vonnie: from new york, i am vonnie quinn. a trillion dollars coming into etf's over the past three years, some have seen things evaporate. we have a senior analyst here at bloomberg. eric, fascinating topic. the first group we are talking about live or die by the sword. which etf's are these? >> when you look how they reach the big time and then go to the poor house, not many do, but the good grouping you could classify as living by the performance and a dying by it because a lot of them are just used in the form of -- some examples as you can see, this is one of the best for the agri business. it has less than a billion dollars now. it really died with green performance. 18% in the past year, but investors are not coming back. moo lost those investors who cannot stomach the year after year downturn. fxy, people forget that the yen was a hot plate before abe was elected. but had a billion dollars, not it is down to one million. that one lost money. whendx, the indonesian -- the bubble is kicked to a country the assets come ba

this is bloomberg. ♪ vonnie: live from london and new york, i am vonnie quinn. am mark barton. this is "bloomberg markets" on bloomberg television. vonnie: tonight on "the david rubenstein show," financier and philanthropist david rubenstein speaks to paul singer, who shares his thoughts on the u.s. economy. >> how do you see the economy right now? >> i'm very concerned about where we are in terms of the financial system, the american economy, the global economy. after nine years of what i consider to be distorted set of policies, completely oriented towards what i regard as monetary extremism, combined with what i consider to be growth-suppressive fiscal tax -- i-- regulatory, think it as created a distorted recovery, partially responsible for this augmentation exacerbation of inequality that a combination of that and the incomplete recovery has caused this middle-class stress and edginess around the world, which has led to some inge parties and french thoughts from populism. after nine years of this artificial levitation on the part of financial assets, high-en

i am nejra cehic, in london, with vonnie quinn in new york. ie: now to china's better-than-expected forecast gdp, the economy is continuing as a -- at a robust pace. economic growth beat forecast in the second quarter, matching what the economy did in the first quarter at 6.9%. .e were expecting 6.8% this comes as the government is pushing a deleveraging campaign and reducing systemic risk from the economy. but as we saw a earlier from strong export numbers in june, factories in china are picking up the pace. industrial production in june handily beat forecasts, coming in at 7.6% growth year over year. retail sales also doing really well. consumers doing their part to prop up the economy, coming in at 11% growth year over year. that was higher than expected. this as we learned over the weekend that chinese authorities have established a cabinet level committee, with the pboc having more power to keep other regulatory bodies and other insurance regulatory agencies in line as they want to coordinate financial oversight. this spooked the markets h

vonnie: i am vonnie quinn.ean close on bloomberg markets. ♪ mark: some stories covering from the bloomberg and around the world, after seven years of talks, it may be now or never for senate republicans. president trump putting new pressure on as the senate gets set to take a vote on obamacare. u.k. for a secretary is in the u.s. -- pray secretary and the u.s. saying business is great as he tries to woo washington and a post-brexit trade deal, we will hear from the secretary. grease marking his return to the international bond market, issuing the first new bond since 2014, so far demand is strong. is greece worth the risk? where european equities are

vonnie: i am vonnie quinn. mberg markets. the future of trade relations to the european union and united kingdom is at the heart of brexit talks. a negotiator is warning the u.k. withdraw and would carry consequences on trade ties. simon coveney met with brexit secretary david davis earlier and he joins us now run exclusive interview of the irish embassy in london. thanks for joining. your first impressions of your meeting with david davis today? : i think we had a good meeting. i think it was frank and length, which it needs to be because the ireland and england are friends great ireland is on the negotiations,xit but we have a close relationship from a trade and political perspective with britain that we need to be cognizant of that. we are in many ways in a vulnerable position in the context of brexit, should it not turn out to be a positive outcome from a future trade perspective. i think the points reinforced today are true and they have been to from start. a country that leaves the european union cannot ex

i am vonnie quinn. politics now, i will hand it over to my colleague, kevin cirilli who is with us in new york with the treasury department assistant secretary for public affairs. >> thank you. we are here with tony sayegh. tony: thank you. >> are you pivoting to tax reform? if so, what is the timetable? tony: we are in a strong position to get this done this year. last year, we were working on the framework for the legislation, agreeing on issues. we agreed tax reform is needed to stimulate sincere and large economic growth sustainable around 3% and massive shock ration and repatriation of profits in this country to invest in businesses. when we have that type of agreement, we are ready to have the ways and means in the house and finance in the senate to begin working on this legislation. you have house numbers continuing the conversation with their constituents. cohntary mnuchin and gary have been meeting with 200 members of congress and grassroots is this leaders. we are prepared to advance quickly. >

