hat does the u.s. have to gain for the visit? >> if that meeting takes place in washington, i think it's all to the good. those conversations are incredibly we have senior leaders meeting all across the world with people have deep disagreements with. it is incredibly valuable that president trump and president putin engage in dialogue to resolve the difficult issues our countries face with each other. this makes in norm is sense, and iam -- enormous sense, and hopeful that meeting will take am place this fall. reporter: final question from reuters. what concrete steps need to be taken now to show they are committed to denuclearization? [indiscernible] have you seen those proposals, and what is the agreement they have reached? secretary pompeo: so lots of discussion taking place. there was a discussion between president trump and president putin about the resolution in syria and how we might get the refugees back. the president shared with me the conversations they had had. it is important to the world that these refugees are able

u.s. and the e.u. have exchanged in recent weeks u.s. president donald trump's comments to the press corps helped ease concerns of a possible all out trade war between the two sides. already today the united states and the european union have a one trillion dollar bilateral trade relationship the largest economic relationship anywhere in the world we want to further strengthen this trade relationship to the benefit of all american and european citizens prior to the talks e.u. commission president john had been threatening you trade tariffs on the u.s. but arriving at the white house has stressed to reporters that the e.u. and the u.s. were allies and not enemies adding he was ready to negotiate some hours later the two leaders announced they had agreed on a deal trump agreed to refrain from car tyrus while the negotiations with the e.u. are ongoing the talks will also seeks result u.s. tariffs on steel and aluminum for its part the e.u. agreed to buy more u.s. liquefied natural gas and lower trade barriers for american soybeans. said he w

u.s. economy. on the other hand, it is clear that it will have a depressing effect on investment. s dislike uncertainty. this is created a huge amount of uncertainty. more businesses are operating in the u.s. and trying to sell abroad but also throughout the global economy. who will be retaliating on what next? i think that medium-term and longer-term these tariffs have or could have a serious consequence of the u.s. economy. that doesn't seem to be factoring into the trump administration's thinking. follow-up up about that point about retaliation. china is getting to the point now where it can't retaliate dollar for dollar. what sort of response to you expect to see from china? >> this very important question. china has been very keen to be seen as responding moderately and measure for measure. know, they have not retaliated until the united states have implemented tariffs even when they have announced what products they will be targeting. they have kept the dollar amount to the dollar of the u.s.. they want to be seen as being moderate here. however, when they run out of room wha

u.s. does have an interest in this election. i think it's a fairly dangerous. fairly obvious. the us are going to have some form of influence recent days we have seen the withdrawal of funding probably american from n.g.o.s we also do know that the osce school sanctioned that the u.s. have applied to but this definitely some form of. politicizing of the or interference of the elections by the americans and i think america is playing a part of dangerous game with this because if the wrong candidate as far as they're concerned which is been got great he retains power if he is able to succeed and it does look like he's going to that america will certainly be left on the outside of it having used to influence financial and political influence during the run up to the election i don't believe it's going to be you do positively once a result has been announced. now many countries do have strict rules on what can be done during political campaigns in zimbabwe is no exception although some of the restrictions are pretty unique. a challenge from. experience of. there is a new democracy

how does that change the nature of these talks knowing you will have a u.s. his word. >> whether you are for it or against it, it did not hold a strong line inside syria. the president has done this. the israelis have done this. he knows president trump and the united states is not going allow these things to happen. at the same time, one of my concerns is some of the rhetoric that has come out of the president discussing pulling out of syria which i don't think is a great move. we control the east of syria all the way to the iraqi border. we need to hold that land. ed: jack keane the retired general talked with that. saying we can't pull out because we are dealing with isis. coming up in the next hour. president trump and the first lady, they will be emerging for breakfast. we'll have live pictures. stick with us. ♪ motorcycle revving ♪motorcycle revving ♪ motorcycle revving ♪ no matter who rides point, ♪ there are over 10,000 allstate agents riding sweep. ♪♪ and just like tyrone taylor, they know what it takes to help keep you protected. are you in good hand

now, north korea and the u.s. have started to have talks. and as those things are on the security council and in the international community have the support those talks. the best way we can support those talks is to not loosen the sanctions. and what we have been seeing is certain countries wanting waivers, certain countries wanting less sanctions, certain countries wanting to do more. and what we continue to can't do one we thing until we see north korea to their promise to denuclearize. thel that action happens, security council is going to hold tight, the international community, we ask you to hold tight as we go forward. some of our friends have decided they want to go around the rules. you sub violations of the oil ban. saw violations of the oil ban, 89 times when that has happened. we have photographs, proof of ship-two-ship transfers. and our friends, we decided to come together and make sure this stops. the u.s. yesterday put a halt to all additional refined petroleum shipments to north korea. china and russia blocked it. for china

