emma chandra has more news. cing it launched its first intercontinental ballistic missile. russia and china what both sides to dial it back. they propose that kim jong un's to scale back on tests. thatturn, they propose south korea and the u.s. should pull back on joint defensive drills. -- says that qatar has funded terrorism and is too close to iran. in the u.k., the chancellor of exchequer says the government must hold its nerve and hold public spending under control. but one minister of his party told parliament that there is active discussion. alliance willthe hold an unofficial vote. antigovernment protests have been going on for months, and they have now spread into the poorer neighborhoods of caracas. isnwhile, president maduro preparing for a constitutional convention that critics they will give him more power. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. mark: thanks. china's president is meeting with a f

vonnie: let's check in on the bloomberg first word news with emma chandra. emma: according to the new bloomberg national poll, americans feel good about the economy but not so good about president trump. 58% of those surveyed say they are close to realizing that 55% of americans v view the president unfavorably. vote mcconnell has set a on the controversial republican health care bill on hold because john mccain is recovering from unexpected surgery. the second round of brexit talks began today in brussels. brussels secretary david davis is pushing for progress on the rights of citizens living in each other's nations. citizens rights is one of the three issues where there must be progress. moscow is demanding that the u.s. returned the russian embassy's country houses outside washington and new york. obama administration sees the houses at the end of the year in retaliation for election hacking. russia hopes to resolve the disputed talks today -- the dispute in talks today in washington. global news 24 hours a day, powered by more than 2600 journalists and an

i am emma chandra. this is bloomberg. vonnie: thank you..m. eastern time today, the june meeting will be published. investors will keep an eye on signs regarding balance sheet reductions and looking for clues on whether more fed officials were concerned about low inflation. joining us from newport beach, is pimco's chief investment officer of global credit and manager of the pimco investment grade corporate bond fund, the number one u.s. bond fund over the past 12 months. how did you do it? how did you statement number one bond fund at a time when everyone is waiting for some major capitulation? >> i think it is the benefit of pimco's investment process. we are looking out three years to five years. we have a the picture and enormous team of 240 portfolio managers and 55 analysts. talking specifics. what were the winning trades? we have been positive on housing for the last five years, and the fund has been overweight. investments -- weighted investments and we are favoring consumer sectors. also, we bought energy at the lows in the first q

we will be talking more about that, but we start more with headlines with emma chandra. e russian lawyer who met donald trump junior during the 20 campaign has represented a military unit operated by russia's intelligence agency. that's according to court filings obtained by the associated press. president trump's eldest son, son-in-law, and campaign manager met with her in june 2016, after trump jr. was told she could provide potentially incriminating and bit -- information about hillary clinton. it's official, the u.s. government is now banning citizens from traveling to north korea. it comes after the death of auto warmbier. -- otto he was in a coma when he was flown back to the u.s., where he later died. will accept the transmit of citizens after brexit. that will be a shift in tone from prime minister theresa may, who has made regaining control over immigration policy a key part of her brexit approach. hassaudi arabia's king stripped the interior ministry of its authority over the kingdom security agency. those powers have been transferred to a newly created body ove

i am emma chandra. a former u.s. ssador to germany and this is bloomberg. ♪ emma: this is daybreak with your business lash. we may be getting an early look at how president trump's justice department will look at the global banks. the two sides have said to be far apart but so far trump administration appointees have yet to weigh in. all of all those new cars will have an electric motor -- all of volvo's new cars will have an electric motor which is a set the wishes of customers. airbus saturday will sign a deal with a chinese company -- airbus said they will sign a deal with a chinese company. that is your bloomberg business flash. afternoon, we will focus on the fed as the minutes of the fomc june meeting will be released. one thing they had to say about recent weak inflation readings was dropped below the 2% goal. the u.s. department of commerce slowed as the chart shows. with us now is max. welcome. we talk about what the fed will be talking about inflation, they keep saying they are looking through the numbers, h

let's check with emma chandra. te republicans are still trying to deliver on the promise of repealing obamacare. rejected a plan that was has scrapped the major parts of the affordable care act. critics say the measure would have left millions of people without health insurance. we will have more on that in a moment. meanwhile, president trump's chief judges, steve bannon, once to make middle-class tax cuts. dan and would have -- steve bannon would have had -- that would be the highest level. it is not clear if president trump would support the move. ,hite house communication anthony scaramucci, is suggesting that -- apart of a leak. scaramucci is unhappy that his financial disclosure form will leak. that theother sign economy is keeping up with its momentum. industrial profits rose more than 19% in june from a year ago. helping chinese companies deal with a heavy debt load. news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. vonnie

