lisa: from new york city, i am lisa abramowicz. with 30 minutes dedicated to fixed income. this is bloomberg "real yield." ♪ lisa: coming up, the trade war heats up. the question now becomes, is it time to buy bonds? plus, the leverage loan market is getting hotter but for how much longer? and china's junk market starting to crack as defaults pickup. we start with a big issue, the rising global trade tensions. >> that tale of risk is getting fatter and fatter as we go along. so far, the chinese have shown no interest in backing down. and neither does donald trump. >> i don't think we need to be hitting the panic button quite yet, but we have moved a lot closer to it, no question. >> until we see some compromise on the chinese side but also the u.s. side, there is a real concern it will get worse from here. >> the whole situation with china and the u.s. is very critical, particularly for china. i believe the situation can get worse. trump is not going to give in. >> in our discussions, the biggest issue on the table was trade tensions. given the multiple channels through whic

and i'm lisa abramowicz.me to bloomberg markets. ♪ scarlet: we are live and bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and from around the world. push and pull. u.s. stocks struggling as a surge in u.s. economic growth coincides with disappointing earnings. and eisner polices is that. he talks is potential for a big home run and his reason for shorting tesla. and ep picks up top u.s. shale assets, making its largest acquisition in almost two decades. u.s. markets are closing in two hours time for the day and for the week. we are ending the week on a down note. abigail: a solid bearish reversal. earlier, we were looking at gains for the major averages. now we have sharp declines for the major averages. the dow down 3/10 of 1%, the least of the major averages. the s&p 500 down 7/10 of 1%. looking at the s&p 500 tech index, that tells the story. tech is very weak. the nasdaq is down for the second week in a row, the worst two weeks since

i'm lisa abramowicz.t: and i'm scarlet fed chair jay powell testifying on capitol hill for the second day as heart of his semiannual monetary policy report. heavens a really joins us now with a lawmaker who is in charge of today's hearing. kevin? kevin: we are joined now by house financial services committee chairman jeff penciling -- jeb hensarling, republican of texas. i was watching this hearing and was struck by the question from both democrats and republicans about trade policy. you have also asked the chairman about trade policy. what have you gathered about how the president's trade are impacting markets? number one,ing: there is certainly bipartisan concern. i have called on the administration to ultimately clarify what is there and goal goal here? ifd the goal is to reduce tariffs and this is a mechanism or bargaining chip to do it, so be it, but when we look at the adjustments are the amendments to the korean free trade agreement, that is not exactly what we see. i think what we heard the fed ch

i'm lisa abramowicz. scarlet: and i'm scarlet fu.onald's is feeling heat from fast food rivals. second quarter sales growth in the u.s. missed analyst estimates, sending shares down more than 2%, the biggest intraday drop in almost two weeks. joining us with more is craig giammona. finallyike mcdonald's got it together when it came out with all-day breakfast a few years ago. craig: they had had a big-time slump, and that brought a lot of people back into the restaurant. it is extremely competitive in the fast food industry right now. scarlet: no follow up there. what else has mcdonald's come up with? embracedy have delivery, they have a huge partnership with uber eats, but the guest counts were down. they are growing in all regions besides the u.s., but mcdonald's goes as the u.s. market goes. and competition for breakfast comes from starbucks. lisa: but they have not been having a good time either. as far as earnings for today, what else are we reporting today? craig: there was a tepid forecast, shares fell a lot. we are looking for

and i'm lisa abramowicz. to bloomberg markets. scarlet: we are live and bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and from around the world. what a difference a day makes. more trade drama between the u.s. and china casts a long shadow on earnings seasons. and nato, trump style. the u.s. president puts allies in a defensive mood by questioning the value of generations old alliances. his main target is germany. and it's a bird, it's a claim -- --no, it is a car. when you can get behind the wheel of your own flying vehicle. let's get a check on where stocks are trading. read not just in the u.s., but globally. today what a difference does make. we have the dow, the s&p 500, and the nasdaq also only lower. for the dow and the s&p 500, the worst day in about two weeks. was speaking about, stocks had been up for days in a row, now sharply lower. but it is not just stocks or stocks globally, it is also the commodity index. , on pace for it

