the mexican peso weakened in the risk radar. s kathleen hunter.he threat is now -- the s&p futures turned on this. the threat that he would propose a government such down -- shut down if he does not get the money for his wall. how real is that threat? quantify the slim pen. anna: we should point out william. as we were on the conversation about trump. upi think it really sets even more fraught diamondbacks -- dynamics when congress returns. they will have a short. of time -- a short period of time. they don't return until after labor day. they have three weeks to get this done. helping himself. he is going to need the help of , and hasns in congress been in a feud with the senate majority leader. he recently was taking aim at the arizona senator's john remarks inhis phoenix. a difficult situation. congress does not do well when they have a short amount of time to accomplish a goal. this raises the stakes. anna: what are the chances congress gives trump what he wants? >> democrats have been pretty clear they are not going to. willbeen very clear th

i'd like some of the eastern european countries, maybe the mexican peso, a bit of risk surrounding the notions, but it continues to continue from a tough period just before and after the u.s. elections we like the mexican peso as well >> nick, thank you very much for joining us >>> no major economic reports today, because few earnings to watch for. we'll hear from medtronic and toll brothers before the open. after the close, intuit, sales force. ray tall yo sadalio says he is g some measures to risk due to washington conflict. the hedge fund manager wrote i'm watching how conflict is being handled as a guide and i'm not encouraged he expressed concern with the trump administration over immigration and trade. >> adp ceo sounding off on bill ackman last night on "mad money. landon dowdy has more. >> adp's ceo telling jim cramer that he takes offense to some of the claims big ackman made about his company. ackman says adp is underrvalued yesterday adp rejected those attempts rodriguez told cramer about a phone call he had with ackman about the proxy fight. >> i had a conversation with bil

more stringent restrictions placed on imports from mexico which would then have an impact on the mexican pesoce of the peso, it is a surprise to everyone's expectations in terms of how well it was done. you can see markets continue to .odels -- to muddle through we are not expecting any sharp changes in policy but it could happen at some point down the road someone has to be nimble. alix: krishna armani -- krishna youni, kevin daly, thank very much. if you have a terminal, click on our charts and graphics and interact with us directly. go to tv on your terminal, click on the side and rewatch any segment you might have missed. this is bloomberg. ♪ david: this is bloomberg. of ae right in the middle big week for media earnings with cbs reporting last night, disney coming up today and 21st century fox reporting tomorrow but much of the news has been taken up with that notorious memorandum written by a google employee questioning the company's efforts to include more women in the company. google repudiated a memo and late yesterday, we learned the author had been fired. he says he is conside

look at an intraday chart of the mexican peso.bed against the peso, the pace of down almost 1% after president trump did reiterate the promise of the border wall, willing to shut down the government to do it. some action there for the mexican peso. joe: on the commodities front, green across the board. for wti.1% gold getting a bid, the treasury rally, moving in tandem. nickel and aluminum, a very big theme this year, the big rally in industrial metals. every day there is something, copper, zinc, cobalt moving. today, nickel up 2% and aluminum 1%. those are today's market minutes. >> some breaking news here, uber. gross bookings up 17% in the second quarter. the number of trips taken rose 150% in the past year. this is according to numbers provided to axios. googler drivers have earned $50 million in tips since the program started. earnedler drivers have 50 million in tips since the program started. uber has gone under turmoil since travis kalanick resign. jitters came back quickly when president trump went off script about a gove

after those words hit the airwaves the value of the mexican peso dead against the u.s. dollar a dollar was worth seventeen sixty eight pesos at closing stocks had some gains on tuesday then sunk on one's.