vonnie quinn, number of glasses of pims sold. 320,000. five stats to blow your socks off. e only pims i'm partial to is pimm fox our own bloomberg anchor. i am partial to strawberries and cream as well. i was reading that the hungry and strawberries that are used may have to be imported if brexit doesn't go correctly. that would entail tariffs. mark.0, vonnie: i am vonnie quinn, welcome to bloomberg markets. from bloomberg world headquarters in new york here are the top stories on the bloomberg and around the world. president donald trump and the first lady have arrived in hamburg before the g 20. we will get a life report in minutes. during up for tomorrow's jobs report. we will look across the nation with michael mckee. the road ahead for electric cars. we will tell you about a new forecast from bloomberg's new energy finance. we are halfway into the thursday trading day. abigail doolittle is with us now with the latest. >> pretty clearly the sellers are in control. clearly the

this is bloomberg. ♪ ♪ mark: live from london and new york, i'm mark martin with vonnie quinn. s on bloomberg television. mark: time for bloomberg quick takes good vonnie: it is the land or the arab spring collided with a dictatorship determined to stay in power. now syria has become the middle east's biggest mentoring disaster in decades. homegrownrians jihadist battled forces love to the president and each other. the u.s. attacked syrian forces in april, launching a missile strike on an airbase. spoke of afficials need for a sod's departure. rex tillerson said the first priority remained defeating islamic states. both russia and the u.s. were drawn deeper into the conflict by its terrorist attacks. russia's support enabled theassad raising to gain momentum. was succeededdent by his son in the year 2000. peaceful protests in 2011 and unleashed attacks by likely armed rebels. after a poison gas attack in 2013, the u.s. and russia worked together to get -- work together to destroy chemical weapon's stores. russia has used it security council' till to repeatedly repacked -- to rep

i'm vonnie quinn. a: and live from london, we frombout 15 minutes away the european the dollar sliding to an 11 month low. in the tell of the republican effort to repeal and replace obamacare. goldman sachs turned in their worst first half performance in more than a decade. to talk about this and the trump trade and the outlook for , remi, thisrnings is a dollar index over the past year. it is almost as if the trump trade never happened. is this fairly valued now? >> if we move that chart back a couple of years there is still a long way to go in terms of the dollar. part of it is due to the trump trade but also because the u.s. is doing very well. if we take the improvements in european growth, the emerging market regions, then one can suggest that the premiums for the dollar need to adjust. around thehe news failure of the health care bill is disappointing. it puts a? mark around the broader trump agenda. what about tax reform? that is being reflected in the dollar. nejra: and when we talk about we hav

i'm vonnie quinn p or u.s.nt donald trump has arrived in germany for the g-20 summit, where he met with german chancellor angela merkel. isorrow, president trump going to meet face-to-face for the first time with russian president vladimir putin. for the first time -- on a range of issues analysts will be back tong, let's get matt miller. matt: we are fortunate enough to ask some questions of president 's representative here at the g-20 meeting. thank you for joining us. what vladimir, putin, the president, and you hope to get from tamara's meeting with donald trump. >> there are a lot of issues with donald trump. counterterrorism , and maybe some bilateral economic relations. has been u.s. media flooded with reports of russian hacking and the 2015 election into the dnc. do you expect president trump to confront president putin about these allegations question mark -- allegations question mark --allegations? and what would be your response? svetlana: we always say it will for the u.s. there is no evidence it wa

this is bloomberg. ♪ ♪ mark: live from london and new york, i mark barton with vonnie quinn. omberg markets." vonnie: time for our quick takes we provide background on issues of interest. we are looking at venezuela, an oil-risk nation on the brink of civil war. minutes limit is a country in chaos. for months, the capital has been rocked by near daily clashes between protesters and police as the president clings to power. faced with reduced oil prices, the country has been plagued with shortages of everything from phillipe for, antibiotic, and food. that is on top of a triple digit rate of inflation, crime, and allegations of rapid corruption. they have called for constituent assembly with the power to rewrite oh the constitution. they say a new constitution would bring peace to venezuela, but opponents say they will delay holding elections. united states has warned of strong action if the new constitution is passed. nejra, -- meanwhile, their oil business has continued to collapse. hyperinflation has been appearing. -- thedecessors predecessor was elected president in 1988 an