." ♪ lisa: i am lisa abramowicz. this is bloomberg "real yield." want to head to the auction block, the u.s. treasury department auctioned off nearly $200 billion this week. first we focus on the $33 billion sale of three-year notes, which drew the smallest bid to cover ratio since 2009. primary dealers also took the greatest share since 2014. in the 10-year sales, $22 billion were sold with a yield of 2.859% with a bid to cover ratio at the lowest level since may. primary dealers have the smallest share since january. over in greece, investors are warming up to the prospect of a return to debt markets. an example is the nation's biggest corporate borrower, attracting more than 1.8 billion euros of investor orders for its 400 million euros sale, of four-year notes. still with me is oksana aronov, of jpmorgan asset management. joe higgins, and matt toms. there does still seem to be very much a search for yield. it has been risk on. there was a story that caught my attention this week, a bloomberg story, looking at how at least 69 companies have incr

i'm lisa abramowicz.: and i'm julie hyman. welcome to bloomberg markets. we are live and bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and around the world. state street scoops up charles river systems, but it is being met with some set this is -- skepticism. trumpeasury spanned up to . yields barely budge as the president takes another swing at the fed. and taking flight. meet the team behind all burn, the team that makes a wildly popular new speaker. let's check on where stocks are trading with abigail doolittle. we were looking for some fireworks. i wheel: very small gains at this point for the dow, s&p 500, and the nasdaq. despite all the headlines we have had today and on the week, we have gains for the third week in a row. but those fireworks that julie is looking for, here is a little bit of the chop we are seeing on the s&p 500 on the day. we can see that the index opened lower. it has been trading higher. should take a turn

i'm lisa abramowicz. scarlet: i'm scarlet fu. ts. ♪ lisa: we are in bloomberg world headquarters in new york over the next hour. secretary of state pompeo makes a rare appearance on capitol hill right now facing tough russians on rush appeared we will monitor and give you the headlines. gm cutting their outlook. all eyes on ford. it reports its results after the bell. facebook joins the earnings a stampede, expecting to post record revenue. we will give you the results. the close of trading, we get a .heck on how to index stands the nasdaq leading the way. >> record highs with the strength ahead of the key earnings report, the dow is also higher. ever so slightly lower on the s&p 500 as well. nasdaqh really for the come with a look at the sector composition for the s&p 500 not surprisingly with the nasdaq, take a look at the 10 year yield. .hat is how bonds are rallying it will be interesting to see what comes in the days ahead with a lack of conversation but that 10 year yield below are certainly influencing sector composition. l

lisa: i'm lisa abramowicz. welcome to "bloomberg markets."live in new york over the next hour. the top stories we are covered on the bloomberg and from around the world. apple closes out iraqi earnings season for the mega cap staying block. apple races towards a $1 trillion market cap. while u.s. focused cannabis stocks once considered a risky bet are seen heightened levels of investor interest. use their landns to create wealth. bloomberg crunched the numbers and the data may surprise you. u.s. markets closing in two hours, 2.5 hours before apple reports results and you were looking at whatever is in stock. abigail: a relief rally on the day after yesterday's tech induced pullback that we do have solid gains from the dow, the s&p 500, and the nasdaq. earlier, the nasdaq had been slightly lower at the highs of .9%. they are buying the tip on the fact that there was not a negative tech report to influence market action, plus bloomberg daybreak the story early today that the u.s. and china may be heading to talks around trade held at the wall c

and i'm lisa abramowicz.come to bloomberg markets. ♪ scarlet: we are live in bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and from around the world. unfriend it. facebook takes a historic plunge as scandals hit the company where it hurts most. and an early investor weighs in on facebook financial --'s financial future. and while facebook fumbles, two other tech giants hit a threshold of a monumental achievement, surpassing $1 trillion in market cap. are flying airlines higher, contributing to industrial sector gains. we will hear from southwest airlines ceo gary kelly. we have u.s. markets closing in two hours time, and facebook is weighing on the nasdaq. >> this is a remarkable board because it of a spoke. the dow wa

. ♪ ♪ lisa: from new york city, i am lisa abramowicz. with 30 minutes dedicated to fixed income. coming up, the trade war heats up. the question now becomes is it time to buy bonds? plus, the leverage loan market is getting hotter but for how much longer? and china's junket market starting to crack as defaults pickup. we start with a big issue, the rising global trade tensions. >> that tale of risk is getting fatter and fatte

lisa: i'm lisa abramowicz. welcome to "bloomberg markets."et: we are live from bloomberg world headquarters in new york over the next hour. hero the top stories we are covering. market tension, from the commodity correction to the following yuan to trump's criticism of the fed, top strategists weigh in. commodities under pressure again in the face of lingering global of theisputes with some pain reflected in earnings from america's top aluminum maker, alcoa. tesla tumbles. it gets hit with a downgrade on model three concerns. we will speak with the analyst behind that call. u.s. markets closing in two time.time -- two hours' >> stocks looking at pretty much the same thing before those remarks, modest declines at this point.

