mark: i am mark crumpton with bloomberg first word news. nancy pelosi says president trump must get the approval of congress before initiating any "hostilities" with iran. the speaker said the situation is dangerous and sensitive. her statement after president trump confirmed he ordered and canceled the retaliatory strike after iran downed an american drone. a spokesman said the speaker had not been notified of the president's plans. european council president donald tusk says the leaders want to put the issues of trade and geopolitical tensions on the table at the upcoming g20 summit in osaka.

at a joint news conference alongside european commissioner president jean-claude juncker as, hemanian president han brought up the issue of brexit. the withdrawal of agreement open for be renegotiation. >> we look forward to working together with the next u.k. prime minister. we want to avoid the dissolving of brexit and establish a future relationship and stay as close as possible with the u.k. -europe relations [inaudible] mark: comments came after european union leaders held a two-day summit in which they failed to reach a deal on candidates for the blocks top jobs. vice president and has postponed his speech planned for monday criticizing china's human rights

record. the vice president says he and president trump decided the speech should be delivered after mr. trump and chinese president xi discuss trade on the sidelines of next week's g20 meeting in japan. president trump has repeatedly threatened additional trade tariffs if xi refuses to talk with him. un's labor agency adopted its first conventions aimed at reducing violence and harassment in the workplace. convention was adopted 39-7 with 30 abstentions, a landmark achievement of the assembly that ended today. the agency unites businesses, labor groups, and 187 member states. >> more than ever, we need global responses to global challenges. yet more than ever, this is under fire. moreroblems are becoming complex, yet our responses are becoming more pragmatic -- fragmented. and there we see trust

surplus of fear mongering. mark: delegates turned back efforts to include language in defense of lgbt parent -- people. statesvention will go to that decide whether to ratify it. 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. scarlet: this is bloomberg markets: the close. caroline: where 30 minutes until the trading day. volatility abounds. volumes up 50% higher than your

average. we hit an interim record high. we went back higher than we had seen in october. seeing ay index, we're performance because of ratcheting pressure on your end. scarlet: president trump called off air strikes. it is not clear what will happen with iran. oil prices are higher. -- thee: we are taking euro is higher. tear up above $1400 an ounce. scarlet: it is pretty remarkable. once it got past 1400 or certain levels it took off. if you look at the two year yield we fell below 2% this

week. earlier today. yields have bounced back and are at 2.06%. we mentioned it feels like the dollar had peaked for now. let's get you to top calls, look at the equity movers on the back of analyst recommendations and we will start with the coverage of chile. ewy.h to issue ahe first rating on the stock which went down last week. $55, putting it at a disadvantage. the stock off by 4.25%. to $20g the price target .32. off by 3%.ron those are some of your top calls. one of the stories on the radar

is what is going on at the fed. it has been a couple of days. people are talking including minneapolis fed pred -- fed president neel kashkari. he can slant his rationale but it does not matter. james bullard dissented. isoline: the key concern inflation. he wrote they should have taken 60 basis point move in june 2 reorient tape ourselves toward the 2% -- two percentage point. maybe if we get that aggression coming out in july, we could start to see a reorientation of inflation expectations. but not in the next month. sticking with the fed and richard clarida, federal reserve vice chairs said they are given in favor of cutting interest rates has strengthened.

the outlook is for sustained economic expansion and that is important. this will become the longest expansion in u.s. history. we had strong growth in the first quarter north of 3%. we could see some moderation in growth but the economies baseline outlook is good. sustained growth, a strong labor market and inflation near our objective. we speaking of cutting interest rates? >> in this environment especially in the loss sex or -- years, the eight economy is hitting some harsh currents. there is a marking down in growth prospects and uncertainty about trade. -- weighingtiment on sentiment. it will act as appropriate to sustain expansion. >> let's begin with this new word, uncertainty. is nonpolicy

policy shocks. we focused on the trade war but we focused on the president. many other shocks out there. draghi, mr. kuroda. there is the norwegian bank just yesterday or the day before raising rates because of the shocks they have. what is the non-policy shock that matters for the vice chairman? >> we have uncertainty in the sense there is always some geopolitical uncertainty and also uncertainty about how the global economy navigates at a point where you have negative interest rates in the eurozone and in japan. those countries are well away from where they want to be. that is a factor as well. tom: when you ran columbia economics, some say lot oforated with a talent. ,ithin our economic history have we ever had an american that is a central

banker to the world because of negative interest rates and the challenges in asia? richard: that is a challenging question. the fed has played the dominant role in central banking throughout most of my professional career. what is unusual this time is the u.s. is much closer to where it wants to be in terms of both employment and inflation than are other major economies and because we have a much globalized capital market that we did 40 years ago but also -- that also has an impact. it is different than in the past. fed vicethat was chairman richard cleared up speaking with tom keene. we will be speaking with the bank of maryland about projections and what it does to demand and supply dynamics. from new york, this is bloomberg.

