this is bloomberg. ♪ is is bloomberg. ♪ in: "bloomberg surveillance" london and new york.'s look at the financials. single best chart. i went for the drama. european stock index, deutsche moo doesn't talk about individual stocks. re deutsche bank down 70%. other financials are week as well, even in the u.s.. i have been constructive on financials for a while. tom: you are never coming back, right? >> of course i'm coming back. how could i not come back for you and francine. the under performance of banks feels unjustified. big day today. we are expecting more capital return out of banks. that should lend some support. massives been this disconnect for good reason between u.s. banks and european banks, and both are critically important to brought indexes. for european banks was one of the reasons why we downgraded european equities earlier this year, basically saying without the ecb looking to raise policy rates and make things easier for them on the profit side, it would be difficult to deliver earnings growth and leadership. we seeing more consolidation in the banking spa

a come to "bloomberg daybreak: asia." the top story, asian stocks are set to advance as trade tensions are on the back order. -- back burner. slide continues. a bloomberg survey says authorities are perhaps intervening at a key psychological level. kathleen: and i'm kathleen hays in new york. just 7 p.m. on this thursday. the fed forces six u.s. banks to scale back payouts. deutsche bank fails the test entirely. president trump toward a new wisconsin plant. new wisconsin plant. yvonne: kathleen, let's kick it off on friday with breaking news out of south korea. industrial production numbers year on year coming in. they are in line with estimates growing 9/10 of 1%. month on month seeing it 1.1% gain which was much better than what the economists were expecting. it is slowing down from what we have seen in previous months before that. we have seen signs of this within the economy whether it is export growth having a slowdown as well, and there is a lot of questions about the one as well -- juan as well. still, they are in

this is bloomberg. ♪ this is bloomberg. ♪ "bloomberg surveillance."a proposal today. the company proposes a plan saying it won't enhance alphabets commitment to sustainable ability. the owners have more than half of voting power. the world's largest personal computer maker will cut more jobs than estimated. increased job cuts to as many as 5000 by the end of fiscal 2019, 1000 more than discussed in a reorganization plan. hp has produced consistent growth despite falling demand for pcs. a breakthrough and saudi arabia. women are allowed to attend sporting events. bloomberg spoke with the saudi sports authority. >> all the events the kingdom carried out now allow women to inter-. women are driving. women have gotten a lot of their rights in this era. we don't want to give an excuse to those who want to take us backward and delays in the achievement. customs,otecting tradition, and religion before everything. >> that is your bloomberg business flash. tom: thank you. as we mentioned earlier, some things percolating out there. we want to take a little bit

this is bloomberg. ♪ e the latest. this is bloomberg. ♪ ♪ vonnie: this is "bloomberg markets."e quinn. shery: i'm shery ahn. apple kicked off its annual's worldwide developers conference in san jose, california. the company is laying out its software strategy for the next year. teasing future hardware ambitions for what we can expect, let's go to san francisco where bloomberg technology anchor emily chang has been following the story. emily, what is new at this conference? emily: tim cook has left the stage. apple vice president craig is softwarebout engineering and ils. he has talked about new updates to ar developers tools. he is showing off a new apt they hauled -- they have called measure. allows you measure things in real life. but using ar technology. onstage, tim cook tout the progress they have made in the app store. he said there are over 20 million apple developers around the world. 10 yearstore turned old next month -- turns 10 years old next month. the app store getting over 500 million weekly visitors. today's conference is all about software that are we will hear

from new york, this is bloomberg. ♪ ♪ >> this is bloomberg markets. go the g7, posting for the family photo. tensions are high as the trade talks escalate and russia was thrown into the conversation. joining us is stephen engler and managing director at refugee group.iki they need the united states, the trading relationship is important, the united they this -- the united states is critical, by the same time, they have to communicate. the incentives are the come up with no statement or statement that is consolatory. there is no upside to them evoke king president trump further, it is hard to see how that would lead to a better outcome. clear president has made that he is looking for straightening out of unfair trade deals. move the g7 summit to needle in any way for some of the trade conversations he is having with our trading partners? steven: absolutely not. scarlet: he is the decision maker in the end. tradingdifferent negotiators have to go back to him and that can always change. steven: trade is complicated. canada made a strategic mistake withtr

bloomberg radio, coast-to-coast. this is bloomberg.lance." with francine lacqua and me in new york. gideon rose will always chip in the sum wrote a motion -- some real emotion. how 9/11 is still works american american-- warps strategy. this is an essay on counterterrorism industrial complex. basically the last couple of years have been crazy times that have thrown our assumptions into the dustbin. what we have done in foreign affairs is we try to approach this in two. one is to challenge our assumptions of what we thought that we knew, and the other is to try to scope out the future. there are some great articles about counterterrorism that essentially go back and take part in a series looking back at the previous assumptions and say, did we get it right? did the u.s. get played for a sucker? in counterterrorism, the point that they are making is that ever since 9/11 we have been obsessed with counterterrorism. tom: are we still obsessed? gideon: we are still obsessed and it is disrupting -- distorting policy. it does not deserve the

