an unloved industry, you don't have to look far. >> unloved indeed, and this is what private equity lovesn about the private equity business is, it thrives in many parts of the cycle where they really do the best is when they can go in and buy things other people are willing to abandon, and other people are shying away from. and so, they don't have the sort of competition in a robust market like this that they would normally get from a strategic buyer, another retailer. another retailer can't afford to buy nordstrom's. they are figuring out how to stay alive themselves pretty will be interesting to see if this does go into private equity hands. julia: great to chat with you, jason kenney, bloomberg executive editor for tv. still ahead, the bloomberg dollar index down a percent. -- 8%. how to capitalize on a potential bounce. from new york, this is bloomberg. ♪ scarlet: it's time for options insight with julie hyman. julie: joining me for today's options insight is a chief options strategist at interactive brokers. i have been talking about there was a downturn in the markets, in the middl

four million people across the uk are employed in the food and drink sector, but derek feels it's unlovedweet hot deals for the car industry or banking, and fears farming may be sold out. the whole future of our horticultural industry could be decided in a simple late—night meeting and it could be a trade—off against something else, you know, keeping financial services here. that is the most worrying thing for us. and if it goes the wrong way for them, g's fresh can still grow stuff — butjust not here. we've got overseas operations, we've got the capability to go and set farms up anywhere. but leaving the uk is not a decision you'd take lightly? i'm a british farmer through and through and, yeah, to suddenly stop farming here, moving overseas, would be a heavy heart moment and... but, you know, we'd do it. the fate of farming is important but what happens to food and its price directly affects all of us. some people are already struggling to afford three meals a day. this is a place where food prices really matter. the kingstanding food community cafe is a charity serving affordable meals

way find disappointing from the unloving and intolerant left.hough they stand up for tolerance and acceptance of the lgbt community, they don't have a problem with posting memes of the president in a negative light. they are going to poke any hole that they can and they chose this meeting to do it. judge jeanine: this is secretary of state rex tillerson talking about the meeting between trump and putin. >> they had a very robust and lengthy exchange on the subject. the president pressed president putin on more than one occasion regarding russian involvement. president putin denied such involvement as i think he has in the past. judge jeanine: the left is saying this really wasn't donald trump pressing on the russian meddling thing. but i sometimes wonder, if president trump accused putin or asks about the russian so-called meddling, they can go back and forth for the two hours and 15 minutes they met. what do they expect? putin to confess? >> the mainstream media can't move on. they think because they are obsessed with this narrative, the americ

has stepped in, the best thing you can do is step in with love because people feel abandoned and unlovedy go? these people are traumatised and they are dealing with bereavement. this is real trauma. where are people going to get support? i am only one person. in that instance, the lady was directed to westway to give her details. the people are emotionally attached to the tragedy. 0therwise people become a statistic, a person, another name lost. for people who do not know how to help, the best thing you can do is buy flowers and lay them at the tower, because that emotional connection sparks something in you. it did for me when i arrived on wednesday evening and saw the building on fire. it sparked the emotional connection. there has been movement at the council, a lot of people stepping down, there has been a lot of anger directed at people of the council. you have been trying to help around grenfell tower. what have they been saying in terms of what they want next? they wa nt to terms of what they want next? they want to be loved, if i'm honest. i know it sounds cliched. where the coun

if the council can step in, people feel abandoned and unloved.ose people who are traumatised? they are dealing with bereavement. this is real trauma and in many cases it does not come out until late on. where are people going to get support? i am only one person. in that instance, the lady was directed to westway, to give her name. i hope the people on the other side of the table who are taking registrations are emotionally connected to the tragedy. people just become a statistic, another person lost in that. for those who do not know how to help, the best thing you can do is buy flowers and late at the curragh. that emotional connection sparks something in you. —— and leave it at the tower. it did something for me. its bags that emotional connection. we have heard there has been movement at the council, people stepping down. lots of anger directed towards the council. in your conversations with the people around grenfell tower, what have they been saying in terms of what they want next? they want to be loved. i know it sounds like a cliche, but

history, despite its wrenching pain, cannot be unloved and if faced with courage, need not be lived again. lift up your eyes. the day breaking for you, give birth to the dream. women, children, men, take it into the palms of your hands, molded into the shape of your most private need, sculpted into the image of your most public self. lift up your heart. each hour holds new chances for new beginnings. do not be wedded forever to be feared. yoked eternally to brutishness. offer new space to place new steps of change. here on the pulse of this fine day, you may have the courage to look up an upon and out the rock, the river, the tree, your country. here on the pulse of this new day you may have the grace to look up and out and into your sister's eyes, into your brothers face, your country, and say simply, very simply with hope, good morning. [applause] >> first and foremost, i would like to introduce myself. i'm a student majoring in louisiana. my name is jessica. [applause] i would like to welcome and thank everyone for giving me an opportunity of this historical moment. my journey begins.

