mark: i am mark crumpton with bloomberg's first word news. journalist jamal khashoggi is taking her campaign for just and is going to the united nations. she addressed the yuan human in geneva, urged u.n. to take action following a key investigators citing that saudi arabia bears responsibility for khashoggi's death, and the independent you and -- expert who led the probe and says the incident is not standalone. >> that impunity for all those killings and the continuation of those killings have not gone down.

among 47di arabia is member states in the council. expected to present her report formally to the council tomorrow. the saudi investigation is entitled to give a reply. of middle east oil shipments is skyrocketing. bloomberg has learned premiums for oil cargo from the persian can now cost upwards of $500,000. it is more than 10 times what it was earlier this year. six oil and fuel tankers have been attacked in the region since early last month. says britain must leave the european union by october 31, "come hell or high water. but his competition to become the next u.k. prime minister is rejecting this approach. jeremy hunt today called johnson's demand a fake deadline . hunt says the eu will not return to the negotiating table unless

the next british leader can prove he has parliamentary support for a revised frexit plan. president trump has picked stephanie gresham's shoe service annexed white house press secretary. she will replace sarah huckabee sanders. serving as a spokeswoman for the first lady, melania -- mario trump, who announced this on twitter. also will fill the role of the white house committee director, vacant since bill shine resigned in march. global news 24 hours a day on air and at tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ >> this is bloomberg markets,

the. i'm caroline hyde. from the 30 minutes end of the trading day. >> yesterday, pretty flat. .8%.&p 500 off we haven't seen that streak since the beginning of may. we see m&a coming, up 26%. move.l be a record people clearly worried about that. >> a loss of below 2% we might as will get used to it. >> and match us gold, or the yen, but bitcoin. seeing other averages movie little lower. the nasdaq 100 is one of the worst performers, down about 1.7%. also seen transports week here. concerns that a lot of these companies and chicken come -- shipping companies are not showing good signs about economic health now. >> you're looking at the home starter data. let's shift gears a little

now. products firmly rooted in everything from running shoes to baby weights, the company is now in a different kind of way leading away for inclusion in corporate america. it is the first large industrial company with an openly gay ceo. , weon going conversation will have a conversation with the ceo. the company in a quiet time i had. we can talk more personally about you. we thank you for that and for telling us a little more about your culture. your story is personal. we gave some of your stories to a businessweek story about how you perhaps can't --, earlier if you had known the reception you had gotten. the midwest, it was not an inclusive environment when i was young. in the 1970's and 1980's, that

was not popular thing. there was a lot of pressure to conform to the standards. as i grew with my experience and got more comfortable, and i realize what the dow culture was toe, i became comfortable come out to the entire organization. i did that after some health issues. journeyy went through a and said, i will do this and i will move on with my life. it came out in a webcast to 53,000 employees on coming out a on october of 2014. >> it took you a long time to get there. for potential employees who may be want to come in the door and from day one want to live their life openly, how do you encourage those people or create an environment where those people feel comfortable being who they are now rather than having to wait? >> that is the reason for coming out. i was moving up the organization. i was in the running to be so a -- coo.

that preceded me being ceo. i said how will look if people know that i am gave but i'm not out openly and they want to come work it down. our industry had historically been a very white male industry. trying to get inclusion from a gender diversity standpoint for 30 years. created our first lgbt organization 80 years ago. will celebrate 90 years spare we try to create a safe environment where people come to work pier 1 want them to bring their whole cells to work. our organization has more than 4000 members. the new dell, 37,000 employees. 80% of them are allies. they do not present as lgbt but are allies. is whenfind in hiring young people want to hire into the organization, one of the first things they look at is,

will my friend the except here, will they be able to work here to me?treated equally about 80% of young people being hired tell us that is a key value of theirs. we approach this from the standpoint of inclusion. we passed the age of just tolerant spirit we're into the age of acceptance but now it needs to be about inclusion. they have to be included and begin it opportunities, chances for advancement. while we do not force anyone to come out and that is a decision any room has to -- have to make, we can provide resources and support for doing that. >> a lot of people do not fill comfortable coming out at work. maybe you personal reasons for not wanting to do it. maybe they think the risk is more than the reward. if you are in the united states today, and 26 states, you can still be fired for being lgbt.

