and you hear the start of the closing bell. we have 15 seconds to go. another down day for equities. about half of 1%. what is notable is trading volumes remain fairly thin. down 16% on the the nasdaq is only down about 1%. romaine: the sectors that moved today. staples,te, consumer energy, utilities. joe: as we were saying, the big show this week, powell. thelet: can't forget about fed minutes. this two-dayo have decline in the u.s. the s&p 500 may suggest that more gains and record highs are ahead. you will notice the rsi went to oversold territory.this year

as we rally is up as much heard that the rsi was overextended, technicians don't like that. momentum isal that strong. right now, looking at a very the rsc --elloff, the rsi higher. it might suggest that despite the two-day decline, more gains could be ahead. emma: something that has not gaining, the online category. draggingor falling and other names like looking down with -- like booking down with it. they said industry trends are

not good. traffic in general is falling. they werecomes as added to the conviction list, tripadvisor. note winning out at guggenheim today. that could offer some worrying signs about consumers disposable income and how much they are spending. >> taking a look at iron ore. looks like it is opposite to friday. friday, a two-year low. now, it looks like it is having a rally. demand is seeming to hold steady. amidstyear high

disruptions at minds, and stockpiles in china remain low. most industrial metals today are doing better. you can look at the bloomberg industrial metal index, which is just hovering around unchanged. us is dougill with of riverfront investment group, and also bloomberg's luke kawa. we have seen all of these set there's as sort of the only ones in the green today. what is the message that is really being sent here? luke: i think one of the broader messages is more just how any factor has never really

worked for prolonged periods this year. beenactor strategy has mean reversion. whatever has been working, will someone fall back into line? forink that sets the stage consistent outperformance of the market. we haven't had one place we can go and bank to as a market leader. tech is right in the middle, off by 0.7%. this we have heard about downgrade on apple by rosa back sickler -- by rosenblatt securities. you also have a downgrade on chipmakers and this trait spent

-- this trade spat. if they can no longer be leaders , how much longer can the index push higher without tech? doug: premiums can get higher. tech ishe benefits of that it is one of the areas you can get growth. that is not the environment we are in. we are in the environment of an economy likely to slow for it speeds up. growth will trade at a premium. premium that it hasn't it before. i think it could still go higher. joe: you mentioned earlier that the macro data has deteriorated.

we have had these slow patches before. is this just sort of a slow patch that will pick back up, or could this be a harbinger of recession? >> i think we have to get used to slow growth. i'm down south and one of the things we do is barbecue over the holiday. a term for barbecue is low and slow. that makes the best barbecue. it also makes the best markets. the fed doesn't stop brakes, they don't get overly exuberant, companies don't build capacity. 2%ctually cheer for 1% to growth. that's fine. romaine: looking at some of the

economic reads and what we can crude wasthe market, up and then that think dive -- that big dive to close negative. what are the messages commodities are trying to send us? luke: that global demand is relatively lackluster, that a second recovery is something the market has not bought into. commodities not really doing well. any is about the idea where second-half recovery feels more mechanical than it represents anything about the underlying potential of what we will see in terms of growth. scarlet: we haven't brought up turkey. a lot of concerns after

president erdogan essentially fired the central bank governor. why not more concern here? it seems more contained to turkey. turkey is a one, pretty small player in emerging markets. it doesn't mean it should be ordered cash should be ignored -- it doesn't mean it should be eighignored. the other side is china. they are doing everything they can to stimulate their economy. attention toore china. the fact that we are in the middle of a trained discussion. weakens, thatmy means we have the upper hand in

negotiations. turkey for me is a side note. 0.8%.t: the fsi losing doug sandler, thank you so much. that does it for "the closing bell." with'd you miss?" is next the deutsche bank overhaul. this is bloomberg. ♪

live from bloomberg world headquarters in new york.

taylor: i'm taylor riggs. joe: i'm joe weisenthal. caroline hyde is off. romaine: stocks down, gold slipping for a third straight day. overhaul, radical cutting jobs from sydney to london, new york. and stocksthe lira weaken after erdogan removes the head from the central bank. new greek government. the prime minister will have to move quickly to tap -- to tackle the problems. taylor: some breaking news. the democratic presidential pool is getting smaller today. eric swelled well -- eric out ofl has just dropped ool.democratic 2020 p

the race getting a little bit smaller but still a very big amount. o.e: still a ways to g cuttingtsche bank 18,000 jobs worldwide as they reduce their equities division. deutsche bank chief financial officer talks about the company's retrenching. >> especially in today's interest rate environment, that may change in the future, but for now, we see great growth opportunities that have existed for a while. we also see growth in the private bank. ahead to whether

these cuts might help bank reach its targets. from london, nick dunbar. we just heard this idea that obviously deutsche bank is cutting but it obviously has growth plans. avenues? has an interesting one, all about going back to its core strength, how it is retrenching in germany. claiming to be a global bank. the trend of transaction banking