>> oil is speeding toward its ingest weekly game -- gain two weeks. let's bring in francisco blanche. great to see you. i know for oil you have pointed out in may that up and down side tail risks were rising. given this week's price action, the big rally we have seen, has it tilted in one direction more now? francisco: when we put the no down we were arguing that rate tensions could pull oil prices lower which they did. we are getting to the other side of the tail risk which is the iran sanctions and the reaction of every into the sanctions. we are seeing a lot of volatility in oil markets. i do not think that will take any time soon -- change anytime soon. the demand picture seems to be

getting the upper hand in terms of the dominating the market flow. centriceen more iran with the demand picture has become a bigger concern overall. caroline: will opec come into , will we start to see opec and -- managing to come up with a date to meet to decide on production cuts going forward? francisco: opec is coming up in 10 days. we will look at the demand picture which has been running at half the rate in the last five years in terms of growth. around seen demand $700,000 -- 700 thousand barrels a day. is goingrtantly opec to meet after the g20. as tore getting a sense where the trade war between the

u.s. and china is going. the risks around iran are going to remain there. -- you have iran and the u.s.-china trade war. both cases are difficult. on the trade war, my sense is that u.s. and china want to deal but there is pressure on both sides not to fully compromise, so we will get some model of a trade deal through. it is difficult to predict what happens in the gulf. very high as we saw overnight in the last week for hours. scarlet: you're talking about oil prices -- gold prices and they had a breakout over the last two days. caroline had mentioned this is something that people are looking for but it was not

getting bid up. what has changed in the past week that has given gold this boost? a couple weekss ago with alix steel and she asked me, back then i was wearing my gold tie because i thought it was a great time to pile into gold. by thewas more driven economic weakness globally created by the fed policy tightening in the last couple of years. we felt that was overdone and it was going to lead to a big reversal in expectations which is what has been happening in gold. , we have expected four hikes this year and we are down to expecting three cuts. it is a dramatic change in next dictation from interest rates. that is supporting the gold

price and the tensions between the u.s. and the rest of the world are very high. it is about yield rates. high inflation and dictations, lowered nominal rate expectations. thank you.

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thousands of mattresses to those in need. live healthier, live happier by resting deeper. right now, you can get 10% off, plus two free pillows. go to leesa.com today. caroline: i am caroline hyde. scarlet: great to see you. you think keeping an eye on small caps because as much as the broader indexes are mixed, this one has a decided direction. >> you are teasing me about the charts i have on my screen. you can see the outliers and when you look at a day like today, probably one of the biggest outliers was russell 2000 down .8 of 1%. this trend we have seen, this

underperformance even on a day-to-day basis has been going on since the start of 2018. we know that the small caps are the bull proxy for market, for the economy and it does make you wonder about the quality of a rally we have been having when you don't really have small caps participating in any sort of meaningful way. caroline: it would have thought on days we were worried about trade war and politics, companies might be more used to it. 18% of the index of the russell 2000 includes financials, a lot of small and mid-caps, very sensitive banks as well. scarlet: financials have not had a good run. if you look at the performances of the major index and this is the case with the russell, goesy up i .81% as wti above $57 a barrel. the tensions with iran do not

look to be dissipating soon. >> it is leading on the week. oilline: we will see how continues to outperform. maybe some bond proxies and selloffs. chipmakers also down .7 of 1%. macron not getting much of a reaction from that analyst action we got earlier. caroline: they seem a bit worried about their own memory chip. scarlet: if you look at the performances of the index -- indexes and how they play out, we hit record highs. we have been meandering. falling has been heavier than usual. where moments away from the close. closer look at some of the action as we tend toward the close. >> we see the stock down 5.3%. blastingcott gottlieb

and he was negative for the stock when he was the fda commissioner as a physician and -- bringo break down down nicotine levels. this compares the s&p 500 to of altria.m its -- we see underperformance, the s&p 500 up. 36%.hares down about there is reasons to think it could continue to fall. --be concerns around jull juul will weigh on altria. >> that is the longest losing streak since it became a public company. the losses have pasted through the week since tuesday and it is

falling around 8%. the stock is trading above 150 bucks a share. if you look at this chart, that is above the average analyst price target of $96. the stock is flat on the week after closing at a record high on monday. a run of losses from tuesday to friday may provide some breathing room for those show -- and short-sellers. they hold half of the stock. >> while the s&p was putting a record highs, traders are busy selling. you look at the most popular exchange rate, that is the spider s&p 500, no bias take her. it is up $4 billion worth of outlook and that is the most for any single day going back to october of last year. as you can see right there. it begs the question, are some investors getting jittery that the s&p is at a peak after all is up 18% on track for

its rest over two decades. since june 1955. not the time to be getting greedy, an analyst said. caroline: for more market our senior markets editor. we hit record highs at 11:00 a.m. and we dow that back. why is the market not reacting to geopolitical tensions that ratcheted up and is worried about the fed? quadruple witching often's expiration makes the topic [inaudible] good point about the small caps. one of the things to keep an i on is the dollar is weakening and small caps often look at the haven from the strong dollar. as the dollar weakens, small caps are not looking like the

