vonnie: from new york, i am vonnie quinn. despite 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

vonnie: i am vonnie quinn. this is "bloomberg markets." there moments away from release of weekly u.s. oil inventories. surveys call for a drawdown of 3.1 million barrels. been an opec meeting come in the meantime, as well. bit ingyrating quite a the last two days. let's get to julie hyman, because she has those data. we're seeing a larger than estimated drop, 7.2 million barrels is the drop in crude oil inventories last week. there is also a drop in u.s. gasoline inventories, although it is slightly smaller than estimated, one million barrels versus the 1.8 million drop versused in distillates, 161,000 that was estimated. , alooks like on balance positive report for the oil prices, and it looks like on bloomberg we are seeing oil take a leg up. if you look at the bloomberg, you do see a leg up in oil prices. we will be keeping an eye on oil to see how this shakes up. mark: we are one hour away from the end of the wednesday session. health care is marginally low. up by .5%. i know there is all this talk of records in the united states. 7%

from new york, i am vonnie quinn. i am nejraondon, cehic. time for the bloomberg business flash, a look at some of the biggest business stories right now. trialdon, a judge set the date for four former barclays executives. former ceo and three others will go on trial in january, 2019. they indicated they will lead not guilty. a italy, unicredit completed bad loan deal. the banks will issue notes backed by the loans and will reduce its holding of its less than 20%. up pressure last year on italian banks to offload bad assets. a growing number of companies in the u.s. have problems recruiting skilled workers, according to the national association of business economics. businesses survey cannot find the workers they need. there is concern a labor shortage could hurt profits. that is your business flash. time now for our bloomberg quick take, where you find context and background on issues of interest. is your asset manager skilled enough to beat the markets? more and more people are saying no. so is the world's largest a

vonnie: i am vonnie quinn. this is the european 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. this is bloomberg 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 un

live from bloomberg world headquarters in your, i am vonnie quinn -- in new york, i am vonnie quinn. this is "bloomberg markets." let's take a quick temperature of the markets. the dow jones industrial average is the winner, up for 10 severe percent. -- 4/10 of a percent. the nasdaq is lower today by a quarter of one percentage point. we will dig into the details and individual movers and a little bit. let's get the first word news from mark crumpton. mark: president trump says retired marine general john kelly will do a fantastic job as white house chief of staff. he was sworn in this morning. kelly replaces the embattled reince priebus. he reportedly will have one did, that priebus never the backing of the president's daughter and jared kushner. secretary of state rex tillerson calls russia and china the biggest economic enablers of north korea. jong ownsafter kim regime launched a second intercontinental ballistic missile in the matter of weeks. tillerson wants the u.s. wants a peaceful resolution to the tensions. the top american general discussed a possible military response wit

vonnie: live from new york, i am vonnie quinn. still seemsreserve it is not leading to many many opportunities for some traders. a hedge fund suffered its fourth straight monthly loss in june at about 1.5%. the decline pushed the macro hedge fund down this year. the worst loss for its first cap since brevan howard again trading in 2000 day. our reporter joins us now with more. not a great performance for brevan howard, but the other partners might say, weights, are trades will play out as planned. >> macro managers have been saying that for years, just wait, the timing is wrong, but one day we will have our moment. alan howard has been fundraising for specific alan howard funds to take advantage of his forrience in rate trading when the opportunity arises, but it is not here yet and those opportunities that have been, they have not been playing them well. a lot of micromanagers had been caught in this very crowded trade that did not go their way. it has been tough for these micromanagers that have been focus on the developed marke

vonnie: and i am vonnie quinn. switching to health care, maine senator susan collins say she is a big no on the health care repeal vote. -- says she has serious concerns about how to continue to provide affordable care after medicaid expansion. the bloomberg health care reporter for more on how all this talk impacts the business world. the 3.0moved on from version of the gop bill to the repeal, which is now also failing potentially. we need three senators to say no and two have come out and said absolute no. >> that is right and you have seen the gop which -- switch from strategy to strategy to strategy and other thing they want to do repeal. hours after that you had -- how many more of these rounds are regard to go before folks come to the table and try to come up with a solution? vonnie: what about the insurance? the ones that pulled out of the exchanges, what would entice them to come back in. zach: the big for profit have the individual markets so they get to sit on the sidelines and decide is the gop creating

vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." oil is gaining a straight days, the longest streak since december. here to discuss the path of crude and more is a senior strategist with ii trading. bill, you say this short squeeze is not done yet. not done yet. last week we saw a marginal increase in crude oil but we also saw a record short position in all four major petroleum contracts combined. the shorts are still going to get squeezed. think we can think we can run t dollars. aside from that we had some small fundamental [no audio] maybe the tropical storm had something to do with that. we also had rick falloff for the first time in 24 weeks. this will be critical when we get to the oil data. will it stop the rally, kenneth extend the rally? critical time this week. not as many on the floor of the cme as her typically would be. is there a way to take advantage of that given that rates are moving higher? bill: right now, a lot of data will be coming throughout the week. even though we have a holiday

vonnie: this is bloomberg markets, i am vonnie quinn. hiring has slowed in recent months and there is a lot of talk about companies inability to find workers with the right skills. on the eve of the june nonfarm payrolls data, michael mckee joins us from cambridge, massachusetts with more on the so-called skills gap. >> unemployment is actually rising in the boston area. chart on your screen. it is all the way up to 3.8% low the a full 0.5% national average and that is as much of a problem as a blessing. these boston high-tech companies are having a hard time low the finding workers but it is hard at the lower end of the income scale. those who provide home health care are in short supply. that's a problem for a nation that is rapidly aging. michael weeks is resident of the massachusetts council of human services providers. least one third of the massachusetts population is going to be 55 years of age or older. that means more than likely they are going to need more services. our demand is going up and our ability to decrease the need is

vonnie quinn. mark: and i mark barton. this is "bloomberg markets." breaking news, brexit and deutsche bank are calling to a matter,amiliar with the $350 billion on the balance sheet of its u.k. indices to frankfurt. steven arons breaking this from frankfurt. what is the timeline of this? ven: it is going to start happening and they are laying the groundwork. there start reaching out to clients in september. then they will be building up the i.t. , they willr from now start moving those trades and hope to complete this by march 2019. vonnie: if this project --is this project just about the balancing and reporting in a different jurisdiction? or is it about jobs, stephen? is it the same effort moving jobs to frankfurt? steve: it is also about jobs. this particular project seems to be about the assets and the scales. london is still a very, very important booking hub, and this is moving to frankfurt to a large extent. but jobs will be affected. client -- client counsel be moved. it is clear that some

i'm vonnie quinn. u.s. crude oil inventory sell further than expected this week. according to the international energy association. giving hope to producers and investors that global stockpiles could shrink and prices rise in the second half of the year. but it is still a complicated picture. iea's neil atkinson discusses the outlook for oil. >> next week, opec will meet with russia. are they going to achieve more production cuts? >> we don't know if that will happen or not. we have to wait and see. what we are sure about the moment is that although the opec cut agreements and not opec cut agreements has for the six-month as a whole as it has been operating has been reasonably successful. but for the month of june, the latest data for which we got reliable numbers, it looks as if the compliance rates have slipped a little. we have to wait and see what they decide. opec is responsible for its own decisions and we are observing it just like everyone else. francine: it is extremely difficult to predict th

vonnie: i am vonnie quinn. this is bloomberg markets. mark: time for a look at some 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

this is bloomberg. ♪ ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. as 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

vonnie: i am vonnie quinn. welcome to 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. mark: 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 b

vonnie: and in your, i'm vonnie quinn. southwest 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 i

i'm vonnie quinn. this 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 shows the world's second-largest economy continuing to grow at that brisk rate of 6.9%. >> all the numbers beat. gdp was better than expected. we were expecting 6.8%. also, factories are pumping out goods at a faster clip. industrial production at 7.6%, more than a full percentage point more than the previous month. and a full percentage point more than the estimate. we have retail sales much better than expected. 11%. we were expecting 10.6%. also fixed asset urban investment, just inching above the estimates. this economy even though the authorities are trying to curb excessive debt and over leveraging, they are seeing still strong production and strong growth over all. >> i think all

in new york i'm vonnie quinn. donald 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 a

