i think larry kudlow will help alleviate a lot of the concerns. of course selling information or services into, but you have to go to the commerce department in order to get that license in as long as it's not national security, that will alleviate some concerns. but the president gave up a lot undoing them but i think overall the market will appreciate what is going on here and i do think the president is moving in the rejection. integrate combination with the progress with china. if you're openly going to get adela north korea it's going to have to involve the chinese. they're going to have to be involved in that decision print. >> the deal to lift at least part of the band on selling goods to the chinese telecom huawei, huge giant telecommunication company in the chinese very upset when they banned all sales of u.s. technology to them. that apparently was the price that the president had to pay to get the chinese to resume the talks. too high of a price? >> maybe. when she open the door it is hard to closer. there is a very fine line even the t

larry kudlow said thatjerome powell's job was safe at the moment.disputes with several asian countries, not the least china, have been a major focus for investors. earlier, the charge d'affaires of the us affairs in singapore, tommy washington intent on developing economic cooperation in the region. —— told me that washington was intent. we have a long-standing commitment to this part of the world. the us is the largest investor in asean, more than we do . —— in the .—— in the rest of . —— in the rest of asia. we have been here for over two centuries and we are committed to this region. with the free and open indo pacific strategy that this administration has developed it has an economic and business component. but many investors are confused about the economic pivot of president trump. he talks about trade imbalance and 110w he talks about trade imbalance and now you continue to have this trade dispute with china and japan and india. what is really the focus of president trump? the purpose of this is that we want to work with our allies, our partne

gerry: larry kudlow is my guest. larry, i've known you for a while.to be -- $22 trillion total federal debt, trillion dollar debt as far as the eye can see.have you had an epiphany? >> actually, at the risk of pushing back slightly, i've always been a spending hawk. limited government hawk. i've never felt the deficits were the issue. i think if you want to get rid of deficits, which is a noble cause, you need to grow the economy rapidly and try to limit the scope of government it is sort of been my philosophy in general. >> you going economy you sing earlier at a reasonable pace in last two years. the deficit keeps going up. it is not using and that the deficit or the debt is it? >> left, revenues are coming in, i'm looking forward to more. i like what i see in the economy and nominal gdp and so forth. in terms of the budget deal i think is what you're driving at, so our estimates are about 4 and a half percent. the deficit in scherie and 20 would be about four and half percent gdp. everybody likes to see it lower. i would like to see less spending,

speaking of the gdp and fed, we'll talk to larry kudlow in the next hour. ot miss what larry has to say about all of this. futures continue to look pretty good impressive gap up expected for both twitter and starbucks more "squawk on the street" from the nyse straight ahead. fifty years ago, humanity went to a place it had never been. a place without rivals, hostilities, or cultural differences. "the eagle has landed" that place wasn't 240,000 miles away, "one small step for man" for a few moments, it was right here at home, "one giant leap for mankind" over 4,000 people from ibm helped apollo 11 get us there, today, we are ready to take the next giant leap, wherever it may lead. is it to carry cargo...he or to carry on a legacy?? its show of strength... or its sign of intelligence? in crossing harsh terrain... or breaking new ground? this is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedes-benz summer event, going on now. lease the gla 250 suv for just $329 a month at the mercedes-benz summer event. mercedes-benz

larry kudlow >> when we come back, it is larry kudlow time. he will be live. h the national economic council director coming up in just a few minutes. from cnbc's capital exchange event in washington, d.c., all of kudlow's latest thoughts on d , rks d e fsmaetanth feafter a quick break. "squawk box" will be right back. . >>> we were waiting comments in a few minutes from director larry kudlow he'll join kelly evans at the capital exchange event in washington, d.c. we'll bring you live coverage when the conversation begins you're taking a live look at the stage. ahead of that joined by two guests to talk about the state of the economy and what to expect when fed chair jay powell testifies before congress this week and more, seth hanlon, a senior fellow for the center of american progress and alex is a fellow at the american enterprise institute seth, start off with you, trump's attacks on the fed, they are corrosive in what way? i mean, larry kudlow has come out and said the fed will do what the fed is going to do. the president has his opinion. how is this corr

