deal, because it will help both countries. we as we have said before, want to talk directly to the government. because there is the possibility that will be subject to trade talks, that means everything is political. the fact is we believe there are certain instructions that will be placed on huawei and we are happy to talk with the u.s. mark: with first word news. government about that. isthe u.s. government president trump has assigned a bipartisan bill that suspends concerned about huawei over national security. how are you trying to address the debt ceiling for two years and allows the u.s. government their concerns? to spend more on defense and >> when we have the opportunity domestic programs. to talk to the u.s. government, the measure received approval we want to talk to the fact of when it was passed by the senate romaine: u.s. employers kept thursday. the measure suspends the debt our present risk mechanisms. limit through july 31 of 2021, adding workers in july and wage gains picked up. it has allowed nokia and as president trump threatens eliminating the risk of a default until then. more tariffs on chinese goods, ericsson to do business in the it also sets budget caps for two joining us to dig deeper is martha gimble, indeed hiring lab united states despite their ties to china. years that will prevent 324 learnedring lessons research director who leads an billion dollars in additional domestic and defense spending from canada, from the united kingdom, from germany and the international team of economists above the current cap. senior administration officials to help drive the labor european commission. we are happy to talk about

conversation. those. say the united states is we realize each country likes to planning to conduct tests on new explained to me what we got this morning. he jobs report got overshadowed have tare happy to talk about t. missile technology that would by trade. >> one issue is that huawei is a have violated a treaty with it was not necessarily a bad report. russia that expired today. it didn't show us that things chinese company. last year, president trump one of the b concerns is the were improving. announced he would withdraw from is that right? >> this is a solid but not the 1987 intermediate range national intelligence law in china that requires chinese nuclear forces treaty in 2018 spectacular jobs report. 164,000 is a perfect the good information in order to after accusing russia of number at this point in the developing and applying a weapon recovery. the thing that is worrying as cooperate with intelligence agencies. itselfld huawei defend that violated the pack. you continue to see the goods that russiaadded producing sector continue to that it will not be used by the had a long history of slow down year-over-year. chinese government for espionage? >> as we have indicated, to law noncompliance and is solely responsible for the treaty's that really does reflect the firms have said that the law global headwinds. caroline: market commentators does not say that. demise. the chinese government has said north korea has fired off more the law does not say or mean were looking for pessimistic news today, but it felt they that. unidentified projectiles into they are talking about normal aired on the side of pessimism, its eastern sea. it is the regime's third cooperation that companies would have. they worried about fewer working in terms of the types of laws in provocation in eight days, after the united states, those are hours, about the revisions from the country declined a chance the previous month. with the telecom operators. for talks with secretary of you are less worried about that? whatever laws may apply similar state pompeo. >> i don't think this is a to those laws that allow the a 6.8 magnitude earthquake report that should change rocked indonesia. u.s. government access the epicenter was 94 miles from anyone's ideas about where the communications, those kinds of economy is heading. it is consistent with the trends but exist in china also one island. we have seen this year. officials have triggered a romaine: you look at this chart

tsunami warning. those are relative to the telecom operators. we would not be asked to turn here and if you showed up chart to anyone, you would say is a over information in that respect. information --ve global news 24 hours a day on pretty solid job market. the air and @tictoc on twitter there are issues with regards to powered by more than 2700 journalists and analysts in wage growth. access to that information if you were required to? we have seen decent wage growth inpeople seem to forget that more than 120 countries. in lower income jobs. is that trend is still going up? the shared responsibility role >> we are continuing to see of telecommunications, if i am mark crumpton. telecom operators control the this is bloomberg. networks, they control access. low-wage industries driving equipment vendors have a role, growth, which suggest that you to the two main issues the are seeing workers moving into higher paying jobs. government has raised, they those low-wage industries that may not be as attractive or assume that we would do the having to bid up wages, which is ♪ bidding of the chinese exactly what you want. government. from bloomberg world this product evaluation, which caroline: there were some trade we assume nokia and ericsson go ripple effects, right? headquarters in new york. this is bloomberg markets the is that something we will have under, and we have mechanisms that we would love to have close. i am scarlet fu. to brace for? caroline: i am caroline hyde. isi think the real question reinforced by the u.s. government, where our networks what a lackluster week it has been. is the slow down going to keep never touch the customer nothing short of volatile and at going or billet level off? networks. we have specially configured times, the worse we have seen one interesting thing is we have laptops that are used with the written permission where every since december 2019 -- 2018. seen postings for jobs like keystroke is logged so it is supply chain sorcerer buyer, all completely reconstructed bowl picking up over the last couple and we have very limited access