this is bloomberg. ♪ >> this is bloomberg surveillance. let's get your bloomberg business flash.i arabia and other opec members to boost production. the trump administration wants another million barrels a day to be pumped. gasoline prices have hit their highest level in three years. president trump has publicly complained about opec and rising oil prices. the visit -- the biggest maker of semi conductors for smart phones has come up with a new chip for person or -- for personal computers. qualcomm is trying to get its mobile technology into the computing market dominated by intel. insurance company cigna says it is exposed private information for some customers. the company is not saying how many people are affected. the ceo explains how the company reacted. asia, and operational change, a coding problem beinged in some data revealed. external auditors brought in credit protection being put in place for individuals. nd it?estion is how fast do you hoast you understand it? you bring a third-party into validated. you atone for the mistake. >> that is your bloomberg business flash.

this is bloomberg. ♪ what's a gig of data?whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way. that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. yvonne: it is 7:00 a.m. in hong kong. i am yvonne man. ."lcome to "daybreak asia the top story this wednesday, u.s. stocks bounce from session lows despite the threat of a trade war, which struck a blow to chinese equities. six straight losses. treasuries rose with the dollar as traitors hedge risk. ramy: from bloomberg's global headquarters, i'm remy and inocencio -- i am ramy inocencio. also ahead, oil under pressure. potential opec output compromise ahead of fr

this is bloomberg. ♪ vonnie: this is bloomberg markets.hings are celebrating their stress test with deutsche bank usa failing the harsher measurements. the biggest lenders will distribute $100 billion in dividends and stock buybacks. how bad was the question mark headlines came out and seemed like banks were not meeting goals. banks took the mulligan. six banks to did it and that is the record number. clearly some of those banks for more aggressive, not realizing how tough scenarios would impact. they said ok we can take it down a little bit. the total is great. distributed being by 25 banks. the payout figures, joe morgan numbers are great up almost a quarter. a distribute dividends and buy back shares. there is a silver lining. goldman and morgan stanley were not going to do great. the harsh scenarios hit them more than anyone else because part of the scenarios are bad s, and those hit impact their business. these are hypotheticals. are these stress tests overly stressful? >> they are. that.d is not shy about the stress tests were design

this is bloomberg. ♪ this is bloomberg. ♪ ♪ julia: this is "bloomberg markets."ie: i'm julie hyman. there is no place like home. that is what investors have seemingly been thinking. if you take a look at this chart, this has been one of my favorites and julie's favorites we have been enjoying frequently over the past several years. the performance of small caps in the form of a russell 2000 versus the s&p 500. you have seen a surge in the relative performance. that is on the back of corporate tax cuts, stronger dollar, and reduce geopolitical risk. the idea that these companies are more insulated from trade concerns. our next guest is small cap outperformance is here to stay but the risk reward might look less appealing. joining us is mike wilson, morgan stanley chief u.s. equity strategist. we had a debate on this program recently about whether these are a true haven in this kind of environment. mike: it is all relative. clearly, trade tensions are the concern of tay. small caps, don't have to worry about that. as you pointed out, tax cuts, benefits small caps w

bloombergs here with more.he tech stock seems less affected by the prospect of rising rate. >> that is definitely the case. we saw them rise, the banks under pressure. was also a very big story. , it haso time warner opened the gate for other deals. all moving in a very big way. if we go to bloomberg, gtd is where you can find the charts. disney, lewis foxx, comcast is yellow. all these stocks ticking up. the cable giant took a step after at&t. a billion dollar bid for the property and now you have approving the 52.4 billion offer. let's go to tech stocks real quick because the size of the moves are significant here. on twitter, a three-year high. how made goods, crafts, the retailer. the software company, momentum is being lauded by all the in higher. >> let's get more on this and we from the global strategist at riverfront investment. was a lot of yield and looking at real estate but the text was agnostic. give me your takeaway first. >> this is what we will see the next few months. it will probably not go up

from newer, this is bloomberg. scarlet: this is bloomberg markets.or options insight with julie hyman. julie: joining me now, the chief energy strategist at macro risk advisors. i'm glad to see you today. oil is having a big drop in today's session. talk me through what is going on here. you have opec looming with potential production increases but is that all of this going on? >> three things are impacting the oil market. event.ming opec the official meeting next friday. eventstwo is the macro that have transpired with the fedon wednesday, a hawkish and dovish ecb have led to a dollar positive weighing on crude. exacerbated trade fears. >> when you look at the pressure oil is under and the options market are we saying options follow the stock price? the commodity price. people thinking there was more downside to come? >> in the commodity, yes. interestingly enough i think that speaks to the idea and a $65 world the amount of credit stress and high-yield market, it is still relatively de-risk. uptick should be sold. we think we are already seeing the