. >> is it easy to find unloved companies in the early stages of flirtation like europe? we are nearing the peak like in the u.s.? the key with europe and to some degree the u.s. is small-cap companies which we follow our under followed and underresearched, so that creates a great opportunity. in today's market, everything is being traded on omentum, algorithms, and money flows. you are getting the undervalued stocks pushed ever lower, momentum stocks pushed ever higher, so we see opportunity in the values, but there is a strategic initiative that needs to take place to get value out of those companies, so it is difficult to do. it takes governance and management changes, longer time frames. it is not a trade per se. valueis a lot of equity you can acquire. on the heels of janet yellen's testimony to the house financial services committee, robert kaplan spoke with tom keene in another exclusive conversation. unemployment and relatively labor slack -- low 6,bor slack, and i look at u and that is still not far away from the pre-recession levels. at that low level of unemplo

the fundamental problem, why are they so unloved and why do they hurt so badly?it has been a very bad year for chinese companies. many small caps in china are highly be leveraged. hurting the really small caps in china. also, it you look at the earnings reports announced by the small caps, many are missing estimates by analysts. together, they are really underperforming the markets. one of the triggers yesterday for the slump is key meetings held during the weekend, or the -- where theators chinese regulators highlighted the important risks and the financial system. believevestors really the key focus of the chinese view risk rather than boost growth.that is worrying investors . of other reasons we are seeing such a bad year for chinese companies. haidi: what is the outlook when it comes to shenzhen stocks? >> there has been a diverging view for sinus small caps and -- china's small caps and large caps. some say small caps will continue underperforming. the reason is that there has been constant concern about the pace of chinese economic recovery, so people tend

let's it's been the most unloved bull market we've ever had.nvestors, they start to hedge themselves. they don't believe in the continuation of the rally. we had that nine your bull market in the united states, a bit less in asia. going forward there will be more and profit taking. having said that, we see that earnings are accelerating. we don't think the market has overshot. the global macroeconomic story has improved and at the same time inflation is not really picking up. it's holding back constrained age growth. we did have a goldilocks scenario that can push the equity markets higher. shery: that brings me back to inflation expectations. we're seeing a little that when it comes to short-term and long-term inflation expectations. this chart showing breakevens for the two years are slumping while breakeven for tenure and five-year is gaining ground. what do you take away from what the fed has said? 2%, somewhat below 2%, is that a fundamental shift in how they perceive inflation is not being transitory anymore? >> we don't think so. inflati

anchor: is it easier to find under followed, unloved companies in the early stages of a rotation like the peak like in the u.s.? guest: the key with europe and to some degree the u.s. as you are seeing a lot of these companies, especially these small companies, under followed, underresearched, banks pulling away. that creates a great opportunity because in today's market, everything is being traded on momentum algorithms and money flows. with that you're getting the undervalued value stocks getting pushed ever lower, momentum stocks pushed ever higher. we see an opportunity in the value of opportunities. when we look at a lot of these companies, we see there is a strategic initiative that needs to take place in order to get the value out of those companies. it is much more difficult to do real governance changes, management changes, longer time frames. i look at it as you have to the situation. there's also a lot of equity value you can acquire. ♪ anchor: on the heels of janet yellen's testimony to the house financial services committee, dallas federal reserve president robert kaplan