all the fears of a selloff months. to data. coming from the center as we see companies arethat that is 40 different operations involved in that. caroline: that is an interview trade with china come back to having to make these kinds of the forefront with tariffs permanent adjustments to the with we ways chief security trade tensions that they had not slapped on chinese imports. a while before. officer. that's get a look at the latest down by 7/10 of 1%. romaine: the last couple years, business flash headlines. we have heard from midsize and energy being sold off even as we campbell's soup is suspending smaller businesses saying it is operations. see it slightly down in crude not just that they couldn't find a sale2 billion deal -- oil. the workers but they couldn't find people who had the skill the end to his climbing. set that they wanted. plan announced last august. yen, the swiss some were saying it was not the company is trying to pare worth trying to train these down into debt. people up, i am wondering what apple has dropped eight rewards program from a longtime credit franc any traditional haven, your hearing with regards to the skill level. card partnership. people being able to meet the it will offer 3% cashback on trying to make sense of president trump's strategy. bar for these companies. >> employers never want to apple purchases. google is trying to fend off how the president is invest in training. more antitrust scrutiny. they never want to spend money on wages, which i understand. positioning himself, clearly is it says it will require rivals we've got sovereign debt like but when it comes down to it and the german 30 year catching a when you're in this point in to bid to be listed in search providers. bid. users will choose between google recovery, employers have to make at one point, the entire yield that investment in wages and curve was negative. now.is not the case training. and other companies as their default. long run, that is good for the workforce. byroline: i am interested caroline: the search for yield that is your business flash update. romaine: now to a bloomberg indeed seeing supply chain --

continues as we see negative scoop. where else are you seeing rates, $14 trillion worth. interesting new types of jobs or thinking $6 billion in focuses building? we are also preparing for what's >> one thing we are seeing on a financing, but it is contingent on success. totally different note is i will be meeting with analysts bracing ourselves for what might happen. increasing job postings for to outline plans for expansion investstrike monday. cannabis. ahead of its stock market debut and --: that a lot of concern over how china next month. let's bring in drew singer, who is going to respond, whether it meat.ne: that and faux has the details. is going to send in the army as this is an interesting story. well. from threatening more tariffs to you have bondholders saying, we romaine: this is an economy that will give you cash, but upfront, striking a deal with the european union, it has been a we want to make sure you can busy couple of days. is consumer -- dependent on consumer spending. yesterday, president trump wage growth seems to suggest raise additional cast in equity markets. that wage growth has the >> exactly. escalated his trade war, potential to be stable. threatening to impose a 10% tariff on the remaining untaxed some of the big banks like j.p. i am wondering, when you look forward to what the jobs report morgan are saying if you want to chinese goods and voicing his keep lending the money, we need could be in november, december, to see an ico. frustration with president xi. they are expecting at least $3.5 earlier, the president struck a in the heart of the holiday more excited tone, praising a season, do you think the trend line is enough to support that? billion in an ipo. >> right now, we have seen that previously announced deal that we targeted $3.5 billion, which will open the european union to more u.s. beef. slowdown in goods, but not as would make it one of the year's to put this together is head of biggest ipo's. caroline: it is a $2 billion policy at renaissance macro much in the private service sectors. research. that makethe sectors letter of credit they are after. rate to speak with you. thank you so much. morgan is one of the banks up most of the jobs in this it has been an eventful week and economy. as long as those sectors

i want to combine it with your ipo, itif you get this continue on steady growth, we observation from your latest note, which is, the president should be ok. caroline: given that wages are does not seem interested in all looks pretty good. starting to improve, do you maintaining the status quo. think that should stay? we have not seen this talk to us about how you add up >> hopefully, people will keep stipulation before. towe have seen banks his actions and whether they spending money and making form a grand strategy or whether investments in the services that provide jobs for other workers. everything they can to compete with ipo. they should be seen as seen it thisally individual decisions, perhaps caroline: we want to give our blatantly and this close to the ipo. impulsive decisions. we are about one month away from >> i don't really see them as thanks to indeed hiring labs the expected ipo of we work and research director on all things impulsive decisions. hiring and work and a little we still have this public i think if you are president cannabis there as well. contest going on to get a part we have been talking so much of the business. romaine: do you have any sense trump, you are watching this negotiation and being very about bond yields plunging, what of how this will shake the frustrated, because china is getting a boost and why psychology of potential continues to promise things and investors? when i heard this, the first investors are becoming more not follow through. thing i thought is, i can expect when negotiators came back from willing -- from new york, this some kind of convertible bond shanghai, it became clear that sale? is numbered. >> i think this shows that we they are just looking to wait work is going to keep burning him out. -- this is bloomberg. ♪ through cash. this is a company that makes $1 wererms of options that billion per year at 80% available, he was trying to occupancy. i'm not sure how that works. force negotiators in china to take him more seriously and that is why you so that we announcing edna how this will become a profitable vehicle.