slamdunk they were. leadingt the only market indicator that has not quite confirmed those highs. a lot of people look at the transportation index. that old down theory that people want to see transportations and. and they transportations are a good 10% off their high. rising oil prices are a problem. this cloudy outlook for the economy. , to the flipside, you could have woke up and saw that president trump called off the majors and view that as a risk on catalysts. it is an unsettled time. times.t of unsettled as we head into the market close, we want to bring in omar at giller, the chief investment awkward -- officer. joining us from san francisco. we have been talking about the

catalyst and volatility. when you look at what happened this week not only with the fed but the messages we got out of the central banks worldwide, does this make a case for or against being bullish equities? market is taking these as positive signs to become bullish. and understanding that central banks will be there to accommodate policy to support the economy and the market. it is very clear specifically in the case of the fed that the economy, while it is still looking at decelerating, is not in bad condition. it is back to regular growth trend for this part of the cycle. the fed by offering the possibility for a cut in july with the idea of them markets thinking there's another one later in the year, it is thinking that if they do a cut in july, it will be an insurance cut as opposed to a dramatic issue related to the economy.

that obviously provides a nice support for being in equities. when you combine that with the fact that we got a little bit of a positive reaction out of the tweets related to the g20 conversations between the u.s. and china, clearly putting a lot of support to a market that it is clearly likely -- liking. , that iset in equities more attractive than other asset classes. scarlet: you talked about in a podcast their expectations for more attractive than other asset classes. fed rate cuts in july. everyone is pricing it in. it is at 100%. why would you price at 100%? they did not say they would do it. maybe the fed is not going to move ahead with the rate cut. fed rate cuts in july. he explained -- please ask wayne

why. >> we have the g20 meeting next week and he made a great point about the power of kicking the can down the road. all president trump has to do is come out at the end of that i with awith president x handshake and a promise to keep talking. what we learned from the debt crisis and brexit, kicking the can down the road is a powerful force in markets i think. the argument is a very contrary and take given that the short-term rates market is pricing at 100% chart -- chance of a rate cut. of riskt is that sort on five could increase of there is happy news out of the g20. the fed itself may kick that can down the road a little bit and signal, yes, we are serious about this, probably going to do it but not till september. advising anywhere to -- anyone to buy at the market? omar: the advice we provide in terms of looking at -- the

market has gone up significantly. it is a chance to reposition for the second half of the year. there will be asset classes that have a lot of power. they were talking about small caps. this is an opportunity to look >> we're talking about this is a rally where investors are more cautious. to look at higher quality. you have to look at dividend that allows you to provide more of a higher quality. every tfolio is not just single part of the equity market attractive as the rest. scarlet: you heard the closing bell. the close.nto line down straight to the last couple of minutes. >> small caps down. pretty volatile day on

the whole but you didn't see a lot of traction out of the gate 9:30 this morning till 4:00 p.m. >> up by at least nine percent. so let's check in with our now to take a look at what they were observing at the close. about you?t abigail:: stocks did fall on the lose here but on the third upweek for the s&p 500 in a row. this longer term chart may more t there could be gains ahead. we see a beautiful uptrend. consolidations of where the buyers are weakened most part ng for the the 40-week average did hold ith the exception of 2016 in 2011 when the 200-week moving average was hit and up, up, and after the presidential election. last year, the volatility, a similar pattern. look at an area of consolidation. t's pretty amazing, the index is technically confirmed for about 30-60.

this chart could suggest that gain could even be greater whether it's central bank accommodation or some other fact that the investors may get excited about. his chart is bullish for the s&p 500. as amazing to me t was is that everything was rallying, stocks, bonds, forceful. this is a pretty rough proxy. it will just give you an average i want to show you the extent of the strength that we saw. you're looking at is the qual weighted index, s&p 500, also, crude oil, and then gold prices. you can see this week we saw an rally of 4%.ned that's the strongest everything we have seen since back in 2011. yes, much of this comes from a rally in oil, but looking into what typically happens see rallies of this sort? they found, in fact, 70% of the

12-month span the s&p 500 is actually higher of 8%.the median gain so it bodes well potentially forward. emma. >> one asset part not taking part in the rally is the u.s. dollar. falling for a fourth straight day and headed to its biggest months.loss in 16 take a look at this g-chart. we'll show you how the dollar fallen below two levels of support including the 200 day moving average. also, the dollar ending the week ow against its g-10 counterparts, the euro, the biggest winner there. remember, sarah, the rally is fueled in part because of the weakened dollar. interesting take. thank you. till with us, of course, omar aguilar, i want to get your take up today in the

up .08 for the day, the week. is this focusing on oil and at side issues pply being the concern. >> absolutely. tension in the strait of ormuz in iran, the drone getting shot down, has clearly up oil prices. you don't much bang for the buck you an energy rally like used to because energy companies are around 5% of the s&p 500. hen i started at bloomberg exxon was one of the most valuable countries in the world. the cyclical bulls who think pull out of this softness in the economy, be very bullish for that reason. it's still a very depressed sector. take off, if we do see green shoots in the economy. cloudy n, it's such a outlook that i don't think there