, it used to be part of what they called the cib, commercial and investment bank, and they will now -- they have now separated these out into corporate banking and investment banking. the corporate bank is all about lending and dealing with corporates. transaction banking is one of these areas where it is sort of ringlooked, kind of bo compared to the exciting investment areas but i would say that is somewhere that is worth looking at very carefully. deutsche bank is ahead of some banks like goldman. scarlet: can you walk me through on rationale of refocusing europe and germany.

economyn make an export that is slowing. nick: banking is changing from being a pure relationship business to have a big balance becoming more about data and technology. the reason why deutsche's has this strength is that he has this long-standing relationship with the bigger and midsized german corporis -- german corporates. has more than jp morgan come over goldman. that means that it can leverage

that strength in the market. with the transactional banks, you see what they are doing in terms of the flows in capital. romaine: the execution seems like is going to be key here. there's also this issue of funding. thefunding, the e -- off,al needs to pull that where did they get that money? not: they claim they will need more capital. that is the headline announcement today. there seeing that with 18,000 headcount reduction. and they are going to reduce that balance sheet.

that is probably the other interesting area. bank in chargehe now, put 76 million euros of assets. that is something that other banks like royal bank of scotland u.k., has done. they will go to these counterparties and offer them huge discounts, like 50% discounts on clear value to get out of the street -- out of these traits. only -- more of the cap the capital benefit that would compensate them for the loss. it saves them of having to raise capital because they are keeping that ratio high.

who big picture, people don't follow this closely, they seem bad banks, these trillions of dollars in notional derivatives. people walking out of their which islding boxes, 2009,scent of 2008 and the financial crisis. what is the difference between deutsche today and 10 years ago? nick: 10 years ago, deutsche bank was a vastly more leveraged institution and there were no problems with these trading businesses. they were far less liquid than they are now. the low changed is that interest environment has made

even healthy parts of the legacy business expensive. they are very costly and regulatory capital. equityrequire a lot more to be held by the bank. the clients who did these traits 10 years ago or more, when interest rates were 5% or more, they are now very different. the clients will want to get out of the trade and by getting out up deutsche bank will free that capital. they talk about capital liberation. it's very different to the crisis era when banks were trying to bluster their way through by claiming they had enough capital.

taylor: coming up, president erdogan fiers the central bank governor. turkey is not the only country where --this is bloomberg. ♪

romaine: the turkish lira edging lower today after president erdogan unexpectedly fired the central bank chief, saying he was tired of waiting for a rate cut he's been waiting for months. president trump re-upped his attacks on fed chair powell. here to take us all through this -- vincesecond row sacorella.

i look back to the base care last year where he jumped, why do you think the market was more willing this time? >> we kind of saw it coming. it was telegraphed by her to want. -- by erdogan. the situation in turkey has stabilized someone. inflation has been under control. the heir apparent is clearly not going to be making any unwise decision going forward and you --e to think erdogan will be the interest rates. taylor: erdogan in some ways has been proven right that he's not

building interest rates and the prices have come down. vincent: a lot of people say they didn't know inflation will get this low in turkey. you can sort of argue the same in that thehe fed last interest rate hike in a subdued inflationary environment, why? joe: from the perspective of investors, is it that the central bank is going to be more moreh, or is it institutions in turkey continue to deteriorate, we just don't have any assets. vincent: it is a little bit of both. emerging markets, without confidence, assets will be in trouble. this was more or less expected. it is how deeply he goes forward

in terms of easy monetary policy, whether inflation does sort of get out of control. those are the things the market will worry about. romaine: what do you think about what appears to be this trend where we are seeing world leaders, politicians put a lot more pressure on central bankers than in the past. this is just something that the market is going to have to get used to? vincent: i think this goes back a lot longer but was not as much a front-page news story. there have been historical issues where central bank president come under pressure by presidents in the united states but it hasn't been played out on the front page. the heir apparent of angela ecb.l attacked the

joe: it is not surprising that or leaders with strong personalities might attack their central bankers. but people are starting to question whether central bankers should have the power that is vested in them. banker: every central who says that inflation is anchored and wanting to raise rates, by thinking that raising rates will somehow spark inflation by creating demand. you wonder why a central bank would want to raise interest rates and a growing economy when there isn't inflation. romaine: coming up, greece gets a new prime minister. deal with theo

trade problem. we will speak with the former u.s. ambassador degrees. this is bloomberg. ♪

>> let's get the first word. swalwell has suspended his campaign for president. struggled to raise money or gain traction in the polls. he made the cut for the first debate in late june but his prospects of quality and for -- of qualifying for the second debate later this month were in doubt. iowa will be able to cast votes over the telephone. the national committee hopes the move will get more people involved in the process.