the 10% tariffs. in the meantime, they need to he did this before in september keep finding sources of revenue. they have $10 billion of 2018, where he initially investment in softbank that may proposed 10% tariffs on $200 have to come in and help them billion worth of goods from china, when things did not move again. caroline: to be fair, some of at the pace he thought was the numbers do not look too bad. appropriate, he escalated it to operation,mes buying 25%. i think it is interesting, when you look at the timing of the tweets but when they go into that looks pretty good in terms effect, they would not go into of the business plan. also, they have a net member effect until september 1, which retention rate of 121%. gives people hope that, should china go ahead and provide some numbers look good, but it feels to me that the bank is meaningful concessions in that saying we don't entirely time, maybe trump will walk this back, as he is done with tariffs understand your business model. >> the economics don't quite to mexico, the european union, make sense. the goal is not to make money japan and others. i do think there is some yet. the goal is to spread business strategy behind this. caroline: will the strategy and revenue as far as they can. work? we work is planning on using we have heard from a finance some money to expand overseas. they are not even trying to turn ministry and a diplomat quoted china -- to china, trump a profit in the u.s.. romaine: they actually have bonds out there right now. is losing his last bit of i think they are trading at 8%. credibility.

that is a risk. i think it is a double b or a triple be bond. right now, trump is willing to the spreads are wider than take it. tesla. i wonder if this is about faith i would watch china's actions more than their words. in we were asked business or they have their own domestic about how do you value this audience to be sensitive to. company, are you valuing it as a i think the big thing will be, do they call off negotiations in whatever >>. september? for china, something to consider is if you are trying to wait president trump out, are you going to be better off with a when you rest on a leesa hybrid that is a question equity democratic president? mattress, bedtime is no longer investors will have to ask themselves over the next month if you are concerned about when they decide whether they simply the time you go to sleep. will get behind this ipo. technology ipo's are going it's time to switch off and pretty well this year. nontariff measures like actions some of the worst performing ipo's a lead -- among the tech against huawei, a democratic catch up. enjoy me time, and we stocks, two of the largest ipo's president might not be willing to negotiate with trump if you time. 40 winks or 8 hours solid. of the year. look at what congressional the leesa hybrid mattress other ipo's that look like we leaders have been saying with respect to huawei. combines two technologies to work are underperforming this to makeght be willing year. give you deeper rest and want to knowyou rejuvenation. 1,000 pocket that part of the deal, which may springs provide edge to edge what you got served at this event? be in china's interest. support, responsiveness and romaine: beyond meat? there is another risk that if comfort, while premium foams you are banking on trying to relieve pressure. keep you interfere with our election by comfortably cool and limit hurting trump politically, trump motion transfer. leesa's hybrid caroline: avocado toast, quinoa and beer. romaine: thank you very much. wins with 25% tariffs on all mattress is not only recommended by experts, experts choose to we are going to stick with this chinese goods, then he has a lot

sleep on it too. try it yourself workspaces story, because of political power and cover another story on our radar was in any west elm store. or order heading into his second term to online and we'll ship it to your this phone booth size office. door so you can try it risk this is debuting in japan. i think if you look at a new free. the leesa hybrid is democratic president, just american made. built to last. these are basically little cubes and, because everyone needs a the size of a phone booth. because they win in november, they will not take office until place to rest, we donate tens of the end of january. the idea is if you're on the go thousands of mattresses to those and need office space, you pay a they will need to assemble their in need. experience the leesa cabinet so you could have few yen, you can pop in there hybrid mattress. right now, it's tariffs lasting that long. for 15 minutes to one hour, but , sos very risky for china on sale. order today. go to leesa.com. mark: president trump today a lot of other offices are starting to experiment with the it will be interesting to see idea of the open office space, how they respond. president has which we have here at bloomberg. the idea is people want a little bipartisan support for for bit of privacy and instead of confronting china on trade. we have heard democrats in giving them offices, they agreement with him on that. decide, let's cram them into these phone booths. our u.s. voters in support of caroline: this trend in japan tariffs overall? praised a new agreement to does he have a mandate from the public? increase beef exports to the was always sleeping in cubicles. now, voters are european union, saying sales i feel like these got smaller should increase 46% in the first and smaller, but they have year. always got 1000 in japan. he portrayed the agreement as staying with him. standing up for armorers and ranchers rid producers have been you think this is tariffsretaliatory candidly, it is probably one of going to come to the u.s.? the reasons the administration caroline: i hope not. was trying to avoid, because if romaine: i like the open plan, you look at the impact, it is imposed after mr. trump proposed

going to be pr tariffs on chinese products. interacting with coworkers. i think this is something where i am a sociable guy. caroline: that you are. they will have to see how this plays out. congressman john ratcliffe coming up, a slowdown in profit growth and shipments in the withdrew his nomination after omy is strong and voters are second quarter. with him, but if that changes, why some analysts are expecting the supercar maker to boost scrutiny of his qualifications. outlook. this is bloomberg. ♪ he might have to reevaluate his republican senator's have been strategy. unusually silent. democrats tore into him as a unlike things like the federal reserve and lowering interest trump loyalist who would rates, where you have to wait for a while, this is something undercut the judicial trump could undo easily, perhaps independence of the intelligence agency. the president said ratcliff with a tweet, as we saw him threaten yesterday. would remain in congress. if you look at the timing around and administrative judge recommended the firing of the new york city police officer his political calculus closer to the election, that provides accused of using a chokehold in another opportunity for trump to the 2014 death of en unarmed reevaluate the situation. black man seen on video saying i it will also depend on who his opponent is. scarlet: absolutely. can't breathe. the police commissioner will researcholicy at macro make a final decision later this month on whether to fire the joining us. coming up, crude oil rebounds in ericover his role with crude pulling back as the garner's death. market comes to terms with the suspended fromas president's latest trade threat. duty shortly after the judge's up 2.7% right now.