i'm emma chandra. this is bloomberg. emma.arted out the year with high hopes about what a new administration could mean for investors. as those hopes diminished over the next few months, the question now is, could a turnaround? return to kevin cirilli now. anything coming out of washington in the next six months that will make a difference in the markets? >> maybe health care reform. congress 57 days for to remain in session after they get back next week. everyone wants to know whether the senate will be able to reach a health care deal once they return. they're all home for fourth of july recess. they will be facing pressure. cruz, very conservative, he is up for reelection in 2018. he has been emerging over the past week and several days as someone who is bringing the these through negotiations with the senate majority leader. he wants to expand's help -- expand health savings accounts. you have this huge amount of money that they have to play around with on things like opioid addiction funding and planned parenthood. whethe

here is emma chandra. nggal team headlines. according to the "washington post," some of his legal team is trying to undercut special -- special counsel robert mueller. a spokesperson for the president's legal team has designed. the u.s. will ban citizens from traveling to north korea in the wake of the death of an american student who had been imprisoned there. otto warmbier was in a coma when he was released and flown back to the u.s. and up for discussion in st. withsburg, opec is meeting russia. oil is in a bear market. inventories are still high. there is little chance they will come up with a more aggressive stance. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. alix: those opec headlines will kill my weekend. jonathan: spend the whole weekend reading opec research. alix: a little bit. [laughter] two washington correspondent kevin cirilli, who is with us. tell us where we are with the mueller investigation.

i'm emma chandra. mark: thank you.amework for dealing with struggling brinks coming into focus, pouring into 7 billion euros into two struggling lenders. this is monte dei paschi. joining us from rome with an exclusive look is giovanni sabatini. he is the chairman of the european banking federation. thank you for joining us. it is been a week or so since the unwind of those two banks. what is your assessment of the deal? giovanni: good afternoon, mark. deal of all, i think the that the italian government was able to reach with the european institution after the -- is marking the a turning point for the entire italian banking sector. coupledrly liquidation with the green light on the paschiion of the monte will remove the dark clouds hanging over the horizon of the italian banking sector, as it has been a clearly -- as it has been grilli demonstrated by bullish reaction of americans in the recent days. italian banking index is up more than 2.5%. i think this is an important agreement, which is within the new rules. also

i'm emma chandra. this is bloomberg. coming up, oil on the rise ahead of key u.s.nventories data which is due in less than 30 minutes. futures in focus is next. this is bloomberg. ♪ vonnie: i'm vonnie quinn. nejra: i'm nejra cehic. this is bloomberg markets. focus.r futures in oil gaining a little ahead of key u.s. inventory data. joining us from the cea is phil streible. if high could we see oil go we see the drop in inventory? 3.5 million like a barrel drop as well as gasoline we could see the push through about $47.5. wouldllar trend significantly weaken and we could see a blowout to the $50 range. the trench traders will most likely flip on their short position they have had weighed in by the large inventory we have seen. the massive glut of about 25% above the five-year average. back upres could push to $50. the brakes will be put on around there. in the session probably one dollar or $1.5 will be the range. a bowl party started back to the upside if we start to see positive data come back out. nejra: we are seeing oil show these games. still not hitting 95. >

here is emma chandra.ea may be one step closer towards its goal of building a missile with a nuclear warhead that can hit the u.s. for the firstaims time it has successfully launched in intercontinental ballistic missile. the president tweeted that perhaps china would end this nonsense. russian president vladimir putin is meeting with chinese president xi jinping. china, trade between russia and china rose 33% the first five months of the year. in the u.k., that chancellor of the exchequer says the government must hold its nerve and key public spending under control. not all members of his party agree. in sweden, inflation has prompted the central bank to remove the potential of another interest rate cut. they will remain at their current level until the middle of next year. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. francine: thank you. onto your markets. seeing a selloff in risky assets. it seems that th

vonnie: emma chandra is here with more. official government says jeff sessions does not plan to quit, despite criticism from president trump. the president tells the new york times he never would have appointed jeff sessions if he knew he would recruit -- he would recuse himself from the russian investigation. a newss is holding conference now on cybercrime. president trump accused robert mueller of running an office in the conflict of interest. the senate may take another shot at getting a health care bill passed. president trump urged republicans to stay in washington until the repealed obamacare. they met last night with white house officials. mitch mcconnell still wants to hold a procedural vote on a health bill next week. senator john mccain and his family are reviewing treatment options after he was diagnosed with brain cancer. doctors make the discovery while the moving a blood clot above his left eye. candidateresidential and spent more than five years in a prison camp after being shot down during the vietnam war. i

