estimates. >> the same time, what can a company say about trade that is credible at this point? there gas is as good as -- their guess is as good as anyone else. the dow didn't quite get to a s&p andlost but the nasdaq in the green. 500, we with the s&p still have about 70% of the members above that key 200 day moving average. it has been relatively stable despite the slowdown we have seen during the trading action. scarlet: volume is lower than average. it is on the heels of the fourth of july weekend and it is

summer. let's dive deeper with our markets reporters. on the: piggybacking idea of what investors and traders are waiting for jay powell to say, the three year yield up 11 basis saying either investors got it too far up or down, or that the testimony will thanre hawkish or neutral dovish as expected. this chart is in play and expects we will see a -- the volatility of the fourth bondsr, investors seeking . the more dovish tone of the fan, dropping 2% last week. expected better than

payroll yields, we could see it going to the top of channel. we could see yield backup toward 2.3%. i'm excited to see what jay powell says. emma: also looking forward to what we hear from jay powell. i was watching the s&p 500. we saw it close in positive, breaking that two day losing streak. it felt like we were headed for a third consecutive down day. are very- the gains small. friday is jobs report has the dampening this rate policy. they are less convinced about what the path will be after

that. stockcatalyst to push the rally higher. if that does not happen, people are saying they are not sure what reasons there will be for investors to shake the market higher. powells will be on jay when he speaks to congress. on --u.s.ping an eye president trump would be revealing a plan to overhaul the u.s. kidney market treatment. we saw dialysis followed. 8.7%ompany fell as much as , the most since two months. close to abouts 5% drop.

the control large share of the trump'sresident proposal is that he is suggesting treatment in the bigger clinics. obviously, we are tomorrow we don't know how much it will telegraph policy. of what you thinking the likely approach. mightre concerned the fed not cut as deep as expect. linda: i think there is no reason for the fed to cut except around the world banks are

cutting. they will be disappointed if they don't get 50 if they do, they will say what does the fed know about an upcoming recession ? i think it is better if they are disappointed by 25 basis points. what is the likelihood of the fed doing absolutely nothing july 31? mike: pretty low. still hundred percent odds of a .ate hike punched in we will get the minutes of powell talking and we will get the minutes from the last meeting. signals some very mixed . that is a good point but, at the same time, keep in

mind that that was weeks ago. before we had that judge -- that jobs report. thatond rally, what does signal to you? linda: it is one of the worst things that we have about $13 trillion yielding sovereign around the world -- sovereign debt around the world. the whole idea of the mmt theory, that we can print and print away and there will be no problem, is what is happening around the world and why people think we should cut interest rate here. globally and it makes the u.s. look pretty good relative. romaine: you look at the debt in

the demand will be there or do we need to see treasury yields, buyer? -- yields come up higher? linda: it has been between 2% and 2.5% for some time now. there is not a lot of income. the dividend oriented stocks, that is long-term place expect -- long-term play we should expect. chancesr, almost 100% they gave of three hikes this year. joe: this extra area bond rally. out, --y, there is there is news out, like a crazy thing every day.

mike: sovereign debt, once you wrap your head around that, there is a large pile of corporate debt. inda pointed, as l out or as matt levine would write in his newsletter, i'm not sure how it resolves or what the issue looks like when it drops? discussede second-quarter revenue from levi strauss, the second set of results since becoming a country -- becoming company. ebit, earnings before interest million, down 60% from the preceding quarter. for 12 andre looking

a half cents. stock was down in after hours trading but perhaps we are not prepared -- not comparing like with like. romaine: a media company saying saying it hadeat record output in june. had two 12 hour shifts and they are moving to three eight hour shifts. theire have to imagine chance to tap public market. thing we areain looking for or want to hear from powell? linda: i think it will be great if powell would say, i'm going to be independent here, that he were independent and the fed

were independent. let us struggle a bit here pulled back a bit. my fear is a melt up. would love to not have a melt up with all that easy money -- easing money. scarlet: that is what we got today. just to recap with the earnings we did, levi strauss with seven -- it's second ever set of results. reported seven cents for the quarter. analysts were looking for 12.5 cents. we are still looking to see if we can compare apples to apples here. that does it for the closing bell. more on jay powell's testimony.