this is bloomberg. decision became public. ♪ >> we finally saw a step toward justice and accountability. process that was actually fair and impartial. i hope that this will now bring garner family a sense of closure and the beginning of some peace. attorney says his client did nothing wrong and plans to keep fighting for his job. urge thee union leader commissioner to stand up for the officer, saying officers will not otherwise feel they can do their jobs. heldan prime minister talks in rome today with the new president of the european commission. their discussions range from private concerns to the migrant crisis. during a news conference, he said there is no simple solution to the migrant issue in europe

and more burden sharing is needed. i am aware that come -- countries like italy, greece and spain are in an exposed geographic position, so we have to take that into account. solidarity is needed. solidarity is never one way. it is always reciprocal. but if we work together, we will romaine: time for a look at what find solutions to move forward. mark: the prime minister talked stories are trending across bloomberg. terminal readers are reading about italian citizens mistrust about amazon, alan gillespie toward europe, seeing europe came in this week as the only will have to work harder to offer concrete solutions to the financial analyst out of 55 tracked by bloomberg with a sell rating on the company's shares. urgent needs of italians. global news 24 hours a day on in a client note, he upgraded air and at tictoc on twitter the e-commerce giant to hold. powered by more than 2700 we still believe other investors journalists and analysts in over are too optimistic. 120 countries. lumber.com has a story on, harris, who wants to fund her i am mark crumpton. this is bloomberg. yields plunge,d version of medicare for all by taxing domestic and offshore profits at the same rate. debt investors are increasingly

willing to hold their noses and that move could face resistance in her own party, because it lend to risky companies. would unwind one of the few after the fed rate cut wednesday, money managers are parts of the when he 17 looking closely at lower bonds republican tax law that and risky junk debt. democrats helped to develop. here's a story i would buy. for more, let's bring in tictoc on twitter reporting that bloomberg'ass is point sony is developing a wearable, drop on treasuries. a big portion of the yield curve rechargeable air conditioner that keeps you cool on the go. the device goes inside your inverted now. another portion looks like it is shirt, works on a rechargeable battery controlled by an app. going to invert and your reporting seems to show that a the device is being confident in lot of people are still willing japan. to lend. you can follow these stories on they do not see a recession coming. >> it seems like they are bloomberg.com and tictoc on twitter. caroline: the mind boggles. thinking corporate earnings came in pretty good. fed easing up broadly good. how does that circulate? why not go down a little bit in let's talk supercar's. risk? ferrari hitting the brakes after posting growth for the second some high-yield managers we speak with our saying they are quarter, signaling the carmaker may not be immune to the auto looking at the riskiest stocks, market. coverageng in our auto the order line distressed companies can be a good outcome at this time. . caroline: i can understand why first aston martin, now ferrari. the poor ultra wealthy, just

this is incentivized by the fed rate cut, but with trade can't find the cash they used to. >> i do think there is a tensions, is this like every sector or are there certain separation between these, where areas they will not go to? >> i would say trade tensions there is a bit of consistency caroline: more news when it but with aston martin, they are comes the potential to fill the are being highlighted with the really in a position of credit rally right now. department of intelligence. the latest traded tariffs target we are likely to see trump those retail names, consumer weakness, whereas with ferrari, may be more nuanced, where there products, and yesterday, we did naming sue gordon. was an expectation of continued see credit protection costs growth from a shipment trump says he may name sue rising. investors being jittery. gordon. romaine: i am curious. perspective and a profitability this is director of national perspective that just is not intelligence. remember, he has abruptly we saw some data on bloomberg there. we saw a little bit of a freak earlier showing more activity in out in trading today. dropped john ratcliffe as the the investment-grade. the u.s. shares did not have potential director of national we saw a returns for the first and now wee time this year outpace junk quite an ugly day for the debt. market. understand, he might name sue i am wondering, when you look at currently solving the duration play, is there a caution against reading too much into these, but it is the case as principal deputy director at sense that people are getting the office of director of national intelligence. scarlet: a federal statute says more worried the end they were that there is an expectation or two or three months ago? an assumption that with these >> i have been hearing a little if that position becomes vacant, $300,000 cars that there is a the deputy director would serve from investors that they are as acting director. bit of a recession proof factor, looking 7-10 year debt. he would be following the letter but it has proven to not of the law here. obviously, 30 year does well.