if we have to look at what happens with emerging markets. the u.s. fed has to keep an eye on what's happening at home. you have to balance it out with these comments on the dollar. how does that balancing act play out? >> it is a very tricky balancing act between the two great economies, the u.s. and china. powell the u.s. led by is going to focus more on what is the right thing to do for the u.s. we've had qe from us to decade and it's time to move rates back to normal. and i think they will continue on that path. they're obviously aware of the other responses in the global economy, but i think their first objective is to get back to normal. and then china has a bit of a problem although they have an easier stance in that it's a command and control economy. so they can ease at the short end and they can target areas where they want speculation and leveraging to come down. particularly in shadow finance and the property markets. they are doing a good job there. really right now it is just interest rate differentials. china is easing and the united sta

now, north korea and the u.s. have started to have talks. and as those things are happening, we, in the search purity council and the international community have to support those talks. and the best way we can support those talks is to not listen the sanctions. and what we have been seeing is certain countries wanting to do waivers, certain countries saying less left sanctions peers are countries wanting to do more and what i appreciate secretary pompeo coming up and will we continue to reiterate is, we cannot do one thing until we see north korea respond to their promise to denuclearize.we have to see some sort of action. until the action happens, the security council will hold tight. the international community, we ask you to hold tight. as we go forward. the problem we are encountering is that some of our friends have decided that they want to go around the rules. he saw that there was violations of the oil band. we have as secretary pompeo said, we have seen 89 times, were that has happened. we have photographs of proof of ship to ship

u.s. and china have ground to a halt as the u.s. stepped up its trade war. unds of formal negotiations this may -- since may. we're told communications have a dried up and there is no immediate plan to resume contact. fora says disregard international rules could have disastrous consequences. chinese minister says if the wto collapses, the world economy would decline by 2.5% and 60% of global trade would disappear. his eye onrump has nato, not content with berating defensees about spending, he is now proposing doubling the target. he made the suggestion n/a -- suggestion in a session in belgium. he also accused germany are being captive to russia. trade barragep's pushed chinese markets into the worst selloff in three years. beijing said it would be forced to retaliate against proposed new tariffs. so-called chinese investor anxiety has risen the most in the world. global news 24 hours a day over the air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am jenna, this is bloomberg. thanks. asia markets ar

you have to put tariffs on u.s. goods are limited because the u.s. only exports goods in the amount of around one hundred thirty billion dollars to china but china does have a whole lot of other options for example they could start not buying so many u.s. treasuries and the more then american companies who produce and shiners or was not considered to be imports there could be a stricter regulations there could be texas or there could be all kinds of possibilities for china to make their life for u.s. corporations not that easy in the future and staying on this story don charles hardline stance is having an effect on the psalmist so to the industry can you tell us more on that well on july first of pfizer one of the biggest pharmaceutical companies in the country increased prices for the dozen dozens of drugs and on monday u.s. president donald trump criticised those steps sharply and now on tuesday there was a meeting between the c.e.o. of pfizer and donald trump and now on wednesday five are decided at least for now to pull back those price increases

korea and the u.s. have started to have talks and as those things are happening, we in the security council and the international community have to support those talks and the best way we can support those talks is to not loose in the sanctions. and what we have been seeing is certain countries wanting to do waivers, certain countries sanctions,et us lift certain countries wanting to do more. ist we continue to reiterate we cannot do one thing until we see north korea respond to their promise to denuclearize. some sort ofe action. until then, the security council will hold tight. international community to hold tight as we go forward. the problem we are encountering is that some of our friends have decided they want to go around the roles. use all of the oil ban. wesecretary pompeo said -- have seen 89 times when that has happened. we have photographs of ship to ship transfers. our friends -- we decided to come together and make sure that this stopped. the u.s. yesterday put a halt to all additional refined

we know the u.s. have cass detectives and flags at the dmz. they think that the u.s. -- the north koreans have something like two -- the remains of 200 service men to be brought back to the u.s. but what we don't know is the details. what we also don't know, george, is whether the north koreans are tacking on any other conditions before they release those remains. >> and, andrew, the question just about the meeting that did happen and now it's been rescheduled to this particular day, but it is more a matter of logistics or does it play into the question of whether north korea is truly taking these talks seriously? >> reporter: well, certainly that's how it's been received generally, that the north was not showing good faith by not turning up to that initial meeting. in fact, they did alert the u.s. until midday of the day that meeting was supposed to take place. rumor mike pompeo did actually say june the 12th, he did add that it could be a day or so later than that, but did he say june the 12th. so it's been interpreted really that the north i