>> i think the mexican peso is the best performing currency of the year.nna: after a big fall. >> which is a further reversal of trump trades. it is interesting how some of the rhythms could change the u.s.ian, mexico, and relationship. we know the canadian breakevens are quite high. in mexico, the big difference is cars and car parts. with that, we are seeing changes in the whole car business, with ownership, taunus vehicle and the move towards electric. -- with ownership, the au tonomous behicles and the move towards electric. anna: talking about the global trade flows, i was drawn to the risks, very negatively dealing with the affects of the cyber attack of june. we have seen increases in that particular sector. there was huge overcapacity, and then there were a lot of m&a deals done. and now the freight rates are on the rise. does this tell us something about global growth and the strength of global trade? >> undoubtedly you have seen a pickup in global growth over the last six months and you see that through the trade figures as well. there has been a

after those words hit the airwaves the value of the mexican peso debt against the u.s. dollar a dollar was worth seven hundred sixty eight pesos at closing stocks had some gains on tuesday then sunk on wednesday across almost every industry however it must be said that they didn't compare to dips we have seen in recent weeks investors of course as you might guess scrambles for safer ground in treasury bonds and gold also turning to trade with mexico and canada the president asserted in his speech that the north america free trade agreement would probably end up terminated by the u.s. . and a week into nafta negotiations it seems that the people at the negotiating table are unfazed by president trump's remarks about scrapping the plan party's alex and joins us now from toronto with more alex what exactly did the president's what did he say to actually stir the pot about the nafta negotiations the let's expand on that before we get to the actual reaction. well as you saw the president was speaking to the converted already so he was just basically saying what he's been say

equities indexes are in the grand prix at the ruble is stronger today, the medicine -- and the mexican peso. you can see rebound, soaring out of proportion for some of the markets. mark: mario draghi made needed to advocate caution when he meets policymakers to discuss their stimulus plans. inflation picking up more than underlyingforecast pressures failing to accelerate that shows the central banks struggle for price stability. to discuss this, we are joined by david powell, a chief economist for bloomberg intelligence. inflationre rate of we should be focusing on today ahead of the ecb's meeting? david powell: that is right. the number was driven by fuel cost and what happened was in august of this year, fuel costs went up and downs in stark contrast of last year when they were falling and that caused the increase in the year over year level which is a very little interest to policymakers because they have to look at domestically generated costs. mark: we are hearing in a report, david, that the pace of the currency's depreciation is worrying a growing number of ecb policymakers. there'st

currency trading has already stopped and the others difficult now so you'll have to watch the mexican pesoo see what the emerging currencies are doing. nonetheless it's a flight to safety, but not a wild one. the dollar has adjusted down somewhat. on a longer-term basis, you look back a year and a half or so and say the dollar has been very, very strong. we have been giving sort of part of that back this calendar year here. so on that, i would not make a forecast on the dollar. vonnie: whatever you have been doing, you have been doing it very well because you're ranked in the 97th percentile in your fund universe and according to the benchmark, your outperforming as you can see from the chart on the bloomberg. outperforming by a long shot relative to the barclays benchmark. dan, i what point do you start moving out maturities against? -- at what point do you start moving out maturities again? when -- i like to give you a firm answer. you that i have trustees and clients asking the same question. out that when the world is a little more safer and quite frankly when yields may be a bit highe

and we had the mexican peso doing some action this morning.resident trump tweeting out the words -- worst trade deal ever. i can't the impression, but you can hear him on twitter saying that. what do you think of the latest comments and the threat he is going to start a new? -- anew? reporter: there were some bad trades in the peso, liquidity is down, but 0.6% or more. it has stabilized. we have a chart to show the peso has been doing pretty well and managed to shake off most of what president trump has said and was a lot more reactive to candidate trump back when he was making a fuss then. you can see the peso has recovered postelection losses, and yesterday there were some , but theythe comments have not broken out of the pattern. it would have to do a lot more than tweet -- donald trump would have to do a lot more than tweet to have the reaction from last year. betty: thank you so much, garfield, on the market. ." reynolds. why the boj governor said japan's growth is good but not over. we will have more from the exclusive interview with gov