i am vonnie quinn.s is "bloomberg best," your weekly review of the most important business news, analysis and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. the week began with a fresh batch of economic data from china. >> the chinese second-quarter gdp data shows the world's second-largest economy growing at the brisk rate of 6.9%. definitely a beat. >> all the numbers beat. gdp was better than expected. 6.9%, we were expecting 6.8%. the consensus estimate of a survey by bloomberg. also, factories are pumping out goods at a faster clip. industrial production at 7.6%, that was more than a full percentage point more than the previous month and a full percentage point more than the estimate. then we have retail sales much better than expected. 11%. we were expecting 10.6%. also, fixed asset of an investment just inching above the estimates. this economy even though the authorities are trying to curb excessive debt and over leveraging, they a

vonnie: i am vonnie quinn. this is bloomberg markets.me of the biggest business stories in the news now. amazon will create 1800 full-time jobs in their new fulfillment center. the 855,000 square foot space will allow workers to package custom items, like electronics and toys. this is amazon's first facility in utah. airlinesth chinese espied by debt $22 billion, including a single aisle playing and a widebodied plane. the chief executive says the company is in talks to sell more of their 380 superjumbo planes. a look at how the trump justice department will deal with global banks. according to people familiar with the matter, they are in talks to resolve the u.s. investigation into toxic mortgage bonds a decade ago. the two sides are said to be far apart and the trump administration appointees so far have not weighed in. that is the latest bloomberg business flash. we are 35 minutes away from the end of the wednesday session in europe. have a look at what is happening to equities. we have been low, higher, up again after falling earlier

i'm vonnie quinn.the senate considers its proposals to repeal and replace obamacare, legislators maypole an all nighter -- legislators may pull an all nighter. we can -- we know they can go sometime. joining us with the latest is sal. when will all of this start? sal: we are anticipating a late-night. this will go on my. there are many amendments filed by several members, including jeff merkley, a democrat from oregon. , republicans are figuring out what their bases going to be. they have voted down the senate vote to reject the republican bill to repeal and replace on one hand, and also a cleaner appeal to end the law into years. there are figuring out what the end game is. vonnie: mitch mcconnell has the perfect scenario in his head. what would that be? sahil: the likely scenario at this point is being called here a "skinner pl," essentially repeal,"ff --"skinny essentially lopping off some legislature from obamacare. a number of democrats are in favor of repealing. vonnie: chuck was saying this is a

vonnie: i am vonnie quinn.bloomberg markets. ♪ from bloomberg world headquarters in new york here at the top stories on bloomberg and around the world. jared kushner on capitol hill today as concerns grow over a widening probe into possible ties with russia. how will it impact the president's agenda? anat for a -- brace for earnings avalanche. moreook, amazon, and many companies this week. will they continue to outperform this season? bloomberg has learned that at&t is said to be an early talks for a time warner merger. abigail doolittle is here. we're halfway into the trading day already.

i am vonnie quinn. i am mark barton. shares of deutsche bank up, unimpressive move compared to some of its competitors, a move in the right direction for the chief executive come almost two years into his three-year promise to revamp the bank. a look at his plan, our financial reporter. fun, finally having some should he be? establishede has some stability and can relax a little bit, and get back to business. fun, no. this is still a challenge organization. still confronting a host of issues. from i.t. to remixing its businesses, to handling brexit. a number of challenges still happening. mark: you break a vision for growth and profitability? does not seem to be a vision. >> it is organic growth so squeezing the most out of the business through efficiency and recapturing clients that may have left last year. they have very high hopes for the u.s. they are expanding in asia. and cutting costs. the classic organic revenue-cut costs with no bold game changing strategic move afoot. just managing the bank bet

vonnie: and in your, i'm vonnie quinn.st airlines is one of the a secondanies posted quarterly earnings beat, but closely watching earning power sending them lower today. it we are joined by the ceo and chairman of southwest airlines, gary kelly, joining us from the headquarters in dallas, texas. congratulations on the earnings beat. you are finding it difficult to raise prices following the 2015 price war. what is weighing on that? the only managed to raise up by 1% this quarter? gary: well, we were very pleased with the quarter. as you have pointed out, it was a solid quarter. it was a bead on the earnings per share. and the unit revenues were up 1.5% despite some new reservations and a system dragged we had. i was pleased with that. it was in line with our guidance all quarter long. we're pretty happy. it is a very competitive environment out there. it is nice to see average fares increasing modestly again. modest farerget a increase. our outlook for the third quarter is very solid, and sequentially, very much in line w

in new york i'm vonnie quinn.d trump has called a meeting with lawmakers to find a way to revise his agenda. earlier he tweeted i will be having lunch at the white house with republican senators concerning health care. they must keep their promise to america. the president has also been defending a previously undisclosed meeting with vladimir putin at the g20 summit earlier this month. let's bring in kevin cirilli. let's talk about this luncheon in the tweak the senators must keep their promise to america. does he mean they must keep my promise to america? many of them would feel they are keeping their promises and holding on to things like insurance for pre-existing conditions. >> great point. this health care proposal put forth by mitch mcconnell is very much on popular with americans. even more unpopular than obamacare was when the obama administration had touted that. this yesterday from your interview with dr. gruber in wherethere are areas democrats and republicans want to fix the insurance exchanges and tha