joe: that was bloomberg's jonathan ferro speaking with larry kudlow earlier today.oining us for more on today's jobs report, martha gimble, research director at the indeed hiring lab, and international team of economists. martha, thank you for joining us. your take.rious larry kudlow doesn't believe the phillips curve relationship exists between unemployment and wages. it feels like a lot of economists are coming around to that view. when you look at the data out there including today's wage numbers, is there a case that it is just not that simple? martha: i think there's been a lot of discussion about the phillips curve over the last two years and in some ways it is a similar story. we've had so much room to grow. we are still waiting for wage growth to pick up again. we saw a lot of fiscal stimulus last year and that helped accelerate wages. we are seeing that starting to be withdrawn and that wages are starting to hold steady. romaine: do we need to see that wage growth completely across the spectrum? if you go into some of the ,ndustries that have lagged those i

navarro has been on the opposite side of larry kudlow and steve mnuchin on questions of trade.e pointed out, it is really quite remarkable that in the white house there was a discussion of maneuvering let's say to use a less loaded word. maneuvering the value of the dollar lower certainly runs contrary to what has typically been american policy but with a wink >> so starting but not ending. so look for more rhetoric about possibly pursuing this depending on how the fed meeting next week goes. >> and larry kudlow pointing out that what the president really objects to is other countries that they themselves may be manipulating their currencies. >> and we might pursue measures there. thanks for watching "power lunch. >> "closing bell" starts right now. >>> welcome to "closing bell." i'm michael santoli. i'm here at the coca-cola post coke actually the best performer in the dow today and for this week broader mpicture is more mixed. s&p 500 and nasdaq both on track for all-time record highs as we get into the final hour of trading. we'll break it all down. >> and i'm sara eisen. le

favor of the fed's independence if you don't have it - >> i see >> but can i just say, if you know larry kudlow, and you know his supply side background >> and we do >> yes,io do i think the context here is the way larry views this economy right now is it's kind of like the 1990s where you had this sort of beginning of an economic boom, beginning a productivity growth, and greenspan saw, other people didn't see, and he let this economy run and didn't raise rates. i think that's where larry kind of thinks we are right now, which is why he thinks powell shouldn't be raising rates >> steve, he said that they should look at the inflation numbers, not the growth of the economy right now. if you're jerome powell, what are you thinking right now as you get ready to testify to congress tomorrow and thursday, and have that meeting later this month with all of this discussion going on around us? >> well, isn't it ironic that six months ago, they were raising rates. now we're talking about cutting them, and the conference board projects we should have a couple rate cuts here as the economy -- as the growt

john you heard my interview with larry kudlow. what do you think? i think the first part of your interview, david, had to do with china and i think larry was talking around the issue of tariffs and what the deal might be but in the middle of all this i think is something very, very important. i think trump made an important concession on huawei. it looks like a throwaway. we think that is actually much more important than people realize. it is the thing that will restart the negotiations. from our point of view, i think actually contrary to what i even thought a few weeks ago i think these negotiations can proceed at a much faster pace now that this huawei thing has been taken off the table as an obstacle. i think in the middle of what larry kudlow was saying on china, i think that is sort of the gem in the middle of the whole thing. david: i think you're right. >> yeah. then as far as some of the other things, the steady dollar and so on, so forth, i am much more skeptical about trying to steady currencies. i think we learned over 50 years it is mu

larry kudlow says that for now, these discussions will be by phone.trade you have not stopped president trump deal has not stopped president trump from loving accusations against china and vyingu -- le accusations against china and the eu. nejra: we talked to mark mobius about what he thinks about merck and see -- currency tuition. -- currency manipulation. joining us now is luca paolini from pictet asset management. how high a risk do you see the threat of currency manipulation globally? luca: i don't think this is the main issue. since the global financial crisis, almost every government used to slip into get out of -- used this to get out of inflate -- deflation. i think it is pretty much about politics more than substance. course --l, guess, of yes, of course the rhetoric sometimes does not match with one on with the treasury department. i have mark mobius, -- had mark mobius, who says he thinks the chinese may have used the currency as a weapon. do you think the slight strengthening, do you think they have held off letting it off the leash. luca:

i was surprised t hear larry kudlow say just get three for one. >> kudlow also said it's a miracle themy has done what its done with the fed that keeps raising rates and tightening. so when you look at it like that , also, apple, maybe as the president said, could announce a deal to produce their product in the state of texas, right here in the united states. connell: yeah and of course the china talks getting underway in shanghai. expectations are relatively low anyway thanks for joining us. >> thank you for having me. connell: we'll watch at 5:00 every weekday morning and bulls and bear starts right now. david: what a way to start the weekend, take a look at this brand new record close for the s&p 500 this is the 13th record this year, and the nasdac also ending in a new high for the ten th time this year, that is a good thing. meanwhile, markets are driven higher by a solid gdp report today the economy surging by 2.1 % in the second quarter though that was stronger than expected the president said moments ago it could have been much higher. listen. president trump: the federal reser

listen to what advisor larry kudlow had to say. rry: with respect to the additional licenses where there are no national security implications, they have applied, and all they ask is we speed up the application process, and of course we agreed. emily: do we know any more about how that meeting went, the meeting between the white house and tech companies? jenny: what we know is that the president showed up. it was just supposed to be larry kudlow and steven mnuchin, and the president dropped in, talked to the executives, heard the case they have made to wilbur ross before. he agreed to speed up the process. interestingly, we heard today from wilbur ross that it is not a piece of cake to go through a bunch of exclusion requests or license requests and hand them out. he was kind of walking back a little bit the optimism we heard coming out of the meeting from larry kudlow and yesterday, the white house spokesman. the president agreed to speed to that -- it up. it is not that easy. the readout is that it was a positive meeting. it was n

>> sure, and look, i agree, i love larry kudlow. the guy is fantastic, but you know, he has a job, a boss, a client. he is out the -- party line of current administration, i think you are right regardless of political party of person in oval office in moment those of us in senate and house have an abgation tab-- obligation to lok long-term, and beyond party politics this say problem, and we're fooling ourselves if we say it is not. guy: it does not come close to dealing with long-term obligation, to something happier, your book, tell us about your new book. >> i wrote "our lost declaration" i want to help reconnect american people to principles underlying founding of our great country, we don't fly union jack and we don't sing god save the queen, this was accepacceptance of the human so, the. it tells stories of american revolution that were underlying declaration of independence. guy: you have these historical anecdotes in the book, you say forgotten stories, people may be wondering, history buffs it is interesting, but what is the

it was just go -- it was just supposed to be larry kudlow and steven mnuchin, and the president dropped talked to the executives, heard the case they have made to wilbur ross before. he agreed to speed up the process. we heard today from wilbur ross that it is not a piece of cake to go through a bunch of exclusion requests or license requests and hand them out. he was kind of walking back a little bit the optimism we heard coming out of the meeting from larry kudlow and yesterday, the white house spokesman. it is not that easy. the readout is that it was a positive meeting. it was not just about huawei, but the huawei issue clearly was discussed and executives came away on a positive note thinking they could maybe thread the needle and figure out a way to keep selling their products to huawei that do not impact u.s. national security. emily: meantime, we did speak to commerce secretary wilbur ross earlier today. take a listen. ross: in some cases, the applications have just been filed. a few of them have said they haven't gotten their applications in yet. we will deal with them properly

, larry kudlow is soft peddling this. there is no need for speed, although secretary of treasury mnuchin and the trade chief robert lighthizer have spoken to chinese officials, no firm plans for a meeting in person. that will come at a date to be determined. the biggest thing is china has basically laid down the law, that theviews known commerce ministry officials said if the two sides are to reach a deal, or impose tariffs, must remove, and that is a hard line for the u.s. to cross. lighthizer and some of the other trade hawks in the administration want to see the tariffs continue on china as a key element of enforcement, once any deal is reached. don't know whether to say it is a blind alley, but there is a long way to go. i think president trump would like to see a deal. been cheerleading the stock market as it has made new hires, and that is tied up with china and the u.s. making progress, so that is one factor pushing towards a deal, very hard talks still to happen, i think paul:. ,loomberg washington editor thank yo