begunays it has already beyond theranium caps in the landmark deal. -- fuelinglready escalating tension in the face of tightened u.s. sanctions. tehran said more steps would be taken to scale back complaints every 60 days unless european parties can make sure it can continue to trade its oil. the justice department says it is already replacing the legal administration is using to argue for a citizenship question on the census. the supreme court already ruled against the change late last month. 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. this is bloomberg. ♪ another big story we are following is all about greece. the prime minister kyriakos mitsotakis won an election. he needs to show that he can tackle the country's problems. >> i feel like i have a strong agenda,to deliver on my an agenda to grow the economy and create more jobs but also make sure people are safe again. us, the former u.s. ambassador degrees -- ambassador to greece, charles ries.

tackling the economy. one of those issues is cutting back the surplus and trying to reduce that along with the eu. and talk about if that is the right surplus and if that is the right thing for the greek economy? charles: it is clearly important for greece to get more fiscal room to do things. it has come through the bottom of the valley of austerity and it is growing a little bit now. it has been meeting the targets. 3% primary surplus is really a demanding target for any government. that said, i think that kyriakos mitsotakis, whom i have talked to a number of times, is serious about administrative and understands reform,

the diminishing of the scale of the greek state in the economy to unleash more economic growth. he has seen the austerity stuff and tax cuts as a way to get there. joe: kyriakos mitsotakis sort of has a classical pedigree. he was that mckinsey, studied in the west. politics have not been kind in recent years for people with this kind of background, technocratic, reformers. risks if some of these next few years don't go well? charles: i think greece is different than the rest of europe in that it has had a run with sort of an object populist. predecessor,s, his came from very obscure corners

of the left to dominate left of center politics and set himself up as a new spokesman for the left. in terms of his core voters, he did not deliver. that is a very different background. he is following a populist who didn't deliver. that gives him i think more running room to do what he thinks and knows is right. theclassical connections to global financial market i think will allow ago understand what greece needs to do. romaine: is there any sort of read through to other countries in europe or the rest of the world? charles: if i were victor or hungary,ictor orban in i would be a little bit worried.

the sortioned before, of populism that doesn't deliver has its own sort of vulnerabilities. greece's circumstances are 2010, the crisis was not a banking crisis. was a time, the crisis sovereign debt crisis. the government not only was very alsoin debt, but they were lying about statistics. when those things came about, it took them a long time and some serious effort at austerity to do that. from my standpoint, the missed opportunity was originally in the 2010-2012 period, where they didn't tackle the structural issues.

now they have to do that to let greece unleash potential economic growth. taylor: thank you. that was charles ries, former u.s. ambassador degrees. in hisarsh recession global economic outlook. this is bloomberg. ♪

means and the motive to flee. federal prosecutors are charging fund manager jeffrey epstein with sex trafficking as well as conspiracy and pushing for him to remain behind bars during trial. the indictment was unsealed earlier today after the well-connected financier was arrested on saturday. epstein pleaded not guilty during an initial court

appearance. >> the charges are very serious and carry a maximum sentence of 45 years in jail, which to someone of epstein's age is basically a life sentence. -- whenve he has every you have two planes and you live half the year abroad, we think that is a real risk. joe: joining us, bloomberg opinion editor tim o'brien. there are so many aspects of this case that have the potential to be extraordinary. first, how well-connected is he? tim: this is a guy who got away with over-the-top behavior for quite a long period of time. there are probably a lot of people sweating this out, wondering what law enforcement

will come up with when they go through his files. they broke through his front door over the weekend and got the photos from the house but that stuff is probably the least of it. romaine: we know he is a financier but it doesn't seem clear to who he works for or who has clients might be. collegenever went to but he appeared to be a math genius. he taught at dalton. hisligned with wexner, first big client, a substantial client. after that, a mystery. he clearly had the means because he owned real estate. he had to have real income to maintain that real estate. taylor: you talk about palm beach and you pull in ties to

mar-a-lago, trump. but also ties to the clintons as well. tim: in the royal family. prince andrew. profile attorneys. in an event like this, they will be bipartisan fallout. anyone on the left or right can take ease. through what we know about the degree to which president trump and trump's circles overlap with epstein. tim: they were friendly. they met at each other's homes, trump traveled on his jet, epstein was a member at mar-a-lago. trump spoke fondly, sort of admired how epstein rolled.