u.s. and u.k. have?popularized by winston churchill in the famous iron curtain speech in missouri. could we see a similar situation where he came out bashing germany at nato, but said they all work together and nato is stronger than ever? could we see him come out and talk more? glowingly about theresa may? right now, it looks a bit awkward. nejra: annmarie, thank you. coming up, steve mnuchin plays down the trade dispute with china. bloomberg radio live on your mobile device or dab digital radio in the london area. this is bloomberg. ♪ anna: 7:20 in london. this is "bloomberg daybreak: europe." let's get a bloomberg business flash with debra mao. the trump administration appeal against at&t merger with time warner doesn't change anything because the deal is closed. the justice department is challenging a decision allowing the 85 billion dollar takeover which created the telecommunications giant. the transaction june 14, two days after the earlier decision and it was the first time in decades the court d

u.s. economy. we haven the fog of trade war rising between the united states as well as china. china is facing both internal issues as well as those external issues. we are going to ask him what his thoughts are on all of that and more. thei: also sticking to trade theme, we will watch the countdown to these tariffs. beijing says it will start -- wait for washington. we're speaking to australia's investment manager. to talk us exclusively through the implications of these trade exposed, honorable .ountries how companies in this part of this world should be positioning from a potential trade war. he joins us from tokyo. he is been talking about this global trade agreements. he will save part of the negotiations. we be talking about the future as it comes to multilateral trade. would you have the u.s. withdrawing or threatening to withdraw from all of the major institutions and trade deals globally? lots to talk about with the us trillion trade minister. that is about it for us. we are looking for the next f

china and the u.s. have also failed to reach an agreement from today around eight hundred chinese goods is subject to twenty five percent levies by the u.s. beijing has issued immediate counsel then it's the u.s. is turned then probably more from beijing and that one for the first time in decades global free trade looks like it's on to serious threats. more analysis and coverage of the trade conflict with a full fifteen minutes of business except for thanks ben you're watching the news still to come the elite eight of the world cup begin battle in russia and this goal turns out to be the winner as friends powers past or of why in the first quarter finals match up. now some of the other stories making news around the world residents of a bedouin village in the israeli occupied west bank mark for demolition have been celebrating victory that's after an israeli judge blocked the demolition proceedings human rights groups say removing the better wins would allow israeli settlements in the area to grow and furthe

the whole rom of the reminder of our top stories tens of thousands of people in cities across the u.s. have been protesting against the trumpet ministrations controversial migration policy more than two thousand children remain separated from their parents despite president trump citing an older reversing his policy. also rebels are losing ground in southern syria with several towns and villages accepting government rule syrian russian forces have been waging an intense bombing campaign although there are a province almost two weeks talks to end the fighting have failed. and president trump says that he has convinced saudi arabia to increase its oil production by up to two million barrels a day in a tweet trump said the extra saudi oil would help offset a decline in supply from iran after the u.s. pulled out all the iran nuclear deal in may. now an independent judicial body in belgium has suspended for licenses for the sale of weapons to saudi arabia it follows complaints by human rights groups about saudi's role in the war in yemen a saudi ever r.t. biliteral coalition's been bombing rebel

and the u.s. have agreed to work together to qataris and avoid a trade war that was announced after a meeting with train european commission chief sean claude young and donald trump in washington. we have identified a number of areas in which to work together. work towards zero terrorists on the industrial goods that was my main intention but we agreed today first of all to work together towards zero tariffs zero non-tariff barriers and zero subsidies. or no auto industrial goods well under the agreements the two sides will seek to cuts or eliminate import taxes trade barriers and those subsidies in addition the e.u. will expand its imports of u.s. liquefied natural gas and certain food items in may the trumpet ministrations slap tariffs on steel and any minium coming from european countries while the e.u. responded with counter measures well before meeting president trump young cut much have done well to seek advice from other european leaders who met the u.s. president. thank you but the speech was j

you have another who was a u.s. whozen from brooklyn traveled to pakistan, to have him turned around, sent back to make no mistake his intention was to join al-qaeda. you have plots in the u.k., a attack the london stock exchange over christmas in 2009. the stabbing of an u.k. woman,ent official by a where she attacked him for his support of the iraq war. a plot against the new josecity subway by pimentel following the instructions in how to make a bomb in the kitchen of your mom. deadlye were potentially plots around the world and all traced their origin back to revolution muslim. even had a plot in boston who wanted to use a drone to attack the pentagon. and frankly, even falcate the first issue of it had its list of enemies primary author of that magazine had been a member of revolution muslim before he left yemen and in that magazine he listed enemies of al-qaeda me whichtured triggered police protection for my two sons and wife for a nypd. of time by the so this was the assessment we were working in opposition t