. ♪ ♪ ♪ lisa: from new york city, i am lisa abramowicz. dedicated to fixed income. this is bloomberg "real yield." ♪ lisa: coming up, the trade war heats up. the question now becomes is it time to buy bonds? plus, the leverage loan market is getting hotter but for how much longer?

lisa: and i'm lisa abramowicz. china's yuan continues to decline.e are joined by leland miller, chief executive of china beige book international. leland, just a bit ago, president trump in an interview with cnbc said that the chinese currency is, quote, "dropping like a stone." chinaintentionally -- is intentionally devaluing its currency? leland: they are not devaluing the currency, they are just not stepping up to prop it up. when they want to stop this continually weakening currency, they will have to use some major ammo, but it's not the place where the pboc wants to step in to stop this. you have some pivot points coming up, but not yet. lisa: at what point does china step in? slow,: they want it to be but i think the two critical numbers -- above 69 is where president trump inherited the yuan, and if it gets any weaker than that, it means the yuan has weakened on his watch. that is something the chinese would be prodding and poking president trump if they do that. the second is the seven handle. for all the talk about this ridiculous yuan bas

i am lisa abramowicz. scarlet: i'm scarlet fu.ome of the biggest business stories today. what could be another potential billion-dollar drug like arthritis treatment humira. it is the first such medicine approved in more than a decade. shares of jetblue falling the most in three years today. rising expenses. they will increase 3% this quarter after the price of jet fuel. in the midst of a cost-cutting drive to the german lender has hired 734 graduates from the class of 2018. head ofary, the global equities told bloomberg his unit was hot -- focused on regis and grads rather than high prices at -- and bankers. that is your business flash update. sureis one way of making these do not increase. >> indeed. he can check out g tv as we go. this is something we have talked about. reporting second-quarter numbers setting the tone by hitting targets, earlier on, the chief executive discussed investor banking performance and new money outflows in the wealth management unit. spoke about concerns. >> we had a very strong performance and

david: we welcome lisa abramowicz. talk about this swedish bank story.ly swedish bank to really reduce their stuff significantly. here are the only global systemically important bank in the nordic region. costs to jump 11% in the second court or from a year earlier. staff fill it percent. they are making a dent. is,big question people have how, where are they investing, and are they adding staff in the automation units? how are they identifying the areas that can be automated? can you automate all trading? where do you actually put those computers? index ceo said we will have half as many people working 10 years from now. dealing with a bank anager recently, and he said couple years ago i managed 30 people at this local branch and now i managed hp at he thinks it will go to three over the next few years. david: you cannot do everything with a robot. a lot of the big banks say that is where we want to go. alix: it is a competitive business. lisa: a lot of executives are saying, look, we're going to produce these tasks people do not enjoy doing to give peo

david: joining us now is lisa abramowicz. not, credit suisse do as well in trading but they did really well in swiss banking and private wealth management and you talked about why -- and they talked about why. have inverted those proportions and we are primarily serving -- when they create a new product, we will typically raise $2 billion. that is a very profitable business and is driving recurring income which is really high-quality revenue. david: ultrahigh will people. lisa: who doesn't want to manage money for ultrahigh wealth people? it is impressive that credit suisse did get inflows because ubs, one of their rivals, ditzy withdrawals. that said, their model is working for now. there are some questions about what happens if there is a turn in the cycle and their free-flowing cash coming into wealth management firms becomes a little bit less free-flowing. they did have a good quarter with investment banking, they did disappointing with trading. hex: what is interesting is said the global capital markets there drive -- in