we will ask larry kudlow. he's at the top of our 11:00 hour this morning. >>> president trump holding a made in america showcase at the white house, highlighting all the products made right here in america. you will see it live. >>> and new orleans dodged a bullet from barry, but the storm still has dumped a lot of rain on the city. we have a report from the city coming up for you. "varney & company" just getting started. hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands? dto experiencer gthrilling performance. now, at the lexus golden opportunity sales event. get 0.9% apr for 60 months on all 2019 models. experience amazing at your lexus dealer. in an emergency, who do you want by your side? a new proposal in congress want

larry kudlow is speaking right now, making comments on this. not sure if we can listen in to what he is saying. if we can, that would be fantastic. here we go. last year to 2.5%. one, does this show that tax cuts or maybe not as excess will and the economy -- successful and the economy not as hot as the administration has been saying, and second, do you still believe gdp for 2019 will hit 3% or above? >> i like what we see for the second half, because as we cross over to the third quarter, we are almost to july, pretty big numbers in retail sales. that continues the consumer boom . as far as the business side, very strong increases in what durablel core capex, goods excluding aircraft. i like that, and i think we are in pretty good shape for the second half of the year. regarding the first part, look -- in terms of the historic revisions, we are at 2.7% or 2017 and 2018, and that is a bit lower than 3%, i get that. on the other hand, the prior administration, their performance was 1.9% annually, so we are running 40%, 42% above that trend line.

larry kudlow says that for now, the discussions will happen over the phone. mr. secretary mnuchin. i do not know precisely when. they will be on the phone this coming week and they will be scheduling face-to-face meetings. lots of communication. francine: while there may be optimism over trade deals, that has not stopped president trump from accusing china and the eu of currency monetization. he tweeted that -- currency manipulation. he tweeted that europe and beijing are manipulating their currencies, adding that the u.s. should do the same. marilyn watson and mike gallagher. will we see the u.s. retaliate or is it just tough talk from the president? marilyn: it is hard to say. i think it is part of his overall messaging. he has been very direct towards the fed, the fomc. overall, when you look dollar, or euro dollar, it is really hard to say that the chinese have been doing much. they have not been intervening too much. i think at the moment, it is rhetoric, but of course, it is hard to tell. francine: how do you look at that going forward? bi touchesthe renim

. >> and certainly this morning larry kudlow comes out on the white house lawn and says basically thereave been seven interest rate hikes we had to deal with, it has been a headwind for us. it has been much harder than it would otherwise be to get a 2.1% gdp print in the face of those interest rate hikes. he said, with respect to mr. powell, not a fan. >> no, that's right. i think the president's going to continue to drop to the fed, but let's be clear as far as fed independence go. it is not new. presidents have been doing this to the fed for decades and decades. i think the fed is going to do what they're going to do regardless of what the president says i think they will focus on ecb, you have the race to the bottom. they have to keep pace unless they want the dollar to go crazy. they will point to inflation if you look at unit labor cost for example, productivity has gone up, unit labor costs have come down. typically it leads core inflation. i think you will see moving into the second half of the year is inflation continue to miss the fed's target and it gives him additional cover

larry kudlow on several morning shows tried to clarify.l of it and i couldn't make heads nor tails of it. he doesn't know what the president gave xi jichk ping and he put his own teams on it. what we're seeing here is the president focusing on the optics. that's not to say the optics are nothing, but the optics are clearly not everything. what we, again, see is the president giving concessions. concessions are to be given if we get something in return, but basically what we're seeing is bad negotiating and, you know, we can always hold out hope that in the end this will turn out to be a great deal. i still hold out that hope. indications are that deal making is not going well. >> common thread is optics. >> no surprise there, but look at some of these optics of president trump with these leaders of countries where at best democracy is questionable. listen to some of what he said about his relationships with these world leaders. >> crown prince of saudi arabia, friend of mine, he sent me a very beautiful birthday card. >> we have a very, ve

the president's top economic adviser larry kudlow discusses strength of economy. >> consumers were the hero, they had explosive economic growth, i guess better than 4% at an annual rate. we had an inventory correction, which took a point off that probably bodes very well for the second half. we're seeing core cap orders really starting to steam up in may and june that's great. also retail sales in may and june, that's good. >> for more let me bring in craigical lan. mike is chief economist at jp morgan our own steve liesman is here as well look, 4.3%, phenomenal confirmed by so much of corporate america in earnings today as well. are people saying that's sustainable? >> i think the way to think about all of this quarter is as a rebounder or reaction to last quarter. there are so many categories where there's been this reversal on the downside inventories, investment, and net trade all reversed from negatives -- strong positives in the first quarter to negatives in the second quarter and the counterbalance to that, the reason why we have this stronger growth was the consumer who went fr