u.s. and the e.u. have exchanged in recent weeks u.s. president donald trump's comments to the press corps helped ease concerns of a possible all out trade war between the two sides. already today the united states and the european union have a one trillion dollar bilateral trade relationship the largest economic relationship anywhere in the world we want to further strengthen this trade relationship to the benefit of all american and european citizens prior to the talks a new commission president jungle younker had been threatening you tried tariffs on the us but arriving at the white house you want to stress to reporters that the e.u. and the u.s. were allies and not enemies adding he was ready to negotiate some hours later the two leaders announced that they had agreed on a deal to work together towards quote zero tariffs zero non-tariff barriers and zero subsidies on non auto industrial goods you'll get said that's why you came to washington when i was invited to the president to divide toasts i had one in terms i had the intention to

and u.s. have asked for this to be done and this is because these countries that i mentioned have been supporting whiteness financially and in other ways to carry out to carry out the operations of the boards here why was this group so close the golan heights in particular danger now. two reasons one is it's being dangerous all this why but in a little boy who thought these areas were completely under a regime siege so even if somebody wants to rescue them it was physically not possible it was physically tough that it basically meant sending boots on the ground and having a bit of human dimension incident war and in this case you have the border with jordan and you have the border also visited amstutz like this one so they could be discreet but it's also in this case. why the north rebels have already left all that out and complete you know there's a certain inspection of this territory which is under the control of isis affiliates of these people who are basically caught between the isis affiliate

partners to boost their defense spending as global actors france and the u.s. have concluded that now is the time to significantly increase our investment in defense of our allies are following suit i am concerned that your ability to continue to provide this critical military foundation is at risk of erosion. well the u.s. which pays three and a half percent of its g.d.p. tonight has repeatedly pressured this and i stated to pay at least ten percent of their g.d.p. in twenty forty nine to agree to increase defense spending accordingly within ten years and while the u.k. meets the criteria mattis noted in the late in the letter that more is required in britain but at the same time stress that france is boosting its spending despite not meeting the two percent threshold the pentagon is demanding and it's left donald trump again saying that washington's nato partners just expect the u.s. to foot the bill with the piggy bank that they'd like to take from whether it's military protection you look at nato nato we're spending ninety percent of their dough now it's all won

not have the same meaning to trump as it had before to all the other u.s. presidents is something the europeans have to think about and all of the not not to members also have to keep in mind so they have to be more more. more reflective with respect what is the long term strategy of nato but also how much money are they are willing to put into their own defense not a lot of fundamental questions underpinning the summit of course for europe and for the u.s. nicole which is going to remind our viewers now what our top story is u.s. president donald trump has been meeting behind closed doors with russia's vladimir putin in the finnish capital helsinki the first ever official summit between the pair now the one on one talks with only trump and putin lasted for over two hours as we said longer than what was scheduled trump is a lunch with the russian delegation trump describing those talks with putin as a good start trump said he was hopeful of forging a better time for putting the two leaders due to give a joint press conference shortly and we will of course be

certainly we want to have a very good relationship with the u.s. and that's in the best interest of mexico and mexicans. however, there are some issues where we have public and notorious differences, and certainly mexico has its own limits. one of the things that has been a clear problem recently has been the treatment of children that have migrated into the u.s. and have been separated from their parents. we are, of course, encouraged by the decision from president trump to stop that policy from continuing, but you have to keep in mind that still over 2,000 children are still separated from their parents, and we want to make -- we want to be sure that this is not continue. we have introduced a resolution that was unanimously approved by the organization of american states condemning this policy and demanding from the u.s. government to take care of the children in a proper way and quickly reunite them with their parents. i have talked personally with secretary general gutierrez from the united nations also for the u.n. to be involved in this issue.