from london in new york -- and new york, i'm mark artan and i'm with -- mark barton and i am with vonnie quinn: issues of interest as the battle continues over health care reform. today, we're looking at drug rices. americans spend more on prescription drugs than anyone else in the entire world. they buy a lot of pills, but what really sets the u.s. apart from other countries is high prices. about $1100 per person is spent per year on prescription drugs in the u.s. cancer drugs routinely cost $2000 per month. drug companies have become the subject of a quick outrage and in 2015, martin shkreli became a symbol of greed when his company bought the rights to an old drug and raised the price more the. drug spending began to surge in 2014 and rose in 2015. specialty drugs accounted for the majority. like other nations, the u.s. government with drugmakers, u.s. private payers typically rely on third parties. to negotiate discounts. also, their parties make exclusive deals with big pharma and limit the patient choice of drugs. saidn five u.s. adults they failed to complete the course of medicine beca

i am vonnie quinn and this is bloomberg markets. taylor riggs with a check on the markets. tyler bank we are not seeing a lot -- tyler: we are not seeing a lot of conviction. nots&p 500 up a little bit a lot of moves in either direction. look at the nasdaq on the 1.5%. into my terminal, the function and you will see the tech and nasa that is leading the way up -- nasdaq is leading the way in terms of green and red. speaking of tech, we spoke with louise on bloomberg surveillance saying tech has been underperforming but it is within the relative strength index so perhaps more than a speed bump in the road. some of the individual winners and they are focused on microsoft up by the most points and not percent, so to speak. microsoft say it may announce layoffs as its weeks to put more into the cloud. bloomberg intelligence analysts saying the hybrid cloud is emerging as a bit opportunity is likely to be the major sales driver and that is pushing the stock higher. where there are winners, there has to be losers. auto support supplier, o

i'm vonnie quinn.elmaking has been a mixed bag, so is the second half of the year going to be more of the same? we have an industry veteran. interviewing john reiss today, the global head of white & case. >> thank you for having me. >> i have spoken with a lot of bankers and lawyers about the outlook for the second year and may by nature they will be optimistic and they say it will be robust and make -- much better than the first half of the year. but you are more reserved with your prediction. what are you seeing and why? john: lawyers tend to be optimistic also and i am optimistic. although my optimism is tempered right now. we came into 2017 extremely optimistic. 2016 hadquarter of $500 billion of mna deals coming into the quarter. and coming into 2017 with that optimism we were disappointed. we had about $600 billion in the full first half of 2017, which is up a little bit from the first half of 2016, which was also a bit slow. volume, number of deals is down substantially. so, you put that in cont

i'm vonnie quinn.me to "bloomberg markets." ♪ vonnie: from bloomberg world headquarters in new york, here are the top stories around the world we are following. it is an is a monday. -- m&a monday. help theable channel competition and feet and an evolving tv landscape. is the retaliation over? vladimir putin hope so as he ousts 755 u.s. staff from russia. the former u.s. ambassador at large for the former soviet union will be here. for investors act as shares fell, and we will take a deeper look later on. abigail doolittle is here with us. we are halfway into

vonnie: i am vonnie quinn.ing defeat to repeal and replace the affordable care act with three republican senators voting against the so-called skinny repeal which would have left much of obamacare in place. mitch mcconnell spoke after the late-night collapse of the gop's agenda. senator mcconnell: this is a disappointment, disappointment indeed. our friends in the house, we thank them. i regret that our efforts were simply not enough. vonnie: let's bring in our chief washington correspondent kevin cirilli. what was he anticipating that john mccain would save the day? >> a disappointment to say the least that john mccain catching his colleagues offguard during the vote. it comes after senator mccain had arrived on capitol hill, days after he was diagnosed with brain cancer. the president in a situation he does not want to find himself in , crushing policy defeat for republican-controlled congress and a republican-controlled white house. the president said, if republicans are going to pass great future legislatio

i'm vonnie quinn. s the european close on "bloomberg markets." mark: taking on the most powerful players in the gold market today. the london metal exchange and its partners launched its first futures contracts for gold and silver since the mid-1980's. but what exactly does the new gold contract entail? what is at stake for investors? for more, let's bring in eddie van der walt. why do we care about another gold futures contract? eddie: i know it's not an easy environment to launch gold contracts. we have seen a few of these come and go over the last few years. even here in london, there's been some challenges. really, there is pressure from the regulators. the way that gold is traded in london, which is over-the-counter and bilateral exchange between counterparties, it just doesn't seem viable toward the future, or many think so. while the otc market is busy overall in a way that it does business, at the same time, we've got people like the london metal exchange and partners like goldman sachs and the