larry kudlow weighs in on the fed and american economy >> mexican made autos streaming across the border at a report rate what it means for trump's trade war, and going public in three, two, one virgin galactic's ipo set for blast-off. is this a game changing moment for the race to space? "power lunch" starts right now >> welcome to "power lunch." i'm scott wapner stocks down again. investors gearing up for chairman powell tomorrow the s&p 500 on pace for a third straight day of declines the nasdaq trying to snap a two-day losing streak. industrials the worst performing sector following a downgrade of 3m, and for more on all of this and what is sending the dow lower today, let's go to bob pisani at the new york stock exchange >> an important thing, scotty, here is we're down three days in a row, and this is not so much i would call searching for direction as i would say that we really need to figure out where the market is going. we're waiting for news, essentially here we're waiting to see if the fed really decides they needed to cut rates aggressively, we really need to see if there is

larry kudlow and others say usmca could be pushed to the fall. don't want to see that but it may happen. charles: what happened to chewing bubble gum an getting important things done. >> when they have 84 investigations into everything to do with president trump, his finances, going over the entire mueller investigation, et cetera there is not much time left for other business. frankly for the american people. that is an issue. charles: it should be an issue. liz, have a great weekend. >> you too, charles. charles: we're awaiting president trump. he will speak in wisconsin any moment. we'll bring it to you when it happens. before the president headed to milwaukee he gave strong words of support, drum roll to nancy pelosi. why president trump is coming to the speaker's defense next. welcome to the place where people go to learn about their medicare options... before they're on medicare. come on in. you're turning 65 soon? yep. and you're retiring at 67? that's the plan! well, you've come to the right place. it's also a great time to learn about an

people who are worried about it may be comforted by larry kudlow saying we're not going there that's t what we're looking at however, i would note that kudlow did say he's in charge of putting governors on the fed board. they get a vote at every meeting and this they are so far stocking the with people who are likely to favor the president's position of low interest rates at what point do you cross the threshold of independence there. that's up for debate the market doesn't seem too concerned. >> powell did make comments about stress tests the last public comments before his testimony tomorrow he did say when the next episode of instability presents itself, it may do so in a messy and unexpected way we'll see if he expands on that on the hill. >> meantime general mills is hosting its investor day today the company releasing a new line of snack products and breakfast items. for a read on the consumer and global economy welcome ceo and chairman of general mills. >> thanks for having me. >> we don't get to talk to you too often. the stock has done well but earnings a few weeks ago were a

selina: type white house economic adviser larry kudlow says he expects u.s.-china trade talks to be back on set soon, while the first have not had face-to-face negotiations since may come although officials have resumed talks on the phone. xi jinping have agreed to provide contact with a medical g20 meeting last week. the u.s. had held off on imposing extra tariffs for the time being. on thelow: they are phone, the leaders, senior sides, on both investor lighthizer, secretary mnuchin for the usa, they have been on the phone, they will be on the phone this coming week. i think a face-to-face meeting is in the cards. i do not want to get ahead of that story. selena: five people were arrested a small group of protesters clash with police in hong kong late on sunday night. earlier, tens of thousands marched against the government's controversial extradition bill. they moved to the city's new high-speed well with china. the chief executive terry lam suspended the bill, but protesters want it withdrawn. a landslide victory over jeremy hunt in the race to be the nex

be some question as to whether powell and company really have your back or not >> then you have larry kudlow talking about he's probably safe i mean, i don't know how much you buy. or is that a negative that he gives excellent coaching in the sporting world >> everything is great >> everything is great now you're out of here i tell you what, that wouldn't be shocking to me. i don't know if that is shocking to anybody on the desk it wouldn't be shocking to me. i think that is the focus right now. trump has gotten out there and talking about trade and he is talking he wants to reenergize the talks and right now we're focused and we shifted back over and now it's on powell and it's on the fed >> how much will they give us tomorrow >> i would say quite a bit i think what occurs tomorrow -- we talked about this back in june and all of a sudden here we are in july and this becomes a subject matter in terms are they willing to go against what the president will like or willing to cut if they cut, will it be, you know, 0.25 or .5. >> don't fight the fed, don't fight the tape s&p may be overbought. y