i'm emma chandra.omberg. >> thank you so much, emma. we are the middle of earnings season. will sentiment wind up evaluating valuations. revision for the s&p and we have seen the biggest jump in those earnings revisions since 2014. you can see that they jump you are so far. despite the fact that we are record high on equities. andrew garthwaite is with us and he has a target of 2600 and just raised his urine forecast -- his forecast. do you see that backing up sentiment? >> broadly speaking, yes. that is been close to a five-year high. modestly rolling over, against the year on year change in the s&p. that has had a good fit going back nearly 20 years. if the s&p is flat from here it is implicitly assuming a large rollover in earnings. we don't see that degree of rollover. nearly 9% ofsting earnings growth this year. eight and a half next year. it is slightly below consensus for next year. 3.5 percent for low consensus. the normal rate is 7.5% over a calendar year. geters can sometimes confused with th

i am emma chandra. this is bloomberg. company conference known as the billionaires conference is underway in sun valley, idaho. some big deals have come together from there and that is where david gore is there with a special guest. david? >> i am here with the ceo of .ath, former ceo of aol it is great to have you with us. let me ask you where things stand. the deal has been finalized. you have been traveling a lot. what does that look like and where do you see it headed? >> good to see you out here. oath is 50 brands, it has a billion consumers that use those properties. it ranges from yahoo! to aol to help post, plus our ad systems. we touch about a billion unique -- every 24 hours. site a significant internet global company. the deal closed a few weeks ago and we have been bringing those assets together underneath of. -- underneath oath. it is a be-be holding company. we are focused on these three simple things. one is built pranced -- build brands people love, build platforms are companies love, so if you look at the

before we go to break, let's get the first word news from emma chandra. >> some breaking news this hourtrump has hired a new communications director. press secretary sean spicer resigned in protest over scare emoji's hiring. arramuchi's hiring. from bloomberg, this is -- from new york, this is bloomberg. ♪ jonathan: from new york, i'm jonathan ferro. this is bloomberg real yield. i want you had to the auction block, where there is not much action anywhere. starting in greece, the return to the bond markets postponed. a lifeline may be available as to theds bought said yes bailout in principle. and korea halting its $200 million sellout. finallyld investors getting the upper hand of the years of central bank have been buying and pushing back against these issues. states, this auction absolutely flopped. offering $40 billion for the lowest amount of nine years. others, they apparently seemed to do not once. our guests.s, lack oft's start with a volatility that we have seen, the lack of action, the lack of issuance we have seen. what do you make of it? it is a really -- mike: a really good

i'm emma chandra. this is bloomberg. alix: its china versus u.s. on trade.mnuchin said yesterday an event organized by the u.s. china business council reiterating the u.s. still has work to do with china to achieve a balanced relationship. foreign china to lift ownership restrictions. wilbur ross also emphasized there remain serious imbalances which we must work to rectify with china. here to take us through what to expect is michael mckee. those serious imbalances, i've got a chart and that's the u.s. china trade balance. going to playat's out in discussions today. >> this meeting might be the only thing standing between the u.s. and trade war. donald trump treat the office to whack the chinese with tariffs over that trade imbalance. he and the president got along anwell, they put in place action plan that did produce some results. the chinese are buying u.s. beef. those talks have stalled. that they are putting together a one year action plan including u.s. being able to sell securities in china. it won't be easy. and wilbur ross sat down with the chinese

emma chandra is here. emma: in hamburg, protests resume before the start of the g-20 summit.ed water cannons to clear the block streets -- blocked streets. melania trump was unable to leave the play she was staying for security reasons. meanwhile, trump is being urged to get tough with vladimir putin when they meet later today. yesterday, trump said it could be russia's move metal, but it could be others -- it could be rashad that -- russia that meddled, but it could be others. suspectia is the chief of a nuclear facility. this could eventually disrupt the u.s. powered it -- power supply. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am emma chandra. alix: love that slow-mo handshake. david: not sure who won. jonathan: that is a major obsession. alix: remember the macron one? jonathan: if that is the biggest take away from the g-7, i hope that is not the take away from the g-20. economists are forecasting 170,000 jobs added for this month. average hourly earnings are to 2% from last year. here to break it down, ji