>> how is that conversation changing? if you are a company based in a state like that, are you having conversations with legislatures >> inable to change that? a huge way. 2005, the dow is the first company to change that index. if you look at it today, they're probably 80% part of that index. business has moved in when government has not dressed some of these issues or created a safe environment. can protect people. we can make sure they do not get fired for their sexual orientation. we can make sure they take domestic partner benefits, equal benefits to straight counterparts at work. we may not be able to protect them in the normal marketplace with housing and adoption, and they may be discriminated against in those areas, but we can go to bat for them. thele are involved in marriage act.

like is that went to the supreme court actually had some dow contributors to it. we have been actively involved one bills of gone to the statehouse in louisiana, for example. before governor jindal there was pushl coming in to religious liberty and push lgbt writes back. 12 employees from to arrest sites in louisiana showed up at the hearing that day to testify, as well as ibm and dow, two of the big names there, as well as support from the greater new orleans organization. business is having a voice and businesses all around say this is the right thing to do and i think communities and governments are listening. >> thank you for taking some time to talk to us today. that is jim, the ceo of dow. coming up, micron is set to report fourth-quarter it -- third-quarter report after the bell today.

fight of china and u.s. trade war was? we will talk about that next. this is bloomberg. ♪ ♪

atoline: time for a look some of the movers in the back of analyst recommendations. raising price target on microsoft from $90 to $80, a low with an under forming rating. citing material risks from the stock and doesn't see -- shares up, 133. morgan stanley downgrading from equal weight to overweight with a $12 price target. synergies, he will say it is a possible bear case. >> credit suisse initiated coverage, reason assets and technology investors supporting

and building a competitive mode. shares are higher where we trade. >> thanks. micron is set to report as third-quarter results after the bell today. analysts are looking at the u.s. china trade were impact, added of a chronicre supply and demand balance for that maker. let's bring in the bloomberg news semiconductor reporter who joins us from san francisco. micron, one of the juggernauts in the memory space. that a lot of the success they had in the past was their relationship with china and asia. what do we expect here tonight? >> people are really concerned about what will happen because they're estimating hallway accounts for more than 10% of its sales. what analysts are saying is like look, even if there is an agreement and while with gays,

there is no way those orders coming to an american supplier are going to come back. huawei will deftly find ships elsewhere. exactly the same kind of ships that hallway provides -- that micron provides. there is no incentive to go back to it. erosione seeing a 38% in the last of months. so much has already been dated to the share price. liningre be any silver on this? and they still make money? >> is a good question. what people are concerned about now is we are in a situation of going back to where micron was, which is that when things are bad and there is a downturn in the market, it starts to actually lose money. several notes are talking about cash flow. it is not a good sign for this company. >> do you think we will get broader information from micron

about the chip sector as a whole, or other problems going on with micron very specific to the company? >> the degree of specificity icause of where is located, think what people are interrogating, how can you deal with this, how can he mitigate this and how can you get around this? can you make the argument that we are making commodity chips? anywherese can get they want. why are you putting a premium on what we are doing when you are not really going to have an impact on the chinese? .> clearly to watch in terms therefore what we see tonight, anything you can listen to on the call again? the explanation but i think people also will look at micron and say, are you going to cut back capital manager and be rational in this limited environment and preserve your profitability? >> we thank you.

the rest of the tech space, the nasdaq is the elected. >> ran crude rising slightly today. >> the yen still the haven of choice. this is bloomberg. ♪

>> this is "countdown to the close. >> joe, probably the big news, it probably wasn't news, it was, we saw this drop-off in confidence. joe: at the lows, we weren't helped saying, bullard will be bowler hat.

one thing that caught my eye is we had consumer confidence data. the number has basically gone straight up with a lot of improvement. we are starting to see a little weakening. got this from the blog, the way line shows that we are starting to see a decline with jobs being plentiful. history would say that the unemployment rate would start to weaken. all kindse there are of squiggly lines up and down. marketception of the job has been weakening lately, which could be anonymous -- ominous to -- sign for the economy. >> the whole picture, not hugely important parts. furthermore, we have got the homebuilder an initial investors liked it but they started

talking about tariffs and how a lot of their business was actually the lower end of the market. nothing too huge or terrible but the number of smaller things have conspired to make it not a great day. >> they also talked a lot about pricing. >> yes. not great. caroline: let's look at how that is shaping up in terms of industry groups. materials just clinging in. up by one percentage point in the s&p 500, consumer goods, yesterday they were the leaders. big tech companies really falling. microsoft earlier having a big there in media and tech. >> as a group, down about 2% today. you mentioned microsoft and netflix, all of the moving lower. definitely seeing a risk off tone. hashat is why the nasdaq been the key underperformer throughout the day. off by more than 1.5% at the

moment. the s&p currently off by a percentage point. >> i wonder how much of that is trade related. >> yes. plenty of tempering market expectations. our markets reporter sarah will get us started. >> i'm looking at the worst-performing stock on a point basis. that is microsoft. mark soft falling more than 3% today after eight straight days of gains. we also see stocks falling from a record high after jeffries came out and said the stock is materially overvalued. they also set expectations for the cloud computing product is also way too high. jeffrey waso know already the biggest bear on the street. we raised the price target to $90 there. that is also still the lowest price target.

