expectations because of what he mentioned about the external environment, the geopolitical situation, the soft data in the euro, especially compared to the u.s. i think it made the balance smooth. in qe on the other hand, not being too hawkish and not moving too far from the interest rate. i think expectations, given the way the council gave some space, to move next year. i think this is the main reason. i want to see more data from the euro area, more positive data, and i think they want to see how the u.s. develops and whether or not this affects the euro area. as you mentioned, the forecasts are not taken into account at the moment. ♪ rishaad: you are back with "bloomberg best." i'm rishaad salamat. let's resume our roundup of the week's top stories with an emphasis on company news, starting with a significant announcement from electric carmaker tesla. >> tesla titans. the electric carmaker plans to slash around 9% of its workforce. the ceo, elon musk, just tweeted this, saying it is part of a, "difficult but necessary we -- reorganization. just to be clear, this is salaried staff and does not i

expectations, with what he mentioned about the external environment, the geopolitical situation, the soft dataro area compared to the u.s. i think it made the balance smooth. note on the other hand, being too hawkish and not moving too far from the interest rate. given thepectations, way the council gave some space, to move next year. i think this is the main reason. i want to see more data from the euro area, where positive data, and i think they want to see how the u.s. develops and whether or not this affects the euro area. the forecasts are not taken into account at the moment. ♪ ♪ >> you are back with "bloomberg best." i'm rishaad salamat. let's resume the week's top stories with an emphasis on company news, starting with a significant announcement from electric carmaker tesla. >> tesla titans. the electric carmaker plans to slash around 9% of its workforce. the ceo just tweeted this, saying it is part of a, quote, "difficult but necessary we organization. just to be clear, this is salaried staff and does not include production associates." >> that's right. when he explained this in his l

expectations because of what he mentioned about the external environment, the geopolitical situation, the soft datai think you made the balance smooth, so to say, on one hand. in qe on the other hand, not being too hawkish and not mg too fast on the interest rate. i think expectations, given the way the council gave some space, to move next year. i think this is the main reason. i think they want to see more data come from the euro area, more positive data, and i think they want to see how the u.s. -- how trade tensions with the u.s. develops and whether or not this affects the euro area. as you mentioned, the forecasts are not taken into account at the moment and the recent moves on the terrace. -- tariffs. ♪ ♪ rishaad: you are back with "bloomberg best." i'm rishaad salamat. let's resume our roundup of the week's top stories with an emphasis on company news, starting with a significant announcement from electric carmaker tesla. >> tesla titans. the electric carmaker plans to slash around 9% of its workforce. the ceo, elon musk, just tweeted is a mill to the company, saying the move is part of a,

which everybody likes to look at, they're realizing soft data impacts the overall economy whichag than the harder data. if this really spreads out in so far as the federal reserve telling us so far showing that there is a little nervousness out there. but if this were to spread out a little bit and yes, this could be sowing the seeds for a potential slowdown in real serious issues moving forward. we are still in the early innings. by the way come you can't rule out the fact that are still away from early july when the next batch of terrorists will be imposed. we formulated truth between now and then. all these things we are worried about somewhat premature in nature. >> anthony chan, thank you very much. jpmorgan chief economist. good seeing you. ronald reagan got involved in terrorist as well. a lot of folks didn't realize that. he later regretted it. set up was a mistake to have pursued the japanese at the time. ed rollins was there. up to th. the gig-speed network from comcast business gives you more. with speeds up to 20 times faster than the average. that means powering mor

of the data was temporary, and there are signs that there is further weakness in the economy most members will want to wait for more data. >> let's dig into this data. we talk about a temporary soft patch in the early part of this year you're questioning whether it ends up being temporary or more sustained. what about the data you've seen indicates it could be more than temporary? >> we've seen the pmis of business surveys rebound a bit ading indicators are not muchthe improved >> industrial production you mean >> no, the manufacturing pmi, new orders for inventories ratio, that's fallen further and suggests headline manufacturing output index will decline further. expectations are not strong across the services, construction and manufacturing sectors. manufacturing has been a strong point, but there's signs that that's weakening the phillip from the past depreciation of sterling is waning and there's slower global growth it looks like the global growth peaked at the turn of the year, and that was driving the uk economy along, offsetting brexit headwinds. that is starting to wane that impetus from global growth >> do you think there are brexit headwinds to worry about or is that