i think he disowned him as many of people in palm beach did in 's, when these allegation were out. kicked him out of mar-a-lago -- said he kicked him out of mar-a-lago. there was sort of a synchronicity and they were comfortable with one another. taylor: a story that is developing. i'm sure we will have you back in a few week's time. in china, car sales show signs of struggling. inventoryto clear out before new emissions rules kick in. british airways faces a landmark $230 million fine over computer

attacks that exposed customer data. it is the first time these regulators have filed rules for companies to implement anti-hacking measures. they said they haven't found any evidence of fraud on accounts linked to the theft. the women soccer team wasn't the only winner at the world cup. the audience for the game was higher than last year's men's final, in the u.s.. that is your business flash update. says he doescvey not see a recession. he spoke with bloomberg's erik schatzker in an exclusive interview. henry: i think the market to

dovish on the fed. the fact that they would do 50 ease -- 50 basis points in terms of easing in july. i think the fed sees low-inflation and slowing growth. i think the prudent thing to do is 25 basis points. talking before the jobs report, that is where we stood. >> there are only a few times in history the fed funds is 50 points above -- this is a key point. i want to bring up a chart that illustrates this. many people may have missed this divergence. here is what is happening. >> in the market, when it got like that, 1989, 2006.

almost all of those times, the market had slow growth in the fed was trying to get ahead of the curve. to thehe market ripped upside. our view is not that we will have a nasty recession but we also don't buy off. >> that's the big question. 1989, 2006,ok like or like 2000 when, instead of having equity markets higher 12 months hence, you had a correction. that ito me, the case is 2007, companies are over earning. i don't see that. us probably wouldn't be a bad test case. the central banks and up getting dovish -- ended up getting

dovish but then you have some issues. we think the market is capped on the upside, where you will get any more multiple expansion. but on the downside, you have what i would say is a protective fed. ofk: you now have a new head the ecb, christine lagarde. not a technique at -- not a technocrat. doesn't have the background that mario draghi had. what in -- what implication does that have for the fed? is ineems like market control of monetary policy. henry: i will make the same point that we have discussed in prior talks. ecb as well as the

fed. the ecb usually sets the lower treasurye bound, and usually doesn't trade that much above it. minus-40.d is even if the fed wants to get the long end up, they will have a tough time doing it. two, i think draghi will be aggressive going into his exit to set the court of facts -- court of action. -- it wouldn't surprise me to see him move away from sovereign debt, which he owns the most of now, and move into corporate bonds. there are still a lot of stocks in europe with huge dividend yields. there's almost 5% of the european high-yield index now

has negative yields. that strategy worked on the sovereign debt side and seems crazy. when you look at the equity, they haven't really lowered the cost. exclusiveat was an interview from henry mcvey from kkr. apple stock downgraded to a sell. down in thelowing second half, also downside. i think there is some debate about 5g cycle next year. we believe android smartphone players will have an advantage theg and actually takes first step advantage to take some shares in the higher

market. apple might lunch regional -- iphone.unch regional 5g seeon't believe, we won't forpgrade cycle until 2021 the iphone. taylor: rosenblatt's downgrade brings the total amount of bearish analysts up to five. aboute mentioned android, how that was going to lead the race on 5g. second, we have talked a lot about bearish sentiment toward apple. theith the -- we know with five sells out of 57, that is the most we have had since 1997. we look at the ratio, that is

the lowest since 2004. romaine: this is still a company with $50 billion-plus in quarterly sales, 10 million -- $10 billion in free cash flow to the firm on a quarterly basis. joe: you have to love what it says about analysts. that little tick up. samsungwe heard from that they were cutting their profit for next quarter and half because of global slowdown and sales. up, we are going to talk about another trade war that is brewing. exports toing at south korea. this is bloomberg. ♪

to asia right now,

ahead. another trade war is brewing. long-standing and unresolved tensions, restricted exports to south korea. chains about the supply connecting the two countries and the fallout, shery ahn. i'd -- fluoride polomide. we know these are critical components. shery: not obvious to us, but in the tech world, these are huge. ingredients for foldable panels, chipmaking. requiring 90%es of those imports from japan. origin of thise

tension, that suddenly japan is restrict this? said a lot ofas things. denying heter abe has anything to do with south korea. that they need to pay those forced laborers. prime minister abe saying it is not that. taylor: how scared is samson? -- samsung? --saw j widely fly over to jy lee fly over to japan. shery: they are not doing great. you are talking about the chip industry on the brink of recovery, now samsung shares losing $13 billion in market

share. month supplybout a of these chips. if these get banned. we are talking about licenses they need to get from the government, and that can take up to 90 days. this reminds me of huawei. really interesting. joe: a little bit of an emergent phenomenon, restriction of key ingredients. taylor: for more on these stories, don't miss daybreak australia and daybreak asia starting at 6:00 p.m. eastern. chair fed powell speaking in boston. due pepsico earnings are before the bell. romaine: i'll be watching levi strauss reporting earnings. "bloomberg technology" is up next. joe: have a great evening. romaine: this is bloomberg.

♪ we're the slowskys.

we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not.

♪ chang in sanily francisco and this is bloomberg technology. growing trade tensions between japan and south korea. we will discuss which companies are getting hit hardest by japan's export restriction. apple downgraded. the fifth celebrating, the most -- the fifth sell