microsoft finally seeing some when taken out of its sales if it doesee continue. abigail: i like to pick up on the home weakness everyone talked about earlier era joe was talking, take a look at this, down 6%, they put up a solid quarter but there were nuances are plus, new home sales were week for the last month. this is dragging on the homebuilding etf but there may be reason to think it could maybe be an opportunity for the bulls. you look at the chart going back to 2017, the old we are looking at a yield and the light we're looking at a homebuilding etf. we see they both -- it started to hurt the homebuilding etf and the housing market in 2018 as rates basically held at near 3% and as the 10 year yield started to drop, we see the homebuilding etf getting a nice boost. the 10 year yield down 2% -- toward 2%. suggested as weakness for homebuilders may not last. fedex, expected

to report fourth-quarter earnings after the market closes. it has been slumping into the earnings report, having its worst day of month, down for one third straight day. that is close to $2 billion after the company's market cap. firmly in the cross hairs of the u.s. china trade war. cut -- china considering blacklisting the company in response to the u.s.'s ban on huawei and what it calls a mishandling by fedex of certain packages. look for commentary on that on their earnings call as well as the 2020. fedex has been underperforming, the dow jones -- by some margin over the past year. analysts investors also want to hear about outlook's for the european business, the integration of tnt, how is integrating new technology and how it is leveraging the growth of e-commerce.

.> everyone on the markets team for more analysis, let's bring in mark, a macro strategist for bloomberg news and global managing editor for the markets live log. flying all the way to new york just for us today. thanks for being here. not from like, you know, philadelphia or somewhere. but it is a day were we have seen a significant selloff in the market. any wonder about risk appetite. we have seen the risk appetite hold up through all this drama we have had in the past few months. when you look at what is happening today and you consider the g20, how do you make sense of that? >> we don't want to read too much into the short price action. i say this as someone who is staunchly bearish, a structural bear. i think the market will tank a lot later this year. a lot of this is probably just moreion trimming and

terrible data, the confidence data you mentioned, new home sales data, and after the fed, that as well. it is positioning out of g20. joe: you have been on this show a handful of times over the years. have been bullish for a long time. suddenly in the last month, you turned bearish. give us the short summary after why years of often missed him, and now your negative. >> i think even before the start of may, the data was looking very negative for the global economy, it looks again struggle this year and stocks were expensive. then we had a severe escalation in trade tariffs. august, andaround we are not pricing any of that in yet. a complete denial and we have tariffs. economists have not slashed their forecasts because they're waiting for g20. the u.s. is heading for a

recession later this year with the end of next year. the s&p will get hurt. maybe there will be some grand deal. if there is just status quo, it is bad for the economy and earnings and equities. carolyn: let's get a second voice on that. hosea is the president and chief ,xecutive officer in charlotte north carolina. the response to the bearishness, do you think we could see a recession as soon as the end of we arer? >> i think living in an environment of confusion and contradiction. the little over six months ago, we had central-bank policies especially in the u.s., that was hawkish on the market was expecting multiple rate hikes. much more have a dovish stance and a market expecting multiple rate cuts. the underlying fundamentals have not really changed much when you look at inflationary pressures, unemployment numbers. what the fed is obviously focusing on is the slowing growth. we agree we are about late

cycle, every single asset class p are we are not forecasting a recession in the near term or going into 2020. but we are recognizing with all the geopolitical uncertainty we are seeing out of the market, it is time for investors to take a more defensive stance but stay invested through the long-term. it is hard to see the second half of the year really with we hadre upside when published being more risk on toward the end of the year. we have seen valuations are back to where they were in the mid- 1918, i am sorry, 2018, so i think there is more risk to the downside. our focus is about where can we find creative yield opportunities on a risk-adjusted basis using yesterday factors, it is something we have done for a long time. cycle, it is a risk factor and not a constraint.