this is bloomberg. ♪ ramy: welcome back, this is "bloomberg daybreak: asia."ack the chief strategist from oh come international. he is still in shanghai for us. , where been talking about the volatility down 8% in two weeks now. beare a whisper away from market territory. it seems like the cat is already out of the bag and we could potentially see a triple arc cut as what the officials are seeing . now that we are below key levels, does this spark further interest? againstould caution using the monetary policy to support the stock market. we have seen the move before and that did not work out well for the market back then in 2015. in april, there was quite a surprise to many people and the market was substantially lower. happeningrouble arc in the problem is the market is expecting this. many market participants have been looking for at least one trouble arc cut. with -- triple arc cut. we would not be surprised to see more than one. at the same time, when you're cutting triple arc, the point number one is that it may not necessarily immediately become bank le

this is bloomberg. ♪ ♪ >> this is "bloomberg daybreak."germany, there's been a high-profile arrest of the volkswagen investigation. the ceo of the audi unit has been taken into custody. prosecutors say he was arrested among concerns he might have tampered with evidence. in the u.k., consumer and business lenders have agreed to buy virgin money for $2.3 billion. it represents a 19% premium to their closing price may 4. the combined company will have about $106 billion in assets. and shares of norwegian air are surging today. this comes as the ceo says his airline has been in talks with the discount carrier. that raises the possibility of a bidding war. compared to british airways, iag has taken a stake in the region. and that's your bloomberg business flash. alix: thank you. next move? -- focused on the agricultural sector, and investors try to understand the consequences. >> they are sort of like cockroaches, there's never just one, and they tend to proliferate and add cost into the system. this is problematic in other ways to encourage an

scarlet: from new york this is bloomberg. ♪ is "bloomberg markets."usiness flash, a look at the biggest business stories in the news today. shares of when days -- wednesday -- shares of wendy's falling after a viral video. the video reportedly came from a worker in oklahoma. wendy's is investigating the matter. rising 59%high after in 2018, some analysts are growing more bullish about their ability to gain market share in the high emerging markets. in the second half of the year they will beginning -- they will begin producing ships -- chips for technology that will put them on equal footing with intel. david neal men has raised up $100 million to start a new u.s. airline and according to industry reports, moxie airways will be a local carrier focused on reducing travel hassles by using smaller airports. several boards show that orders have been secured for jets that have scheduled to start flying in 2020. that is your business flash update. scarlet: the run-up to the amazon prime july promotion day overlaps with ramadan, days in andh observing muslim

this is bloomberg. ♪ is is bloomberg. ♪ ♪ rishaad: you are back with bloomberg markets.rough ride about to get rougher. taken aency may have hit from a surge in the dollar, but it may face further turbulence as chinese companies get set to hand out $20 billion of dividend payments abroad. i'll reporter is with us now with how these dividend payments and how they will affect of the yuan. >> the yuan will have a few more volatile months. companies will have to pay $20 billion of dividends to overseas shareholders from june to august. the month will reach a peak in august, $9.2 billion. that will make the yuan weaker because the chinese companies will increase the fx purchases. the yuan had its worst month and a decade in may because the dollar surged. theoretically the dividend payments will make the yuan's life harder. outlook foris the beyond august for the rest of 2018? there are a lot of factors that may affect performance. the biggest reason is the dollar which may rise further because of the federal reserve rate hasease come and the euro been declining. other factors

this is "bloomberg markets." let's check in with bloomberg first word news.is kailey leinz in new york. kailey: russian president vladimir putin says he is confident of the country's prospects for growth. he said that on the whole russia is moving in the right direction. he also said the country will not introduce a sales tax. it is his first live televised program since he was reelected in march. nationalala, the disaster agency has suspended rescue efforts in an area devastated by an earthquake. at least 99 people were killed and 200 are missing. authorities say the volcanic material makes it dangerous for rescuers. it is the latest sign of a strong u.s. labor market. first time filing for unemployment benefits fell to a four week low last week. initial jobless claims were down by 1000. data shows that job openings exceeded the number of unemployed workers for the first time in 17 years. global news, 24 hours a day, on twitter.n tictoc on i'm kailey leinz, this is bloomberg. japan's prime minister meets today with president trump at the white house. listisi

you can watch that on bloomberg , bloomberg tv, and bloomberg radio.loomberg. ♪ francine: this is "bloomberg urveillance." we should be getting headlines from the bank of england. we get to those as soon as they break. it is the semiannual financial stability report we should be getting headlines from the bank of. we will talk about that and talk t it means for pound and what it means for the bank of england governor, mark carney. mark carney is due to speak at , a half anin london hour from now, on the financial stability report. watchingy were bloomberg surveillance, the boelines are crossing the that the global risks are material and increasing. they are looking at not only brexit but also global trade. boelet's see if i'm getting ane headlines. looking -- if you look at the banks, the countercyclical capital buffer remains at 1%. the bank of england report saying that banks do not need any extra capital to cover the brexit risk and are also saying if you look at brexit aside, are standard. let's get back to rick of state street global advisors. it

this is bloomberg. ♪ r. this is bloomberg. ♪ scarlet: this is bloomberg markets. .usiness splash cryptocurrencies lost $42 billion in market value this weekend. this after the latest hacking victim. they would not disclose how much it lost. two thirds of the stolen assets have been frozen. a $500 millions heist. 50%oin has fallen more than since the end of december. -- ceo of wayfarer announced is now turning to profits overseas. >> it will become profitable the same way the united states business did. we protect the contribution margin. it doesn't all get spent on advertising. the advertising is more and more leverage. , the loss isough lessened. remainsugh it fast-growing. julia: that is your business up day. our stock of the hour, the car seat maker attended for its biggest loss since october 2016 after they cut earnings projection. the better to bring in then dave wilson. here is twofold. the company cut projections for their fiscal year ending in september. they don't expect to end as much as they did before. flow.ow expect free cash to be breakeven at best.