. ♪ ♪ live from bloomberg headquarters in new york, i'm vonnie quinn. and life in london, i mark barton come accounting you down to the european close -- i mark barton, counting you down to the european close. they are facing fraud allegations dating back to the 2008 financial crisis. susie is outside of the court in london and joins us. what happened in court today? hearing thatwas a the charges read out to the defendant. the judge decided that both roger jenkins and tom loris much pay $12,000 -- must pay 12,000 pounds. risk.is a heightened -- they asked to indicate a plea that is not a formal arrangement, but indicated that they will plead not guilty to the charges. vonnie: what is the background of this case? susie: this dates back to 2008, the crazy time when the banks were in chaos. raise moneyided to itself, which they did so with a number of investors and i would be. -- number of investors. were 20,000 pounds that were called into question. that is the subject of the charges and these four defendants were key in a raging those deals. mark: what a

vonnie: live from new york i am vonnie quinn per a story getting a lot of hits.dit suisse has withered under ceo tidjane thiam. of itsost about 1/3 market share to competitors and that is a lot and there are a variety of reasons included a push into asian that happened it to backfire. and trading that did not go so well. the shares are down about 5% this year and swiss trading and we will get the report next week , earnings report. some positives but at the equity market share down by1/3 have to hit more round hard. talked about the earnings we are looking ahead to, the overall business is forecast to double profit in the second quarter and tidjane thiam has succeeded in areas like cutting cost and raising capital and to dealing with the bad assets. let me take you to the chart. it shows credit suisse's share price since tidjane thiam took over as the ceo and it has come of the share price has underperformed as a bloomberg banking index we haven't against. it is something for investors to be aware of. vonnie: statement and there's another to your strategy. compet

i'm vonnie quinn. rk: i'm mark barton. the deutsche bank reporting 10% decline in second-quarter revenue, falling the most in four months today. the chief executive warns on the big plus outlook as his four-month-old turnaround slows. earlier matt miller asked cryan is -- if cost cuts will continue. >> we continue to work on our costs. you probably noticed the headcount has started to come down. works a mixture of the they did to restructure in germany, which is now almost complete. the headcount has come down to that, reduce costs in the future. we continue to try to modernize the bank. we distinguish between running expenses and investing. do you want to keep up the investment because we do need to move on with the modernization program. it's a mixed picture. but we have been focusing on cost. now we need to focus on revenues. >> you brought remuneration down, to some extent. in the last couple of years, bonuses were cut. have you started to turn that around? surely if you want to get the best talent,

i'm vonnie quinn. welcome to "bloomberg markets: the trump economy."top stories we are watching at this hour. efforts to replace obamacare have died as the senate gop lacks votes. the chairman of aic, barry diller joins us live from boston. plus, we hear from joshua green steve new book about bannon, donald trump and the presidency. ♪ vonnie: back to our main story today, the gop's senate house health care bill -- donald trump acknowledging he's disappointed in the results, "we are not going to own it

i'm vonnie quinn. word news. courtney: the u.s. and russia set to announce a cease-fire for southwest syria in an effort to stop the civil war over there. officials say it would take effect on sunday. word of the cease-fire comes as president trump is meeting with vladimir putin at the g-20 summit. protesters at the summit in hamburg continue today. more than two dozen people injured when they fell off a wall during a protest, 11 of them severely hurt. 160 police officers have suffered injuries. the protests began yesterday. mitch mcconnell plans to produce a new replacement bill for the affordable care law in a week. he is also leaving open a possibility of a plan b. he says if a consensus is not reached in the party, they could take action. the republicans say just in a smaller bill would help for insurers and consumers. the canadian prime minister says he will meet with the u.s. governors at a summer summit in rhode island. he says he plans to deliver the keynote address at the national governors as