again trying to protect the downside and look for more defensive positions. go to the market close, the bell has been ringing. yields, 10 a look at year yield below 2%. flight toen that haven assets. some wondering whether there is rebalancing going on. either way, not a pretty day. >> let's dive deeper into the action. what are you watching? >> that weakness relative to the major index, especially the s&p 500. this massive range of uncertainty over the last

year and a half over trade concerns, the fed up and down, and this year's big rally. patternusly bearish seems to be morphing into a bigger bearish pattern. confirm those levels for the essen the 500 right now. -- for the s&p 500. the end of the year is a question if we do see the bigger bearish pattern come into play. watching was the data for consumer confidence, the lowest since september 2017. the number missed estimates. ony also release numbers where america expects stocks to

go, higher or lower, and we saw a large increase in the share that expects stock prices to decrease over the next month or so. the bears actually outweighing the bulls. fall who expect stocks to falling for ater fourth straight month. yet another negative sentiment point, particularly after that last bank of america survey. proposed megamerger has caused big moves in stocks in the market. 16% on the news. investors probably remembering how its last deal died a quick death. allegan rising 25%.

analysts are split on the efficacy, but it should not m&a.ct from a huge boom in it means quarterly deal volume and deal value is that a record high. watchers whoy m&a expect more of this given the relative low cost of debt-financed and the amount of cash that remains. >> thanks. breaking news. micron earnings out. the top lineeat on numbers. shares moving higher. adjusted revenue at $7.49 billion. gross margin at $39.3 billion versus 60.9 billion dollars in the previous year. eps was 105. 107.stimate was

>> we are starting to get earnings. where peoplelement are saying watch the second quarter. or -- is the first, among the first report. picturell get a mixed second quarter. that's why i'm not too bearish. abigail's chart could make since. , theld see some positivity earnings providing a mixed picture, but the guidance will be interesting to watch. i think it will be negative and we will start slashing forecasts in the third quarter. joe: what is your view on earnings? you think investors are overly optimistic or obtainable? >> the risk is to the downside. we see the potential for further

earnings revisions throughout the year. today focuses more on trying to names andsive growth value overseas in places like india more insulated from some of the trade issues and more positive from a dovish fed. >> for those folks who want to be exposed to u.s. equities, what sectors are companies are you advising them to go into? we are looking to position ourselves in the u.s. more around defensive names that still have attractive growth profiles and a stronger buying power in their own sectors, then we look to private equity and bettertives to provide fitte correlations. fedexcking with the news, , fourth quarter adjusted earnings is of beat. $17.8 billion, in

line with expectations. it looks as though we are up 0.4% after hours. romaine: when you are looking at these numbers, were talking about two companies with a great deal of exposure to the trade environment. hsbc said even if you resolve the trade component of this trade war that there is another bigger war over china's economic power. >> there definitely is an agenda that will be hard to resolve. that is why i have a lack of optimism that any deal at the g20. one of my takeaways from time in in the u.s. everything comes down to trump and everybody wants a deal ahead of the election. in asia, there is no chance that

the deal unless the u.s. concedes entirely, so very pessimistic on deal. joe: you are pessimistic on earnings, deal prospects, but the markets rallied when the fed pivoted and indicated they were no longer patient but inclined to cut. if they do cut, 25 or 50 basis points or more, will it not be that effective? >> it won't be enough. whether we reach recession will not matter. the last recession we saw over 500 basis points cut. we don't have 500 basis points to cut. market topped out one month later and we still saw recession come in december. the rate cutting cycle started in january and we saw recession started couple months later. monetary policy has not proven

good at changing the cycle. liquidity is not a problem. the problem is we are changing the economic cycle in a trade war on top. to get yourwant perspective. you said you are looking for high-quality defensive names. where else are you seeing your clients to put money? where are you advising them to put money? to theften look alternative areas. we managed $250 billion. real estate, farmland, infrastructure, asset classes weekend introduce that provide attractive correlation benefits and structural protection in terms of how we underwrite the deals. i agree with where we are in the u.s. versus asia. are the fedex earnings outspoken about trade and the impacts of the trade war.

they expressively site trade as hurting. the current outlook is predicated on no worsening of the trade war. who knows if that will hold? romaine: i want to bring josé back into this. when you are looking at what will happen in the second half of the year, the support potentially from the fed and other central banks, can that support counter what is effectively a nontraditional economic issue when you are dealing with geopolitical issues and personalities. i don't believe it can. right now it is about an insurance policy in the fed stepping in and saying it is willing to take the growth side from an inflation side versus a, but what everyone is watching is where does this trade discussion grow, growing populism across the globe. if it goes that way, monetary