this is bloomberg. ♪ >> this is bloomberg surveillance. let's get the bloomberg business flash.cast is deciding its next move in the bidding war for 20 century fox's entertainment asset. $71ey has offered more than billion. comcast may have to offer more than $75 billion to have a chance. a wild trading day. deutsche bank is raising questions. traders that the bank's u.s. unit suffered a one-day loss that was 12 times what estimators thought it might lose. those losses were offset by gains in london. investors are trying to get a better handle on the banks operation. a flashing green light on emerging markets. developing nations look sound even though their assets have been beat up lately. it favors local emerging markets. that is the bloomberg business flash. francine: theresa may has spend it off a brexit rebellion from pro-eu rebels within her own party. pressing tos been give parliament more of a say in negotiations that backed off after peace talks. 303 tors voted 319 to reject -- does a result mean more battles could be on the horizon. columnist dan. hanson is here and dan

this is bloomberg. ♪ guy: welcome to bloomberg markets, this is the european open.our european headquarters. i am alongside matt miller. matt: preparing for the big panel tomorrow with mario draghi and his big central bank counterparts. he will speak later today. we spoke with larry summers earlier this morning. there is a lot more to come out of portugal. 4 it looks like it

this is bloomberg. ♪ . this is bloomberg. ♪ ramy: we are counting down. we are counting down to , looking sydney open quite positive, especially after asia-pacific stocks closed at the highest in three weeks. did get gdp out of australia lifting investors as well. i am ramy inocencio in new york. haidi: you are watching "daybreak: australia." let's talk about the markets, particularly this resilience. we've had this on again, off again geopolitical tensions and trade. weighingf easy money in on wednesday. u.s. stocks extending gains, bonds falling. let's get some insight with the senior equities strategist at wells fargo investment. if you want to talk about the resilience or the fragility of the risk on mood, i want to throw up this chart from our gtv library, high yield levels we last saw in 1997 and 2007. you see this bullishness when it comes to u.s. high-yield debt segment. if you broaden this out as a litmus test for the broader market, is there a sense that investors are feeling overconfidence and the next wave of volatility will catch us out again

this is bloomberg. ♪ jason: welcome to bloomberg businessweek.berg headquarters in new york. a big show for you this week. we start in london where we explore that city's future as a financial hub given the backdrop of brexit. we go to south carolina where we talk to the although ceo about the new plant there. what it means for that state's economy and for volvo's chinese owner.

erik: this is bloomberg. ♪ erik: this is "bloomberg best." i am erik schatzker.estors and asset management and corporate america in our new york headquarters at the bloomberg invest summit. blackstone'som head of global equity. >> how expensive is the world right now? >> it is historically expensive. we are subject to that. we have to navigate within that. fortunately we are only making 12 investments a year out of our global buyout fund across five key geographic regions -- u.s., europe, india, china, australia and japan. trying to0 people source transactions. i think we are able to find those idiosyncratic situations. there is not a single industry or country where we say the wind environmentses, generally improve. i think we have had winds on most of the key industries with the exception of energy. that has, roaring back. back inhas come roaring most of the regions we invest in. you think about the possibility of a recession globally and in the u.s., how worried are you and what is the timeline? at our 90 portfolio companies and the data we get monthly from th

this is bloomberg. ♪ this is bloomberg markets.s a major vote of confidence for argentina and saudi arabia. but countries are said to enter the nci index. status foreturns to the first timin nearly a decade. for the saudi's it could be big tickets for foreign investment. we are joined by henry fernandez. thank you for your time. some people were expecting argentina not to be upgraded given the market turmoil. are you concerned with argentina curbing market axes? >> that is a valid concern. we took that into account in our decision. leading up to the announcement yesterday. i think including our major clients around the world, major investors, a believe that the country and its administration has had the backbone and the wherewithal to look at the problems that they have and react to them with market friendly intervention rather than change controls or flexibility problem. we will keep monitoring that because we have promoted the to re-included to the emerging markets starting next year. we will be monitoring this event and we for s

this is bloomberg. ♪ this is bloomberg. ♪ haidi: this is "bloomberg markets: asia." lun in sydney. tesla cutting 9% of its workforce, underlying the turning pressure to a profit. it's the biggest layoff and its 15 year history as it struggles to have production targets for the model three. elon musk has repeatedly fallen short of output goals, and he contribute to tesla's deepening eliminating suisse senior banking positions as it advisory business.ropean 26 directorslet go since february with the cuts focused in london. the job cuts are an attempt to boost efficiency and put pressure on deal to bring in new business. we are counting down to the open of markets in hong kong and china. zte not exactly the comeback kid here. rishaad: the original penalties could be reinstated. politicians want to do that in the u.s.. donald trump just imposed fines. down 37.5%. ck infrastructure up on its purchase of apa. we have futures contracts lower. we will be looking at this and what it means for equity strategy, not just in light of these markets. we are looking ahead to those t