that saw gold up and the mexican peso was down.will spend about $25 million to build a factory in michigan. that could create 300 jobs. >> carolin, i love amazon's alexa. i use it constantly. i hear there's competition from alexa, google and walmart. talk to us about that. >> definitely, recode is reporting that google and walmart have entered into a partnership to make hundreds of thousands of walmart products available for google home shoppers. okay just, the future might be online or voice shopping. google has actually already introduced voice shopping with the likes of costco, walgreens and petsmart. that will be available at the start of the september. a whole new means of shopping. >> that only means that alexa will have to up its game, right? >> yeah, two giants. >> carolin roth live from london. >>> steve thmnuchin looking to make amends after a lavish comment on a post. >>> and massive flooding and those stories from bill karins, we'll check on your forecast, when we come back. what's critical thinking like? a basketball c

and we have seen that when this issue of the walls come up, the mexican peso has dropped. cans are getting a glimmer of hope with some of the comments that show some flexibility on the part of donald trump that perhaps the wall might not be built, it is not the most important issue between the countries. just last month, pena nieto and trump met in germany. a reporter asked trump if mexico would build the wall. trump said yes, pena nieto did not respond. even if he's ignoring questions about the wall, they are not going away. >> it was interesting to watch donald trump's negotiation tactics during the phone calls. also with australia's leader, as well. this is a guy who wrote "the art of the deal." i don't know if this was really negotiation. cnn's patrick ottman live from mexico city. thanks. >> yeah. one of my favorite lines was this one -- "we do not have to worry about canada. we do not even think about them." that was from president trump. >> ouch. >> if you need summer reading, peruse the transcripts all weekend long. >>> ahead, miami galveston quarterback ryan tannah

his comments send the mexican peso and the s&p 500 lower. joins us from d.c. let's start with the nafta comments on the heels of the first round of renegotiation talks with the u.s., canada, and mexico. is it fair to say this was an unscripted remark from the president? it certainly scared market participants. it seemed like the process was underway to have a coordinated renegotiation of that free trade agreement. anin: this was totally unscripted moment regarding nafta, but it was very much in bageling what he said on the campaign trail. just last week, it was said he was going to go president trump with regards to the renegotiations of nafta. when he spoke at the opening of the nafta summit in washington dc. inside a little bit of the market reaction with regards to that. i can tell you that behind the scenes, most folks working on nafta are anticipating there to be somewhat of a quick wrap up on that, simply because you have got mexico having elections, the u.s. having midterm elections, and everyone working on it is anticipating that as

compared to major currencies of all of its major trade targets, whether the canadian dollar, the mexican pesothe chinese yuan, the euro , all of them, but dollars more expensive on purchasing power metrics according to the imf. guy: is the bond trading down because of instability in the white house in washington? able tof john kelly is steady the ship, point the white house and the direction of tax reform, rather than health care reform, how would the market react? part of thek that dollar decline has been about the political turmoil in the white house. it is hard to quantify what amount. we have seen the legs down in the last couple of weeks, seeming to be driven by the headlines out of the administration or how to washington. if there is stability and it looks like suddenly tax reform will get through, yes. absolutely, a technical bounce to the dollar that would last a couple percent. i don't think it changed structural backdrop, but it would be a surprise and a time when investors have little hope for fiscal stimulus in the u.s. ask about the to greenspan story. it is leaping to the top of

we have the mexican peso up to 16% year to date. we had domestically focused u.s.hind 1400 basis points behind international equities. so the expectation of a massive stimulus is that will not be speculation. >> i want to bring you in, because there is a specter of fear that bbaaannon will go back to breitbart. >> it is not necessarily whether he goes back, but there are still people with his same mindset in the administration. you have steven miller. what kind of influence to they continue having on trump now that bannon is gone? joe: economic nationalism, how would we expect it to show up? let's imagine been in and these and these- bannon guys had major policy influence. where would it show up? >> the first place where it has the short-term meeting is nasa renegotiation opened this week. i think terrorists is a big -- tariffs is a big part of that, domestic production. with nafta renegotiations, with the trade talks with china, there is a chance we could see that ruled down a bit -- cool down a bit. >> the dallas fed president came out and had a very interesting