. ♪ ♪ this is bloomberg markets, i'm vonnie quinn.e for our latest bloomberg business flash, at some look -- some looks at the biggest stories in that is right now. beafe is being offered to bought out, $3.8 billion. more consolidation in the payment sector recently. consumers are switching to online and electronic payments. and in london, a judge has rejected a consumer groups request to file a class-action suit against mastercard, accused of 16 years of unfair charges. this could limit online and electronic payments. and in london, a judge has rejected a britain as a destination for consumer transaction suits. and the e-commerce site will cover 12 cities, including beijing and shanghai. the parent company lvmh is on luxurycapitalize sales in china. they have also been upping their broader digital strategy. that is your latest bloomberg business flash. some of the nation's biggest made $38-- lenders billion last quarter, just shy of the record set in 2007. this comes as regulation is set to be thought that -- that was hurt --to have

i'm vonnie quinn.ven of "game of thrones" debuts on sunday and although the cable network has spared no expense on the show, the 2-year-old streaming service , they have been scaling back on ambitions with it. we have a great story on this. lucas, why bother with hbo now where if anybody has any kind of subscription to a cable service they can stream almost anything? nows: they created hbo around the time that media networks were starting to be concerned about the number of people who did not pay for cable, either because they were canceling subscriptions or never signed up. cord cutters and cord nevers. they saw the tremendous success netflix had with tv shows on demand, offering shows that appeared on television but in a different format and without the branding from the other networks. now, cbs with hbo access, a -- all bunch of different services that were catering to those people that do not pay for cable. but if they happened to add on to reach a broader audience, all the better. they were trying

vonnie quinn. this is the european close on "bloomberg markets." mark: the other top stories we are covering from the bloomberg and around the world. a more dovish tone, and what will the fomc mean for the dollar? fires a warning to the u.s. over potential russia sanctions? energy companies could be caught in the middle. we vonnie: mcdonald's chief executive is live in just a few seconds, from earnings to the new delivery service, we will get the latest update from under the golden arch. nothing solves the fast food chain's problems like your customers. number one priority since becoming ceo in 2015 has been getting more people through the doors. finally happening, same-store sales are searching. without yesterday may donald's shares hit a record -- mcdonald's shares hit a record. >> thanks very much. i'm here with the mcdonald's ceo. good morning to you. >> good morning. yourr almost two years stated mission was to become a quote, modern, progressive burger company. a few minutes ago you drop that motto. that's says something about the findings in

i am vonnie quinn.e are awaiting jared kushner statement outside the white house following some answers to a senate intelligence committee request that he come in answer questions regarding his ties to russia and meetings that he had with russian people that may or may not have had ties to the kremlin. that testimony or interview is now over. he has left the room and will around 1:15 p.m. or so make a statement at that podium outside the white house. alphabet has planted kickoff tech earnings after the bell today. google's parent company is expected to report strong second quarter results. joining us with a look at what is driving off bets profits is cory johnson live from san francisco. what is driving alphabet's profits? cory: it is advertising sales. the nature of advertising sales has changed a little bit. the things that google gets attention for like self driving cars and blimps that will provide is wireless connectivity far from wires have been the things that confuse investors. be what morgan st

i am vonnie quinn.ouse is voting on whether to impose additional sanctions on russia, iran, and north korea today. it also requires congressional approval for the present to let certain sanctions. -- president to lift certain sanctions. this comes as jared kushner testifies in front of congress. singh, withichael us from washington. foregone conclusion that the house will vote today to stop the present from the coat -- president from vetoing anything since? willel: i think this clearly pass. russia has gotten the most attention. the president has said he will sign the bill, but i don't think he has much choice. this past 98-2 in the senate. passedth korea portion in the house already. this is moving through regardless. vonnie: what will be the response from those countries, russia, iran, north korea? will there be a response? the sanctions are already in place. michael: in a sense there is no new sanctions that will come up as soon as this is passed. it is essentially providing tools. all three of these

i'm vonnie quinn. mark: i'm mark barton. any secondhe details now from michael mckee at the fed. there, letore we go me remind everyone, this is unusual, a friday. this will give congressmen and women in a couple of extra days to parse. the report is the look at the financial and economic conditions over the past half year, normally released when the humphrey hawkins testimony is put out, largely ignored by the market, media, and members of congress. they decided to put it out early so that more people could read it. gradual growth, gradually tightening labor markets. until recently, gradually increasing inflation. the fed says that will resume. they find equities a bit stretched as investor risk appetite grows but don't see evidence of increased leverage that would suggest there any bubbles forming, at least dangerously so. more interestingly, detailed topics, low productivity growth, corporate bond market liquidity and monetary policy rules. the fed does not have a good answer for war productivity has been so low which they say suggests the reason we are seem tepid wage gains.