this is bloomberg. ♪ vonnie: this is "bloomberg markets."hery: the bloomberg invest summit is underway here and new york and carson block joined erik schatzker at the event and said that china's private companies are not purely private and that fraudulent chinese companies pose a threat to u.s. markets. here is part of their conversation. car; i'm going to refer to a documentary that came out about three or four months ago called the china hustle. for the china hustle, and i agree with this, there were literally about 400 frauds listed in the united states in the last decade. . yeah, the figure is a chinese domicile companies that raised equity capital here in the united states. >> yes, chinese companies whose operations are based in china, often the league at -- domicile is came in or what have you, which reports on a few listing and reporting loopholes in the u.s.. these are companies from china that came to the u.s. and i -- look, i don't think there is any parallel in the history of capital markets where you have this systemic issue of l

this is bloomberg. losses,an stocks paring trading mixed amid the global trade story. the yuan falling to its lowest level since january against the dollar. plus, we are about to get eurozone data -- flash pmi data out of germany. mark cranfield joins us now. let me start with the data. could we see a euro squeeze if the data is stronger than anticipated? mark: it would have to be very strong to get the euro to squeeze on the back of that, particularly after yesterday, when these italian people were talking about their anti-european views on that. of euro is getting a little the balance today because some of the asian currencies are doing better, but the outlook is still pretty dodgy for the area. it would need very strong pmi numbers to help it there. it also got a boost from the greece deal, they got a longer-term debt arrangement in place but the immediate term for theis still cloudy euro, particularly with u.s. rates likely to go higher again. aboutet's talk a little what is happening with the chine

this is bloomberg. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn in new york. and from london i'm mark barton. cryptocurrency is not ready for primetime yet. that's according to the swiss bank for international settlements which warns the cryptocurrency suffered a range of short come -- shortcomings and could break the internet. when you sifted through the 24-page article, did you expect theociationmunication volumes could bring the internet to a halt, talking there about the software underpinning bitcoin? that's a big statement? >> yes, it really jumped out. one of several statements in this report that jumped out as being particularly poignant. usually, these reports that the b.i.s. puts out are arcane and technical. really, they were trying to make a sense this could influence and shap the debate around cryptocurrency. mark: yeah. bitcoin miners, using the same as switzerland. the sort of images that we can all get our head around. what's the general take on the b.i.s. and what it said? are many people supporting it? are there many people laughing? >> pro-cr

this is bloomberg. ♪ francine: "bloomberg surveillance."tle better in the world cup game. an honorable position we are at. i know a lot of traders are focused on england. every time there is an england game, people sit around. , england.um that is all i am focused on. francinefocused on is jonng jon ferro -- beating ferro. he spends hours on his analysis. uruguay russia will be fascinating. we are with kalluum pickering of berenberg and anthony crescenzi from pimco. here is a pending charge of the year. deflation has been there since 2013 and we are finally lagging up. -- legging up. in goods prices is what we need. i don't see much evidence that nominal wage growth is accelerating in a rapid way anywhere. we will probably see goods prices rise. if trade war's breakout, it will not be because demand is high. francine: are economists optimistic or pessimistic about the world? anthony: appropriately, they are optimistic. if they were not, the stock market would not be where it is. credit spreads would not be as tight as they are. that is opti

this is bloomberg. ♪ francine: this is "bloomberg surveillance."e.astern s&p upgraded the outlook for the bulgarian economy to positive. the rating agency says it expects strong growth to continue on the back of strong demand. bulgaria has reaffirmed its plans to carry on to joining the euro by applying for admissions to the exchange rate mechanism despite the fact that the ecb has expressed serious concerns. is the country still optimistic? joining us now is the deputy economy minister of bulgaria. andrew sheets is still with us. thank you for joining us. talk to us about foreign investment. why is it declining? >> it has been increasing for the past years. in bulgaria, the amount of investment is about 29 billion euros. the u.k. is one of the leading partners of bulgaria with 2.6 billion euro investment so far. there is a reason for it. the economy has been growing very fast for the past years. yearmarked yet another with significant economic growth. 3.8% for 2019.g we can offer some of the most favorable conditns for investors in terms of taxati

this is bloomberg. ♪ julia: this is bloomberg daybreak.ook at the performance for the u.s. futures at this moment. the dow off by 1.5%, indication slightly better than yesterday. we are taking back some of those losses that we have to wait and see what the open looks like. s&p futures off by 1.1%. it follows a weaker asian session and european session. the u.s. tenure as well, down by five basis points -- 10 year as well, down by five basis points. last month it was revised and the starts are at 5%, a big beat of the consensus which was 1.9%. reasonably strong housing start numbers coming in right now. that is the news right now from housing. terrazas, theon zillow economics -- economist. housing starts have been up eight or 9% over the last couple of months but we are only building single-family homes at the rate we built them in 1960. how much of this is multifamily? multifamily had been up. that has been a surprising point this past year. multifamily housing starts are at historical highs. david: what drives that? aaron: there have been