. >> i think it's fair to say there are a lot of provisions that are unloved and a lot of tough decisions to be made to satisfy the mott rats. you anger the conservatives and -- >> it's going to be almost impossible to thread that needle. >> thank you so much. we'll talk more about the health care drama. >> drama on the senate floor. john mccain getting a hero's welcome back from his senate colleagues. mccain returning to cast his vote. his first time back since he was diagnosed with brain cancer. >> and no one who saw it will soon forget mccain with a scar over his eye from brain surgery making a pitch to restore order to the senate chamber. >> our deliberations can still be important and useful, but i think we'd all agree they haven't been overburdened by greatness lately and right now they aren't producing much for the american people. even when it calls for us to do something less satisfying than winning, even when our efforts managed just three yards in a cloud of dust while critics on both sides denounce us for our failure to triumph. i hope we can again relay on hue mill they on ou

it is unloved and yet we are seeing higher and higher stocks.t with ahead of u.s. equities at ebs because he said go along the fed will stay put. tom: let's do this. there's dupont with a little bit of a beat. we will come back to that in a bit. right now in washington with our first word news, here's taylor riggs. taylor: a dramatic turn of events for senate republicans preparing to take up health care legislation. senator john mccain will return to washington days after being diagnosed with brain cancer. today's vote is to begin debate on the issue. republican leaders have not decided which health care proposal to vote on. -- they promise for years to repeal and replace obamacare. multiple reports that president trump has spoken to advisers about firing attorney general jeff sessions. he referred to sessions as beleaguered and is furious that sessions recused himself in all matters relating to the russian investigation. the fight over who controls the nation's coast is not over yet. to overhaulnt vowed the judiciary after the president vetoed

about investing in this most unloved bull market. and handshakes had by all.nt storms paris amid bastille day pomp and circumstance as we look live at elysee.mps e yearsyed a bastille day ago in paris. it is just extraordinary. guy johnson, it is quite something. guy: absolutely. an impressive display. the french's early know how to put on a show. let's face it, inside the periphery, paris is quite something. tom: i would suggest the president of the united states applauding is having a very good weekend in paris before he comes back. to challenges in the united states. with your briefing, here is taylor riggs with the first word news. taylor: starting in the u.s., president donald trump and the first lady are attending bastille day celebrations in paris. last night they ate dinner at the eiffel tower. during a news conference, trump address the issue with his sons meeting with the russian lawyer. president trump: a fine person. took a meeting with a lawyer from russia. it lasted for a short and period and nothing came of the meeting. i think it is a meeting t

this is still in many indications at least people characterize it as an unloved or, dare i say, hated rally. >> right well, i think this is not a euphoric time. except donald trump really you go to one of his rallies and you feel like you're living in a euphoric time. there's some of that there's an underlying fear more than in 1929 and more than in 2007 because it just seems like there's -- doesn't matter what job you have, there's always some robot out there about to take it. that is just relentlessly in the media. stories of robots or robot-like things i think that is coming to a crescendo, and that is what i think is substantially driving the market >> professor, it's jim your cyclically adjusted price of earnings ratio is often quoted recently as saying, hey, the market is over valued. it's hard to argue with where it is versus history. let me ask you this. you must have thought of this. if you're looking for an expansion as long as we've gotten, isn't that number still being tied down at least on the earnings portion by those years coming out of the great recession that were pun

financials may begin to turn around we talked about that but i think there's an area that's been a bit unlovedt could begin to turn around, start to see earnings begin to pick up as well and maybe return more of that to shareholders in the form of maybe better dividend announcements and the like, in addition to buybacks. so, that could be an area where we start to see some better performance in the second half, joining tech and health care >> jeff, are you concerned about the prospect of other central banks around the world starting to normalize their policies as well as the u.s. is that going to start to add to the suck of liquidity out of the marketplace? >> well, you know, if it seems to have a negative impact, i think they'll be quick to reverse it this is one of those things where, you know, i think they'll take baby, baby steps as they begin to slow down the pace of the qe program, the bank of japan or the european central bank, and see what that does to the markets. again, a very slow approach. i'd point to the uk here, which i think just a year ago, the idea was they might not even hik

finde: is it easier to unloved companies, which you , orified -- specialized in when we are nearing the peak like in the u.s.? >> that is right. the key with europe is a lot of in today's market, everything is traded on momentum. you're getting the undervalued value stock, you see them ever push higher. thesek at a lot of , it takes place in order to get value out of the companies. it takes management changes, longer time frames. sethave to bring a specific to the situation. >> she says it is focus on operational activism, which is what you're getting at there. what is the welcome in comparison with the united states. >> a buzzword three or four years ago. the chu activist taking part in taking hold as well. on thehey are focusing corporate balance sheet companies and strategies. my background is and that is what i am looking for today. we are not worried about a one year time horizon and i would say a lot of european companies, is a level ofere exploitation and we can take advantage of that and we can come in and push some of those changes. >> lies the activist strategy youlving, fun -

