renita young is here with first word news. renita: president erdogan said even if the u.s.ling patriot missile systems to turkey, the country is still buying boeing planes. there was an order to purchase about 100 boeing planes. union has rejected u.k. prime minister boris johnson's man's for a better brexit deal. johnson seems to be ruling out minor cosmetic changes. he's calling for the irish backstop agreement to be scrapped. if neither side backs down, britain will be on course to drop out of the eu october 31 without an agreement. hundreds of protesters staged a sit in at hong kong's main international airport terminal today. demonstrators dressed in black sat on the ground, holding up signs and chanting slogans including, "free hong kong." protests have been happening in hong kong for more than month. demonstrators are calling for and antic reform investigation into alleged police brutality. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm renita young. this is bloomberg. da

here with the details, renita young. renita: the u.s. trade deficit rose more than expected. imports surged the most since 2015. trade with china also surged. that may reflect companies rushing shipments before president trump's latest increase in tariffs. iran has a warning for europe. if it doesn't comply with terms of the 2015 nuclear agreement by sunday, tehran increase its arrangement of your rate -- increase its enrichment of uranium. it is calling on europe to provide an economic lifeline. it could eventually give iran enough to produce a nuclear weapon. deutsche bank's ceo christian as much as $5.6 billion to restructure the firm. the potential costs could result in deutsche bank reporting a loss this year. who led ford and saves chrysler from bankruptcy has died. first one of the celebrity ceos in the 1980's with his tv commercials and books. he was 94 years old. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm renita young. this is bloomberg. guy: thank you very much indee

i'm renita young. this is bloomberg.: very few people can get in to observe firsthand the children being detained as they cross the border are being treated. those that have gotten in paint a different picture. state,ve lived in that have been down there in my 15 years of congress, before that as a federal prosecutor. this is the worst i have seen it and it has to be taken care of. >> there is adequate food and water, because the facilities cleaned every day. i know our standards are being followed because we have tremendous oversight. we welcome the man who used to be responsible for undocumented immigrants coming into the country, john stanwich. welcome back. give us a sense of how big the problem is. it seems a number of overall people being detained is going up, and even more disturbing, the number of unaccompanied minors is going up dramatically. john: it is not necessarily the number of people but we have so many unaccompanied minors and family units. the situation at the border shifted in 2014, we started to see a

renita: i'm renita young. let's get to the first word this afternoon.nia representative eric swalwell's campaign has scheduled a news conference for 1:00 pacific time at his northern california headquarters. the announcement is feeding speculation the congressman may leave the democratic presidential race. small well has struggled to raise money or gain traction in the polls. he made the cut for the first debate in late june but his prospects for qualifying for the second debate later this month in detroit have been in doubt. the democratic presidential candidates will take the stage on july 30 and 31 for the second set of debates. this time in detroit. cnn is hosting the debate. tocandidates will be invited participate in one of the debates. they will be notified if they made the cut july 17. the justice department says it is replacing the legal team defending the trump administration's effort to place a citizenship question on the census. the department said that it would be "shifting these matters to a new team of civil division lawyers going forward

i am renita young. this is bloomberg. francine: thank you so much.protesters staging a sit in at hong kong's major international airport terminal today, the debonair -- demonstrators dressed in black, holding up signs and chanting slogans including "free hong kong." if you have to travel to and from hong kong, check the details. it seems like a peaceful protest , but we will see how things develop. let me get to the market. the european stocks are inching higher. we had some good corporate earnings. the latest batch for tech is pretty good, apart from amazon which disappointed and is filtering through to the european stocks. the market wants to know the gdp figure in the u.s. and what it means for the federal reserve interest rate decision. aftere seeing a lower day europeanons from the meeting. taylor: it is dollar strength across the board that has been the trade of the year. thisght firmer strength morning, lifting futures in the tech leaving -- leading the gains. in that three-month 10 year, you were at -20 basis points and the fact that that is

romaine: thanks, taylor and renita as well. still with us is oliver as well as bloomberg's michael regan. youer, i want to go to first. right now we are at about 2.04 on the 10 year yield. are we getting to some fair value consensus? oliver: i think the treasuries continue to be in a range. we haven't had moves that are pretty outsized. we've been around the 2% mark for quite some time now. oron't see it going to 250 150 unless something really remarkable happens. if you are a bond investor, you stick to the short end of the curve, high quality, and use it as volatility mitigating rather than anything else. high yield is up nicely. return forretty good fixed income given where we are. joe: mike, i want to get your take on this. everybody screams all day, can't believe these low rates and negative rates around the world, but they are still doing their job in the portfolio. risk parity. they've done well. even at these low rates, kind of fulfilling their word. mike: it is trickier in europe when you are basically betting buturthe

let's pick up on where renita left off and talk about risk appetite. do you still see that risk appetite in this market going forward for the rest of the year? >> i really don't. investors would be televise back away from the riskier areas. the defensive areas, the bond problemsies. things like consumer staples, utilities, real estate, which by the way, had a pretty bad day today. i think those areas look much better than the tech names. particularly big-name tex. it's a good time to shift away from those riskier areas and look for bar begins. >> interestingly bond proxies had a bad day. bonds had a bad day today. 10-year up about two basis points. it seemed to be the fed miscommunication that threw the market. how is it being by secretaried? renita: as romaine said, the blackout period can't come soon enough. many of the investors have been saying thank god we're going into this blackout period. everyone knows or assumes that the fed is going to cut come july 21st. whether 25 basis pilot or 50 basis points, there's very much still a question mark surr