jason kelly and lisa abramowicz, thank you both. boeing ceo and expressing concerns about u.s. trade tensions. watch us tv and online, look at our charts and interact with us directly. send us a question or ideas. this is bloomberg. alix: companies weigh in on the effects of a trade war. dennis muilenburg says he is concerned about the possible fallout. guy johnson sat down with the company ceo at the air show to discuss the outlook on global trade. >> we are concerned about the discussions right now around trade. our business thrives on free and open global trade. going topeful where find solutions as alternatives to some of the discussions. this is important to us. alix: joining us now is brooke sunderland. have they seen any affects yet? >> they say they have not but important is the key word. companies,u.s. boeing is abominable to trade tensions with china. boeingk at the list -- is vulnerable to trade tensions with china. you look at the list of companies that china is going to be loathe to target. you look at semiconductor companies and technology companies. boeing i

joining me now is lisa abramowicz. lack of mention of succession and how that deals with the underperformance we have seen over the past year. anyone take it. outent: they have laid it and it is almost like saying it is not quite any of your business right now. i don't think there is an animosity for people between solid me -- solomon and -- not an easy transition. lisa: it is surprising because they telegraphed it. the new york times had an article saying they were going to announce it. everyone said ok, announce it. why didn't they? did lloyd blankfein say he is not ready to leave yet? does he not want to let go yet when things are going well? alix: what is interesting is the different areas. in equities, that was pretty light versus their peers. goldman sachs has traditionally been good with trading. they have been the strongest and biggest trading powerhouse traditionally. that was any time of profit trading. they continue to do so selectively but they did not outperform as much as people were expecting and even th

. ♪ >> from new york city, i am lisa abramowicz. 30 minute dedicated to fixed income.is bloomberg real yield. coming up, the trade war heats up. the question now becomes is it time to buy bonds? the leverage loan market is getting hotter but for how much longer? china's junk market starting to crack. we start with a big issue, the rising global trade tensions. >>

lisa: i'm lisa abramowicz. joe: i'm joe weisenthal. julie: stocks bouncing around on the narrow range on the day. joe: what'd you miss? from trade war to currency war, president trump taking to twitter to accused china of manipulating their currency. america's trade partners did not stop the president from the fed. he double down on his disagreement with the fed rate hikes. for ge.blems they are facing hurdles as they trend -- trim the cash flow forecast. lisa: president trump is taking tariffs to the next level saying he is ready to go with levies on a staggering $500 billion worth of chinese imports. public and senators are flexing their muscles urging the president to reconsider. he invents, want to start with you, we were talking about how there is muscle flexing on the part of republicans. what are they actually doing to prevent president trump from going all the way? havethink what republicans done with they are free traders. trump policies have taken them aback. some have tried to see how is this going to play out? could this pl

we are joined by lisa abramowicz and sarah ponczek. lisa, you do so many things. lisa: thank you. jason: what do you make of these trump comments about the federal reserve and the tariffs? lisa: i'm wondering how much business is within his immediate contra of cabinet members because we are hearing there is a arriving -- there is a rising amount of angst on the heels of the helsinki meeting. s president trump operates as his own entity not really taking any insights from congress people who are saying, while it back. our constituents are going to be hurting. he is not missing -- he is not listening to them. it feels like he is off to himself with mixing wonder how much power does he have. are people going to step in and try to curtail this? jason: sera, alix brought up a good point about how the markets 20 figure this out. sarah: a lot of investors say moderate a trade war. it is hard to do unless you have the details. he job that $500 billion number. he has brought it up in the past and brushed it off. now people may take it was seriously. investors have been trying to put trade

lisa: i'm lisa abramowicz. >> welcome to our coverage every weekday from 4:00 to 5:00 p.m. eastern.ie: we begin with market minutes, as we see this mixed picture for the minutes. technology pulling back here a little bit, down 0.25%, even as we see the dow gained on the session, gaining about 0.2%. financials strong. energy falling, along with energy prices, which we will get to in just a moment. continuing the trend of lower than average volume for the three major averages as well. let's dig into some of the big movers on the session. with financials leading. , in part because of the big banks, bank of america up big, up 4%, its best day since november 2016 after the consumer unit posted its highest earnings in more than eight years. loans in that business of 6.6%, helping fuel the gains in the shares. arconic, having some speculation we have seen buyout firms setting their sights on the company. this used to be part of alcoa. it makes finished aluminum products, as opposed to the raw material. arconic is facing a number of operational challenges, according to morgan stanley. but t