you the strength of the mexican peso, which has gained over 15%. we see volatility fading.re is always concern we could see pockets where negotiations to take place. any sectors of the nafta renegotiation where we could get surprises for the market? it seems like the is one thatector, has the greatest stake in the market. these companies are u.s. companies. if anyone gains in the north american free trade agreement it is the automobile sector. loopholest about the related to groups of origin in order to avoid manufacturing and job losses? labor unions have called for those loopholes in the groups of origin to be closed. could we see changes on this, as well? gerardo: yes, that seems to be one of the items where the u.s. government really wants to enhance enforcement of that. there is no figure given as to whether the rules of content or whether itsed, is primarily about enforcement. canada is also part of this negotiation. they have said the country won't take just any deal in nafta talks. when you take a look at their relationship, how balanced is it? right now it is prett

currencies, recall that half of asian currency trading stopped in the other is difficult now, with the mexican pesoe emerging currencies are doing. nonetheless, it's a flight to safety, but not a wild one. scarlet: this is bloomberg. ♪ julia: it is 3:00 p.m. in new york. i am julia chatterley. : and i'm scarlet fu. welcome to "bloomberg markets." e ata: we are like bloomberg world headquarters in new york. here at the top stories we are covering. president donald trump is on the ground at texas. tropical storm harvey is still a risk, in what will be a second round of heavy rain and flooding. why he is betting on stocks in the long run, despite potential shocks to the market. and is the finish line nearing the finish line? shares, taking today on his last today on a tanking slashed forecast. julia, thank you. as rainfall continues to be forecast for houston, officials warn of continued flooding. after devastating floods in 1929 the reservoirs there were designed to hold water until it can be released downstream at a controlled rate. some meteorologist says, homes could be inundated with water for up

i want to bring in the moves in the mexican peso as well. donald trump talking numerous times over the last couple weeks about walking away from nafta, not necessary to be engaged in the negotiations. we heard from the economy minister today who said mexico refuses to negotiate under unnecessary threats. pushback from the mexicans, raising concerns that perhaps these talks are not going so well after all. joe: finally come on commodities, take a look. green across the board, oil bouncing back after some weekdays. gold catching a little bit of 1%. last one, gasoline futures up 13.5% today. gasoline prices absolutely soaring in the wake of the hurricane. take a look at a one-year chart of gasoline and you can see that is just a vertical line at the end. so expect a ripple effect across, you know, at the pump and in the a lot of different places around the country as you see this remarkable spike in the gas prices. those are today's market minutes. julia: "what'd you miss?" the fed to not catch a break on inflation. 1.4%,s coming in around belo

had yen, the frank, gold, rallying this morning, and risk assets like the aussie dollar and the mexican pesoing. however, those moves have started to fade. so i think we will get a nervous open for asian equity markets this morning. there is a lot of reason to be nervous. we want to see what trump and co. are going to do in their response. what is the bank of korea going to say? we have the looming difficulties with what harvey is going to do. we have an auction later on today in washington of debt that falls due right around the debt deadline. that will add excitement and to today trading. the story was korea and with a lot of these gloom and doom bits and pieces of news has been some initial selloffs and the general rally, because the feeling is that the global economy is gaining momentum. earnings growth is strong in all the parts of the economy, and those underlying fundamentals are tending to come through in the medium-term, even amid short-term hiccups like missiles flying over japan. announcer: that is the fundamental story which seems to offset tensions we are seeing geopolitically a

the mexican peso recovering losses we saw in the wake of trumps rhetoric around nafta.bit of resilience for the peso, despite what trump has been saying. a last check on metals given this rally we have seen. a mixed picture as more skeptics are joining the chorus, dooming the metals' rally. keep a watch on aluminum, gaining 2.7% in shanghai. it is the top performer in the base metal 's year, but its price surge could see it rigpe for the next clampdown by regulators trying to rein in good of trading. we saw that for zinc. yvonne: thank you so much, sophie kamaruddin with an early look at markets. busy day of corporate results in australia. earnings were reported that jumped. to $1.15 billion in the 12 months. for more here is paul allen in first. how much of this was because the recovery we have seen in commodity prices russian mark -- prices? paul: a large part of it can be attributed to that. a very good result from south32, eightfold increase. billion,ess at $1.15 the market expecting closer to $1.18 billion. dividends of 6.4 cents per share , but it was all about th