comment review period in terms of the impact that the increase in tariffs will have on the auto sector, virtually every u.s dealer is against it. but they are saying forget about portfolio managers. forget about stock prices. the price that this could have any impact it could have on both getting a car repaired in your district, for example, could be pretty negative. does that concern you? rep. brady: i think it concerns a number of members. the concern is, will the investigation be looking at the broader issues? -- nationalue security does not seem to be an area where automotive and auto parts would fit, but you can look at the whole picture in this issue. secondly, what is the response from the menstruation going to be? i think that will more better inform us what the impacts are going to be. actually 232, national security should be used very, very rarely. perhaps, the administration and uraniumproach year with might well have picked an area that that provision was ideally suited for. it is early to tell, but i think that is an area that it might have been designed to do. do you think congress needs to

have a special thing going special relationship they called it language culture values defense then came trump but surely he can't ruin it right the special relationship between the u.k. and the u.s. has been strong for many years and will have opportunity to talk about a possible future trading relationship really remember barack obama when he came around they couldn't get enough of him everyone wanted to shake his hand and get a picture what a swell guy. trump just doesn't have the charm it seems where barber was greeted with cheers and applause trump gets protests and outrage even a giant trump baby balloon and americans being told to avoid drawing attention to themselves be aware of your surroundings and exercise caution and expect to live in the vicinity of large gatherings keep a low profile. one would imagine a special relationship would be a little friendlier but what do we know who to say hip in this explosive and politically divided age of ours but why they hate ok trump did slap britain and europe with painful tariffs and steal an island minium and mrs me certainly wasn't happy about it expressed deep disappointment at the unjustified decision of the united states to a

u.s. and north korea have agreed to form working groups to settle details for denuclearizing the peninsula the u.s. secretary of state mike home pale has been holding talks with north korean officials in pyongyang a state department spokeswoman says pompei or has been very firm on the complete denuclearize ation of north korea sara clock has more from seoul. well today is the first full day and the only full day of negotiations on the trip to north korea it's a two day trip and both sides are seeking to progress on the singapore summit which was a pledge only it's a pomp and he is working high level working group have the task of nothing at the detail with north korea and that includes the next steps as well as a timeframe now north korea and the u.s. have established these high level working groups yesterday they had a three hour meeting on arrival and today they have the two high level work working groups are looking to progress on those talks now the u.s. delegation has told reporters that momentum is being made to implement a denuclearization plan at the u.s. state department is also s

they have so many russians leaving there. i think the u.s. probably is number two in understanding understanding - whether they have the control of it. evidence can't be taken at state value. >> thank you. >> i want to make a few comments because i know we have more questions to get to. discussing under the court, another thing we know have learned in the past week of broader russian interference. one of the things, it is not only laying out the structure of judicial interference but almost at its pure form, legal at tty all. these are forms of what was described as warfare. this is basic level of mechani m mechanism. if we were to examine of everything else, we have learned of russian interference of the past years or months or past week or whether it is social media or social organizations or whether it is the hacking. these all maintain and contain illeg illegal components. so the social media manipulation interference and internet research agency and at st. petersburg combined, illegal payments or maintenance for operation for travel wheth

u.s. and asia as all sources were drawn strikes have played a key role in the war on terror which the u.s. declared after the nine eleven attacks the us has carried out strikes on militant groups in afghanistan pakistan somalia and yemen the drug strikes have resulted in nearest civilian casualties in every country involved with up to two hundred civilians dying in yemen alone. the. the. the question at the end of the. for the. foreign policy analyst jonathan shafi saying civilians in asia should be worried about this development billions in the media not just of it i say they should be concerned about the taint of damage that these drones can do and we've seen a new minister cations hundreds actually over the years.

have credibility. it is not coming from the u.s. government. standards that they have to adhere to. >> especially to start. question foria as a you. the role of women. what role fo you find women organizations?e from both a radicaliztion standpoint, as well as extremism, what role do women play? challenges is many have not returned to europe but many of their families have and are. >> they are a corner stone. would look for women to monitor the chatrooms. the appealr women, is the opposite gender. it is tyically the case that a , they does not work stay home and taking care of their child. what we use a do is make it look like, there -- this is a woman that is sacrificing herself and her time for the sake of this movement. what are you men doing? there are many more variables and roles that women play their -- there. down toludes everything -- we you want to refute ideas of western feminism, for example. what a powerful narrative it is to go on -- i cover my face because this is feminism from an islamic standpoint. in the sense of countering ext

china and the u.s. have also failed to reach an agreement from today around eight hundred chinese goods are subject to twenty five percent levies by the u.s. beijing has issued immediate countermeasures then it's the u.s. is turned then probably more from beijing and so on for the first time in decades global free trade looks like it's under serious threat. to global financial market reaction joins us from frankfurt. as i see it traders are reacting quite calmly or is it the case that it's caution. the trading is very cautious here in frankfurt today the german share index dax you're right is only trading slightly lower compared to yesterday but hey this event today the imposition of this all those tariffs was really a well flagged it when event markets really had a lot of time to get prepared for it and the pricing in of this has happened over the course of the last three weeks three weeks ago the german share index dax traded about five percent higher than right now. at some stage both two big colonies chi