is a lot of commitment on that universally. omar, i want to go back to what emma was talking about with regards to the dollar. with the weakness that we've been seeing over the past few days, obviously, a lot of that what we're getting out of the central banks this sort of run that we've had on the since january, is that over or do you see a case to be made that we could return to sort of dollar strength in >> i think we've seen these situations before. when you go back to the financial crisis in 2008, going the beginning of the quantitative easening, i think that's exactly the trend that seeing. the initial reaction seems to be ore linked toward the central bank activities and less about economy.ation of the the dollar usually tends to have a little bit more on what the state of the economy is. this particular case, lower rates clearly is going to affect the currency. that what this does is

to provides more liquidity the nonareas that normally, the flow of liquidity, when the bell rings, merging markets. merging markets tend to do very well in these circumstances to provide another way of growing the economy. again, you go back to the that's 0 environment, exactly what happened. now, how sustainable is this is a function of the economy? the difference between now and that in 2009 we were in the process of recovering the economy. his time around we're in the deceleration of the economy. so i do expect that we're going to have a softer patch for the term but it'snear not going to take too long for these to go back and get tronger as the economy gets into a soft landing. >> with the federal reserve ready to ease and cut as needed we get this demand for risk picking up. effect beyond the fact that the risk appetite is there? real t actually have a impact on the real economy, whether it's china, whether it's

india?, whether it's >> yeah. it's a great question because if on theirg is equal and normal circumstances, the answer will be yes. actually see slow liquidity usually go to an area that has the highest growth rates. in this case it will be india, china, merging markets. latin america.f now, the biggest change, regardless of the currency situation, is the surrounding what may happen with the trade discussions and a lot of the effects. country that will benefit from that currency so when you have those countries process of the supporting their economy and their growth, and, at the same have to deal with the situation, that clouds a lot of the benefit that you can have weaker said. that said a weaker dollar would still give them better support what we have today. >> mike, i want to get your take

on the bull market because today of calm.moment we got a little bit of selling. a respite from the crash lower what are we going to get next week as we move towards the g-20? to me and y looks i'll probably jinxing it by saying it out loud and i wrote blog earlier and it looked like i was wrong but maybe i'm right, it looks like has found a bottom yield. it's sticking above 2%. two year, it seemed like it might have more room to go but sticking in the range, percent. something% dovish.nd of that 2% has stuck over the last few years. it was, yield k basically turned around right at

2.01%. the numbers can go up but they support, tend to especially for something that big, 2% on the 10-year just to be where people say enough is enough. >> i'm checking your work, right, september 2017 turned right around and moved back up towards 3 1/2%. thing you mentioned, mike, and caroline, i'll start the g-20, omar, going into a lot of ng, there is uncertainty that suggests whether a trade relationship of any sort will sort of be worked the u.s. and china. not to mention the trade relationships between the u.s. japan, the u.s. and europe and pretty much the u.s. and the rest of the world. risk, you put in that what's the playbook? what's the investment playbook or accounting for those types of more intangible events? >> yes. it's a great question. that the obably say expectations of what may come out of the g-20, they should be low.y i don't expect to come out with

a big announcement that things re all settled and things are actually all good between the u.s. and china. think the best case scenario would be there will be a discussion, something will road.nue down the that's probably the best case scenario. i would actually say, however, to how ussions related the other conversations that you describe, you know, would end up being more constructive as to what other parts of the group, all the happeningtreatise are that could potentially put a little more pressure into other relationships within the u.s., e.u., whether e it's the situation with brexit. play hink we'll probably baker role in these g-20 than what it is, you know, u.s.-china. lot of emphasis has gone into that discussion mostly because priced with at least a positive outcome and hat's the part where we should be very, you know, calm for the have out of that we it. >> thank you for joining us from

san francisco and, of course, to well.ry own mike as that does it for the closing bell and for me, we'll be taking look at geopolitical risk, iran, brexit.-20, this is bloomberg. brexit. this is bloomberg.

from news world headquarters in new york. might have you missed in the markets. down on the nasdaq. is, what did you

miss? caroline: president trump calls military air strike against iran leaving tensions simmering and an outcome uncertain. oil continues to rally. $13 trillion world. egative $13 trillion world, messaging from the central banks in the u.s. and overseas pushes the negative yielding bonds not just it's sovereign debt that's sliding. toys r us ts to be a kid. the owner is said to have opened a half dozen new toy stores just in time for the holiday shopping. going down. the amount of negative yielding this week after dove messages pushed it

passeded 13 trillion for the australia, ncluding sweden, france, germany leading count. it's not just sovereign debt. romaine has been pointing out, yielding debt is egative, too, trading with below zero yields. ben, re let's welcome managing director. current global assets a cool five trillion, managing $treasuries. want to go to you first in this negative yielding world what does hat say that scream from a bond market perspective? the economies for more just unprecedented time in of h we live in terms central bank policy? >> i think it's a little bit of both. see, as you highlighted