julia: former european trade commissioner peter mandelson speaking with emma chandra there.options how to trade a visa, which reports earnings after the close . it is on pace to close at record highs ahead of earnings tonight. from new york, this is bloomberg. ♪ julia: this is "bloomberg markets." i am julia chatterley. scarlet: i'm scarlet fu. time for "options inside" with julie hyman. julie: joining me is the chief strategist for interactive brokers. we are watching earnings a lot, even though there is no volatility on the surface, there is a lot of individual stock volatility surrounding earnings. you have come in with a sort of education strategy for how to play earnings. you use a visa as an example in this particular case. what can you do when you are looking ahead to earnings? >> sure. well, the example i gave today is money options ahead of visa tonight. it is very pure option pricing example, because there is no timeframe and nothing else affecting it, and it is nice that the numbers are working out easily because everything translatable into percentages. the trade

i am emma chandra. this is bloomberg.: the veterans administration provides comprehensive health care for military veterans, employing some 380,000 people and spending billions of dollars to do it. improving the va is one of trump's top priorities and we are joined by the man he asked to get it done, and before coming to the va, he ran the moorestown medical center in new jersey. welcome to bloomberg. good to have you. you have a big task, and you have it undertaken. give us a sense of what you believe you need to, set the va. >> first, we have to get it right for our veterans. there is no doubt the country has a responsibility to those who defend us and i feel strongly that we have to do better than we have been doing. we are modernizing the system and in every way possible, we are getting veterans more choice, updating our system, so they are better tools, and we are making sure we can back the trust of our veterans. david: give us a sense of deliverables you want to get done. >> we are making it easier to get care in t

i'm emma chandra.nalysts on netflix earnings. ♪ >> the story in the markets is a flatter yield curve. bank of america and goldman sachs taking a hit. weaker net interest margins and net income. .hick trading down that was pretty brutal for goldman. a different story for netflix. they crushed it after the bill. -- after the bell yesterday. -- 4.1 4 million subscribers added. it came at a cost but look at that. up 10% in premarket. we joined now by paul sweeney. here,with us is that he they increased their subscribers. give us the sense to where they came out where you thought they were going to be? >> for the u.s. and internationally, they crushed straight estimates and their own forecasts from a quarter ago. clearly investors continue to focus on subscribers. even though the company says it is time to pivot and look at the profitability of the u.s. business and the international business, investors continue to focus on subscribers. particularly internationally. that is where the next growth will come.

emma chandra is here. >> senate republicans have promised to repeal obamacare for seven years and theiratest attempt has fallen apart in a dramatic early morning boat. john joined senate republicans and all the democrats in the stripped down plan to overhaul the affordable care act. >> this is a disappointment. the disappointment in the two. our friends in the house we think them as well. i regret that our efforts were .imply not enough >> mitch mcconnell has pulled the bill from the floor and has said it is time to move on. the u.s. has been ordered to reduce the number of diplomatic and other personnel in the country. the news agency says hundreds of u.s. personnel will have to leave. the foreign ministry says that relations between the countries have become hostage to the political battle in the u.s.. i public feud between white house officials has turned toxic. anthony scaramucci has tagged rivals percent steve bannon. he called reince priebus a paranoid schizophrenic and said that steve bannon seeks media attention at the president's expense. the prime minister has does -- has resi

mark: emma chandra take it away. e a day full of gdp we,ank earnings and but i think we have all buried the lead. prices are popping, which means you may have to raid your piggy bank to get that same sandwich. this is g #btv 3631. the yellow line shows heart features for this. particular commodity. prices are up around 80% this year. frozen reserves are at a 60 year low. what does this all mean for that breakfast sandwich i was just talking about? let me at you to the bacon egg and cheese index. that exists. it is not quite as high yet as hard prices, but expect to see that white wine turn up very soon. the retail price of bacon tends to trail that of the wholesale price. what does this all mean for the u.s. economy? that is the question. the question is to the shortage of bacon finally provide that boost to inflation that janet yellen has been looking for? it is g #btv 3631. oliver: i don't stand a chance. vonnie: you can't put a price on sizzling bacon, emma. [laughter] oliver: let me just say i don't stand a chance