vonnie: i'm vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here at the headlines we are following. the fed decides, the statement just about two hours from now. on when the fed plans to start thinking that balance sheet. president donald trump's preoccupations with leaks and loyalty are converging squarely on attorney general jeff sessions. is the ag's departure eminence? -- imminent? analysts see user growth, strong. we contextualize everything you need to know before the results. julie hyman is with us now, we're halfway into the trading day. it doesn't look particularly like a fed day. julie: it feels more like an earnings day than a fed day in terms of what's driving the training today. all three major averages that record again although the s&p just barely higher, less than 2 points higher. it does seem that the preponderance of earnings are coming in ahead of estimates and forecasts in many cases also thetive, so that is pushing true major averages higher. we could see a change or run any k

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. in london, i'm mark barton. in this is "bloomberg markets." vonnie: let's turn to one stock you have to watch. hearst traders are being the hold on trades on rentals. julie: it has to do with the outlook. hurts is that to report after the close of trading. and barclays is downgrading the stock to underweight going into that. pretty pessimistic saying that second quarter may be a sharp mess versus what analysts are estimating. says johnson, the analyst, it is not supportive of the stock price. needs closesays it to $700 million versus what our cleat is estimating. if you take a look at the bloomberg, we have a chart of the consensus. the estimate for this year for 2017 versus the stock price. we have seen the in the data estimate go down dramatically for the company. they are around $355 million for this year even as the stock price has been going up a little bit. sa and theon competition is unlikely to allow for much pricing recovery, and that the earning's focus will be on these prici

from new york, i am vonnie quinn. this is the "european close" on "bloomberg markets." ♪ nejra: here are the top stories we are covering. even with stocks at record highs, is it time for investors to start taking on more risk? we will talk to a simon smiles of ubs, who say the ultra wealthy are still hoarding too much cash. are we seeing similarities to the year 1998 in stocks? does that mean a repeat of the dot-com bubble is coming? we will speak with doug ramsey. and brexit secretary david davis is back in brussels for more talks with michel barnier. the rights of e.u. citizens are expected to dominate the conversation. wherehave a look at european equities are trading now. under 30 minutes to the close of trading. the stoxx 600 not going anywhere too far. of 1/10 of a percent on europe's equity benchmark. mixed distribution between industry groups. telecom stocks outperforming, but also materials doing well. that after the better than expected. energy not doing too badly either. on the downside, real estate, indust

this is bloomberg. ♪ ♪ live from bloomberg world headquarters, i'm vonnie quinn. markets." let's check in with the first word news, jessica summers in new york. democrats and republicans for the failure of the replacement ill for obamacare. -- replacement bill for obamacare. working on a straight bill for repeal. former -- has been released from prison in chicago, he was sentenced for violating federal banking law. the illinois republican committed to trying to pay 3.5 million dollars to keep allegations of sexual abuse secret. david cia director petronius has been imposing tough perceptions on north korea to force kim jong-un to the bargaining table. they have played sanctions to enable north korea to operate in the economic world. .3 percentage point from may, the first drop since october, bank of england policymakers have been concerned that inflation was getting out of hand. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. jessica, thank you. disappointing results

. ♪ vonnie: live from bloomberg world headquarters in new york, i'm vonnie quinn.k: i am mark barton, 60 minutes away from the european close. let's carry on chatting and talk about what is happening today. let's talk about the ecb. mario draghi, did we misinterpret him in centra? >> he has one of the hardest jobs trying to communicate. markets. not upset the ecb is facing three difficult parameters. the first, inflation rates will remain low. thatecond grandmother is best parameter is that they did not -- parameter is they did not extend qe. the first quarter or half of afterwards, other countries ownership. they need to -- given the fundamentals are improving, they do not need to increase but they have to communicate in a way that the do not undo what they are trying to do -- we do not have that much space. to 118, the delta in terms of the the -- inflation, would be meaningful enough to affect the inflation forecast and a downward fashion which would need to be recognized. they need to because since not to trigger hiring -- cautious not to trigger highly yields

i'm vonnie quinn.s is "bloomberg best," your weekly review of the most important business news, analysis, and interviews from around the world. let's start with a day by day look at the top headlines. the week began with a fresh batch of economic data from china. ♪ china's second-quarter gdp data show the second economy continuing to grow at that brisk rate of 6.9%. >> gdp was better than expected. , there expecting 6.8% estimate of economists at bloomberg. factories are pumping out goods at a faster clip. goods production at 7.6%, more than a full percentage point more than the estimate. retail sales much better than expected, 11%. we were expecting 10.6%. this economy, even though the authorities are trying to curb excessive debt and over leveraging, they are seeing still strong production and growth. overall i think all numbers suggest the economy has stabilized, led by strong fiscal policy. the heightened monetary policy conditions has not affected the real economy much. ♪ anchor: disappointing qua

