not solve all of their issues. >> there we have it. the we're all questioning the sustainability. the nasdaq is the outperform a record00 closed at high, i believe. romaine: we are above the 296 4. that will actually be higher than the intra-day high we have had. joe: pretty striking the lack of pop we saw in rates. nothing happened over the weekend included data to get anyone to change their mind about the likelihood of a rate cut. toone point, we got close 10.05. caroline: let's dive deeper into the action. abigail: i'm going where the volatility is. that is bitcoin. four-day chart. 10%,days ago, up more than

down more than 10%, then up, then down. today, down 16%. a huge again this year. you can make the case it is a parabolic uptrend. we see a beautiful up trend for fromin, basically going $200 all the way to 20,000. 13,000 onely, above reason to think it is going to continue to consolidate, there's to 1600. gap closer suggesting volatility we are seeing in bitcoin could be to the downside it looks like this could hold. volatility is once again still ahead bitcoin. the bestant to pull up

currencies year to date. i will give you a hand. in honor of canada day, let's talk about the canada dollar. it is two pronged. up 30% year to date. that helps canada. while supplies are negative around the world, candidates are at plus 45. there is less than one rate hike priced in for the bank of canada. forward policy rate .n canada watching crude oil prices very closely. faded evenat it after opec producers announced

extensions of cuts into next year. the reason why rent has fallen, -- extendingding these cuts, it has stoked fears of demand. some feel this isn't enough to support a market facing growing shale production and weak economic outlook. we did see a brief, after opec agreed to a charter document on cooperation. romaine: thanks. we want to let you know right now that hong kong chief executive carrie lam is meeting the press at police headquarters in hong kong alongside the security chief and commissioner. we will listen in. she is speaking in chinese right now but if she breaks any news, we will bring it to you. joe: i want to go back to you, matt. em'shing we saw today,

outperforming a little bit. does a confirmation of a thaw in the trade war plus a fed policy, givensier opportunity for em's, which have been underperforming for eight years now? no question. emerging-market etf is heavily weighted towards china. markets bounce back. china didn't bounce back. if you think this is a trade truce -- you have a lot more than you do in the u.s..

as you just alluded to, without any more for the week this in the dollar, -- further weakness in the dollar, that will be hard to come by. if we do get anymore weakness for any reason, that is play you definitely do want to play in a stronger fashion trade -- fashion. caroline: what about making spots for the first half of the year? you have been tracking etf trading in particular. seen so farwe have feeleen descriptive of the in the market. you have a market up 18%. the case can be made that we will see further gains going forward but people are cautious and worried that with such lofty expectations, we could see a pullback. you have been seeing flows in

the low volatility stocks. looking at utilities, real estate, consumer staples. going forward, it looks like we might see more of the same stocks up she percent on the year, people are having a tough time taking a fully risk on respect. romaine: you are also not seeing able take a full risk off perspective. this market, the defiance of it we have seen over the past six months, people still want to be invested in it. sarah: the fact of the matter at themuch as you look crazy rally we have seen this year and question how it is to continue, you can see the potential for fed rate cuts, pretty much a lock at this time, you can see the potential for

global data to pick up and rebound. that would allude to a further rally. while people don't want to hold on full force, they are scared to get out of it. caroline: let's get you some dates of what is happening in hong kong. there's a live meeting with carrie lam, the executive of hong kong. protesters who stormed the legislative house, they say, violated the law. we will be seeing if there will be any ramifications for these protesters. toaine: i want to turn back matt madeley. maybe you can weigh in on what is going on hong kong and put it into the context of whether it really matters in the broader scheme for markets.

thing you do worry about, will president xi intervene? obviously, he's not going to do so in an outward way but it would be pretty obvious even if he does it behind the scenes. that would raise uncertainty in the marketplace. that is really what people are wanting to see. does this continue to escalate to the point where mainland china comes in and tries to press a heavy hand on the situation. that is something where the u.s. probably has to respond. it becomes more of a shouting match. still not what you want to see in that part of the world. joe: i want to go back to something luke said earlier about markets selling off a

little bit after that better than expected data. can we get to a point down the road where we sort of run into some speed limits whereby a rally arcade or data increases the odds of a fed cut, how fast this market can? matt: i think so. one thing we have learned from the fed over several years is, even though they say they are totally data dependent, they are also to a degree market dependent. if the stock market is doing i think they will see more pressure to cut rates. that doesn't mean they will do it in july. we do need to remember, a lot of esters equate cutting rates with qe programs. they haven't cut rates since 2008. qe programs, directly to the