policy is not the answer. caroline: last word in terms of where you are seeing cash on the sidelines. de-riskingre is a ahead of g20, but with money in the bond market it is clear with yields about 2%, are we still sing the search for yields? >> it's not just a haven bid. we have seen equities go to a record high of week ago. i am bearish because the professional investor is already positioned quite negatively. it is the retail money that is passively invested, the money that will come out when the real pain comes. that may not happen until late july or august. joe: we have to leave it there. romaine: thank you for joining us. back to some breaking news on

micron, shares up after hours after they beat on most of the top line numbers. theyar was pretty low, but beat on revenue and adjusted eps. gross margins light. first firste fiscal quarter for fedex, eps beat for1 above the estimate dollars $.81. overall expenditures in terms of be coming down in 2020, 5 point $9 billion. when you're looking at the , macro, the express unit economic weakness in trade uncertainty shifting to lower yielding services keeping the customer on strack or amazon negatively impacting income. not a pleasant outlook. romaine: micron also reducing

thisapex. might be a theme this earnings season. "what'd you miss?" is up next. this is bloomberg. ♪

♪ caroline: i am caroline hyde. joe: i am joe weisenthal. for the: the worst day s&p 500 since may 31. joe: "what'd you miss?" caroline: jerome powell

reiterates the case for lower rates. micron dietz. beats. of theelivers, but warns impact of trade in 2020. powell reiterating the case today for lower interest rates. the crosscurrents have reemerged with apparent progress on trade turning to greater uncertainty, and income data raising renewed concerns about the strength of the global economy. caroline: while markets have been pricing and reduction of 50 basis points in july, james bullard provide some insight into how much of a cut we can expect. think 50 basis points would be overdone. i don't think the situation calls for that.

i hate to prejudge meetings. things can change by the time you get there. caroline: we have matt bosler with us. he was at the event today. script.k to the same >> he made a point to say whatever i say today is consistent with what i said last week. which is important, because he was speak for the committee last week. now he is in his capacity as -- fedairman chairman. that puts him in the center of the committee in that regard. joe: if you are a trader predicting a fed rate cut in july, was anything you heard today a cause to move off that? >> not really. he made the point it is far too soon. they want to see how things play out. clearly the decision they made

last week was to predict that things will not play out well over the coming weeks and months on the trade front, so nothing has changed from that perspective in powell's mind. we have the g20 meeting this weekend, so we have to get through that. the next big shift in terms of the way the fed is thinking about this clearly, they feel like they were betrayed to some extent. all of this pointing out the difference between the most recent meeting last weekend and ineting six weeks ago may. in may, it looked like things would turn out great, then all the trade negotiations took a turn for the worse and that justifies the big shift in this outlook, even though financial markets are in the same place they were back then. made a comment about how he thinks inflation expectations are anchored to 2%, but the pricing in the market seems to be saying something completely different. can you explain his thinking,

rationale? >> there was an interesting aspect which that they did not really acknowledged much of the decline in inflation expectations we have been seeing that left the language unchanged , but in the press conference after the statement, he was more open about acknowledging the survey measures of inflation expectations have fallen to new lows recently. it seems like that indicates there is still disagreement on the committee about how important that is, because some people are worried about that. they were able to bring that together into a consensus viewpoint to make it into the statement, so that speaks to the debate still surrounding that inflation question. caroline: what'd you make of bullard today? is saying 50 is too much. i'd want to do a 25 basis point cut. that underscores the confusion about why we are doing this, but

also how much of an emergency are we facing with markets the way they are, volatility low. do we need to do that 50 basis point cut? that reopens this conversation of why you are doing it in the first place. romaine: thank you. matt bosler. still shiningd bright. why are next guesses had a change of heart on the commodity. this is bloomberg. ♪

romaine: a quick earnings recap. , revenue fell within what analysts were expecting. the company will have a conference call later today with their annual forecast.

the ceo did say they are seeing early signs of improvement. fedex shares lower as well. they got an annual earnings forecast that trailed what most analysts were looking for. were looking for more commentary on him with regards to trade, but right now some softness following their earnings release. joe: one thing that is looking nice as gold, showing no signs of stopping its rally, a six-year high amid global uncertainty. our next guest says he has rarely been bullish on the commodity and has now had a change of heart. here he is to explain. gold it is easy to find bugs who are always bullish on gold no matter what and tell the same story. it is much more interesting to talk to someone who has recently become bullish. what are the

conditions setting up gold and how far could it go? things, a macro picture supports gold. i don't typically like gold because it does not have a yield stream. you have a bond with a yield stream. the higher interest rate tends opportunity to raise the cost of gold. the general consensus is interest rates will be lower for longer. a 30 basisg about point negative yield on the german bund. the other macro reason i am bullish gold is just like the forks in bitcoin, globalization is taking your fork. it is not reversing. that is will come out of the medium-term, globalization will take a fork. china's internet will not be acceptable by our cell phones. you will have your own mobile operating system. it used to be in