emerging markets, like china, like mexico and brazil even though there were some worries with the mexican peso as a result of the trump administration really hasn't materialized would i bet fedex makes more money off amazon's work. amazon didn't even break a profit fedex is still delivering packages to a door at a price that get them a net return at the end of the day so there's a better way to play e-commerce. >> jason, he mentioned -- andy mentioned amazon is this going to continue to be dance with who brung you market. do you say with the so-called fangs? >> there's a lot of suck lar growth with the fang names and the majority of them are high quality. with the exception of -- we don't own netflix. i think netflix is still a good company and it's really highly valued in terms of valuation i think facebook is a secular growth in the digital ad market and alphabet, otherwise known as google, is still a secular growth name as well, and i think you can stick with those names apple had a great quarter and these are stocks undervalued trading around a peg of one or a little bit over and if you lo

andthan: it is just words you saw that in the mexican peso and the fx market because words have remained just words and they haven't developed into policy and you saw that in the drug case as well. yes, get drug pricing down, but where is the policy? david: the more words, the less effect. at some points the market say, i don't believe you anymore. alix: anthony scaramucci -- jonathan: anthony scaramucci is the man that put together sky bridge. he was on the late show last night and had a few things to say about mr. bannon and his future. take a look at this. >> who is leaking now? is it steve bannon? >> i have said that. i have been pretty open about that. >> is steve bannon a leaker? >> i said he was. i have no problem saying that. >> is he going to be gone in a bit? what does the mucc think? >> is not up to me. if it were up to me, he would be gone. jonathan: steve bannon could be on the ropes and if you think of the -- of the fallout, if bannon goes and the nationalistic core of the white house dissipate and diminishes, you wonder what that means for policy? alix: and is it a good th

. >> mexican peso is up 20% this year we're seeing eamericans market, equity returns up double digits. in the united states, we're up as much as earnings. this is a strong global growth rate equities are following up corporate profits. we're starting with a low interest rate level. and earnings are going up. these are the things that are driving markets. now, if it was entirely dependent on the effectiveness of congress, we wouldn't be here >> it's not just the effectiveness of congress. at this point they'll be bogged down in either -- we haven't mentioned ru e ed russia today r at some point maybe 2018 does loom, maybe some of these guys, you know, are less -- >> elections >> the 2018 is looming we could have some people in the president's own party not going to work as hard. >> which sectors, which groups, we were strong enough to get through this with all those strong policy expectations for the united states fading. there was enough strength in the world economy and the united states i think few poem would have belie people would have believed that. there are not going to be risk

peso have the mexican losing ground. trump said he sees the u.s.ting nafta at some point and stood his ground over plans withild a border wall nafta threatening a government shutdown. , the biggest drop -- drop losing 1% and copper retreating from a three-year high. that drop in metals is weighing in shanghai, sliding 2% today. curveulators move to .rading that pose a headwind they are the latest attempt to put pressure on the market following restrictions put in place for steel. market roundup. scarlet: this is bloomberg technology. -- emily: this is "bloomberg technology." i'm emily chang. funding for artificial intelligence startups has surged more than eight fold since 2012. both entrepreneurs and venture capitalists are rushing to capitalize on machine learning. the ai startup data breaks did just that, closing with $30 million. its backers include andreessen horowitz and battery ventures. joining us is the ceo and cofounder. thank you for joining us. i understand that your company helps provide ai tools that startups might have trouble provid

