again outperformed. >> in circumstances where foreign government attempts to be involved in an american election, that would be simply unthinkable for a candidate for president to accept that involvement, to encourage and participate with it in any way, shape, or form. it would strike at the very heart of our democracy. set upark warner president trump, this man has so little moral compass that he doesn't understand that taking help from any foreign government during a political campaign is an assault on our democracy. secretary-- press -- sarahley standard huckabee sanders is leaving the white house. the president tweeted a few moments ago that sanders is stepping down from her post at the end of the month and returning to her home state of

arkansas. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i mark crumpton. this is bloomberg. taylor: i want to bring out some more breaking news were getting on broadcom. the big headline is that they are cutting their full-year outlook for fiscal year 2019. they're looking at revenue at $22.5 billion. they previously thought $24.5 billion. they missed on the top line and beat on the bottom line. the real headline is cutting the full-year outlook. byy think it is being driven geopolitical uncertainties and the effect of export restrictions on one of our largest customers. i will go out on a limb and say that is huawei. caroline: some corporate action , it has probably

taken some investors by surprise. a reverse stock split, they may be consolidating their shares to make them individually or valuable, but it doesn't change the overall value of the company. .own 11% it serves to highlight the dire straits the company is in. less than $.60 for a company that ipo $10. joe: meanwhile bitcoin has been on the rise this week. technical indicators are showing perhaps more upset ahead. say most cryptocurrencies are poised for fresh gains that investors should buy. joining us is a venture capitalist, one of the early investors in blockchain technology and cryptocurrency ecosystems. based on your experience and

enthusiasm, or people ready to go at it again? in anticipation of a coming supply shot in 2020. the way new bitcoin is introduced to the orchid is through a process called mining. the mining reward decreases by half every two years. so in 2020 we will have much less of the fed dealing with bitcoin, we will have half less. we are also seeing greater demand for bitcoin and you on ramps for more familiar and conventional sources. so there is anticipation that there will be a broader group of consumers that have access an appetite for bitcoin. is deemed atcoin store of value, digital gold

assets. there is still always the scaling problem that surrounds , isoin and ethereum as well this in any way being changed and will we ever see it as a means of purchasing, or is it always going to be a kind of digital gold? >> in terms of scaling is one of the most exciting progressions of bitcoin over the past year and a half or so. in 2019, we are seeing higher layer infrastructure development rapidly progressing. that will provide scale and has already. we are looking at the streamstion of block good networks, which gives us a new breadth and depth of use cases in the blockchain. finally, advancements happening

at the core protocol level, they allke taproot and help us with the issue of scaling and allow us to see greater volume and variety of use case in technology and infrastructure itself. taylor: talk about the distinction between bitcoin and the underlying technology of blockchain. what makes you excited about investments in bitcoin? each cryptocurrency has its different and unique blockchain. bitcoin is still the dominant leader in the field. it's 55 of the total market cap of cryptocurrency ecosystem. what is exciting and most uniquely differentiating about the bitcoin blockchain is its level of stability, security,

and dependability. , is themean by that infrastructure ready for entrepreneurs and users? bitcoin has had 99% uptime over the past 10 years. we know that it is quite secure and that sets it apart from other protocols. finally, it is dependable. the value itn that offers to us is consistent. we know what to expect and how developers are prioritizing the maintenance and upgrades. investing inut companies within the cryptocurrency ecosystem. some companies have obviously done well like exchanges or direct on ramps. there are other companies that have envision u.s. cases for crypto that have not panned out. when you look at the companies

that excite you in the space that could contribute positively to the ecosystem, what areas do you think are interesting? what is most important is that the business model aligns with what the company can service. 2018 we saw multiple companies raising at unicorn valuations from those fields. we have also seen failures in the space when the business model didn't match the stage of the infrastructure itself. it might make sense when you have higher layer infrastructure and greater scale, they may not have made since in 2013 are 2014 in that environment. when we are looking at companies in founders, we are asking the question, are they building for the infrastructure that is in

place for today and anticipating future upgrades? joe: are there any other coins that you feel confident will last? alyse: i expect we'll see protocols that serve other unique purposes. today and will be in the future the cryptocurrency that addresses that need. other protocols may serve other purposes. i want to bring you some gundlach,from jeffrey speaking on the total return bond fund webcast. he is saying were starting to see a real effect of the global slowdown, that people are underestimating the link than frictions of a trade war and the trump backing off terror threat with mexico may be a game of chicken. chance of a the

recession over the next six months to about 45%. and saying the steepening of the yield curve is what should really be scaring people. we will bring you more as they come. this is bloomberg. ♪

>> she comes from a great state, arkansas. she's going to be going back to arkansas with her great family. her husband is a fantastic guy, and her family. i don't know if we can get her to run for governor of arkansas. i'm trying to get her to do that. she is a special person, a very fine woman. she has been so great. she has such heart. she is strong but with great

heart. i want to thank you for an outstanding job, and thank you. [applause] >> thank you. thank you so much. i'll try not to get emotional because i know that crying can make us look weak sometimes, right? this has been the honor of a lifetime, the opportunity of a lifetime. i could not be prouder to have had the opportunity to serve my country and to work for this president. he has accomplished so much in these 2.5 years and it has truly been something i will treasure forever. it is one of the greatest jobs i could ever have. i have loved every minute, even the hard minutes, i have loved it. i love the president. i love the team i've had the opportunity to work for.

the president is surrounded by some of the most incredible and talented people you could ever imagine. the only one i can think of that might top it a little bit is the fact that i am a mom. i have three amazing kids and i'm going to spend a little more time with them. in the meantime, i'm going to continue to be one of the most outspoken and loyal supporters of the president and his agenda and i know he's going to have an incredible six more years and get a whole lot more done, like what we are here to celebrate today. i don't want to take away from that, i want to get back to the tremendous thing that people behind me have done. thank you so much, mr. president. it is truly an honor. [applause] >> great person. thank you, sarah.