from new york, this is bloomberg. ♪

from bloomberg world headquarters to new york. taylor: i'mbostick taylor riggs. romaine: stocks are up, treasuries are down. joe: the question is, "what'd you miss?" gearse: the fed chairman up to face lawmakers on capitol hill.

shares of dialysis providers sink today as president trump takes aim at prices in the kidney-care market. and we will speak to one of the candidates running for president, representative tim o'ryan of ohio. taylor: fed chair powell is set to appear before the house banking committee tomorrow and onto the senate on thursday. powell will likely mirror language from the fomc minutes last month, saying it will act as appropriate. i want to welcome our senior reporter for economics. what is the one key piece of information you would like to hear from powell tomorrow? >> everybody will be focused on the timing of the potential rate cuts.

it seems it is not whether they win do it -- whether they will do it, but when and how much. how will probably sell it as much as he can in terms of timing. slowergoing to get a bit in the second quarter. it seems to have stabilized low 2%. payroll report was strong. now the -- they have all the necessary information. joe: how much does the market pricing affect their decision-making and this idea of not wanting to surprise the market by cutting? i think that is the key reason they will cut rates. the economy is doing ok. even though we see some slow

data,n investment, bad consumers are doing just fine. i think the key reason they do want to make those cuts is so we invert the yield curve. romaine: today we already heard , quarrels, alert -- bullard. several of the members will be speaking this week. anddon't think between now july 31 they can sort of reset expectations? yelena: i think it will be about what powell says tomorrowland on thursday. a lot of opinions between now and then and we will also get economic data. what really matters is what how is going to -- what powell is

going to say. taylor: we look at the data, market dynamics. we are looking at the new york fed's probability of a recession. , predictions they are making around the three month tenure. highest things like the since 2000, the most since 2000. does this get you concern or is 33% nothing to be panicked about? yelena: that is probably one of the things making them cut rates. you don't want to cause a recession. ae yield curve has not in perfect indicator of the recession. it works sometimes but not always. you have to think about what is causing your yields to be so low

and make a structural change. paper,for longer-term really depressing longer-term yields. yelena,nk you so much, for preparedness for the testimony tomorrow. forng up, a huge moment century bonds. this is bloomberg. ♪

romaine: time for a look at what stories are trending. terminal users are reading about citigroup and how it is expecting to increase hires. it is aiming to become a top

three investment bank and it is seeking new talent to add to its health care and policy teams. after signing two of the top nba players, a pair of contracts that will cost $305 million combined. the franchise has spent most of its new york city tenure in the shadow of its local rival, the knicks. spotify just released a light version of it that that is in africa, asia, and the middle east. you can follow all of these stories on your terminal, at bloomberg.com, and that tictoc on twitter. joe: wild things happening in

the global bond market. investors rushing in to buy italian debt. into corporate europe. subzero on euros. century bonds coming from various emerging markets. japonicaiscuss, brian is the lesson that zero is another number? seems to bertainly that way. the real crazy stuff is starting to happen in europe and that is because the ecb hasn't really been able to normalize. that has to weigh on the mind of the federal reserve going forward. it is sort of a question of, are we willing to go back to the

zero bound so quickly? zero is just sort of a number you go above and below. taylor: were talking about some of the structural issue with the long end of the curve. , i come to my terminal wonder how much is driving negative debt are structural issues, or is it really a flight to quality and people are nervous about something that we are not seeing? the flight to quality argument loses its appeal when you see junk rated corporate funds in europe -- corporate bonds in europe that have a negative yield. the ecb has become a price

insensitive buyer, so you are getting this fixed income market that rarely gets any fixed income anymore. romaine: greek bonds, at one point, the yields were below u.s. treasuries. brian: yes, the 10 year yield on some greek bonds were below the 10 year treasury yield. there are things like hedging costs that are involved. the u.s. has unable to raise rates. joe: looking at this will market market in bonds, how much risk is there even if we just get a modest firming of inflation. brian: when you see the sort of headlines that century bonds are having a moment, that's true, they are up 19% this year, but