i am emma chandra. this is bloomberg. .hank you for that andie: opec will meet russian a few days, futures in focus next. this is bloomberg. ♪ nejra: live from new york and london vonnie: this is bloomberg markets. julie hyman is here to give us an update as we are 46 into this 46 minutes into training. julie: we have our technical issues resolved. all three major indices are selling off. it's about earnings today. general electric is leading the declines among the companies reporting earnings. it's one of the largest companies out with earnings. they are likely to end of the year near the bottom and of the companies predicted range because of its oil and gas business largely. the shares are now down over two about five .5%. it is the worst reaction to an earnings report we have seen since the third quarter of 2010. on the conference call that the resource market remains challenging and so the company is looking to potentially address that. oil and gasthe market probably remains challenging. we are also

i'm emma chandra. this is bloomberg. jonathan: thank you.anking, hsbc touching a third high. the turnaround plan may finally be gaining momentum. joining us now is stephen morris, six years into a turning around plan, and now we get the fruits maybe? >> the latest of buybacks of $2 billion takes its as bc up to .5 in the past year. they are seeing a lot of capital filled up there and they are starting to get some back. i think shares are probably rising on the commentary, the ceo and cfo there will be more to come, we disney to find out more about future regulations and more global issues before we can set a dollar amount for you. londonn: those in pointing out this morning that -- may be right in water tomorrow. the amount of spending they might have to do over the coming decade, is it a right approach to be doing these kind of buybacks? is they aregument not spending extra capital out there. they are just using organic growth as rates rise around the world, their balance sheets will arise much more than others. as an example of the cost yo

we can cross over to emma chandra.licans are -- they may ultimately lead to a bill, plus a few other provisions. congress has struck a deal to limit president trump's power to limit sanctions against russia. chiefhouse medications tells cnn the president may sign the bill or he may veto it. british regulators and banks will try to replace it with a more reliable system. dayal news, 24 hours a powered by more than 2700 journalists. this is bloomberg. up, kerry simpson will be joining us. is for the same stocks. this is bloomberg. >> this is bloomberg daybreak. coming up later, an interview --h southwest hermann southwest chairman and ceo. now, your bloomberg business flash. lows has taken a $3.5 billion stake in nestle. -- a new drug combination slowing the growth and mobile facebook.ing sales at 45%. jumped by that is your bloomberg business flash. >> for more on facebook we are joined -- what jumped out at me, this book has a mobile monopoly. >> does that become a problem with facebook in the end? everybodyn't because

am emma chandra vonnie: thank you. breaking news, president trump's highly anticipated meeting with vladimir putin is now underway in hamburg. ahead of that, president trump he looks forward -- says he looks for the positive things happening with both countries and president putin saying he hopes the meeting succeeds. we will meet with alexander vershbow now. ambassador, how much sincerity do you expect from the two leaders behind closed doors? >> i hope that they will be frank with one another, but especially i hope that president trump is clear that most of the responsibility for the breakdown in relations lies with russian misbehavior, especially aggression against ukraine, the annexation of crimea, their reckless approach to their intervention in syria. so there is a lot to talk about, but first we have to see if donald trump states those issues upfront. vonnie: and we cannot forget that the secretaries of state our meeting as well. how much will the meeting be about repairing relations and moving forward? and how

i am emma chandra. this is bloomberg. vonnie: thank you. hiring has lied in recent months. u.s. seems to be growing at the same pace as it has the past few years. we are able to produce as much as we did but with you are workers. on that ease of the june employment report, michael mckee joins us from cambridge, massachusetts, with more on what people are calling the skill gap. pollsters tell us donald trump got an electoral booster unemployed blue-collar workers. he promised to bring back the jobs they lost a foreign competition. data tells us to have a legitimate complaint. take a look at this chart g #btv 849, those with less than a college degree suffered more during the recession and have recovered last. will they get what trump promised? no.experts say it isn't foreign competition killing factory jobs, it is the machine. we are at m.i.t., where in economics professor recently completed a study on the effects of automation. ,e found that for every robot up to six humans lose their jobs and wages fall by up 2.75 of 1% -- up to .75 of 1%. he said we do have a skill gap. >> yes

here is emma chandra. emma: trump and the first lady are headed back to the u.s.astille day in paris, which marks 100 years since the u.s. answered world war i. mcconnell., mitch latest health care bill is almost certainly headed to another rewrite. appease aeeds to handful of republican moderates worried about medicaid cuts. 's" from has drawn 2 "no senate republicans. two israeli police officers have been killed and a third wounded after an attack. the attack took place near a sacred site in jerusalem, revered by both jews and muslims. the gunman was shot and killed. the british government has conceded it will have to pay a bill to leave the european union. david davis referred to financial settlement in a statement to parliament. is -- t bill global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm emma chandra. alix: thank you. week, laura efron will be joining us next week. jonathan: here is the market action for you. reaction to economic data in the united states. the real story will be the price action e