now we are seeing earnings coming through, especially asia given the economic data has started to rebound. q1 is the softnomy and the global economy we'll -- will improve from the end of q2. we are not too much worried about the soft patch of earnings in the last few months. forou look at earnings asian markets, we are looking at 12%,rowth this year, and 13% next year. come tonvestors emerging markets for premium growth, and they are getting it at this time, so despite the soft patch, we are not too worried about that. rishaad: we were talking before and you were alluding that we are still in this era of very cheap money. bernankeomething ben has been warning about, saying this is the wrong time for it is policy when you have the american economy powering ahead. this has implications for this part of the world, does it not? >> definitely. higher bond yields in the u.s. have implications for asian markets. the growth in asia and emerging markets are strong and can't cope with the higher bond yields. is 2003-2007xample when bond yields jumped from 2.5% to 5%. during that time, a return of 180%. i am not sa

the u.s. is more of a defensive play. softe past the potential patch. strong ism data, ism coming out last week.etty benign. the 10 year rate seems to be selling at 3%. onestors can get used to that level of interest rates, the u.s. should move up from here and potentially break outside of a range, especially as the political uncertainty around the world start to calm down. david: we are going to put up a chart in the terminal. it shows the s&p for the year has been going down but trading within a range. that it has just broken above that range in the last day or so. what is that telling us? saira: people are starting to believe that our new growth will continue to be strong from here because of the tax breaks, regulations that are easing. is what takest bull markets up, strong earnings growth. we believe earnings can remain strong at least until the end of 2019. if the u.s. is more defensive, what did you insert your rotation? we spoke to a just earlier and this is what they had to say. >> the risk is areas to be right now are the so-called low vol investments. if you look at the fastest-growin

the same degree, potentially, more than china. they can weather this pain. the data has been soft and we should look for that. haidi: tom, thank you so much for that. more entree coming up. investors -- on trade coming up. what are the trade tensions is not a trade war meaning for the financial market? we will be speaking with a cio. rishaad: the oil chief facing his toughest test yet. keepe give his fellow -- his fellow exporters happy? it's a tall order. this is bloomberg. ♪ berg. ♪ rishaad: the new york skyline there. the time in the big apple, just 11 minutes past 9:00 p.m.. u.s. futures indicating that we are going to have negativity, and that is something reflected ass&p minis and dow menus well as nasdaq ones. we have a negative start to the session in this part of the world as well, haiti. haidi: certainly, and it's a holiday start to the trading week anyway. the dragon boat holiday taking the likes of mainland markets, hong kong, taiwan as well, the usual suspects when you're looking to get a reaction from the trade selloff we saw friday, and we are seeing that extended , as well as oil demand going

the big dollar picture. crude is also softer as well. down thiswti trading data,g, on the back of which has allowed this to soft and up a bit.et's go to the first word news. juliette: even with a rate hike seen as a given, bond trade are braced for major moves in thmarkets today regarding the fed decision. depending on the time and pace of rate increases in the second half of the here beeps plenty of room for market moves, depending on signals in key areas including the dot plot. join us at 7:00 a.m..k. time for the fed decision with bill gross and the former fed vice chairman. kim jong-un has said president trump offered to lift sanctions on his regime when they met in the singapore. this contrast the rhetoric that the sanctions would remain. president trump says he is certain kim jong-un is on board with denuclearization. >> we have developed a good relationship in terms of getting something done. it is a terrific document. we negotiated after that document are y important. we are going to get rid of certain ballistic missiles. uliette: the u.s. special unsel has warned that russian intelligence services still has evidence