it also is because they are the longest in duration. returnely, bonds, the comes from the fixed income within the bonds, the coupon. right now, there are not very high coupons anywhere. you are buying bonds on the price appreciation and the expectation that they will continue to rally, and they are insurance if there is every selloff in stocks. taylor: if you come into my terminal here, high yield muni bonds at a record low. 4.3 yield. brian: that is sort of a different beast than thinking about the negative yielding european junk-bond. this is directly supply and

thatd related and the fact everyone wants get a tax deal. every once in a while, you will get a blockbuster yield. with munis, you have to take what you can get. ,aylor: that was brian chappata bloomberg opinion columnist. cisco has agreed to buy a company, a 46% premium to the close on monday. the company makes products for cloud operators and communication providers. facebook wants to double the number of female employees over the next five years. the social network unveiled new diversity goals today. they also want to double the number of lack and hispanic employees in the u.s.. pepsico found a brace

pot in mountain dew. they have created -- found a --it is selling so well that they can keep the refueling cap in stock. sodanot a so trigger -- drinker, but they have found a way to target gamers. joe: we created this innovative -- they created this innovative cap and it is working. romaine: maybe it is just some young person they hired, twisting a cap off of a bottle is too much work. coming up, health care is top of the agenda for the trump

administration. he is angling for a dialysis overall. this is bloomberg. ♪ hey! i'm bill slowsky jr.,

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mark: i am mark crumpton with bloomberg's first word news. the european union says it is incontact of the other participants of the landmark 2015 nuclear deal. >> we continue to urge iran not to take further measures that undermine, and reverse all in theirs that are commitment to the jcpoa, including stockpile limit. germany, russia,

and china plan to convene a meeting of the signatories amid concern that iran is not meeting several of its commitments. chuck schumer is on a list of democrats saying trump's labor secretary should resign because of his role in a plea deal that allowed a billionaire financier to escape prison time. was a prosecutor in south florida when he was involved in a plea deal that allowed jeffrey epstein to avoid charges. epstein was charged again in new york on monday in a new indictment accusing him of sexually abusing young girls. regular at thea mar-a-lago club for years.

the president needs an answer. recall" is not an answer in this case, especially since the president appointed mr. acosta to such a position. >> there is no doubt that the accusations against epstein are horrendous. it is good news they are being pursued further. as to secretary acosta's continued service, i defer to the president to make that decision. mark: president trump told reporters today that he feels badly for secretary acosta but will look closely at the issue. an appeals court is set to look at whether congress invalidated president obama's signature

health care law when it ruled the tax. the case appears destined for the supreme court. democratic congresswoman susan wild of pennsylvania says democrats will start preparing legislation to deal with the possibility of the lobbying overturned after they get a sense of how the panel of appeals judges feel. wild said she wouldn't be surprised to see states passed legislation. democrats held a press conference today, holding pictures of americans that they say will be impacted if the law returns. tropical storm is putting gulf communities on edge. a low-pressure system could turn into a tropical storm. foroffshore region accounts

70% of u.s. crude oil output and 5% of dry natural gas. as storm may dump as much seven inches of rain across texas and louisiana. 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. ♪ congressmanifornia bowedwalwell balled -- out of the race. stey, another entrant, tom yer. he has not gotten the warm reception from everyone. senator elizabeth warren tweeted earlier that the democratic primary should not be decided by billionaires, whether they are funding super pac's are funding themselves. there joined now by one of

presidential hopefuls out there, ohio congressman and democratic presidential candidate tim ryan. you are in a crowded primary. if you were to emerge from that, you would be up against a candidate that has a relatively strong economy that he can sell to the american people. is there a way that you differentiate yourself or say that you can do something better economically than what the current president has given us? rep. ryan: high stock market and low unemployment does not necessarily mean that the middle class and working class people are doing well. i am here to say clearly that they are not. we have been crushed not just in the last 10 years since the