he is doing what he is supposed they are saying, we don't know necessarily be the case when we to be doing. how much further this rally can we will see if that happens. go. see these slowdowns, you see let's move to the energy sector, maybe we hedge our bets by not going super long. because oil prices have been all caroline: it feels like they are these brands at the high-level fall on hard times. over the map. romaine: we have seen other chevron and exxon beat stuck between a rock and a hard place. luxury makers, porsche tried to estimates, saying in part, the on one side, they are nervous about everything. oil surge from the permian go slightly downscale relative to what they normally charge. basin. wti has climbed back losses on the others, when you have negative yield debt, where else they had some decent success. do you go? after yesterday. they came out with the suv that editor of is that there isse everybody laughed at, then it became the biggest seller. commodities for bloomberg news. only so far that they can take his ferrari or aston martin let's start with earnings from this, particularly with big going to sell it -- to investments, fiduciary duty, how the big oil companies. it has been a real mixed bag. experiment with anything like that? >> i think they are wary. ell coming in with much further down the curve can it go? >> they have to be careful. porsche did have some success, the thing i hear over and over but even the highest versions of is we are looking at every their cars don't often get into misses, exxon and bp. company and every credit. there is a sense that we have the price range of where ferrari what is the common thread that likes to see itself. had a strong credit rally. links all these companies? >> potentially with the how much further can we go? aston martin is maybe a little i have talked to investors who between those two. companies that have beat bp, exxon, chevron, some have more said if we finish up 10 or 11%, aston martin as a public company and one that is not extremely i would be happy with that. oil output. romaine: i can't let you leave well-capitalized has changed hands so much, they may be have in the american companies, it is without asking about this story. to go a little further down due to the permian ace and output. it has got bob dylan in this,

adele, it is a $530 million bond market, whereas ferrari can exxon has doubled output there. afford to stay there. big of a seller is the theme is that if you look at backed by all of the music rights? their earnings, with chevron and it is a music rate bond. ferrari in china for instance. >> that has been a huge source exxon, they got a tax break from of growth. that is a perfectly reasonable it is interesting, because alberta, which helped earnings. yields are so low. question to ask. was --ron's case, there this is a place where investors a few years ago, the big story are looking. was the crackdown on it has a bit of pick for its from anadarko. ostentatious wealth and whether without those, the numbers do complexity and those deals are that would pose a big threat to doing well. caroline: time to get into your not look as good. ferrari. demand is falling. music maestros. that that have seen always interesting for all parts refining business is struggling. of the credit market. has not necessarily been natural gas prices are down. coming up, a bloomberg scoop. realized. that is a speedbump. we will be talking more about you have seen this company be very successful since leaving those things, we will have to get on. credit. we work is seeking $6 million a fiat chrysler, but with china caroline: tackling a very falling on hard times with the head of a stock market debut. the steps it is taking on the difficult backdrop, particularly path to an ipo. auto market there struggling, when we see commodities. that may be part of the story particularly oil. this is bloomberg. ♪ how is the trade war spinning here. romaine: this company is going in? >> that is very interesting, to be fine. because over the past several this is a classic company, it weeks, had a decline in the has been around forever. commodities market. people are always going to want some kind of high-end toy for tensions in the middle east are simmering. those that can afford it.

bad weather in the u.s. hit what do you drive? >> not a ferrari. planting. disease which is romaine: caroline has a rolls-royce. killing pigs in china. this is boosting prices, but been onhe years i have because of trump's move, all of the auto beat, they have been that has been forgotten by two times when i have been investors and now the main totally without a car and i am concern is demand across the there right now. caroline: the irony of a commodities world and that is reporter. what you can see in prices right now. on monday, a general strike as that is overwhelming these supply risks and oil as you can the company rallies as unrest continues. see has taken a beating. romaine: more earnings on tap all commodities are taking a beating. next week. that is all for "what'd you the bloomberg commodity index is miss?." caroline: this is bloomberg. ♪ down 2% for a week. caroline: great to get your expertise. we were just talking about the trump effect. president trump is speaking at the moment, saying he can raise china tariffs to a much higher number. at the moment, there at 10% on the remaining 300 billion . dollars of chinese imports. . trump and china meanwhile have to do a lot of thinking to turn around.

from new york, this is bloomberg. ♪ caroline: as president trump

escalates his trade war with china, huawei has seen a dramatic slowdown in sales growth as it deals with u.s. efforts to curb its business. shery ahn has an exclusive interview with we ways chief security officer. they discussed how huawei is addressing the matter. >> we are under the gun in the united states. the u.s. president has been putting a lot of pressure on us and we seem to be increasingly caught in the middle of the trade talks, the geopolitical issues between the u.s. and china. we like to talk to the u.s. government ourselves. scarlet: what sort of trade deal could wave a support? can wave a support anything that does not involve relief for the company? >>china would love to see a trae

♪ >> i'm emily chang and san francisco. a coming up in the next hour, markets caught off guard by

president trump's escalation of tariffs on chinese goods. it led to a dismal day on wall street. we hone in on the tech sector for signs of life. plus shares plummet after caroline: this is countdown to the close. scarlet: joining us now is romaine bostick. is focused onone the drop in commodities and equities. if joe were here, he would be focusing on payroll. the drop in commodities, we are down 2% land when you go through the list, it is pretty broad. not only did we have the drop in brent and gas, aluminum down 2%, copper down, cotton.