larry kudlow, i'm sure he is familiar with it. don't miss that conversation at 2:30 p.m. ♪ hey! i'm bill slowsky jr., i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. nejra: bloomberg learns that deutsche's u.s. cuts will stretch far beyond equity and rate divisions. you investors get set for today's job number. and a slowdown at samsung. operating income plunges at the world's biggest mobile phone and chipmaker. welcome to "bloomberg: surveillance." let's get a check on

we asked larry kudlow this as well. >> the fed meets next week, big meeting, widely expected cut ratesreally question maybe is whether it's a quarter point or half point cut. what would you like to see? >> well i will say the market is expecting three 25 basis point rate cuts between now and year-end. that's the market, okay? my own personal view and the fed is independent and i'm not going to preach, they're going to do what they do and so forth, i would just say the sooner the better. >> chris it's pretty much baked in we'll get one next week, but with 2% gdp in the second quarter are we still going to get three before the end of this year? >> well that's going to be the big question right? is the fed data-dependent, that keeps coming back, or are they seeing something again trying to get ahead of something that nobody else sees right now, because when you're at a 50 year low unemployment and record high stock market prices, earnings are good, earnings came out good , why do we really need this cut? so i think that's the problem but they cut too much it could spook the market actuall

believe you might have heard larry kudlow. this was his take on that? >> we have faced in the last two years severe monetary tightening. we had seven rate hikes. that's tough. some said it is a miracle we've done as well as we've done. reporter: kudlow pointing to the fed there as it relates to the 2.5% reading q4 over q4. we heard from nancy pelosi in her press conference, just a little while ago. she focused on the 2.1% reading. it proves that the president's policies aren't working. >> tax scam that they put out there has not produced the growth that the president was boasting would happen. and that it hasn't produced the revenue. hence we had to lift the debt ceiling earlier than maybe people than expected t didn't work. it didn't pay for itself. reporter: interesting, neil, harry kudlow acknowledged earlier today as it relates during the kennedy tax cuts the economy soared after reagan. they acknowledged they haven't hit the 4% number or 5% number president trump had been promising that would happen. kudlow says he still believes they can get to 4%

what do your clients make of president trump just hammering powell over and over again, but then larry kudlow coming out today and saying he's safe >> let's start with the kudlow comments i think that larry said it right. there are checks and balances in our system the fed is appointed by the president but then they report to congress. i love that listen to your elders you could reads it different ways i listen to my elders, they have wisdom from time to time sometimes they have wisdom, sometimes they don't i think that's how the fed would proceed. meanwhile the president loves to bash the drum on the feds as often as they can. i hope they stay independent in their minds. >> do you think they are independent. >> no. i would say every day it gets worse. he would have to be inhuman not to feel the effects of what's going on inside him. the president made it clear, he's jealous of countries that can press the button on monetary policies >> the president is incorrect when he says the other countries do that. so what exactly is powell falling under pressure on? do you think he fears he's going to

the president's top economics kudlow, terry -- larry praised congresswoman alexandria causey accord has. they appear to find common ground. he said, you are right. the phillips card -- phillips curve trade-off does not exist anymore. that is news breaking. she got it right. he confirmed the phillips curve is dead. the fed is going to lower interest rates because we are growing rapidly without any inflation. i look forward to supply-side discussions. >> larry kudlow also tried to diffuse work -- tried to diffuse rumors the president wants to replace fed chair jerome powell. unemployment ratings have fallen to a new low. an employment rate among people eligible for benefits held at 1.2%. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. ♪ life from bloomberg world headquarters in new york, i'm shery ahn. alix: live in toronto, i am amber. but them to bloomberg markets. we are joined by our bloomberg and vmm and bloomberg audiences. hear the stories we are follo