you have the yen looking steady, along with the dollar. a retreat in u.s. 10 year bonds. uch. japanese stocks gaining ground. the nikkei 225 up. we have investors welcoming the solid jump we saw in wages for may. spending remains above bear. we take a look at the currency space, the kiwi gaining ground. also the aussie dollar. 11 20uth korean won is up greenback. let's get a check on the commodities. an looking steady after overnight decline. set for losses after the uptick in u.s. supplies. inn ore futures gaining singapore after a single -- fourth day stumble. it is the most recent to see a drop. let's look at stocks in the region that are on the move. i want to highlight stocks in tokyo. we have time the fun jumping as the company gets set to buy the european territories. it is said to be closed in november, up 17%. these shares are dropping the most since july 2017 after the results. samsung is at a low since march after its second-quarter results l short of estimates. undai heavy dropping. a next check on autos, the next potential battleground for trade tariffs. we ha

and the u.s. have agreed to work together towards cutting import tariffs in a bid to prevent a trade war between the allies although tariffs of course are currently still in place tweeted a picture of young kissing him on the cheek saying that the countries love each other the e.u. had previously said it would not negotiate with a gun to its head though it does seem to have softened it starts. we have identified a number of areas from which to work together. who work towards it was on the industrial goods that was my main intention. to trump told me last week. you were a brutal killer and it is the first time that luxembourg has become a threat to the united states of america i think as a complement to even though i cannot be sure. so now we will also impose import tariffs this is basically a stupid process the fact that we have to do this but we have to do it also do stupid we also have to be this stupid under the new agreement the two sides will seek to cut or eliminate import taxes trade barriers an

u.s. gasoline costs. president trump is said to have narrowed his choices for spring court to three people. all federal appeals court judges. expected tot is name his choice to replace anthony kennedy on monday night. first-time applications for u.s. unemployment benefits unexpectedly rose last week. jobless claims were up 3000 231,000, the overall numbers still consistent with a tight labor market. the june jobs report comes out tomorrow and we will have full coverage. a disgruntled employee has been accused of trying to sell hundreds of millions of dollars of spyware. officials say it could have caused the collapse of nso group. the suspect is a senior official at nso who had been facing dismissal. global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney donohoe. this is bloomberg. vonnie: coming up, on the slide again. we take a close look at china's currency. this is bloomberg. ♪ ♪ mark: botc time, battle of the charts. let's go to vonnie first today. let's shake things up. vonnie: i will get m

u.s. cash into a very attractive asset class in and of itself. you didn't have to go too far back in the calendar to actually see you need to go far out the curve to get that yield. the fact you can get it in two-year u.s. paper is attractive. that will attract yields going forward. the fed funds were probably near than the trough. i don't think we are at the end of the cycle, but it feels late cycle. we had a sugar rush of fiscal stimulus that will wear off. is talking about concerns of a potential trade war and the u.s. won't be immune to the negative effects of the trade war. we might have a little more upside in yields, but the 10 year specifically didn't like above 3% resistance level. it will be difficult to get upper traction from here. richard jones, bloomberg and life strategist, coming to us out of the german capital. livean follow markets inside from richard and the team, type mliv on your bloomberg terminal. up next, the dog days of summer have arrived for equity quants. why they are experiencing their worst in eight years. dani burger is next.

have missed an opportunity to transform russia. but it has become clear why there are many reasons why u.s./russian relations might have been destined to der tier rate. russia in the early 1990s was in a period of unusual weakness. it lost its 300-year-old sarist empire. in this context, it watched as the united states expanded nato, intervened against its allies in the ball kins. from america's vantage point locking in the security of the newly liberated countries of eastern europe was an urgent matter. it worried the war was destabilizing europe and creating a nightmare. and they could not condone the wars in chechnya in which tens of thousands of civilians were killed and much of the region destroyed. in addition by the late 1990s russia was moving away from a democratic path. by the mid 1990s the tally for democratic elections never went above 20%. communist, hyper nationalist, received about 35% on average. and once putin came to power the move towards ill liberal democracy and outright author tear nichl became unstoppable. they had more areas of contention with the united states. they