this is bloomberg. ♪ is bloomberg. ♪ haidi: this is "bloomberg markets: asia."haidi lun in sydney. has dismissed concerns that u.s. companies are becoming anxious about the andpect of a trade war postponing investment and hiring decisions. he says washington has a distinctive fannish in the trade tussle. >> once they put tariffs on the whole $150 billion, they have nothing more they can do. we can go theoretically all the way up to $500 billion. that is not an easy game for them to play, and similar ratios with the other countries. that is what president trump means when he says that if it ,eally does get to be a big war we have many more bullets than these other countries. rishaad: let's bring in our next guest. welcome to the program. wilbur ross saying they have more bullets than the u.s., but china has the nuclear option. it has all of those treasuries, and this is the deal. quite work because it is not just tariffs, there are other tools in the arsenal china has. ,here is the treasury market which you alluded to come and the potential for sanctions on indiv

this is bloomberg. ♪ >> welcome to bloomberg businessweek. kelly at bloomberg headquarters.start in london where we explore that city's future as a financial hub. backdrop of brexit. we go to south carolina where we talk to the although ceo about the new plant there. what it means for that state's economy and for volvo's chinese owner. we start with the big

this is bloomberg. ♪ . this is bloomberg. ♪ haidi: this is "bloomberg markets: asia."i lun in sydney. the business flash headlines, rupert murdoch appears to have won approval to acquire sky. it is not a done deal. comcast has submitted a 16% higher bid. authorities want fox to divest sky news if it completes the takeover. murdoch's plans to sell sky news to disney and entertainment assets, which comcast may also try to buy. bids forbhp received its shale portfolio that would value the unit at $9 billion. the offers come from bp and chevron. shell submitted a bid with blackstone in may. bhp expecting to receive $10 billion or more as bidding for the division proceeds to a second round, and $13 billion if it sells the assets piecemeal. xiaomi has added six chinese banks for its hong kong listing, expected to be the world's biggest ipo in four years. will act as global coordinators. seeking $10 billion from the ipo to be hong kong's first with a weighted voting rights structure. rishaad: standard chartered may , --ooking to add to hubs two hubs, singapore and hong kong,

coast to coast, bloomberg daybreak, bloomberg radio.s bloomberg. ♪ francine: this is "bloomberg surveillance." tom and francine from london and new york. germany's crisis over its migration policy is entering a critical phase. german chancellor angela merkel is meeting with senior members of the christian union. at issue is an ultimatum to toughen migrant policy. for more on that, let's speak with bloomberg's german government reporter from berlin. as always, thank you for joining us. how will this end? an angela merkel survive this? >> well, i think she will stick to her position definitely. she won't be able to move into the direction a lot. it will depend really on her interior minister, what he's doing next. francine: ok, but can merkel sack him, or will they have to find a compromise? arne: yes, i think if he carries through his plan, she will have to sack him. and it actually could happen today. he result of her sacking him would be that the corporation between the christian democrats and the about a varian party would probably en

this is bloomberg. ♪ ♪ francine: this is bloomberg surveillance. get straight to the bloomberg business flash in new york. bt ceo is leaving almost five years into his term at the helm of the former u.k. phone monopoly after they failed to win over investors. gavin patterson will step down and the board has stated a search to look for his replacement. they expect to have a successor in place, and he will continue until that time. china has raised $14,000 as they expand and develop new technology. the funding makes it the largest syntax firm. alibaba hase of paying service and controls a large fund as it moves from areas into consumer lending and credit scoring. their --strial in internet in their shanghai debut has failed ambitions of helping his company a merge from under apple's waiting. the stock rose by 44 percent, conferring a market value of more than $60 billion. mostompany is now the valuable tech companies listed in shanghai or shenzhen. sao tome has one the stock approval and has learned the smartphone maker has passed their hearing and s

this is bloomberg. ♪ ♪ emily: welcome back to "best of bloomberg technology." i'm emily chang.en discussing, amazon held its annual shareholders meeting in seattle on wednesday. shareholders rejected a proposal that would have required amazon to separate jeff bezo's chairman and c.e.o. roles. the meeting raised new concerns about the power of bezos and the board. directors recently adopted a policy that required women and minorities be considered for board seats. we spoke with the c.e.o. of the board list that connects women to serve on public and private boards. >> i applaud any company that takes steps in the right direction. moving toward having a more diverse board will be positive for the company. i think it sends a great signal to other companies. the hope is that others follow, but let's be honest, there is still a long way to go. this is step one. emily: amazon has three out of 10 directors are women, though they are all white, though actually it's above average when it comes to gender representation in similar industries. similar size. is it fair to pick on amazon? >>