subprime mortgage crisis, but going back 40 years with globalization, deindustrialization, now automation. i've been traveling just in the last few days. there's homeless people in manchester, new hampshire. there's homeless people here in greenville, south carolina. the income inequality has been as high as since the great depression. it is not that we have to be divided about this, but we have a big time problem in country that the vast majority of the people at the top are not recognizing how deep this runs. we've got to fix this middle-class. joe: one way perhaps that the effects of deindustrialization and globalization could be mitigated would be a new tray

relationship with china. that is something the president believes could help on this issue. how would your approach to china differ to president trump's? rep. ryan: the tariffs, some of them i support. we have had steel dumped that put steelworkers out of business. they were cheating. but that is a tactical move. with china, we need a long-term strategy. secretary mattis put together a military strategy with china and ofsia, but we have no whole government, economic strategy with china. we've got to go through competition, outcompete them. you know about the belt road initiative, the islands in the south china sea, the pork in the middle east, the rail lines

going to europe. what is our strategy? they've got a 1500 year plan. we've got a president who lives in a 24-hour news cycle. when i'm president, we will have a conversation around the renewable energy market. the american worker is building the battery and charging stations. same thing with solar. build thedominate and most solar panels? china controls 80% of that market. manufacturing, wind. a long-term strategy, bringing labor,stors, bringing in bringing in the government, and having a whole of government approach. taylor: you talked about the auto sector and electric vehicle market.

thetalk about a closing to local gm plant and a friend and her family lost jobs? what is your plan? rep. ryan: hopefully work with gm into the electric vehicle market. saying in the united states that we will make 50% of those, then drive those investments through opportunities of, tax incentives. drive that investment, that growth, into the old manufacturing communities, the textile communities, communities of color that have been left behind. this is not about left or right. this is about new versus old. if we don't adapt to the new economy, if we don't understand

that there's an industrial revolution happening in the world now and we don't want america to lead it, we lose. there's a way to do this where you cut the workers in on the deal. i'm in theeek that office, they will be a meeting in the white house about how we dominate the world electric vehicle market and battery market. romaine: a lot of leaders, both republicans and democrats, have focused on health care. a big case in new orleans could be one of the death knells for the affordable care act. how do you address the health care issue in this country? rep. ryan: i don't think we should be taking people's private insurance. i think that would be a mistake. i think we have a public option

and people can get some sort of basic care and if they can't afford it, we help them pay for it. we spend more than other countries right now and get worse results. i think it starts from moving to just talking about health insurance, moving away from a system into a system that focuses on prevention, where the focus of the doctor and patient is to get and stay healthy. refunds and rebates for patients who stay healthy. more money for doctors who help people stay healthy. 75% of our health care costs today is for things that are preventable. if you are a ceo hearing this conversation, you are thinking, if i'm looking at my spreadsheet

, and we can save expenditures, how do we do it? there are ways that we are literally reducing type 2 diabetes by making a few thousand dollars of investment, getting good food to people basically. isis not left, not right, it new versus old. this new idea about using food as medicine and helping people prevent diseases, that is the way forward. joe: your house colleague eric swalwell dropping out of the race yesterday. you are pulling very low and i think there are 23 or 24 other candidates. what is the message that is going to break out? is it going to be electric cars? what will be the thing that stands out? rep. ryan: it will be the

candidate that is focusing on the economic anxiety that americans are feeling right now. i don't think there has been any candidate clearly addressed it. this has got to be the issue. how do we address the economic anxiety that americans are feeling, the mental health crisis in the united states? i come from a forgotten community. it turns out most of the country feels forgotten. they will want to vote for somebody who knows what it is like to come from one of these communities. ground zero you -- ground zero of the opioid epidemic, automation. they want somebody who they know will be walking into the oval office and thinking about them i'm encouraging everyone to go nforamerica.com.

i had my highest fundraising days after the debate. i am meeting from the people. i'm not from a big state, not from a big city. i don't have a big ivy league network. but i'm competing in this race and i think have got a really good shot at winning. taylor: thank you, wonderful. i was democratic presidential candidate congressman tim ryan. responding, they are to a financial committee, facebook trying to address some concerns. they have us -- they have applied for state payment licenses.