system. there's much more of a lag when you cut rates. aley, thank you for joining us. and bloomberg's sarah ponczek. caroline: optical -- ongoing news conference coming particular from saudi arabia, saying oil production will be similar in the second half of the year as it was in the first half. they will produce less oil than its opec quota. all of this has been feeding into oil prices today but it is notable how we sell restraint in the oil price pop. iran's regime has taken new steps to advance its nuclear ambitions. this regime uses its nuclear program extort the international community.

does appear to be the words of secretary of state mike pompeo. he is out with a tweet here, basically condemning iran's ambitions in regards to nuclear activity. caroline: clearly, geopolitics front and center throughout. that does it for the closing bell. "what'd you miss?" is up next. plenty to go through. this is bloomberg. ♪

live from bloomberg's world headquarters in new york, i'm

caroline hyde. here's the rally. a record high on the s&p 500. -- thers welcome the damage already done by uncertainty. protesters ransack hong kong's legislative chamber. up for grabs. eu leaders have yet to reach a consensus on who should take the bloc's top job as marathon talks begin in brussels. joe: we start with hong kong chief executive carrie lam speaking with the police. ryan police last night fired tear gas at protesters who smashed their way into hong .ong's legislature building michael, thank you for joining us.

extort very images out of hong kong, particularly the vandalism inside the legislative center. how unusual is this and how dramatic of a response do you think this will be? i'm also curious how you think .his place with public opinion >> i think you are also right to ask about the broader public reaction. a small subset of protesters. the demonstrators who number in more than a million have kept this with peaceful demonstrations. i don't think we should assume that hong kong is just a powder keg. it is not that we have the majority of the population by any means reacting this way. but it shows you the degree of

desperation that at least a subset of demonstrators feel in the current clinical environment. environmentolitical . romaine: there's a sense that they may have to be forceful here. do you think we will get to that point? >> i don't think we can rule it out but it doesn't seem like the base case. government hong kong will want to be very careful. as he said at the opening, this is quite unprecedented to some extent, they will be banking on of demonstrators thinking that this is overreach and not wanting to go down this path. if there is a very harsh, aggressive reaction on the part of hong kong police, it could tip more people into this or extreme state. caroline: what do you think it

means for the long-term in terms systemsne country, two and other areas that china would want to bring into the fold longer-term? michael: this is clearly a set back for any hope that beijing has had about a peaceful unification with taiwan, for example. the world has watched the encroachment of hong kong's political autonomy. this is going to be very difficult for beijing to make its case to taiwan that reunification will mean political autonomy for taiwan as well. beijingite romantic for -- quite problematic for beijing 's longer-term goals. joe: do you expect to see more protest in the street or is this more of a one-day thing?

>> it is hard to say because things are in such a what appears to be a fragile state. point, wetion at this will settle back into a steady state of demonstrations but mostly peaceful demonstrations. i think, at this point, we will probably settle back to very large but peaceful demonstrations that continue to exert very large pressure on carrie lam and the hong kong government. caroline: carrie lam said it is right to convey him -- right to s we havehe violent act seen. they said, we were under siege by protesters in the legislature

building and we will continue to monitor. issuesok to approach the "peacefully within reason." romaine: we want to thank michael from the eurasia group for joining us. while the u.s.-china trade agreement -- economists aren't necessarily buying it. city economists say investors shouldn't stop worrying about trade. joining us is the director of the european institute at columbia university. this morgan stanley note kind of said what i think a lot of people felt, that some of the damage has already been done. the world economy is just going to look a lot different and potentially move a lot slower.