the white house's economic advisor larry kudlow says trade talks with beijing could resume as early as next week representatives from both sides have been in phone contact since last weekend's meeting between the leaders of the g. 20 but their latest figure is have yet to reflect trump's efforts to rein in the u.s. trade deficit at its widest in 5 months the gap between imports and exports rose by almost half the same to make american car imports also climbed to the highest on record as businesses may be stocking up ahead of an expected increase in towers on chinese goods. let's get the european perspective on this from conrad who isn't outside the frankfurt stock exchange forrest trump hasn't been tweeting about that deficit lately. you know but trump has found other measures that allow him to boast about how successful he allegedly is the most important measure is the american stock market yesterday the dow jones the nasdaq and the s. and p. 500 on the american stock market all have closed on you record highs it's very difficult to argue that america is being ripped off while the val

donald trump's economic adviser larry kudlow welcomed a report that trade representative robert lighthizershanghai. mr lighthizer‘s office has yet to comment on the report. the us has announced an investigation into leading online platforms, examining whether they are unfairly restricting competition. the justice department didn't name any companies, but facebook, google, amazon and apple are likely to be scrutinised in the wide—ranging probe. it marks the latest scrutiny of the tech giants' power over the american economy. the company behind social media app snapchat says it added 13 million daily active users in the last quarter. snap inc beat analysts' estimates as it got a boost from a better version of its android app and the launch of new augmented reality photo lenses. shares of snapjumped 9% in after hours trading. we have many companies reporting their earnings this week and ford is one of them. ford will announce its latest earnings later, after showing a strong first—quarter on growing demand for its pickup trucks and suvs. ahead of that the carmaking giant has revealed details

that is about as much detail as we got from larry kudlow.ort of an of the picture saying these talks will continue, whatever they do continue, sort of in the short, soon coming there, theyfrom have a lot of work to do, but they were testing this as optimistic saying this is -- they were casting this as optimistic, saying this is maybe bullish for investors. that kudlow -- they sort of switched roles. these are guys who have differing views on trade. warningtruck a bit more by saying that we still have core issues to deal with, intellectual property, nontariff barriers, transfers of technologies. he is saying we are moving in the right direction and have taken steps to cool things down with china. china now has to take steps also, but this is a road ahead will. interesting that navarro was so optimistic during the trade talks given that he was nowhere around during that g-20 meeting. but he was very bullish on the stock market. take a listen. >> i'm here today to tell you we .ill get to 30,000 on the dow we cut interest rates and move forward

shery: we heard again from larry kudlow today saying that they are challenging the phillips curve statusdoes it make sense at this thoughthis link that we was in place, does not seem to be working as much is expected. mike: the fed is curious about that, has not worked up to this point, and they feel it should. for some it is a matter of we have to keep going. when we get to full employment, we will see a reaction. others say inflation dynamics may have changed in this amazon price setting world. companies can no longer raise prices and there is enough supply of labor where we don't have to. at this point, nobody quite knows where that argument will come out. all the fed knows is it is not getting the inflation it thought it would get. jon: a helpful preview, we look forward to what the chairman has to say. coming up, morningstar is overhauling its influential ratings this done. kapoor aboutnal why the company is taking that action. this is bloomberg. ♪ shery: this is "bloomberg markets." i'm shery ahn in new york. jon: i'm jon erlichman intoronto. gianteek, research morningstar announce

i asked larry kudlow earlier today how all of that amounts to fiscal conservatism.ten. >> the spending increases were very modest, $20 billion some odd on both sides so that's okay. if your ten-year treasury is running at 2%, that tells you the bond market is really not concerned about the business situation. reporter: so that's how he is justifying the spending increases today. meantime, the treasury secretary steve mnuchin will be briefing republican senators at lunch about this deal. senator john kennedy is one who has voiced concerns about all of this runaway spending. >> cutting spending around here is like going to heaven. everybody wants to go to heaven but nobody's quite ready to take the trip. i got a lot of questions. reporter: got a lot of questions. there's going to be a lot of republicans all across this town who are going to be none too pleased with an increase in spending on really both sides when you look at domestic spending and non-defense spending as well. add it all up, it's just more spending in general. we should note that even though they have