the slow down in data. keep buyingot assets at the rate it has been,s doing ok. the soft more anticipated, but the underlying demand is decent. side, the ecb is hitting its limits in terms of how many assets it keeps buying. the more important decisions will be very politically sensitive. draghi likes to keep his options he would nwant to e an increasn volatility and higher risk premium. at the same time, he will have to put an end to qe sooner rather than later. 118 allow the euro at him to be more hawkish? help the ecb move towards the exit. the euro is back to the level it was the start of the year. to term limits and it combines with higher oil prices. you take into account the wage growth, the negotiated wages, at the highest level in six years. point these moving parts towards a more hawkish stance by the ecb, but it is still relative, because the ecb is not as dovish as you imanehe central bank to be. guy: what do you think the ecb has learned from ng the fed, the bank of england exit its qe program? banks struggled with the communication strategy around this. >> m

the surface in terms of china's trade picture. of course, if we get these tit-for-tat measures, a trade war becomes more worrying. the data out of china was hadously softand then we that decision from the central bank to follow the fed, which suggests there is concern. so you have got policy concerns, stop data, trade turns. it makes it a difficult and complex picture for chinese policymakers. the question is if they start to relax this deleveraging campaign. , you have this tension when it comes to technology. be a number of parties coalescing around this idea that china's technology ambitions are a national purity threat -- national security threat. this is a more tractable area of tension. they have taken measures to suggest they can import more, but the question in technology appears to be a red line. francine: thank you so much as always. so how you manage risk in this environment? joining us now is the portfolio manager at pimco. what do you worry about the most? we had the fed, ecb, boj this morning. and then a lot of politics and tariff talks. what is the number one fault line. >> good morning, francine. you just touched upon it. this trade war

the society. >> linked in data shows the number one skill lacking is interpersonal or soft skills.>> a lot of people are fixated on technology. it's an increasingly important part of most companies. what we found when we did our skills gap analytical work is the gap is roughly three times higher than software engineering in the united states. we are talking about skills that anyone can develop and acquire, talking about communication, reasoning, team coordination, jobs in customer service, sales development, business development, education all require those kinds of skills. >> where do they go to acquire them? if you are looking at the job market and given the shortages in the job market now how long will it take the job market to catch up with the jobs needed? >> it's not just technical skills that could require longer periods of time to develop. these interpersonal skills you can pick up in classes that are online increasingly and it is wonderful to see that there is a rise in the amount of courses being offered and the number of providers who are increasingly thinking about wher

>> 185k, the adp numbers and claim's data has been soft in the last month, those are key inputs in modelut we believe that the economy is working higher, the stock market over the balance of the year will work higher, we think a sustainable 3% gdp growth rate will get us there. we just finished first-quarter earnings. again, numbers are in great shape. i share your concerns about the noise and the nonsense that we are seeing out of the administration on this issue. that seems to be a tactic, if this is what we are looking at over the next four years, that's problematic. we need to see some positive end result to all of these tactics. dagen: canadian aluminum steel is critical to our national defense, into building, for example, we just drove up the cost, that hands win to russia, quite frankly, that's where the national security argument i don't think that makes that much sense. maria: which is why i almost look at your theory of maybe this is negotiating and say, maybe that's what it is, look, we've got the potential kim jong un meeting on june 12th, maybe he's waiting, the administrati

the day, there's so lack of clarity coming out of the white house that they're just preparing for it. also realizing that they've had a soft patch of data coming in. perhaps trump is trying to hit them while they're weak. >> neil: we have a lot of breaking news here. i do want to bring in the former heinz ceo, bill johnson, global read of things if there was one. bill, i'm looking at this and wondering what the signals could be for us. if a company like g.m. considered making its blazers now in mexico and we've been talking about a number of companies doing this same or considering preemptive move like harley-davidson, it has to have an impact. >> and nothing is impacting the economy here. >> neil: but those guys are making some moves. >> i understand. but they're more vulnerable than we are. this is like tic tac toe. nobody wins. i've played tic tac toe with any grandkids. you never win. that's what this is now. we've gotten to the point -- >> you never won at tic tac toe with your grandkids? >> no. that shows you nobody wins. >> neil: that's where we are right now. >> it's created a huge environment of uncertainty. we've had this conv