u.s. as we have in germany a lot of research and development as well as manufacturing in the u.s. i was to think that our products are very important to make the u.s. by taking this tree and the u.s. electronics industry competitive so yes there is some concern about changes in the global trade system would be believe that we as a company are somewhat less exposed than others. what can you do if if donald trump decides to put companies like yours on his tariff is what are you going to respond to that. well as i said we manufacture a lot of products in the u.s. especially for life life science good so researchers biotech companies almost anywhere in the world including the u.s. depend on having access access to our products and they're actually being manufactured manufactured in the u.s. so we've looked at what kind of exposure we every might have to rethink that in our case it is limited. is you're increasing your exhibit he's in in china is that also part of the strike at such a g. to counter any kind of isolationism tendencies that are coming out of washington. well something li

the eu and u.s. havegreed to lower trade barriers following a meeting between donald trump and jean-claude juncker in washington. they agreed to resolve u.s. tariffs on steel and aluminum as long as your's -- as well as the europe's retaliatory duties. negotiations could prove difficult between the u.s. and china. let's bring up more on this. i'm joined by jeremy getz. to -- eu leaders have called this something of a breakthrough. what exactly does it mean, this decision to avoid a trade crash? >> it is kind of surprising. the breakthrough means we are back to the philosophy of -- 11 days ago, on u.s. television the u.s. president donald trump called the europeans adversaries, competitors, almost as bad as china except the are a little smaller. in 11 days we have basically gone from a condition of adversary to the condition of partner yet again. this is a repetitive pattern in the trump p approach. create a crisis and try to show you solve it. rochelle: one of my questions is what is behind this u-turn by

u.s. ambassador to have him turn around in islamabad sent back to the u.s. but make no mistake his intention was to join al qaeda. you have plots in the u.k., a plot to attack the london stock exchange over christmas in 2009. you had the stabbing of a u.k. parliamentarian by a woman where she attacked him for his support of the iraq war. you had a plot against the new york city subway following the instructions in inspire magazine how to make a bomb in the kitchen. he made it in his mother's kitchen. so these were potentially deadly plots around the world that all traced their origin back to revolution muslim. there was even a plot in boston where they wanted to use a drone to attack the pentagon. if you look at inspire magazine, the first issue of it, had its list of enemies, and as jesse mentioned, samir khan the primary author of that magazine had been a member of revolution muslim before he left for yemen. in that magazine he listed enemies of al qaeda which featured me which triggered police protection for my two sons and wife for a period of time by the

u.s. does have an interest in this election. i think it's a fairly dangerous and fairly obvious there the us are going to have some form of influence recent days we have seen the withdrawal of funding from the americans from n.g.o.s we also do know that there are still sanctions that the u.s. have applied to them and that is infinitely some form of. politicizing of the oil interference of the elections by the americans and i think america is playing a part of dangerous game with this because if the wrong candidate as far as they're concerned which is been on guard wait he retains power if he is able to succeed to it and it does look like he's going to that america will certainly be left on the outside of that having used the influence financial and political influence during the run up to the election i don't believe it's going to be you do positively once a result has been announced many countries have strict rules on what can be done during political campaigns and zimbabwe is no exception some of its restrictions though are ve

i don't believe they have compromised in the same way u.s. and mexico have. >> this week mexico's president elect release a one-page letter from president trump in which mr. trump called for a speedy renegotiation of nafta. president trump warned there could be a much different route should the discussions drag on. in the past he has threatened to cancel nafta. the effort to reunite thousands of children separated from their parents at the u.s. mexico border is expected to fall short of today's court imposed deadline. authorities have identified more than 2500 children who may be covered by the order to be reunited with their parents but hundreds of parents may have already been deported without their children. chinese president xi jinping urged federal leaders -- fellow leaders to protect our right. the leaders clasped hands and post for a photo on the second day of their meeting in johannesburg. the u.s. has been criticized during the summit for extra -- escalating tariffs on foreign goods. michel barnier has rejected the central part of the

u.s. again or suffer consequences like the which few have ever suffered before i mean what gives mean the united states and then there's these rumors maybe planted rumors that the u.s. will have a one off strike on iran is this all bluster to keep the israelis on the saudis b. and a packet of home in the us now i hope it is all bluster about that's very dangerous boss you know all these kind of standard for each one of these things. i mean start going nuclear strike there you go and he kind of backpedaled look what it did to the european union well i agree with eric in principle but talking about irresponsible talk someone should not be given the lessons on the responsible talk that's the united states you know that the states is rightly criticized of the most on fundamentalists for overreacting or be in the original generational when they hear of all the holy koran being mistreated somewhere right well when the united states just hears rumors about elections not in that way the right away. and in the right way exactly as they behave as the regime that they asked the arrangements is that w