in the global central banks, policy is ral bank now more synchronized than it was in 2018. some significant slowing in growth and in demand. and the central banks have responded to it. only the u.s. fed but the ecp, china is easing and moving in tes are reaction to it. central bankers have basically to cut interest rates of global growth slows further and basically , the fed made a promise that they were going to try to keep the going, and so that means that if you continue to you have currents, some slowing related to geopolitical events, to trade, confidences, which the fed highlighted, then the think at eact and we vanguard that interest rates, cuts and further reductions in will be coming. this ng to gemma's point,

idea about the central banks being more synchronized, does to mean we're returning this sort of global synchronized growth that we had back in 2017? a fair argument to make? >> it could be a fair argument look at how the market responds. system.king into the currencies started weakening. expectations are starting to ride. more handoff to an economy that's sluggish. it will take a couple of months we see that happening. you look at conditions, index, example, we're still tying may 5 when things started to action o it takes more by central banks to get more. aybe we're getting a synchronized upturn again. and es actually fed policy rate cuts, does it mean much for main street? we know wall street is pushing but does it really help the

underlying economies? does.re it if you look back, interest rates, 10-year treasury had a year, november last 3.25. mortgage rates are now somewhere high 3% range. needed wners that had, to refinance, rebalance their new home buyers that flows through immediately to the economy. and that's happened in just and that's prior to any type of further interest rate cuts by the fed. were to say ed tomorrow we have an agreement on g-20. all political and business uncertainty has gone way. the u.s. economy is doing just not going to lower interest rates, economy has had this huge fiscal sorry y stimulus, i'm with this big interest rate decline. know, on the u active side at vanguard and anagement side, to continue to look for interest rates to move

lower. you know, where does it stop? function of a several things. t's a function of the overall economic activity, how intense those trade winds continue to verhang business confidence, and finally, where is the level of inflation? really bankers have argued that inflation is well below the mandate and for the ed it's been well below their mandate on average by 40 basis points since 2012 at least. tilting, is really to ng to get inflation back the target. the central banks haven't had a whole lot of success doing that think it keeps them erring n the side of more accommodation, not less. as a result, the interest rates will stay low. you into the ring conversation real quickly. when we talk about what the feds are trying to accomplish here it seems like they are trying to nudge not only consumers but the further out on the risk

spectrum. is that actually happening? >> i guess it's somewhat look at the you returns of high yields, yes. it all went up. i think today it still went up. the stock market not so much. it's happening but to your point, there are limits. markets take a break of, you've pushed the stimulus in there. reconfigure how much this really impacts the economy, and to the other there is a period of time where we'll have to look at how inflation bottoms out. of starts nomy sort to slow -- move into a new then goes up slowly. i do think that there is so much system by n the itself, on top of it, that the central banks are committed to liquidity provided that the outlook gets worse. you can't see yields going that much higher. we saw, for example, in say 2016 or 2018. gemma, brief last

question for you, how much lower yields go? >> i think it's something we're because we don't see growth in the economy reaccelerating. of 1.7% gdp ecast for all of 2019. think inflation will be right round here at 1.6 to 1.8%, and so we think just that combination could probably put 1.75,ar yields down around and any type of market euphoria overshoot or miscalculation, maybe 1.5, but we kind of think value in and around this piece of economic activity than bably closer to 2% the 2 1/2 we started the year with. would say right now, what i'm looking for is something around the 1.75 as a trough but when we we have to reassess. have to leave it

there. thank you. shattered hopes. the last glass ceiling in the world of banks may not be any time soon. why wells fargo may be sidelining one of its rising search andidates in its for a new c.e.o. we'll talk about that next. this is bloomberg. hat next. this is bloomberg.

>> inside wells fargo, mary looked like a rising candidate the next chief executive, but when c.e.o. tim loan abruptly stepped down in march the board promised it outside d a new leader the firm. senior executive will postpone the day when a woman reaches the a giant u.s. bank. more, let's bring in 's reporter who has

been covering the story. absolutely qualified to take over as c.e.o. but she seems like she's run into being at the wrong lace time. >> politics. exactly. matter.e politics of the mack has the d beaudet experience. kind of the well rounded experience across multiple divisions. unfortunately, politics of the matter dictate that a lot of the egulators and politicians have said wells fargo needs to clean out. it needs to get executives from outside. need fresh blood that isn't i tainted by this wrongdoing at fargo. >> is there hope that the person who could be brought in from the outside be a female and break glass ceiling? >> there are candidates that are being discussed that are female there are some senior xecutives at bridgewater or

banc of america, who could be candidates. it did you sound like the bank of s a woman or a person color to become the next c.e.o. but it's still early days before e can find out who the real candidate will be. romaine: i'm surprised by that. if you go through the s&p 500, companies, something like 25 companies or so that ave female chief executive officers but when you go down the ladder one or two notches to be a pretty wide plethora of names out there that easily rise to the top. obviously not only in banking but in their field. i'm wondering why it's so hard to find people to fill these roles because they seem easily they are out there. e talk to a lot of them right here on bloomberg. >> that's right. they are out there. there is a conversation really g that's really, important. at the house financial services ommittee meeting, all the bank c.e.o.'s were asked is your

successor potentially a woman? raised their hands, not surprising, but the banks are trying to elevate some of their senior executives into that will eventually prepare them to succeed the c.e.o.s. we're not there yet but there is at nversation occurring least to try and get pool up to the level where they would be able to run, first of all, the businesses, and then secondly step into the c.e.o. position. j.p. morgan, a shutting of the guard. the other banks are leading charge? >> banc of america has a lot of women on its executive team, so you know, there are some very prominent women on that side of things. morgan has, immediately after the hearings, started to its executives. there are senior women across all of the banks but it's just whether or not they can leapfrog into that top spot. s&p ne: 26 companies in 500. only two financial companies. so that's still a challenge.