you have to wonder about what this says about macro sentiment. moran patterson, the head of commodities training at ing says this is a sign that the appetite for macro risk trade is not and he thinks that will spill over into equities. we saw a one percentage point eradication on the stock market yesterday. 7/10 today. in europe, down 3.5% in trading. by 3.5 ining off germany. remind you that china affects other parts of the world so much. scarlet: the u.s. is relatively sheltered, because the economy is still doing well, as evidenced by the jobs report. i talked about breaking news, know you're keeping an eye on puerto rico. romaine: the governor had to

step down today at 5:00 p.m. local time. the secretary of state has been approved and that would put him in line to assume the role of governor. that is a position that a lot of folks decided they did not want, but this was by default, effectively making him the next oven or should this go through. scarlet: also keeping an eye on the comments president trump is making. he said he could push the tariffs up past 10%. he has indicated that he plans to impose a 10% tariff on the hundreds of billions of dollars of chinese imports that have not been subjected to duties. when you look at sector performance today, a lot more red than green and what is green is more defensive sectors. real estate investment, food beverage and tobacco, telecoms. caroline: you are pointing out that this is where they have been hiding out all week.

a five: if you look at day basis, i'm going to change this now, you can see utilities are the only groups higher than the week. chipmakers office 6.7%. five .3%.off anything cyclical getting hit. romaine: we had a 20 basis drop today. talk about this rally we had in the tlt, 3.3% this week. the biggest gain since july, 2016. that drop in terms of basis points is the biggest on a weekly basis since 2014. scarlet: a lot of superlatives today. moments from the close, 6.5 minutes to go. actionake a look at the anything numbers. >> a big decline on our hands. we go into the bloomberg function, these are falling in

sympathy with the storage company. these hardware storage companies falling in sympathy with netapp, plunging 20% on the day, the worst going back to 2000. the worst ever since 1995 on above average volume. you can see the stock at a 52-week low. a couple of analysts did downgrade today. many analysts now on hold. they are putting out the first quarter, citing week macroeconomic factors. they also cut the full year 2020 view. the truck -- the stock is now trading a slight discount with earnings-per-share plunging, it may be a while before any investors or traders try to catch it. i am taking a look at ferrari, which is falling on lower guidance. take a look at the action to see the stock falling more than 2% during the day.

it is tumbling back to june lows. the lowest since june 19. growth in the second quarter has been far behind the first three months of the year. both profit and shipments slowed and deliveries, only about one third of the game -- they gain that ferreri had delivered during the first quarter. you can see the company raised its industrial free cash flow. scarlet: thank you so much. more headlines here as president trump made comments as the u.s. and eu were signing this deal that had been previously announced about opening up to more beef exports. the president said eu auto tariffs are never off the table and added that the eu is tough to deal with. are reelingere we -- another headline, china devalued its currency. president trump pushing that angle about other countries

making themselves more competitive relative to the u.s.. let's bring in mike reagan now. full in and contextualize these headlines. we are looking at markets gyrate and they have been all over the place. very choppy. trade is why. >> choppy is going to be the theme going forward. of all the scary things that happened this week, i will point out one more that not everyone is appreciating. the calendar turned to august. this is a notoriously volatile month. you tend to see it ramp-up in august, maybe reach a peak toward the ends of august. out of curiosity, i looked at the average return of the s&p in august this decade. that is absolute return, up and down. more than half down. volume is down, volatility is up, and we are entering the month with this new sentiment of risk off.

it is time to buckle your seatbelts. romaine: are there any parallels? we hit 20 on the vix. that is the first time since march, i believe. if you call people, a lot are already on occasion. how do you trade in a market where you are already coming into this relatively low volume? now you have this wildcard of trade back in the mix. >> a lot of noise. early this quarter, we saw the decline in futures before the stock market opened, reversed their declines suggesting maybe president trump will cancel the tariffs if china does come back to the bargaining table. saw statetantly, we media out with an editorial saying these tariffs push them further apart. remember the news flow out of this white house can be very confusing, chaotic. there have been talks about

signal versus noise. we have to brace for noise, choppiness this month. we are coming to this realization that everyone thought trump would eventually settle the trade dispute in time to brag about it on the campaign trail. it is not so clear that will be the case anymore. scarlet: it is not so clear even when you listen to the headlines that the president says, because we are looking at it in print. the president said he was joking when he mentioned to european union officials that he would add german car tariffs. he said it, then said he was kidding. caroline: then he came back afterward saying tariffs are never off the table. he speaks to one side than the other. you have to break -- brace yourself for anything. let's get even more expertise with our chief investment officer for charles schwab. tradeou have got this concern, conflicting reports,

plus a jobs report to digest, what are you looking up? marketre looking at a that has already digested all the good news. corporate earnings were pretty positive, then we expected, a ft and tour the second part of the week, we see that the fed is less dovish than expected, followed by big headlines coming from the tariff discussion, and very significant yields on commodity prices. clearly, when you extrapolate the good news, the end of the week is representing more of the reality of the volatility that should be in the market. romaine: we joke a lot about people going to triple leverage cash portfolio, but for a lot of fund managers and other folks, they don't have the ability to exit the market altogether. how do you position yourself? what do you look at over the next few months?