>> there is a fundamental amount of tea that has an -- of uncertainty that has entered the system under donald trump. the deal he is offering doesn't seem to fix that. expectations, the direction of travel in the world economy. that doesn't fix your basic set of assumptions about the future of globalization and the in hong kong right now is another indicator of how serious this is getting. hong kong is another strategic piece. at that level, there's really no sense that a simple deal would fix this. one would need a full recommitment of the united states to a kind of multilateralism. joe: against this backdrop where you have anxiety about global trade, you have central banks going back into easing mode, the

ecb, the fed. areind of feels like we just going back to the old system. is there a feeling that we got as much juice out of monetary policy as we can expect from this cycle? >> one narrative is the short-term narrative of the trade talks. the other narrative is going back to the previous swoon we saw in the world economy in 2015 and 2016. that is really where the action has been ever since. that is where the central banks had to go for stimulus. from that point of view, you are right. one way of reading the current moment is simply the exhaustion of that three, four year push. the impetus from the ecb was

huge in 2015 and inflation expectations have not budged. if anything, they are going in the wrong direction. the long-term market-based expectations have collapsed. i think we are also seeing in the game around the ecb some repositioning, draghi slamming the door behind him with a pre-commitment to an extension of whatever form that takes. zone.mbers in the euro rate --are alarming alarming. caroline: do you think, the federal reserve, when it comes to rate cuts -- do you think something more unprecedented or creative will have to be unleashed in the u.s. if we see

a global slowdown? the: i think we are in easing mode. one thing that got me worried last week was this news out of market, major loss of liquidity for large parts of the banking system. this is what the bank does every week, they have to manage this on a rolling basis. we saw inhocks 2015-2016. those are the kind of indicators where we might see the fed really stepping back. right now, there is no news out of the american economy that would suggest the need for that action. >> what we saw was a shock to

the markets that was a considerable effect. the central banks can produce surprise effects. whether that is enough to actually avoid what in the united states would simply be a slow expiring of the expansion. that, i think, is too much to expect. romaine: there's no fanfare. there are a couple of stories in the media. why don't you think many people are -- adam: it is too slow. this is not the kind of boom we have been used to before. and it does have periodic interruptions. the oil sector, the coal sector took a huge hit. if you look at the financial markets, you can tell a different story. , stillerican out there

digesting the effects of the shock 10 years ago. of columbiaam tooze university will be sticking with us. this is bloomberg. ♪ ♪

caroline: the hong kong chief executive carrie lam has been holding a press conference. some of the headlines. she says she strongly condemned the behavior of some of the protesters. also willingam was to engage with others and said you should engage peacefully within reason. she's denying that the hong kong government had not responded to people's demands. the government will be more inclusive and considerate. romaine: coming up, the trade

risks between the u.s. and china. this is bloomberg. ♪

protesters --mark: protesters occupied and ransacked hong kong's legislative chambers today. after midnight, riot police fired tear gas in a bid to remove scores of protesters who camped out outside the legislative chambers. the defacement of the only democratically elected legislature under beijing's control came on the anniversary of the former british colony's return to chinese rule. hong kong chief executive carrie

lam promised to win back trust by governing anymore inclusive way. it sparked the largest political crisis since the handover, after would allowhat they extradition to china. officials say preparations were made in anticipation of possible u.s. embargoes. purchased at contentious russian defense system. a spokesman for u.n. secretary-general antonio guterres encouraged iran to honor its commitments under the u.n. -- under the nuclear deal. tehran has breached the limit for low enriched uranium. verye secretary-general is much aware of the reports that

the islamic republic of iran may have surpassed its limits on low enriched stockpiles. if verified, such action would not help her -- help preserve the plan nor security tangible theomic -- nor secure tangible economic benefits for the iranian people. mark: france, britain, russia, and china are trying to find ways to save the accord. almost a full day after sitting down to pick candidates for the european union's prime political posts, wary eu leaders cut off their talks amid deep divisions on who should run the project for the next five years. >> for the next parliamentary elections, we will have to think very carefully of how we perceive this. think that after the

election, there could be alliances that might put someone who got less votes into the position of forming. mark: the summit is scheduled to reconvene tuesday morning. leaders had already failed to agree on the top job at a summit two weeks ago. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. between the trade truce the u.s. and china announced during this weekend's g20 giving huawei a little bit of a reprieve, but it is seen as only temporary. joining us is ian king, technology and network reporter. we saw a rally of stocks not only in the u.s. but some of the asian suppliers as well.