time,k about that all the women in senior positions. slow going at this stage. pretty t of 500, painful. it's a great story. coming up, global tensions from iran.r trade and china. e speak to founder and chair friedman. that's next. #

>>here's bloombergees first word news. some say president trump was right not to attack iran while they don't know what the u.s. strategy is toward iran. democrat adam schiff, the chairman of the house intelligence committee and matt gates blican were among those calling for a cautious approach. >> i don't think the people be jumping down the president's throat for wanting this through and make

sure that neither side iscalculates and we don't inadvertently end up in a war with iran. >> i'm grateful that the eager to lurch into another middle eastern regime change, endless, unfocused, unconstitutional war. president trump ran as a very different kind of republican, who wanted to end wars, ot star them and i think he's utilizing appropriate caution. ensions with iran escalated, after attacks. teheran announced it's breaking from commitments made under the accord which restrains its ambitions, a deal president trump with drew from last year. iran then downed a u.s. drone trump to order a retaliatory strike that he said shelved 10 minutes before iran was to be hit. top human ed nations rights official is planning to old separate meetings in

caracas with venezuelan opposition leader juan guaido maduro ident nicolas the talks come as both men engage in a prolong power for control of the crisis. guaido has failed to seize power five months after launching a remove maduro. maduro maintains that his rival's efforts have been part a u.s.-backed coup attempt. some 20,000 students from across protested today near a coal mine in germany calling on overnments to take bolder action against climate change. demonstrators carried colorful banners with slogans, your greed cost us our future. climate justice, that's what we want, and stop coal. it comes a day after e.u. to a s failed to agree plan to make the bloc's economy carbon neutral by 2050. gasoline futures jumped the most in three months after an at the n fire philadelphia ng solutions oil refinery.

the largest on the u.s. east and a key supplier to the new york gasoline market. the fire threatens to boost foipss from delaware to maine just as summer driving season peak demand.e of the fire is under control but not out. been e employees have accounted for. and a new report is out that early friday morning, police called to the london home of tory leadership candidate and his partner after a neighbor reported an altercation. toropolitan police responded a call from a local resident. the guardian reported that a neighbor had heard screaming and banging and became worried. johnson spokesman declined to comment. the favorite to succeed theresa may as british prime minister. news 24 hours a day, on-air, tictoc on twitter, 2,700 d by more than journalists and analysts in over 120 countries. mark crumpton, this is bloomberg. caroline: let's get you some

break news. they come tests, around so quickly. stress test at banks showing to withstand and economic shock. saw all 18 banks posting 115 billion pre-tax loss in the stressful situation of a two-year downturn. fed releases its results in the first part of the annual stress test. is the comprehensive capital analysis review. the results will then dictate bank's capital plans. that comes next, of course, all an s in the fed test show ability to withstand and economic shock. stanley improved their ratios in 2018. romaine: with the escalating between the u.s. and iran continuing, and awaiting, meeting , the g-20 between president trump and president g, global tensions are than ever. joining to us talk more about futures founder chairman freeman. george, let's start win

that's been iously a hot topic for the last 48 hours or so. given that we had, at least according to the president, potential from a strike of iran, what is the next step here in dealing with the threat from iran? is there sort of a nonmilitary here?on >> well, first we have to understand the incredible pressure that iran is under. the economy is staggering under the sanctions. more has turned far hostile to iran than it was before. war games military going on threatening syria. something, and it doesn't have very many options. so it first tested the united it would do. what the united states responded by letting d air strike, them know, next time it will go through. move.ow it's really iran's iran will either make some sort of political concessions or it's

remain in an impossible position, or it's going to moment, the at this pressure inside iran is strike. what about the relationship between europe and the u.s.? we saw last week the uk come out and sort of point the finger of in with the g united states, is there still disagreement between the u.s. european allies as to the way forward win in? > well, distinguish between european lies and the uk. we're much closer to the uk on matters. as for the europeans, they have opinions but they don't really all. into this game at they don't have any military to deploy. they don't have very much at risk. europeans will give us whatever opinions they want. likely to are support us, even possibly militarily, so we'll listen to the british. the united states will listen to the british much more carefully than the rest of the europeans.