strength and the mexican economy it has a stronger peso. the u.s. will be more price competitive.that's the way monkeying around with schools of origin in various minutiae is to go to the big stuff, which is a proven success in the past. >> thank you, fred. last but not least i will turn to chris to fill in any gaps you've noticed, but to also hear your dad on what you see. >> thank you, duncan. thank you from the great presentation. i would keep it simple. what i want to do is keep a simpler view of mexican strategy heading into negotiation and thinking about at vis-À-vis the u.s. perspective, which are some of the words are strange flawed, conflict team. you have on the one hand and object to that of liberalizing and on the other hand you have a series of a checked insert potentially restrict being protectionist perhaps. the mexican strategy of mexican interests, how did they run into that conflict and u.s. perspective right now. for me, the starting point is a really simple one. mexico says 80% of its exports to the united states. mexico depends on market access to the united s

you are seeing the aussie dollar is the mexican a so biggest personification of the markets' risk. the pesoas dropped and city said it could trade by [inaudible] to the dollar. that is the gmm, the peso and other commodities and down again reacting. juliette saly has a broader complexion of what is going on in the world with the first word news. juliette: u.s. president donald trump has threatened to bring the government to the brink of a shutdown if needed. he said he might terminate the north american free trade agreement. speaking at a rally in arizona he called them a credit lawmakers who objected to his plans to construct all while obstructionist density was time to crack down on illegal immigration. >> we have to close down our government, we are building that wall. let me be very clear, to democrats in congress who oppose a border wall and stand in the way of border security. you are putting all of america's safety at risk. angela merkel has rejected the caricature of her party is being obsessed with the debt at a rally. she said her budget record is an active generational justice. i

mexican economy. if he grows faster, it will import more. stronger peso, the u.s. will be price competitive. that is how we need to achieve the objective, not monkeying around with rules of origin. it is to go to the big stuff which is a proven success in the past and hopefully can be again. >> thank you. i'm going to turn to chris. to give your own perspective on where you see the top going. >> thank you everyone. i want to take a simpler view of mexican strategy going into negotiations. strategythe the u.s. s-a-vie the u.s strategy. of objectivesies that are restrictionist, how do the mexican strategies run into that conflicting u.s. perspective. 80% of its exports into the united states. mexico depends on market assets in the united states. there is an asymmetry, trade is pretty balanced. a bilateral trade relationship, there is great asymmetry, mexico depends more. access toarket the united states was at risk, mexico started to think about how he would renegotiate with the u.s.. the trump administration has been consistent in the language they will put forth. , if want to renegotiate the

mexican economy. if it grows faster, if it has a stronger peso the us will be more price competitive. that is the way to achieve the objective, not monkeying around with rules of orange and and various minutia, to go to the big stuff, which is proven success in the past and could be again. >> thank you. last but not least i will turn to chris, also to give your own perspective on where these talks are going. >> i will try to keep it simple here and what i want to do is take a simpler view of mexican a strategy heading into the e negotiation and thinking of the us perspective which some words we heard to describe are strange, flawed, i would say conflicting. if you look at us objectives you have objectives that are trade liberalizing, trade expanding and on the other hand a series of objectives that are potentially trade restricting, protectionist perhaps. how do these interests run into the conflicted us perspective? for me the starting point is a simple one. mexico sends 80% of its exports to the united states, mexico depends on market access to the united states in a very significan

mexican economy. if it grows faster, able import more. it has a stronger peso, the u.s. will be more priced competitively. the's the way to achieve objectives, not monkeying around with wolves of origins and various minutia. it's to go to the big stuff, which is a proven success in the past and hopefully could be together. >> thank you, fred. last but not least, want to turn anyhris, impart to fill in gaps but give your perspective on where you see these talks going. everyone for the great presentations. i will try to keep it simple and i want to take a simpler view of mexican strategy heading into negotiations. some of the words we have heard to describe it are strange, flawed, maybe conflicting. if you look at the u.s. of actives, you have on the one hand, a series of objectives that are trade liberalizing, trade expanding and on the other hand, you have a series of objectives that are protectionist, perhaps. how does the mexican strategy and how to the mexican interest run into that conflicted perspective right now? the starting point for me is a simple one. mexico sp