and it is so unloved still, to this day it got an upgrade today, fine, great. but a lot of people don't like it and don't believe it. that's a transition to the growth, to the facebooks, to the cloud technology and if you believe that they can comput execute, that stock is still very cheap >> all right we're just getting started here's what else is coming up on the "halftime report". >> retail at recession-like prices that's what the analyst behind today's call of the day sees for six big-time retail stocks but he believes those should be much higher. we'll run through the list, next >>> plus, after the shocker out of north korea, the successful launch of an intercontinental ballistic missile, is the u.s. about to beef up missile defense? and if so, which defense makers will be the companies that get those big contracts? the "halftime report" thcowi stt wapner and the traders is back in two munns at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, whe

. >> i think the small caps have underperformed, they've been unloved.d by the market >> all right jimmy, starting with you there you go, adobe up 9.5%. >> hang on to it if you don't own it, don't load the boat here. but it's the anti-staple stocks. it used to be 20 years ago, a person joined a firm, employment picked up and that would mean a lot of copier paper going through. that's been replaced by adob e y licensing. as employment picks up in the modern economy, adobe is the beneficiary. it ain't cheap, but you don't need to load the boat here >> jpmorgan up 9%. >> i think it continues. you know, this is a name that it took a long time to finally break out. there isn't any resistance overhead no one has a loss in the stock, and i think it's going to go higher >> erin, june first, you said small caps russell is up 2.5% since what do you do now is >> stick with the trade. we talked before about the small caps being the growth engine of the economy. we spent a lot of time talking about how growth is picking up payrolls look good you still want to stay lo

unloved rightre now, you can get some rotation back into the oil space from some investors, and thate a material lift and equity values. your target for west texas and brent, six-month target? barrelre targeting $60 a , less for wti. we see ourselves getting there over the next 2-4 months. see you.ry nice to thank you for coming on the show. right, coming up, some changes coming to hong kong. revamphange looking at a of the 30 minutes into the open session. details next. this is bloomberg. ♪ ♪ toid: we are counting down the open of markets in china and hong kong. last i checked, not a compelling picture. there we go. it looks like we were open lower. speaking of a premarket, we could get changes in hong kong. exchangearing that the is preparing to consult market participants on the revamp of the 30 minutes leading to the open. currently you have first 20 minutes order input, the last 10 minutes for order matching in preparation. the talk will focus on whether to have random matching. expansion of its closing auction, which involves more stocks and permitting shortselling in the 10 mi

utilities and unloved well. telecom stocks are interesting right now.t a 5% dividend yield, so if that is yield, the equity market there is still good dividend yield to be had. sign me up. equities aren cheaper and further back in the cycle, there is a potential more upside for the ecb if they become more hawkish. what do you see in terms of what regions equities have value in? >> we liked europe at the beginning of the year and we positioned our portfolios that way. other investors have caught up to a contrarian trade. now we are dialing back a bit on the european exposure. the burden of proof is on the european economy to actually come through a deliver the expectations that the market has now built in for europe. if it does that there is upside for europe. if it disappoints you will want to be back in the u.s.. jonathan: italy used to trade under where spain is and now it is above 50 basis points. can you be constructive on europe without being constructive on italy? >> maybe not. here is what i would say about how u.s. investors and global investors

it's unloved unwanted it's been downgraded you look at western digital.been flying seagate is a duopoly i think, you know, this is the time to enter into it. >> chris, do you always look for stocks that have been beat up first? >> i think that's the first thing i'd like cheap i love tech. but i like cheap tech. and i think it's real hard the f.a.n.g. stocks are terrific and probably make more money, but the real money is made when you bought nvidia three years ago, and microsoft four years ago. and that's what we're trying to do with these names. >> all right well let's talk about gamestop, too. that's a company that has its work cut out for it. >> yes, even more controversial. gamestop, again, great yield its p/e is just a little over 6. but for reasons. and that is they've been beat up by activision and other game companies and the idea of storefronts is really fading yeah, they've got collectible business and that's good, it keeps them going they have to make the transition to internet and online gaming. and they're doing it you know, i think their fra