this is bloomberg. ♪ mark: i am mark barton along with vonnie quinn. jpmorgan chase chief executive morgan. -- telling the community at a conference in paris that his bank among will have to move several hundred jobs on day one. quite what happens next is totally up to you and not up to britain. step, ifhave the first the eu determined he wants to move a lot more jobs out of london into the eu, they can simply dictate that. the politicians can dictate it. telling bloomberg that j.p. morgan passes eu investment bank, other services will be handled at dublin and luxembourg. for more, let's bring in bloomberg news brexit managing editor. a reset, relaunch, rebound, whatever you call it. prime minister treason may. was it seven tosh by the foreign secretary health scandal dating back decades? >> not the first time. loose lips sink prime minister of ships. declaring there is no plan for a there wasexit because going to be a great deal. suggesting there is no contingency planning. very swiftly came back and said there was continuous planning for both scenari

this is bloomberg. ♪ ♪ vonnie: this is bloomberg markets, i vonnie quinn. a victim and the world of payment processing as vantiv has a great to buy british company for $9 billion --worldpay four $9 billion. >> payments processing, financial technology, the news today is london-based worldpay has agreed to buy purchase by ohio-based vantiv this market cap coming into the day was $12 billion and they will pay in cash and stock. before the was announced, a note was put out saying it was unlikely vantiv would be the buyer of worldpay because of the price, just too expensive. we are talking about payment processing companies, talking about companies like paypal and square, companies that handle online transactions on e-commerce website. a business would pay a world pay or vantiv as a third-party to handle the digital transaction -- credit car companies and banks have been acquires of companies like worldpay and it was fun out of rbs. j.p. morgan chase has shown interest in buying worldpay. do not expect a bidding war as j.p. morgan says it will not make a rival

. ♪ ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. steelmaking 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

i'm vonnie quinn. welcome 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. a crushing 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 le

vonnie: and i'm vonnie quinn. this is 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 world gold council, significant players, get

vonnie: i am vonnie quinn. this is the european close on "bloomberg markets." as the opioid epidemic spreads, of statendemnation lawmakers against companies that make the painkillers. says the advertising is partly to blame for the crisis. he joins us with the attorney general of oklahoma. kevin? >> we are joined by attorney general mike hunter from oklahoma who on friday filed a lawsuit against big drug companies joining ohio, mississippi, and missouri, other states that have been similar practices. you filed the suit against these companies. why? job on february 20 of this year. one of the first things i became in a very unfortunate way was the extent to which our beset by aneen th incredible oversupply of opioids my pharmaceuticals. we began to look at this matter in a very thoughtful and elaborate way. what i'm calling oversupply of these drugs is deliberate and pretty cold-blooded. we are going to hold these companies accountable. we have a couple of decades where these companies, as far as we are concerned, have misrepresented, fraudulently marketed these

vonnie: live from new york i am vonnie quinn per a story getting a lot of hits. credit 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. co

vonnie: i'm vonnie quinn. this is the european close on bloomberg markets. astrazeneca plunging here in the u.s. worst day ever in london trading. this is the company best known for a score and nexium. here is talk about why shares are plunging today, abigail doolittle three abigail: we have the stock absolutely plunging, nosediving on the session. it appears there's a clause tied into medium and long-term expectations. their cancer study drug failed to meet the primary endpoint of the first endpoint, to drugs tied together that have not reduced tumors more so than chemotherapy. the reason this matter so much, if we pop into the bloomberg at g #btv 764, number seven going in the wrong direction for this company. we've had earnings and revenue declining over the last five years as the stock is gone higher. this expected to be anywhere between eight $3 billion to $7 billion by 2022. here is a chart showing that absolute plunge. offsetug could possibly that. the fact this trial is failed, investors are punishing the stock but what's interesting here is they spe

. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. disappointing quarterly results from goldman sachs and bank of america. vix income trading for goldman sachs, down 40%, making it the worst first half of ceo lloyd blankfein's term as ceo. think of america's interest -- bank of america's interest in decline after failing to capitalize on a fed rate hike. i don't want to completely malign the banks. there were some bright spots. >> look overall, they are solid. they are generally beating expectations. in general, they are making progress on overall revenues and keeping costs under control. most importantly for investors, credit continues to be under control. vonnie: what is confusing for investors is that the disappointing areas where the core businesses. would it be better if the losses came in peripherals? >> it sure looks like the market was looking for loan growth and interest expansion. it seems like each bank has disappointed one way or the other. either one, the market seems to be penalizing banks. vonnie: the biggest banks over