the dollar was so soft last year. but also, i mean, the u.s. economic datar own bloomberg economic surprise index, that's basically been positive all year. so you have the prospect for more upward risions to u.s. g. growth,nd potentially some flattening out of the euphoria in the rest of the world, and that's going to put the dollar higher, which is what we've seen. tom: neil did you tta with us here with good conversation there on that mixture of inflation and dollar dynamic. coming up tomorrow on bloomberg, lloyd blankfein. ♪ francine: tom and francine from london and new york. this is "bloomberg surveillance." tom, we'll get to the world cup, we'll get to markets, and, of course, politics in a second. but first, let's get straight to the first word news here in london. here's sebastian. reporter: there's talk of a compromise in a battle over bloombg learned they'rction. discussing an increase up to 600,000 barrels a day over the next few days. iran doesn't want any increase at all, but there's hope that it may go for a modest boost. opec meets this week i

the next few weeks. david: to what extent are you concerned about pmi and soft data?ally thought that that is where it will first show up. lisa: we are keen on monitoring not just tmi but a number of leading indicators. our we looked yesterday at most recent economic health check on the u.s., which monitors over 60 broad indicators, what we are seeing is two thirds of them remain in positive territory. while we want to continue to monitor pmi, we are looking at a broader array. so far we feel comfortable on that macro economic outlook. insofar that there is a vulnerability in the markets, where do you go for a safe haven? lisa: we are actually still being very positive on some of the most growth oriented sectors. while there is uncertainty overhang from what is going on with some of the tariff issues and so on, some of our favorite sectors are technology and consumer discretionary. again, while some of them may be in the crosshairs of what develops in the next few weeks, if you look at the underlying growth trends in those areas, they both have secular trends, changes

we know that the global back truck has been choppy or than many expected -- choppier than many expected. on top of all that are trade tensions. realistically, it has been soft as far as datank you so much. mark joins us out of singapore. .e is the global cio out of global health management. mark, a pleasure to have you on the program. with all of the negative news, out most ifto close not all of my long positions in the equity market. is that something you would advise me to do? mark: we would not advise you to do that. think about the first half of the year. it was much more volatile than last year. we had concerns on the geopolitical front in many ways. equities managed to find a way to grind higher. see the strong underpinning of global economic growth. still in placere as we enter the first half of the year despite the headlines. david:. we will talk about your calls in just a moment. you have some interesting insight here. how ubsant to look at is escalating back and forth between china and the united states. do we get to a trade war or do we avoid that? guest: we think that we avert a trade war where you see global trade shrinking as a percentage of gdp, or gdp grow

and the need for timely and accurate and actionable as as a data and stm services has never been greater. dod currently observes well over 3000 objects circling the earth and many of which are soft ball sized or larger pieces of man-made space debris. these objects fly around earth at dangerous speeds of up to 17500 miles an hour. about ten times the speed of the small bullet. even more concerning of the estimated 600,000 smaller objects that could still cause significant harm if the a collin occurred. congestion and space will only increase and in the next few years the number of american satellites in space will likely grow from 800 to over 15000. as more and more objects get launched effective space traffic coordination and orbital degree mitigation standards will help promote our earth's orbits from further congestion. with the growth of space commerce in the dod's focus on national security president trump and the national space council determined that commerce should become the new civil agency interface. with this role commerce can incentivize innovative space services based on an open architecture data repository. this repository will establish a mechanism for us as a da

the report, sandra, is when you dig into it, some fascinating things. we've been talking about consumer confidence. that's a survey. wall street calls that soft data. s hard data and it's manifested into reality. here's two things i thought were fascinating. the first one, department stores, we've written them off, the death of the mall. department sales were faster than internet sales. and restaurant sales were faster than grocery sales so what that tells me, not only do people feel good, we're going outside. we're getting in the car and going to that old dilapidated mall, shopping and taking the family to restaurants. it's amazing. and i've been talking about this a while. the hottest area in the stock market are brick and mortar retailers. >> sandra: what? >> it's mind boggling. >> sandra: that is the opposite of what we have been seeing. it's everything that's been online. >> it's up 200% since august of last years. all the troubles from kohl's and macy's it all of them. the number 1 stock, canada goose. and i'm so sad because everyone in my family wanted a canadian canada goose coats. i looked at it for a split second and my attention was diver