when it comes to those relations with china, we are hearing from the white house economic advisor larry kudlowks continuing. take a listen. mr. kudlow: there was headway last winter and spring, and then it stopped. hopefully we can pick up where we left off but i don't know that yet. our team, ambassador lighthizer, secretary mnuchin are exploring all of that. discussions today went constructively. too soon for details. shery: when it comes to secretary mnuchin and ambassador lighthizer, they seem to be two opposing views within the trump administration. who has the president's ear at the moment? the dubs or the hocks? dr. moore: i think the hawks at the moment. the president continues to say he loves chaos. he loves to have diverse opinions coming his way and he makes the opinions. it comes down the trade representative and the secretary, the president makes it clear that he accepts all of those positions in making certain decisions and how he will play this trade game. paul: our last guest earlier this hour, anna han of wells fargo, was very optimistic on a trade resolution, seeing one by th

but the president's economic advisor, larry kudlow, has since clarified that the decision will applyilable around the world, leaving the most sensitive equipment off limits. the proportion of british manufacturers reporting a rise in their domestic orders has fallen to its lowest level in seven years. the british chambers of commerce also said that factories showed the weakest picture for export orders in four years in the april—june period. that's as as brexit uncertainty and the global slowdown take their toll. how much of a contribution does the beauty industry make to the uk economy? well, quite a lot. according to new figures out today from the british beauty council, the sector generated more than $36 billion worth of business last year, and nearly a third of that was on beauty services. one big growth area is the rise of lash extensions, as our business correspondent emma simpson reports. it's he must have beauty accessory, lush extensions, and women aren't batting an eyelid at the cost —— lash extensions. as part of their monthly budget now. they believe luscious in with them

. >> with all due respect to my friend larry kudlow, who i have did deep respect for. >> here it comes. >> i don't use it in the sarcastic way people use it. larry said it was severe monetary tightening that slowed the u.s. economy several years ago economists were saying the fed were too easy and needed to raise rates in 2011. now it's severe tightening and holding back the economy to steve's point it's the trade war holding back the global and domestic economy there's some justification for them to stop after one some of what larry had to say i took issue with this morning because i don't think as he promised we're having an investment-led productivity-led boom >> that's my question, business investment, why has it not quickquic kicked in? >> because of the uncertainty. >> why would i put money in -- >> that is a long tail investment versus something shorter and a better return. >> the final words are the most important, the consumer has not waivered at all over the last six months strong, 4.3 -- >> it was 4.3 but in last quarter it was 1.1 because of the shutdown so you have to aver

. >> and larry kudlow pointing out that what the president really objects to is other countries that they themselves may be manipulating their currencies. >> and we might pursue measures there. thanks for watching "power lunch. >> "closing bell" starts right now. >>> welcome to "closing bell." i'm michael santoli. i'm here at the coca-cola post coke actually the best performer in the dow today and for this week broader mpicture is more mixed. s&p 500 and nasdaq both on track for all-time record highs as we get into the final hour of trading. we'll break it all down. >> and i'm sara eisen. let's look at what is driving the action second quarter gdp ahead of estimates 2.1% growth. alphabet earnings leading the tech sector higher and the federal reserve decision just days away with an interest rate cut firmly expected by wall street joining uts for ts for the hour lindsey bell perfect day to have you because you are the sort of earnings scorecard keeper things feel a lot better than they were expected going in. >> absolutely. this was the busiest week of earnings so far this season. but

listen, the federal reserve, larry kudlow's right. they've got to take away that interest rate increase. they're not going to do it all at once but they are going to take it back so that means at least two more cuts of a quarter percent. that's what i think's going to happen. kristina: chris robinson, also at the cme, chris, do you feel like the bond market may be telling us a different story? we are seeing the yield right now a little bit higher today, and that's primarily due to the jobs report but overall, is it a different picture and should we be focusing on that picture instead? >> well, i think you have to watch the ten-year. that's the pivot point, that 2% yield. a couple days ago we were down at 1.95, people were talking about possibly the ten-year going to 1.5. the bond market was kind of doing the heavy lifting for the fed so i think a lot of people believe they are going to take back that hike and after that, the fed's got to probably want to hold on to keep their powder dry because if the worldwide slowdown outside the un