tokyo. there is this fork in the road. the hardening of these blocks. we are headed for a second cold war. in that environment, gold is also favorable. technically, we have been carving out a big bottom. we broke above it, $1400 an ounce. i expect $1700, a 20% move. i'd look at the other markets and say where else can i find 20% gain. that is one reason i like gold now. caroline: you also use an analogy with the bitcoin fork. do you think the same trends are at play in the search for yield driving these negative yields in germany and japan and switzerland are the same thing at play with the gold in bitcoin right now? >> i don't know how everything

is connected like that, but negative interest rates are mind-boggling. how low can interest rates go? the risk ultimately becomes that the federal reserve despite what they say is not a killer. the fed does not murder expansion. the last three expansions, the global financial crisis, the tech bubble, the savings-and-loan crisis, none of these three crises was caught by a too tight that. the last fed the kyl recover was paul volcker under ronald reagan. even prior to what we saw the last couple of days, how much of this could be attributed to central bank buying, particular out of russia? >> you made a good point. some central banks are buying gold, not just russia. russia made its big move a year

ago. i think china has been buying gold for several months in a row. toon't attribute that central banks buying gold. they also lease it back to the market. is the central banks provide a bid, but i think it is really investors driving it. gold etf ort the powershares. this is where people are putting money right now as they take money out of the stock market and other low gilding assets. joe: what do you make of other safe haven currencies? 2012, people piling into the swiss franc, the japanese yen. are the same forces going to produce a rally for the swiss franc, which has not done much lately? >> the swiss are having a problem, sort of like brexit, a dispute over a whole set of

treaties. be availablewon't for european continental traders is one of the problems after the beginning of the month, so the swiss franc is acting like a safe haven now. what is going on with the japanese yen is many reporters have been noting it is costly for japanese investors to hedge u.s. dollar bond purchases, so a lot of them are buying bonds on an unhedged basis. with the strengthening of the yen, it is forcing him to hedge. the japanese themselves are leaving ratios on their dollar assets. romaine: we have to leave it there. thank you very much. code onp, cracking the scale. how one digital manufacturing company plans to upend the global supply chain. 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.

>> the united states is said to be willing to suspend the next round of tariffs on 300 billion dollars worth of chinese imports. the decision is reportedly still under consideration, but could be announced after a meeting between president trump and xi jinping this weekend at the g 20 summit in japan. the french president emmanuel macron spoke with the iranian president by phone today. the statement said he is trying to keep calm a potentially dangerous escalation in the middle east. president rouhani blames the u.s. for the current state of

affairs and set sanctions placed on iranian leadership have shut the door on any possible diplomatic solutions. jeremy hunt is weighing in on the tensions with iran and told the house of commons today that if the landmark 2015 nuclear deal between iran and world ,owers is to remain in place iran has to adhere to the terms of the agreement. respect to iran's nuclear program, this is a crucial week. they said they will reach the limits of what they are allowed uraniumo for enriched by later this week. it is essential they stick to that deal in its entirety. >> he added it is important there are what he called ladders for people to climb down so that discussions and negotiations can take lace. told arabner

officials and business executives gathered in bahrain that if the right economic model is adopted, a political solution to the israeli-palestinian conflict is possible. pushing the economy first approach to peacemaking, jared kushner told the seminar that peace can only be achieved if it comes with a pathway for people to improve their lives. he added again quoting "today is not about the political issues. we will get to those at the right time." andconomic growth prosperity for the palestinian people are not possible without an enduring and fair political solution to the conflict. one that guarantees israel's security and respects the dignity of the palestinian people. >> palestinian leaders have rejected jared kushner's proposal as an effort to bribe them into accepting individual trump plan that will favor israel.

they discourage all but a small contingent of palestinian entrepreneurs and investors from attending. john sanders will step down in early july. it is the latest development at an agency facing public anger over the treatment of detained migrant children. border officials had just disclose that more than 100 are back at a troubled border patrol station in texas. those who visited said hundreds of minors have been house there for weeks without access to showers, clean clothing, or sufficient food. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. romaine: companies throughout the global supply chain are mapping out the impact of the trade war. one company trying to alleviate the stress is a digital manufacturing company that

enables brands to make products with 3d printing technology. joins usnd cofounder right now on set. my first exposure to this type of 3d printing was a shop that can mold your foot and give you this great fitting shoe. stuffn actually use this for more sophisticated types of manufacturing. >> polymer products, a key grouping of materials, metals, polymers, ceramics, polymers are molded. was invented 7000 years ago. the first polymers were molded in 1827. what is interesting is that everything we make today is cast in molds. we make it digitally with light. that opens up making complicated things very easily with geometries that are not multiple