this is bloomberg. ♪ alix: this is bloomberg daybreak. your bloomberg business flash.he trump administration has begun an investigation. learned that a criminal probe has been opened. the focus is on secondary market trades for the corporate debt of the mortgage firms. he is martian net -- unveiling his final strategic roadmap for fiat chrysler after 14 years in charge. disney is trying to break a logjam in contract talks with its union. to $15 aning the wage hour in the next three years, 836% increase. union officials have not responded. that is your bloomberg business flash. david: the u.s. fired the first shot in what could turned out -- in what could turn out to be a trade war and it is aimed at its allies. >> let me be clear. these tariffs are totally unacceptable. been50 years, canada has the u.s.'s most steadfast ally. do, will bethey encountered with a similar weighted action from mexico. mexico will keep on at the openiating table in an dialogue to try to reach a solution. >> if we were to liberalize to thethe g7, services same degree that we had liberalized g

this is bloomberg. ♪ vonnie: on the bloomberg function chief tv , kevin kelly on bloomberg intelligence been read niche have talks about the inverted yield curve and what that means with stocks. we think investors might be to te in white is the s&p 500 index. betweenis the spread the two year yield, u.s. treasuries, and what we can see cycles, that has signaled a leading indicator for a short-term top in stocks. what you will see is in an environment where the yield curve is flattening and not necessarily inverted, it provides a good htorical backdrop for what he returns. certainly watching for this indicator but at these levels, investors might be too obsessed when it comes to implications for stocks moving forward. you can see this chart and more analys i like it a lot. i kelly got into the plugs there for bloomberg intelligence. which is deserved course. mark cohen the ftse 100 is often unloved and out of favor. doht now, i thought we would a focused chart. morgan stanley says look the on the fact they are loved and out of favor and look beyond all the brexit talk. brexit uncertainty

this is bloomberg. ♪ matt: welcome back to "bloomberg markets.this is "the european open." futures are very positive. let's get the bloomberg business flash. xiaomi and investors are said to have raised $4.7 billion after the company's ipo priced at the low end. according to the source, the smartphone maker price chairs at 17 hong kong dollars each. the pricing values xiaomi at half the company's initial goal. thesche bank has failed first public stress test of its combined u.s. business. the federal reserve fault of the company's internal controls, saying there were critical deficiencies across capital planning practices. deutsche bank was the only foreign bank -- domestic or foreign bank to receive an objection. its business made investments to improve planning capabilities as well as control and infrastructure. novartis is to spin off its eye care business alcon as the company's new chief executive refocuses on prescription pharmaceuticals. the drugmaker will buy back up to $5 billion of shares using proceeds from the sale of its stake in a jo

this is bloomberg. ♪ vonnie: this is bloomberg markets.vonnie quinn and time for the bloomberg's could take -- quick take. 30 years ago, north koreans were more than twice as wealthy than the comrades in china and now they are significantly poorer and this is how it happened. >> after the end of the korean war, north korea was a virtually cashless society. everyone worked for the state and was provided for by the state. in a communist bloc history worked.t in 1989, north koreans were more than twice as wealthy as comrades in china. >> now, i think of them as a hermit kingdom and not trading much. >> william brown analyzes north korea for the cia. >> they were integrated recently well into the soviet planned system of countries. >> the loss of support from the soviet union after its collapse in 1991, and droughts and floods led to a great famine in north korea. >> the famine pretty much ended the public distribution system in which the north korean state fed everyone to the ration system. the government cannot supply food so people want stu

this is bloomberg. lines comingsome through your terminal, donald trump is said to have approved tariff on chinese goods worth $1 billion, according to people familiar with the decision. we have seen movement in the past few hours, with sarah huckabee sanders saying they have made decisions on trade to announce these tariffs. perhaps we are hearing this is a more refined tariff list that focuses more on technologies where china wants to establish itself as a leader. no date has been set so far. let's bring in our bloomberg tech editor from d.c. tell us more about this trump tariff hit list, and what they are targeting this time around. >> it follows largely along the lines what they announced before, about 300 products with $350 billion into the u.s. the focus is on area and industry, and technology, where china said it wants to become a world leader by 2025. they are trying to hit at areas where china feels like it is getting a competitive edge. this goes to the question that trump has been hammering c

this is bloomberg. let's have a look at the chinese currency, weakness continues, but are we getting to the stage where we have consolidation? blog is suggesting that. >> we have the yuan above that support level. monthou look at one implied volatility for the offshore rate, that is spiking and suggesting traders have been caught out by depreciation. this feeding the debate on whether china is weaponize in the currency. depreciated 3% this month against the dollar, but sean taylor at deutsche asset management says this move may look big, but when you look at the year to date loss come at that has not been as sharp as it could be given the currency has held up well compared to other currencies. haidi: thank you for that. we will get more on the yuan. joining us now is the cohead of asia rates and fx strategy at bank of america merrill lynch. i want to look at this price action and dollar-yuan in one week alone. which is less dramatic when you look at offshore yuan. the biggest decline since the 2015 deva