into,ould summarize it find sectors that provide stability. growth will continue evgrowth wg thing going into the second half of the year. three, defense. higher quality will provide good rotation for people to migrate, so high quality growth companies tend to do very well in these environments. clearly, volatility is part of that. that will be part of what money managers have to adjust. howline: when we look at adjusting, it has been risk off the entire week. if you look at the market close, we managed to rally off technology from the center in terms of a brutal selloff. scarlet: chipmakers were the worst performers out of 24 industry groups for the week,

software companies, which are seen as more stable because they have that recurring revenue stream, they have the cloud, off and looking at weekly superlatives, remain, you have been looking at this as well. the s&p and nasdaq both posting worst performance this week. romaine: we are also testing the 50 day moving averages and the 200 day moving average. talk about the gainers, a lot of material stocks, semi-industrial stocks. , thest performer this week seed and pesticide from dow dupont that was spun off in june, up 10%. it has been rallying, but interesting to see what moves higher this week in the face of that. caroline: also government bonds front and center. that's dive deeper into the action. >> at the close, i am looking at

gold. it is fluctuating this entire week and at one point, it was back to a six year high. now it is lower. take a look at the action now. now it is a little higher. whipsawed this week, over jay powell dampening expectation for a lengthy easing cycle. this was also from renewed demand for metals as a safe haven. you will see that gold is still relatively high for the year. it is on a relatively steady incline and we should see what more it bring next week. day, onrallying on the the week. truly extraordinary global bonds. take a look at this chart of the 30 year, this is extraordinary.

at one point today, around 6:30 a.m., yielding negative one basis point. right now, also yielding plus one. that has amazed investors who would be willing to lock up their money for 30 years and pay to do it. the two been true for and 10 year for some time. take a look at the year today chart. in white, the 30 day, in yellow, the 10 year. in blue, the 10 year. price inverse to yields. a huge rally. extraordinary that the two-year is yielding -79 basis points. the 10 year -50 basis points. investors paying the german government to lock up their money. call it risk off, seeking safety, interesting times for sure. romaine: thanks. still with us is charles schwab and bloombergs mike regan. i want to pick up where abigail

left off with regards to the decline in german yields. we are seeing this across a lot of nations in europe. yields continue to go lower in the united states. what does this tell you about sentiment? >> a few things. one, this confirms that we are in a global economic slowdown. that has been a theme starting in 2018 and continues to be a trend. it also represents the fact that when you see negative yields in europe, it shows how difficult the situation is for the economy they are and how at risk that could be for the rest of the world. cases,ink that in many the tariff discussion, which has impacted the u.s. and in the main discussion between the u.s. forchina, the implications a very weak europe situation could derail further the deceleration of economic growth

and put europe in recession. when you combine that with the fact that you have a brexit discussion coming out when you have a changing leadership at the ecb, the eyes on europe is something we all have to watch. scarlet: it is something we have to watch and something like reagan has been watching closely. our macro strategist here had a great line in one of his stories, which it is not german fixed income anymore, it is german fixed nlt. the yield curve did not do totally negative. >> less than one basis point. to go back to what omar said, the german bond market is much different than the u.s. bond market. have constraints on running a budget deficit. they are not issuing huge amounts of supply like we are. although the 30 year yield did go briefly negative today, rates in the u.s. fell ayou saw the e.

you see this dollarrack off the side. even the british pound to stabilize. despite only having a majority of one in boris johnson. at the dollarook continuing to skyrocket as a source of better financial conditions. caroline: the dollar, the fact that we have had weakness the past couple days, is that here to stay? how does that reflect on earnings? next week, we have disney, media companies, right shares. >> the dollar it stopped being one of discussion in most corporate earnings calls and i think the majority of companies now talk about tariffs being the main headline going forward.

i think the dollar is going to put its place. what we describe about the difference in yields, different interest rates, given that the majority are in and easingit wie dollar stable. i am surprised we didn't see a stronger dollar, because, normally people go to the dollar as a way to safety. do you think the jobs report we got earlier today helps the dollar a little more? >> oh yeah, we forgot about that. the fact that we didn't talk about this shows that the economy is in good condition here and the job reports just confirmed that we are back to where we should be in the economic cycle. give the fedes more flex ability. what we saw earlier in the week, which is an insurance cut that clearly plays with a tariff

discussion. it is almost like he was preventing something happening later in the week. now it provides the fed more flex ability for september, where most likely the market will have to do another cut for insurance purposes if nothing gets clear on the trade discussion. i think the jobs report is just a confirmation of the economy is in good shape and it is more a function of what the fed does. caroline: great to get your thoughts today. -- great to and have you both. , someng news congratulations are going out to the new nomination to lead the imf. crystal li na georgie ava is going to be the leader. congratulations coming from the head of the commission.