what do we know about the deal or what we call a deal right now with regards to how businesses will be able to do business with huawei? ian: that is a good question. we have a tweet, explanation, and a little bit more of an explanation. any we don't have is concrete policy or guidelines. at the moment, u.s. companies that want to do business with huawei have to go to the commerce department and say, can we send them this? is this ok. really, nothing has on the ground changed right now. huawei is still cut off and we still have this situation whereby there are still some exports coming onto huawei through this so-called loophole. joe: there is still a fair amount of ambiguity or maybe nothing has legally changed, but

was that on your radar, trump breathing a little bit back of life into them? ian: that, to me, is a bit surprising. if you look at where the money is in semiconductor stocks, it was built in that this would all magically be sorted out. this, being caught out by certainly if you talk to the companies, they had already begun to say, look, this is beginning to hurt us. mixed signals all across. why anyone would be surprised by the arbitrary nature of it is surprising. caroline: perhaps some signals coming from both sides of the house. it feels like some republicans and indeed democrats aren't particularly positive on the moves.

what are you hearing in terms of some voices for concern, for example? ian: you are right. there are those who genuine believe that china is a security risk to the united states and we need to do anything we can tell that back -- can to hold it back. there are others who say, no, we need to be more nuanced and subtle. china is a massive marketing opportunity. panoply, like i say, a of opinions. laid on top of that, the politicians will try to score points on each other. king, thankrg's ian you. coming up, opec agreed to extend production cuts into 2020, but will allies ratify the decision?

this is bloomberg. ♪

romaine: a quick check of the latest headlines. bloomberg has learned that deutsche bank has talked with legislative -- with regulators about lowering its financial cushion. deutsche bank has spoken with both its german regulator and u.s. central bank. an affiliate of brookfield asset animate fund has agreed to buy railroad operator genesee and wyoming. the price represents a 40% premium to the company's close on march 8, the last day of

trading before bloomberg reported that genesee was considering a sale. two american billionaires are making 10 figure donations. stock buffett is donating to five charitable organizations. since 2006, buffett has given away 45% of its holdings. walmart air jim walton donated stock last week. they have regularly donated to the walton family foundation. joe: opec will extend production cuts in 2020 as the world's leading oil exporters fret about a weakening demand growth for output. thank you for joining us. any surprises to you from what we have heard from opec?

the g20rt of knew from meeting that there would be an extension. today's meeting was whether it would be six or nine months. they surprised a little bit to the upside. they went into closed-door session and in less than 30 minutes, they had word out that it would be less than nine months, then they sat in that closed-door session for hours and hours. according to the reporting we have, there were arguments over how exactly they will formalize the arrangement that brings in folks like russia and others to take part in these production cuts. apparently there was a lot of back-and-forth with the iranian over the role this new charter would play. caroline: the irradiance creek criticized the voice they have.

how much power and strength does russia have in opec? tina: this last weekend is another example that opec is really a saudi-russia venture. the crown prince of saudi arabia and russia's president met in osaka. today was basically ironing out of the details. even though they are not taking on productiont cuts, they have a large sway. iran, we talk about the supply that has been disrupted with sanctions. what is going on there? tina: saudi arabia is leading the charge in the production cuts.

iran has been heavily effected by the u.s. sanctions. that leaves more breathing room for everyone else to pile in. saudi arabia has said specifically, and to the u.s. audience in particular, we will fill any supply gap from iran. is pretty weak out of china. pmi's ism'she today, can prices remain elevated through supply constraints alone if demand doesn't pick up? read your basic economics textbooks. -- you there is a great saw an initial pop overnight,

then it slowly drifted down as the markets were reporting some data.s economic if you are saudi arabia and doing these cuts so you get a higher price at the expense of market share, this is not good news. .ou want a bigger reaction romaine: thank you for joining us. , -- the with the saudid saudis, president trump's relationship with mohammad bin salman has fueled photo ops, arms sales, and an enthusiastic buyer in the kingdom. saudi arabia has been a big buyer of u.s. treasuries for a while. towards the end of the obama they startedn,

tapering off their purchases. caroline: $177 billion. it is a phenomenal hike. there is politics that goes into this. we don't always talk about it because it is hard to prove, but sometimes these relationships between countries facilitate. the oilhad just seen crash as of october 2016. if you are thinking about where they might be inclined to park isir cash, treasuries probably the place to do it. caroline: nevertheless, i like

that it is a manifestation of the relationship. some users are reading about improved technology. thanks to most of the more -- the mortgage applications online, financing for homeowners may take around 39 days. save half auld percentage point of interest by refinancing. labeling her old record big machine records. she claimed she had tried to buy back her music from big machine for years and said braun is a bully. a deal last year. tictoc on twitter has reported that a safari park in south africa is using ai to cut down