this is bloomberg. ♪ david: with this bloomberg arkets asia. $100 billion now. the photo sharing platform reached 1 billion among the active viewers this month and it is expected to double in the next five years. they are under attractive to advertisers. therapy nikkei news says the application may be handed in as soon as july and will start trading by year end. they said the listing will raise capital. sources told bloomberg that the i.p.o. could raise more than $19 billion. david: a new c.e.o. has blasted fuji film's efforts to start merging talks calling them delusional. obviously the fight is getting ugly. what does each excite actually want? >> like you said, the fight is getting very public. very ugly between fuji film and xerox. in a response to fuji film's lawsuit that was filed last week, what both sights want now, everyone wonders what will happen to xerox. fuji said their offer is the best option for both parties. xerox is under the control of shareholders and they are insisting they can get better value for their money and want to s

this is bloomberg.uro is spiking rights now on the back of comments b's chieft of the ec economist in berlin. he is talking about the asset purchase program. bloomberg talked about how the meeting on june 14 in latvia could discuss ending that program. the gap is something we will talk about. on ending this program ultimately hinges on inflation expectations. has a single mandate, and that is inflation. also, he is saying market expectations have wane you can have ve getting -- waned. you can see the move getting as a resulof the single currency. takingne meeting is place in luck to you, which is interesting in it self -- in la tvia, interesting in it self. -- itself. will bring you the details of what the chief economist is a saying. this is also available on live go. >> you have active monetary policy to lean against the consequences of the financial shock worldwide, not only in europe. forget about monetary policy. -- the we disentangle secular trends long-term it? i am sure all of you are aware? i d

this is bloomberg. ♪ bloomberg. ♪ amanda: this is bloomberg markets, i'm amanda lang in toronto.n newi'm shery york. time now for a look at some of the news right now. paging dr. amazon. the e-commerce giants dive into health care did a number on stocks today. retail shares sag after amazon announced it would buy pill pass for $1 billion, with law greens -- walgreens leading the plunge. points fromopped 40 the index, the most of any company. visa and mastercard are closing in on a settlement for a 13 year lawsuit. bloomberg has learned that both card companies will pay merchants about $6.5 billion under the terms of the settlement. the lawsuit was filed on behalf of 12 million merchants nationwide. if federal court rejected a $5.7 billion settlement back in 2016. and that is your business flash update. and we have been bringing you this programming note that ray dalio will be on bloomberg television at the top of the hour, 2:00 p.m. eastern new york time. it is a live interview with our own erik schatzker at the ideas festival. and just a reminder, bloomberg users can interact wi

this is bloomberg. ♪ this is bloomberg. ♪ ♪ shery: this is "bloomberg markets."hn in new york. amanda: i'm amanda lang in toronto. growthlankfein says the and populism around the world can be traced back to tensions and immigration. the goldman sachs ceo and chair spoke with bloomberg's editor in chief john mickelthwait earlier today at the economic club of new york. we are seeing this in the united states on our southern horribleere obviously, tragic situations, but it is an immigration issue that splits the immigration debate has split the country. more realistically, in europe, and more dramatically and consequentially in the near term, immigration issue in the where magnanimously, germany admitted a couple of million people, but hard cases make bad law. of course, with open borders in europe. theit is a direct link to consequences to the immigration crisis. you are talking about a soft brexit. if you get into a soft brexit the people are speaking of, the only thing britain will have accomplished in brexit's immigration -- is immigration. you see what is going

paul allen, bloomberg news, sydney.p, we sit down with the ceo of africa's biggest company that made the best tech investment in history. their ceo joins us to talk about backing tencent next. this is bloomberg. ♪ ♪ emily: leslie, africa's biggest -- last week, africa's biggest company by market cap reported a 72% increase in earnings. they credited advertising and e-commerce for this boost, and happens to be one of the biggest tech investors in the world, and has long relied on its 31% stake in the chinese tech giant tencent to accelerate growth. but its investments in online companies are starting to bear fruit. folded 2% stake in tencent and then netted another 1.6 billion dollar profit from the sale of a stake in the indian e-commerce startup in may. bob van dijk joins us to discuss. bob: the main reason why we freed up more capital is really driven by opportunity. we have been focusing, building our e-commerce business in classified and online for delivery. and we are getting to some scale. we realized there is so

this is bloomberg. ♪ is bloomberg. ♪ francine: this is "bloomberg surveillance."nation bloomberg surveillance. tom is in new york. we have a lot of news. you look at the new governments in spain and italy, and then we go on to the u.s. and tariff tensions ahead of the u.s. jobs report. on, buthave a lot going front and center is the tariffs. a lot has been written on this. they affect spain is there new prime minister is selected, mr. sanchez. in my right to say more socialist than rajoy? is that a safe, dumb american statement? francine: that is a safe statement. you have to look at the smaller parties that are not in government and did not support mr. sanchez. they gave a no-confidence vote, but the money question is whether this government can hold for more than five to six months? a similar question for italy. tom: good. there have been a lot of voices over the last 24 hours, one of them is the president of the st. louis federal reserve. here he is with catherine hayes. >> i'm not sure that gdp growth by itself is going to indicate inflation is going to move u