-- moldable. you can design all over the place and fabricate locally. tariffs, thatng makes it unattractive to have products crisscrossed the border several times. the clients you work with, how much are they seriously looking at 3d printing as a solution for reducing the complexity of supply chains? >> when you introduce products, it takes a long time to identify the tools and get them made up. it really speeds up product teams. , freedom talked about -- the idea of being able to make where you need it local from local production really opens up some neat opportunities. caroline: no need to go to vietnam or south korea. instead make it at home with 3d

printing. has your own business been exposed to concerns of trade tariffs or customers affected by it? how have you been dealing with it? any products coming from abroad that you are worried about? >> as you look through precious metals and components of electronics, we have to make sure our supply chains are also established. the chemical supply chain for the resins we use is important to make sure we have access globally. we are in 14 countries with our technology. not only our own equipment and customers, but you think about where they produce and being able to do that locally. i don't know what it means when you are able to produce different products in different countries because you design them in one country and can produce locally. romaine: what about competition? you offer a great service, but we have seen companies like ge, honeywell tried to do this on

their own with varying degrees of success. we published a paper in 2015 where we cracked the code on how to make polymer products quickly out of finished goods. we have the first example last year with adidas, the largest single example of a finished product made in 3d printer history. we will do 10 times that volume this year, not just running shoes. biotech inducts in partnership with johnson & johnson, products implanted in the body and after several months go away without a trace. we have a new program with affordable care, making dentures. making dentures has not changed in 120 years. it is in our tees and will process. now we can go to digital scanning technologies. foran scan your mouth

perfectly fitted dentures. them, you just order a full pack. you don't have to go back in that chair eight times. one lady threw them in a fireplace by mistake. she had them in the newspaper. printing,usly 3d people have been talking about it for a while. i first heard about it seven years ago. >> 30 years ago. thatwhat can you do today a few years ago was beyond the leading edge? >> 3d printing today is an $8 billion marketplace, half of it polymers, half of it is metals. playing to manufacturing, a 330 billion dollar market for

injection molding. 3d printing has not cross the chasm. caroline: why not? >> because of technological issues. it was still printing to slow. it was trinkets for the most part. we print really fast have endurable materials using a light-based printer. they are finished goods. this whole new category of product realization is what we are doing. think about adidas, johnson & johnson, affordable dentures, those applications. we had the first printed points on the production vehicle out of detroit. as long as 3d printing has been around, no one has had 3d printed parts on production vehicles. romaine: you're talking about internal parts of the car? >> the ford mustang in the f-150 trunk. 3dd announced a very first produced points.

now we have electrical connectors. 90% of warranty issues and vehicles are electrical due to the electrical connector. we now have materials that have the durability to be a great electrical connector. now you have designs that are un -moldable. market.a $60 billion what carbon has done is crack the code on how to make finished polymer products with designs -makable the takes 3d printing to a $300 billion juggernaut. points we had was a replacement part for the ford focus. think about a warehouse in the cloud now. now that you have cracked the code to make finished goods, replacing inventory, eliminating

inventory, not having parts stored for decades in all the tied up capital, we can have on demand inventory in a warehouse in the cloud. that is where we are going. caroline: great to have you. >> thank. caroline: micron coming up. micron just reporting the latest numbers. we are seeing some gains after hours. fedex and micron have beaten expectations, but some disappointment with fedex. we will dive deeper into these numbers. this is bloomberg. ♪

caroline: is sci will upgrade kuwait to and emerging-market status. it has been frontier. the change will start in june 2020. they accept the path for seamless implementation inchoate

equity markets remain. romaine: micron reporting its latest earnings after the bell with the beat, offering evidence it is holding fast despite fallout from the ongoing u.s.-china trade war. micron says it actually resumed shipments of some products to huawei, though there is still uncertainty with regards to its relationship with huawei. here with more is abigail doolittle. one thing is this was not just short-term earnings today, it was the broader industry dynamics. did we learn anything today about that? aboutre are concerns trade tensions around the chip sector. so much of that demand for chips comes from china. we see that demand and shares popping higher. we can see the after hours action. the stock was up 6% after hours. right now it is up more than