on poaching. it can differentiate between the animal and the human. it makes it easier to track known offenders. you can follow all of those stories on your terminal come at bloomberg.com, and at tictoc on twitter. private equity firm tpg. crunch ceo spoke with bloomberg on the sale. fantastic that a company like tpg identified crunch as an opportunity. fitness has never been more popular. with the recent changes in the retail landscape, landlords are finally clambering to have fitness companies and clubs as part of mall set up and so forth. i think with crunch specifically, because we are celebrating our 30th

anniversary, we have proven a successful track record in new york and california, and i think there is a big interest in our platform. launched a franchise company that has been tremendous. >> talk to us about the property. beenitness space has booming. tell us about the ip and why it makes you an interesting play. jim: we create and cultivate our own dance classes and so forth. we are innovative in that respect. we can take from broadway, hollywood, what is happening on the street. hotlso go out into europe, spots miami and los angeles. we look at the alternative that is happening and also exercise. we create classes around that that are nuanced. >> why sell now?

jim: angela, our partner for the last 10 years -- 10 years is a long time for a hold for them. -- i would of that give them a glowing review. i can't say that about every pe partner i've had. growth, the cio of tpg sat in on the presentations, met with mark and i directly. when you get that blessing from a person of that order of magnitude, and chris kelly who runs the fund for him, it was tremendous. to have that level of tier one private equity, the timing could not have been better. >> was timing a consideration?

jim: i've never run a public company. you hear all the horrors of what it is to be public. as another public company in the fitness space doing tremendously well. i would say it is attractive. it is not necessarily a goal but it is a consideration. >> obviously life time fitness is another jewel in their crown. clearly they are make a play on this lifestyle we can talking about. how have you come to understand that approach? and tpgre is tpg growth. owned hundredsve of companies. imagine our little company getting access to the top ceos. the marketing understanding especially from a digital marketing standpoint.

they have seen a lot and done a lot. we have the experience in fitness. to broaden our business experience is something i'm looking forward to. caroline: if you are a commuter living in new york, we have an update. the new jersey transit has just put out a statement saying that the northeast corridor rail service is suspended between penn station and trenton due to a fire on amtrak work tray near hamilton. that does it for me as i'm stepping off to host "bloomberg technology." but coming up next on "what'd you miss?," more unrest in hong kong and the day ahead. this is bloomberg. ♪

hour, hongr this kong chief executive officer carrie lam addressing the press in the aftermath of the protests that roiled the city and

strongly condemned the protesters' actions. , we were talking about this earlier. some of the vandalism images were striking, particularly in the legislative center. do you think these images will have a negative effect on public perception of the protesters? shery: they will not help protesters, so much so that you had some protesters saying that this is a trap to discredit them. we saw a riot police retreating around 9:00 p.m., they were nowhere to be seen, then you had this small group of protesters. joe: the other week, there were like 2 million people out. this was not 2 million. shery: the highest number that came out of the organizers was 550,000. the police say 190,000. still a big turnout. you are seeing scenes of what

happened earlier today. that wern to this chart can show you -- it has really declined. you can see the spark in 2014 when we had the last protest, the umbrella movement. one was a significant because they were trying to push back. they had their former chief executive into thousand three resign. joe: to be clear on the labels, the are estimates by the police and organizers? shery: correct. police estimates in yellow, organizers in. overall, a lot. not so much in the last few years, then spiking again this year. romaine: listening into carrie lam again, she is definitely trying to thread a needle by trying to appease beijing and at

the same time appease the people she is in charge of looking after. shery: she keeps repeating that andwill try to be inclusive listen to different views. what the protesters are asking for is for her to resign and withdraw the extradition bill. it is a face-saving mechanism next year will expire and they are not even debating. a protester is now asking for her to withdraw and, in the meantime, our popularity is plunging. for more on these stories, don't miss daybreak australia and daybreak asia. opec plus meets in vienna again tomorrow with energy ministers from saudi arabia and russia likely to speak. romaine: automakers report u.s.

vehicle sales for june and the second quarter. "bloomberg technology" is up next in the united states. joe: have a great evening. romaine: this is bloomberg. ♪

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