she is a warrior. you guys know what warriors are. we are all warriors, we have no choice. thisve to be warriors in world. thank you, sarah, very much. we are also glad to have it does the president of the society for human resource management, johnny taylor. an emotional farewell of the white house press secretary, sarah huckabee sanders, saying she will be leaving the white house. she has been in that role almost two years on the job after sean spicer rather abruptly quit back in 2017. young woman, 36 or so, reminding us she is the mother of three children.

going back to her state of arkansas. president trump saying he wants her to run for governor. any thoughts on what she might be doing and why she left? >> there has been a lot of speculation for more than a year about what sarah sanders would do next. her father served as the governor of arkansas. worse,ter or for whatever you think of sarah sanders, it battle tested her if she chose to stay in politics. people who ever served in this administration and highly visible roles where they've had to be combative or support the president have had some difficulty finding the right landing spot in the private sector. i don't know what she will be doing next. i imagine she is looking at political office and whether it's the governor's race in 2022 or a senate race our house seat,

we don't know who will be the next press secretary, if there will be an next press secretary, and what the role will be. the normal role of the press secretary in the modern white house is to preside over press briefings and communications with the press into the american people through the press. as we all know, that has changed pretty dramatically over the course of the last several months with the press briefings to but disappearing, moving unscheduled gaggle festivals outside on the north lawn of the white house. so the rule has changed under this presidency. what comes next is very much in question for that role and how it interacts with the american voter as well as her political future. obviously we saw a lot of turnover in this white house at various times. sometimes it came in fits and starts. she is a survivor. what was her connection to the

president that made it so that she thrived for a long time in this white house? margaret: there is a connection there, even when sean spicer was press secretary, that the president had more of an affinity for sarah sanders in that role. as she has receded from the public view and became a bit of a lightning rod because of statements from the podium and criticisms about her ability to be an arbiter of fact, she has receded from the public role and has grown closer with the president inside the white house. withd a good relationship mike huckabee, her father. she has an understanding of how executives and political families operate because of her own experience. i want to quickly push this forward again to the 2020 elections. an interesting story that the

dnc had to borrow $3 million, their spending outpaces what they are able to pull in. is it too early to get concerned about fundraising efforts on the democratic side? margaret: not if you are a democrat. they have many challenges, one that president trump has been prolific in his fundraising effort. it is such a crowded democratic field that they are all going to bloody each other by the time someone actually ends up as the general election candidate. it's going to take a lot of cash to defend that person. they face a number of challenges. president trump's challenge is that despite all that fundraising prowess and despite a fairly strong economy, there is still some trouble with the early national polls. isey isn't everything but it

hugely important for the democratic party as a whole. i think it is a real concern. taylor: a crowded field indeed. frome getting comments jeffrey gundlach, saying he thinks the fed has more room to cut than the ecb. that will weigh on the dollar. he said the only -- is whether there's something of an insurance cut, perhaps a 50 basis point cut in december and the steeping of the three-month 10 year is what really should be scaring people, boosting his new forecast of a recession to 45% in the next six months, saying it will be extremely probable that the fed will have to cut rates may be up to four times, and underestimating the links and friction of the tariff trade fights. this is bloomberg.

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>> the latest on protest racking the city of hong kong. at state, a controversial extradition proposal. it feels like protests have calmed down a little bit for now. : the protesters are calling for hong kong people to come out to the streets on sunday. they are expected to gather around victoria park with the debate on the extradition has been postponed until next week. who knows what will happen once those conversations continue. at least for the time being, they are on hold. joe: talk about the pressure being phased from citizens, voters, and also from beijing, presumably? seeny: despite that you've

thousands on the street, you have seen even the allies who have said this is needed in order to close that legal loophole. they say they don't want to would fugitive havens it even those people have started to question her politics and tactics when it comes to dealing with people. most people criticizing why she hasn't been able to explain the deal better. we seem pressure, not so much from beijing, they say it is an internal affairs issue. when it comes to other countries like the u.k., we heard from prime minister may and the foreign secretary talking about the government having to discuss this with the people. caroline: how have businesses reacted? is there any wavering about the headquarters being based in hong kong? shery: we are talking about 1400 multinational companies with employees there. the key issue with this

extradition bill is that it would affect those employees as well. not only hong kong people but foreign residents and people passing through with a visa could get extradited to other jurisdictions like china. aside from that, it has a chilling effect on business. you don't know when these protesters will be back, when they will be blocking roads. they have started clearing up some of the debris left over from all those protests we have seen. interesting, we are one is from analysts, famous for flagging suspicious counting companies. -- accounting companies. we could get targeted even if we haven't done anything wrong other than draw attention to something that is really wrong in these chinese firms. joe: to change the subject just a bit, a big night for chinese

data. data out thateen is patchy, it's going to help support the economy. tonight we are getting industrial production and retail sales, mostly expected to hold steady. reboundales expected to by more than 8%, so we want to pay attention to that. caroline: catch more of her stories -- of her stories on daybreak australia. the boe bank governor will be talking to us. joe: i'll be watching economic data numbers for u.s. retail sales in may. a briefing by the governor.

bloomberg technology is up next in the u.s.. joe: have a great evening. this is bloomberg. ♪

at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.

♪ emily: i'm emily chang in san francisco, this is "bloomberg technology." coming up in the next hour, the ongoing trade dispute is taking a toll on broadcom. sales, mrs., and cuts in the your revenue. and, politicians are speaking out.