facebook commenting on that cryptocurrency libra in a letter addressed to congressional leaders, trying to get ahead of some of the concerns that have been made. romaine: some other breaking eqt, the natural gas producer. havectivists are said to -- the brothers decided they didn't like the way things were being done. they were leading an activist group of investors. this activists have apparently gun control in that proxy fight -- apparently gotten control in that proxy fight. this is bloomberg. ♪

insert -- more uncertain in the health care industry. the trump administration will reveal a plan to encourage more home treatment in the kidney market. the two companies that control the largest share of the u.s. dialysis market. this is the latest move by the president reconstruct the health care industry. start off by reminding us, what is the business model of these companies? they are very controversial. short-sellers have gone after them. a lot of people have accused them of taking advantage of the health care system. >> the dialysis market in the u.s. is massive. almost one out of every five dollars in medicare gets spent on kidney care.

think about everything else we treat people for. dialysis takes up a huge chunk of that. the way we do dialysis care in this country is different than most other places in the world. centers aple to go to large number of hours per week and basically get dialysis sitting in a chair for hours. that is an incredible burden to them and also much more expensive. a lot of the rest of the world does home dialysis. you put a dialysis machine in your home and it is cheaper. when you are only doing it a couple of days a week, people have more toxicity in their blood. if you do it every day, you can do less, shorter courses. this is a massive money spender in this country.

people have questioned, does this make financial sense or medical sense? we haven't made a lot of changes to that. seems like that may be beginning to change. taylor: i want to talk about some of the big drugmakers. at the jp morgan conference, one of the big themes was drug pricing. today, it looks like a small win , merck.lilly them --full with for full win for them? >> you are talking about this trust -- this trump regulation that says, if you sell a pharmaceutical, you have to put the cost of the drug in the ad that you run.

costs are major issues. trump administration has laid out a very large blueprint of different drug pricing issues. the judge said, you do not have the authority under the law to force drugmakers to do that. you can't go about re-regulating the entirety of the health care system without action by congress. i think a lot of democrats and despite as -- tremendous amount of noise from the administration, we are waiting on a handful of nature regulations -- major regulations. the international pricing index, trump was talking last week. there's a lot of stuff people want to do. there is so much noise out there. there has not been nearly as

much concrete final action that has stuck as there has been noise. romaine: coming up, the controversial extradition bill that sparked protest in hong kong might be dead but it is not withdrawn. this is bloomberg. ♪

taylor: hong kong chief executive carrie lam is making waves overnight. the controversial expiration bill that sparked protest -- extradition bill that sparked protests is now dead. >> there are worries about whether the government will restart the process and the legislative council. there is no such plan. the bill is dead. lam stopped short of

fully withdrawing. why would you not withdraw the bill and end this? shery: that is the key question people are asking carrie lam, why are you doing that. she keeps saying it is dead but still the government with 12 days notice could bring it back. this is allowing protesters to unite. you had a very broken up opposition since the 2014 protest. you are now seeing that people are more united against this bill. carrie lam saying it is dead but not necessarily withdrawn and also she is refusing to step down. romaine: what reaction have we had for the protesters and beijing? -- thethe tourists

protesters were targeting tourist spots. they wanted to talk to chinese mainland people. we are expecting more rallies this sunday. beijing not saying much. just that they have given up their position, they respect the people of hong kong, but they haven't changed their position. taylor: for more on these stories, don't miss daybreak australia and daybreak: asia. fed chair jerome powell will testify before the house tomorrow on monetary policy and the state of the u.s. economy. joe: the fed will be releasing their minutes from the june meeting. romaine: bloomberg will have live coverage out of sun valley, idaho, starting tomorrow, with interviews with top executives. taylor: that is all for "what'd you miss?"

romaine: "bloomberg technology" is next in the u.s.. joe: this is bloomberg. ♪ i don't know why i didn't get screened a long time ago.

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