. ♪ vonnie: live from new york, i am vonnie quinn.his is bloomberg markets on bloomberg television. let's look at some of the biggest business stories in the news right now. canadian telecom company is buying 41 $.4 billion. the acquisition is made through broadband. it will extend their reach into the u.s. market. have homes in the northeast. the outlook for oil supplies is increasingly worrying. conference, the chief executive said his company will invest more than 300 ilion dollars to maintain spare oil production. years, the company wants a pioneer in wearable technology has struggled with payments and manufacturing issues. the chief executive said they are focusing on health related latest bergat's the business flash. vonnie: today, you are looking at central banks and janet yellen is testifying before congress this week. after inflation run amok in the 60's and 70's, central bankers want more freedom to set interest rates are in a their heels began to crack after the financial crisis. and dependent central banks are too secretiv

vonnie: and i am vonnie quinn. it's time for etf friday.ie: well the etf business was built around the index business, it looks like we might see some of these etf brands superseding the indices they were based on. ericaltunas is here to talk about this. you have written analysis about this? what is the competition if that's the right word and why is it a problem? >> you would think the growth would be best for index makers and it has been. the stocks are double the s&p 500. black rock and vanguard have been taking it on the chin for having to lower fees. while passive is good for the in next maker, what is coming could be a big challenge. when money goes too passive, it's not just going to passive, it's going to be ultra dirt cheap absolute nearest to zero passive. there is a chart showing flows of all funds over the last year. if i did that for three years, you would see the same trend. basis pointss 0-10 in a goes down. managers are only going to incur these costs for so long. they will do all they can to passive downstream and i think t

vonnie: live from new york, i am vonnie quinn.nding strongly me second-quarter, an increase in both the business and consumer spending but price did indicate softer inflation. what does this signal to the fed hellbent on normalizing its balance sheet and may be continuing with rate increases this year. joining us is the legendary bond manager, dan foss. levels, weyou about are in a range and we saw ,assive block trades this week is this a market that has conviction or a non-directionless market -- a non--- a directionless market? dan: neither one. you can say it does not have direction but there is good volume, the range is tight, it is pretty much business as usual. unusually good volume for this time of year. money, a lot of foreign are you convinced we will go to 3% by the end of the year on the 10 year? dan: a little less convinced. best guess is what happens now. there are a couple of reasons for this. the best guess is that it is content -- they talk about the balance sheet in some detail, how they will bring you down in sep

vonnie: i am vonnie quinn. oil is climbing for a their date rally continues to sputter.oining us is our senior market analyst ira epstein. 1240 on gold,hing but doesn't have any more upside momentum given what we heard from central banks this week? ira: they are admitting from the u.s. bank of -- u.s., bank of japan, that inflation remains a problem. we are not seeing wage growth in terms of money and that is the problem we are having. inhave full employment america for all purposes, so gold needs another story and that will probably come about once they can raise interest rates because of inflation, not in front of it. there is a balancing act for gold. the question is, what prices gold to cheap? oldother, what would make go up without that wage inflation? i do not see anything to make it go anywhere. it is a trading affair in gold, caught between 1200 and 1300 level for the duration of the summer. vonnie: there used to be a space haven and it is not bad anymore. what is the substitute for gold as a safe haven these days? ira: stock markets. vonnie: [laughter] is: it so

i'm vonnie quinn.ate republican leaders released that revised health care plan just a little while ago. it's the mitch mcconnell plan that would at $70 billion to stabilize exchanges over a decade. bill's an opioid funding which would provide $45 billion to states, and the whole thing being digested by senators. . so, a lot of this we had telegraphed. we knew the types of things that were bothering senators in their home bases and we knew they might be changed. no reaction from health-care stocks, pharmaceuticals, hospitals? the exchanges are relatively small and a lot of them are focused on trying to get as many votes in the senate as possible and making sure the markets under obamacare or under the new republican plan would be relatively stable. when you look at these changes in what they are, essentially you've got $45 billion for opioid care and treatment and things like that. it also adds $70 billion and money that we didn't know about before that would go towards essentially helping people who ar

. ♪ i'm vonnie quinn welcome to bloomberg markets. ♪ from bloomberg world headquarters in new york, hereop stories in bloomberg and around the world that we are following. u.s. stocks on the dollar sinking today as investors assess the expansion of an investigation into president donald trump's russia ties. banks made this much in quarterly profits. the country was on the brink of financial collapse. plus, general electric shares plunged to the lowest levels in almost two years. a look at the company's weaker as an unit margins executive prepares to depart. abigail, we are halfway through the trading day and getting not much. >> small declines for the major averages on the