as well as the previous dutch finance minister. filling seats in the european leadership and we now have a name for the imf candidate. that does it for the closing bell and for me. "what'd you miss?" is next, but the team will focus on the trade war and the state of the labor market. this is bloomberg. ♪

caroline: live from new york, i am caroline hyde. romaine: i am remain bostick. caroline: u.s. stock markets closed down, the worst week all

year. president trump touts a deal to boost u.s. exports to europe while china vows to strike back at trumps extra tariffs. tariffs outweighed jobs. a healthy labor report failed to deter and traders from half a point of additional rate cuts in 2019. upping the stakes, we work is borrowing, but it is all contingent on a successful ipo. romaine: president trump as he left the white house saying that he could raise china tariffs to a higher number, he also talked about other topics. let's bring in bloombergs chief washington correspondent. he joins us now. saying, it has been a dizzying day in terms of trade. hesident trump saying that is going to be boosting beef

exports to the european union. it comes following of talks against china. the politics of this are interesting, because the agricultural community is unsure of how the president has been negotiating with the chinese. they are directly impacted by the back and forth, so some good news for farmers as this gets going. saying heent jokingly was considering tariffs on the , but it looks like things are heading in the wrong direction with u.s. china trade talks, but the president signaling not just to the u.s. but take global counterparts that his talks with the european union are moving in the right direction. caroline: i know he was joking initially at the event when he joked that he was going to do another 25% of tariffs and then said he was kidding, but as he

said,out to depart, he auto tariffs are never off the table. he also said the eu is tough to deal with. it feels as though he is always trying to dangle something. >> what is the expression, there is always a dose of truth and humor? i think the president was saying it is a sprint and while things may be heading in the right direction now, they can turn on a dime. how thefurther than president has been negotiating with china. the chatter here is the president trying to suggest that while a trade deal may be going south with china, it is going in the right direction with europe and that has been interesting. while the president has had a penchant for dealing with bilateral trade agreements or the eu in whole, you can't have that discussion in a vacuum and the president looking perhaps to signal to the chinese that he is

on the cusp of getting usmca ratified in the fall and he could be on the cusp of getting trade developments with the european union. the broader take away is, as he suggested last week, a looming trade deal with china may not happen until after the 2020 election. caroline: you. rate round up of the pros and cons, the good, the bad and the ugly in an exhausting week. trade, wen u.s. china are joined by the senior advisor in china studies and director of the project of chinese economy. how the ramp up has been on china u.s. trade, maybe news that will change with europe. --

romaine: trade as a percentage of overall trade than the other way around. certainly, china depends on u.s. technology expertise and certainly a decoupling will hurt nevertheless, it is a lose lose outcome, so i wouldn't want to say that the u.s. would come out of this looking very good either. we also heard from the chinese ambassador to the u.s.. he was pretty direct about this idea that china was willing to dig in its heels and fight back against what he characterized as being unfair in the way that the u.s. is dealing with the chinese in these trade negotiations. how much faith you think the chinese negotiators have in the u.s. negotiators and do you think it will ever get to a point in the short-term where a deal can be struck?

zip think they have all of trust in the u.s. side. back, youd the clock will see that the chinese where it seriously negotiating in february and march and as april moved further along, they got cold feet and was the president raised tariffs in early may and did the actions against huawei, the chinese basically lost interest. they have continued to lose interest in the deal, and now i don't think there is anything the president could do or even mr. lighthizer to persuade the chinese that we would reach a full-scale deal and carry it out. i think the chinese are playing to drag their heels until the end of this administration and see what happens with the next team. caroline: not just drag their heels, but also retaliate. how do you anticipate the ways

that china? would and could retaliate see think we will multilayered retaliation and response. not just a simple proportionate response in a specific area. i think the chinese have decided that they can't get a deal, that they see the u.s. as a strategic opponent and will react in kind. we will see tariffs on u.s. goods go up, american companies treated worse. we will see benefits go to europeans and others more. china will try to compete other trade deals and we will see the chinese talk more effectively about taiwan, hong kong, other areas to create anxiety and the west. romaine: the direct economic fallout has been manageable for the chinese and it certainly has not hit the u.s. as hard as some people thought it would. do you think there could be more economic damage done over the next year and a half? >> year and a half, no.

the chinese have plenty of macroeconomic room to stimulate the economy to get through the rest of this administration. they have not stepped on the gas so way they had in the past i think they have got plenty of room. longer-term, as we said at the top, china depends on globalization and a healthy relationship with the united states and europe. you take all of that away or reduce it in that will have a big effect down the road on productivity, growth in china, business confidence in china. it will have a big effect on the overall trajectory. romaine: scott kennedy, thank you for joining us. coming up, slow and steady. job growth cools down, but remains steady as the tariff war grows. we will break down the numbers coming up next. this is bloomberg. ♪