to the g-20.s turn this is the big event at the end f next week and potentially at this big meeting between jump and chinese president g. i'm just wondering what do you accomplished specifically at this meeting? >> well, you know, every time g-20 or g-7 comes, they say here comes this meeting, then happens. and nothing you don't get 20 primidonnas in expect to achieve anything. in the case of g and the president, they will sit down, sit down for a short period of time, they can't possibly deal with complexities, but they are going to decide whether the other guy is bluffing or not. hat's what they are looking for. is he really able to hold out? is the united states prepared to push forward? important thing that will happen is the read that each president takes to the and, that's not a very good thing because very frequently, the reads are wrong coming out omething of this meeting, nothing every

meetings?of these caroline: do we just need a stalemate or an agreement to talking, and that would be enough for the markets? >> it depends when you talk we.t the markets would just like stability. china tod states wants open its markets. the chinese want the americans their economythat is weak. they have been hurting since can't open their markets except in very controlled situations. is, is real question here the united states prepared to in -- set the status quo china and the answer the president ran on was no and he's implementing his campaign promises. caroline: george, just briefly, in also what's happening terms of the european meetings that have been going on and the relationship with brexit, many breaks it will be top of mind with the g-20 rather than the relationship between what are you hina seeing in terms of how europe is

out?ntly playing >> well, the rigidity of the extraordinary. here is the second largest economy in europe. economy that the europeans are dependent on forex ports. particular. in and they are looking for an amicable divorce. europeans are absolutely rigid that they won't proceed with one. meantime, the e.u. is fragmenting. it's got its issues coming up to table. we've seen violence in ireland. the pressure that the europeans putting on -- it's going to come back and haunt them and it eally is time for the e.u. to say, look, they are leaving. et's make this as friendly and easy as possible, and they are not politically in a position to do that. they couldn't even pick a successor, so they couldn't, at normally they easily pick the successor, successor.nd a

they are rigid and divided. bad combination. caroline: futures man george freeman. thank you for your time. from new york, this is bloomberg. new york, this is bloomberg.

romaine: going beyond private looking at smaller growth companies and longer duration investments. rel spoke with caroline masser in a bloomberg exclusive. >> we think of ourselves as sort of blackstone opportunistic platform. 2011 on was founded in the heels of the financial crisis to take advantage of an inbalance between supply and demand. the banks at that point had a lot of noncore assets they were looking to sell. traditional buyers of those assets were like the products of which morgan stanley have been sort of eliminated or

out following ed dodd frank. blackstone at that point in time, partnering with one of our saw an interesting and unique opportunity to take thus, it of that and was born. >> in this environment today what are the opportunities four folks? companies to new add to the existing portfolio? what's the environment like? >> it's interesting to note that actually looks at a number of different mart locations. we're seeing things, looking at smaller growth, we're also eeing a lot of interesting opportunities looking at preferred equity in different phases of the capital structure differentiating and unique. we're actually seeing a number dislocations art across the spectrum. one unique thing is we have a

ery flexible investment mandate. >> you can go a lot of different places? >> exactly. we can invest in any part of the capital structure. we're finding unique opportunities, not necessarily equity or at mon debt but really looking at sort of preferred or other very structured securities to provide us downside protection. >> does it matter the industry? >> it doesn't necessarily matter the industry. across the board. >> and you guys, one of the have, you get you money sometimes for longer durations. you have these partnerships with your investors that are a little different. >> we do. we do have a number of separately managed accounts which are slightly different of the traditional private equity funds but you're right. we can hold some of our nvestments for a longer duration. we can do things in terms of -- slightly lways different and that's one of the advantages. > at bloomberg we talk about these big mac crow issues, whether it's trade what the fed will do what the economic situation will be. how does that factor into your discussions at blackstone?

>> one of the challenges in having a portfolio as large as the one we have, and eally as diverse as it is, we touch a number of different geographies, everything from new tina to indonesia to zealand and australia. >> keeps you busy? >> quite busy. always of that we're monitoring a number of factors, dgp growth, what's happening in the oil markets because ultimately that will it alsohe portfolio but creates opportunities for us on the investment side. now, a quick check on helps.test a $13 billion fund. it's the first restructuring pg&e has made. william buzz light-year. they are back, their mission to the summer box office

out of a slump. generate $150 o million in theaters that. will mark the second biggest an animated film. and that's your business update. toys, american kids may only have to live through one christmas without toys r us. the defunct chain will reopen its doors just in time for the half a dozen about u.s. stores. everything you need to know, less dozen, that's far than the presence they used to have. >> yeah, they had something like more in the even u.s. these are the big box stores, warehouse type stores. that these stores will be very small, about a third of the size. of a drugstore and the whole goal is to make them soy fun and experiment shall kids might get to go in and play with the toys. birth parties. lot of things people said the enough r us didn't do of, this group is trying to do. a big run by some former toys r

people. >> they have been out of commission for a few months. so i assume a lot of parents places to ound other buy toys. why gravitate back to toys r us? question, big big huddle. they closed all of their stores. finished that process in the year, so they were gone for christmas and the holidays. so if you're a parent or kid shop at arned how to amazon, wal-mart, target, maybe which i nd pop shop, reported this year they have had a big expansion, opening new customers. market has moved on and now you bring toys r us back. know?o most people they woint of business. there is this question mark, wantd i go an shop at if i to return a item, will i be able to in the future? there are a lot of question back in ait is coming very small way. and toy makers that i talked to know, excited, tentatively excited about it. >> all right. it will be interesting. t still is a very popular brand. >> it's still a great brand. it's a great brand with name