that, but the result investors like. they did beat top and bottom line. it is a case of less bad. joe: if we were looking at a much longer chart of micron, it is not good. >> we have that chart. this is another dynamic. this is the bigger dynamic. what we are looking at in white is the dram pricing come the memory used in computers and servers. in blue, we have micron. they are roughly directionally correlated. the last cycle went down 2014 to 2015, and as pricing bottomed out in 2016, micron went up fivefold. spot pricing took micron down. now micron catching up. the big question will be the outlook, the last quarter with

they guided down. the outlook will be key. the bigger question is are we looking at another dram pricing cycle. if we are, it could be positive. joe: thank you. fedex beating estimates on earnings-per-share for the fourth quarter, but the guidance . the forecasted trail wall street expectations. let's get a breakdown of what the company is saying. for more insight into the results, let's bring in tom black. help us make sense of this. all kinds of crosswinds affecting fedex. the stock up a little bit. y?at do investors sa >> they beat on fourth-quarter earnings, but fiscal 2020 was lower than expected. there are some things in there that people can latch onto that

are positive and some negatives as well. caroline: we were talking about micron's relationship with huawei. china mulling a fedex blacklisting of huawei. they said they started delivering once again to huawei. what do we know about fedex? productsdon't have that are restricted did, but they are restricted on sending certain products. it is all confusing for them. that is the reason they sued the department of commerce. they said we don't want to be the policeman to uphold these regulations because we have employees out there and a lot of times they don't understand what is going on. romaine: i understand why they would point the finger where they are pointing it. when we hear talk about these trade issues and now this lawsuit, you have to wonder how the company itself is trying to navigate this. it's one thing to be an agitator

publicly, but they have to manage through any environment. we have any sense of how they will do that? >> they feel they are caught in the crossfire of this trade war. they have the chinese government trying to protect one of their companies, huawei. on the other hand, they have uphold these regulations for the commerce department. ups has said they have not had a problem, so that may raise questions why fedex has had problems in the competitor has in. caroline: you leave us with some food for thought. we thank you for reporting. coming up, trade tensions hitting china on the banking side. three of the biggest banks could be facing an investigation into north korea sanctions violations. this is bloomberg. ♪

caroline: three of the biggest

chinese banks tumbling after a report suggested it could face fallout for an investigation into north korean sanctions violations. this is the washington post report. what are the allegations? u.s. judge found three unidentified lenders could be involved in sanctions violations probe of north korea. not identify exactly who those banks were, but linked it to a 2017 court ruling that involve china's merchants bank, bank of communications, and shanghai development bank that had dealings with the hong kong front company accused of dealing with north korea. this is just a report, but you saw the huge plunge in shares. what kind of legal sanctions could be brought against the bank? >> perhaps not having access to

u.s. dollars, and one point made in the report was that one thing could lose access to u.s. dollars, although that decision would have to be triggered by the u.s. attorney general or the treasury secretary, so we are talking about financial dealings. this is important because so far in these trade negotiations between china and the u.s., we have seen the u.s. hit back on chinese tech firms. the bankshat are saying about this? >> they denied they are being probed on this issue. one bank saying they requested information on a client that may have had dealings with north korea, but because of chinese regulations they can't send those documents to overseas entities. that is where everything lies at the moment. a chineseen from

foreign ministry spokesperson put the onus on the u.s., saying the u.s. should step up bilateral cooperation and financial information sharing mechanisms and so forth. caroline: we will see how this one unfolds. on in asiahing going involves north korea once again, the relationship from the defense perspective with the u.s. and japan because the u.s. would come to the defense of japan if north korea does attack. >> it seems trump has had some musings with his confidence. confidents. this is a 60-plus year old treaty, 1961, that says the u.s. would help japan if it is ever attacked, which is why you have u.s. military bases in japan, 54,000 troops there. now president trump a, according

to sources, seems to be thinking about this relationship. this would play into prime minister abe's hand. he is a hawkish leader and has been wanting to change japan's pacifist constitution. whether or not this is true or happens, domestically, the prime minister will have more leverage to push for that change in the constitution. caroline: it feels like the global rules are being shaken up. thank you. for more on these stories, don't miss daybreak australia. coverage our special tomorrow in miami. more economiching data for u.s. durable goods for may. romaine: general mills reports its fourth-quarter earnings before the bell. caroline: that is it for "what'd you miss?" romaine: bloomberg technology is next in the u.s. joe: have a great evening. this is bloomberg.

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♪ in san emily chang francisco, and this is "bloomberg technology." juul,ancisco is home to but officials seem to have to want nothing to do with it. plus, cyberattacks linked to the u.s. and iran. what is the endgame?