i'm emma chandra. this is bloomberg. mark?ark: coming up, biggest monthly gains since february, the dollar slumps, bolstering demand, futures in focus is next. this is bloomberg. ♪ ♪ york andive from new london, i'm vonnie quinn. mark: and i'm mark barton. "bloomberg markets" this is on bloomberg television. dull heading for its best month, retracting funds back into the metal. joining us is allen, chief market strategist. best since february. we tested 1300 a couple of times. will it be third time lucky? allen: third time a charm, that is the saying i think. there is always price shock potential and we are talking about the gold market. we tried to get that -- you try to get that important level, 1300. what is impressive business recovery, this rally for the last three weeks to bring us back to this 1275 level. a big reversal and i think the dollar will continue to go lower issues the potential geopolitically will make gold a good trade at this level spread fast at these levels. mark: a month decline. a double-edged question.

here's emma chandra. -- russian lawyer. of americans pay higher gas taxes to fix crumbling roads and bridges. today, -- business executives offer their views. chama, -- emma chandra, this is bloomberg. spoke in a message saying the following. we will try to minimize disruption, but inevitably, roles will need to be removed. we are down by about 2/10 of 1%. zurich to help break the story. we havethrough of what seen and did not know yesterday. >> it is a straightforward story. deutsche bank ceo was addressing employees. we are familiar with the content of that that the bank should get ready for brexit and the bank cannot wait until the final negotiation has been done with regards to brexit. this is a deal we don't know. this is why we need to prepare for a hard brexit. this includes establishing new jobs and also moving from london which is a big entities for deutsche bank. >> a lot of people who watch the story would have sat there and -- ght this is a ceo walk me third about what the others are saying and perhaps why frank

i'm emma chandra, this is bloomberg.-the european central bank it is kind of like the fed without detail. don't through it, just to give you some of the headlines, the governor is an agreement the current study is inappropriate. the not to overestimate impact of editorial cycles. some tightening to be expected. essentially is unchanged. if thebe reviewed outlook improved, but that line in the concern around the small medications changes could be misperceived. >> joining us now -- great to have you on the program. -- >> every central banker in the world is fearful of repeating the episode four 2013. i think that is influencing the with markets now. >> some of the core central banks have been boosted in italy. >> i think the relevant point month, we the last have heard from for central banks. joined thes have central banks talking about the of level. after multiple years following aggressivelyery using monetary policy to support economic demand, the fed started bitie look back and little and everyone else was still pursuin

manziel that was kevin ll speaking with emma chandra.ia: the bloomberg business kerleythe city's mental: -- will voluntarily recall visa cards. they reassure owners concerns by aboutring the government emissions. the recall is going to cost $255 million. investors are switching out hedge funds inequities in favor of real estate. of their portfolios were invested in real estate at the end of the second quarter driven by poor returns and geopolitical risks. hedge funds fell to an all-time low of 4%. credit suisse will hire more relationship managers and saudi and the recruitment push comes after credit suisse created a platform to offer private banking and other related products to the saudi's. enlist theledged to private sector is it diversifies the economy away from oil. business flash update. still ahead, bank stocks suffering in spite of reporting better than estimated earnings. we dig into the numbers, next. from washington, this is bloomberg. ♪ . . so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪

i am end much under a desk i am emma chandra. this is bloomberg. jonathan: that was the child friendly version of the scaramucci rant. mccain voted against the measure that the cbo estimated would lead to 16 more million by 2026 and mitch mcconnell says it is time to move on. mitch mcconnell: this is a disappointment. . disappointment indeed our friends in the house, we thank them. i regret that our efforts were simply not enough. >> joining us from washington is our executive editor craig gordon. how do they move on? >> they move onto other things, not health care. there is a defense bill coming up and tax reform on the horizon in the fall. a is hard to overstate what crushing defeat this is for mitch mcconnell, donald trump the republican effort to repeal obamacare. they thought they could get 50 votes and at the end of john mccain said it is not good enough and it puts a stake in the effort for some time. >> in terms of the democrats, they want to still talk about health care and a bipartisan conversation, is that next or is it sidetable? a seri