recognition. >> that's bloomberg matt townsend. thank you very much. turning to another big story with toysothing to do but i thought this was interesting. the meat pe around alternatives, beyond meat i.po. an interview and said now is not the time to run completely headlong into this moveme egan vegan movement. >> i wonder also, some of the people aren't getting enough beyond -- into their chains because there seems hey, i'm goinge, to wait until this euphoria dies down and see how long it will i'm not going to open myself up. >> they also talked about the might try to y create their own version of whatever is out there. they can do it,

right? copy?y admittedly they perhaps don't have the heme process that makes it textured like a meat but if good.tes good, it tastes >> i had one last night. >> it was nice? >> it was delicious. that's what you need, real meat. apparently. romaine: this is bloomberg. y. romaine: this is bloomberg.

more ne: -- bringing in advertising revenue. talk-show host ellen degeneres in more advertising revenue than others. she came shunned as out as a lesbian. she has a partnership with digital and her own content network. represent the acceptance of gay rights. >> what a difference two decades has made. famously came out as gay in 1997. hat made her a household name and unemployable in hollywood. fast forward to 2019, ellen has

brings in twice the ad dollars of its closest rivals and she's earned at least $500 million in 16 years. er home decor business, ed by brings annual revenue. she signed a deal with wal-mart ev-1. years ago wal-mart's leadership team was dominated by white overly at weren't welcoming to minorities of any type. t's now trying to become more friendly? one survey says 95% americans who ellen degeneres is and 78% like her. romaine: us that jason kelly reporting. on wall street and in the rest world they are seeing a shift in recent years toward a more inclusive business landscape. a great feature

highlighting lgbt executives and being out at of work. bloomberg's jordan -- joins us more about. this we quoted something like 16 people, these are all high level of rities from variety industries, all who are out lgbtq people and i just thought, if you tried to do this story 10 years ago, do you think you would have even gotten 16 people n the record to talk to us about their experiences? >> i don't think we would have. i think it would have been a lot challenging, when me and other reporters went to these companies to ask them about executives, who would feel comfortable talking to us, it was an immediate yes. talkinglad bloomberg is about this and we can highlight the culture that we've created level executives or lgbt feel comfortable talking example to the younger employees here. caroline: it's such a dive into asking all of these executives they have got, you know, antidotes of how they came out, the reception that they have things have changed. c.e.o. of ar, the

dowling says he should have known earlier how accepting his business would be. he didn't come out until he was hired up in the organization. were sill thing you heard was of being fearful of the reception that colleagues and bosses would give them if out, so thisey were is the 1980s, the 1990s, when were dn't know, and laws still changing, and so to hear c.e.o. of dow saying that onein a position where he's of the most prominent lgbt opening.es, it's eye he said he's a good example for young employees. a aine: that was echoed by couple of people. you interviewed a couple of interviewed the senior vice president at gap. what did he tell you? >> roy hunt, senior vice that ent at gap, he said he also had that uncertainty of coming out and he came out later in life. already married, had children, and so for his

experience, it was just trying people.ate trying to tell his colleagues, actually, i was hiding, i wasn't and so lly truthful, just like trying to relearn and was mate in that workplace a transition but he felt a lot of support from his bosses, olleagues, and saw that as an opportunity to have these really important conversation that is have.'t often caroline: as a woman i feel like e talk a lot about gay men but there are a few lesbian females. highlightingjob of some of the senior executive females as well. and europe. -- was one of the ladies that you, interesting what she's now going through, a mea hashtag mendotoo issues. she had some legal issues about being out in some states of the united states. fascinating.at's we wanted to make sure this was a global project but when it

lgbtq issues, it's so different from country-to-country, so that was e, what -- what she said was echoed from other executives, yes, i'm business here in new york where it's accepting but if i go to alabama, that might be a context. romaine: are there some industries that are better in terms of being inclusive and people to be themselves at work? >> you hear time and time again andashion is very accepting that comes with -- fashion expressive. people who make clothes, they more out. like literally, and so i heard that from roy hunt at gap. that historically, fashion has helped leave the charge for other industries like you may not be as vocal about. caroline: christopher bailey echoing that. a great piece. and read ople to go it. don't miss this. resident trump and president g meet to resume trade negotiation that is broke down in may next

friday. contenders for the u.s. democratic presidential nomination will debate each and thursday sday in miami. caroline: bloomberg. romaine: bloomberg technology is up next in the u.s., have a great evening. this is bloomberg. vening. this is bloomberg. *-*

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>> this is bloomberg technology, coming up in the next hour, trump rges the administration to not proceed with the next round of tariffs on china imports. founder of the company's largest supplier urges the iso consider taiwan. plus, slack shares fell but so listing is being hailed as a success all the way around. will it become more of th