u.s. does the chump administration have a point the u.s. g.t.s. on a car imports from the e.u. with two point five percent meanwhile the eighty year levees are actually ten percent in imports from the united states so quite a difference that but those figures will there be tell half the story when it comes to s.u.v.s and pickup trucks the u.s. auto industry is main source of income in new cars was subject to twenty five percent in tariffs the a you on the other hand only ten percent that twenty five percent tariff it actually takes back all the way to nineteen is sixty three and it was known as the chicken tax because it came in response to tariffs the fronts of west germany imposed on imports of u.s. chicken just goes to show you that trade tensions are nothing new and can be quite complicated well let's bring in an ng host he's an automotive industry analyst from every corner i s i london he joins me on the line now the german car industry has just published its healthier results do we see any signs of crisis there well when you look at your prices this is a full blown crisis

forget that donald trump is quite popular as president of the united states and many people in the u.s. have a very positive impression of what he's done as president and there's ongoing investigations or internal affairs of the. he states the elements of those investigations that have to do with russia puzzling to us but let's not talk about that right now presidents trump and putin respect each other and they get along well so far they've only had a brief opportunities to talk to me this time we hope that they will have a more lengthy conversation. and i leave. staying on that subject a few days ago donald trump was asked if he thinks that mr putin is his friend or foe and he did not answer this question directly he used the word competitor instead what do you think about this remark or do you see donald trump as a competitor. i mean. them conclude in south korea pretty familiar really competition is a good thing i would say competition helps the world to develop but there is one part competition has to be fair we need fair competition in politics and in the global economy and unfortunatel

health summit donald trump and let him appear to agree to to have joint humanitarian efforts in syria has there been any sign of an effort from the u.s. as yet. as we have heard and you know i have heard the minister bombay who in the congress who during his. during his meeting with the congress. i think there are some there standing between russia and see that they think this is the very source of the voice of present bush it was present in the. summit at the end of the day i think the american in. this situation is changing dramatically not in their interest in syria specially in the military of course is the second. is it their way and he don't want to benefits from the situation in syria there is no money there at the same time this. instrument was used to doing seven years i mean terrorist organization is already collapsed in syria by supporting the russian army in the russian government to the syrian government that they think those also do apologize i'm afraid we're just running over now on our allotted time for this segment we're going to have to wrap things up there my apologies stopped a law professor of international relat

over six decades worth of arms exports by the u.s. have been revealed in a new project mapping the flow of all major recipients using information from an arms transfer database will gary created a flow map of u.s. weapons across the globe spanning from one nine hundred fifty to last year it tracks a shift in recipients from europe japan and canada to more recent years and saudi arabia and australia have become top buyers of american weaponry anti-war campaigner jonathan shafi told us it's crucial that the public finds out about these phenomenal expenditures. research like this is very important because so much of what goes on when it comes to the arms trade is under school is not in the public domain and it's very important and in the public interest that everyone knows about what's going on if you look at the extent to which the american economy is reliant on these arms sales then you start to get a picture of why it's so important for us power to continue to sell arms to the skeins of people that it does obama was kneedeep in terms of wh

funding from the americans from n.g.o.s we also do know that there are still sanctions that the u.s. have applied to this infinitely some form of. politicizing of the oil interference of the elections by the americans and i think america is playing a quite a dangerous game with this because if the wrong candidate as far as they're concerned which is been and if he retains power if he is able to succeed and it does look like he's going to that america will certainly be left on the outside of it having used the influence financial and political. the run up to be lectured i don't believe it's going to be you do positively when it's a result has been announced. well many countries do have strict rules or more can and can't be done during political campaigns in zimbabwe is no exception although some of its restrictions are pretty unusual. special award for the best reporting. but you know i know where his body is buried deep in my heart i'm still hoping he's alive on that day he called me and asked me to pray for him i asked him to be careful and not risk his life being a hero i didn't want to

lights policy and now to discuss this further paulo good to see you what else is the u.s. have in store for iran. well the situation between the united states and iran remains extremely tense and as we see now happening the u.s. has set its sights on the u.s. media in terms of how to deal with as we've heard the announcement from the u.s. secretary of state that they are launching a twenty four seven saucy channel it will be under the banner of the b. b. g. which stands for the board cost of board of governors this comprises different radio and t.v. outlets and back in two thousand and sixteen at received a budget of some seven hundred and fifty million dollars now what we're hearing is that this new fasi channel will also be available on digital and on social media and we hope the u.s. secretary of state say that for forty years the iranian people had been subjected to hearing from the leaders about what a great satan the united states was and that now finally they wouldn't have to subject themselves to fake news but trying to saying this also say that the you know states was