this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn. general electric shares dropping today, down to the lowest in two years. this morning, ending the year near the brought him end of the projected range. to hurdles inlly the oil and gas markets. this has been a tumultuous 16 your tenure for the ceo. the successor has his work cut out or him. -- for him. joining us now is our analyst, who wrote a very smart piece on all of this. brooks, can he walk away with this hanging over him in some ways, but he can't be held has will for the -- held accountable for the discrepancies in the oil markets, can he? >> he made a lot of investments investments,f oil so he will be held accountable. on in thee try background pushing for cost cuts, and other commitments to hit profit targets. this is not a great quarter for him to end on, but a lot of these challenges were known, and it is a continuation of a struggle at ge. vonnie: in it for the long game, it is turning itself into a modern company, embracing technology, getting rid of some of the legacy p

this is bloomberg. ♪ ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. time for our bloomberg business flash, a look at the latest business stories in the news. bluecrest capital investing transient million dollars in 111 capital. he is the former head of -- and bluecrest is a sylvester in the fund, focusing on stocks and derivatives. plans to sell half of a billion-dollar package to pimco in fortress investment group's. he spoke today, saying the deal will close in the next couple weeks and they will divest the rest of the portfolio, saying failure is not an option. he says after the bailout, there are no more systemic issues for the italian banks. reportet to the deals where we zoom in on an analysis from the biggest stories behind the deals. we are talking about whole foods and amazon and the idea that whole foods might have wanted $45 a share, not $42 as offered by amazon. alex: when these big deals are announced they come with a proxy statement, which gives details about how the deal happened, and of the various bids along the way. it is like christ

i'm vonnie quinn. season seven 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 w

i am vonnie quinn. the house 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

vonnie: the from bloomberg world headquarters in new york, i am vonnie quinn. this is "bloomberg markets." we are awaiting a statement from jared kushner. he did a couple hours worth of an interview to the senate intelligence committee members. we are not absolutely certain who was in the room, but it was a closed meeting and jared kushner was definitely in there. he would give a statement at the white house and we will bring it to you live. let's give you a check of the stocks with the vix at 9.5 and the dollar index petering out the 94 level. you can see the dow was going nowhere. the s&p 500 down 1/10 of a percent. i said the dow was up, but it meant down. the nasdaq is up at a 10th of 1%. let's get details from abigail doolittle. abigail: one reason s&p 500 is down and the nasdaq is up his hasbro. it's a big loser on the day, down more than 10% and on pace for its worst day since 2000 that's after hasbro missed sales estimates. clearly investors don't like that. sales from the playskool and super sucker brand lines. mattel trending down in sympathy. somethi

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 ar

vonnie: i'm vonnie quinn. this is the european close on "bloomberg markets." will he savek but sony from its slump? film hitsh superhero the theaters this weekend. the studio desperately needs a hit. so far this year it's in seventh place at the box office, its lowest spot since 2000. let's bring in the movie expert paul sweeney. sony is in a different place than it was in the year 2000. it would not expect to be number one or number two necessarily. >> the studio was fifth last year, where they have stuck around, somewhere in the lower end of the pack. this year has been a difficult year for sony studios. they are number seven out of the seven big studios we track. only about $200 million in domestic box office. they need a big film here. the good news is i think the spiderman film will deliver once again. expectations are for a very strong opening domestically this weekend. should have a good run in the u.s. then of course, like most of these big movies, they have to play well overseas. expectations are that spiderman will do that as well. is a reboot, it re

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

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, indu

vonnie: and i'm vonnie quinn. this is "bloomberg markets." sen. flake: shares of snap -- mark: shares of snap tumbling. 5% lower. adding to price pressure amid concerns of its ability to grow its user base. for more, let's bring in bloomberg's caroline hyde. the stock was down 5%. so bad now. caroline: not so bad, but it did hit a record low once again. the driving pressure is there. j.p. morgan estimates as much as 400 million shares could suddenly become available in the free flow. before, they were restricted because they were initial investors. finally, they are able to cash in. not great prices right now, but still able to exert the selling pressure. more shares in the market me more supplies means downward pressure on the price. you have a number of these lockups expiring throughout august. notably, august is when the also get the numbers and results people are looking at. this is a company that seems to be, at the moment, have plenty of concerns out there, whether investors worried about the shares coming into the market, but the user growt

i'm vonnie york, quinn. it is time for our smart-beta segment, here is julie hyman. julie: we are normally talking about a subsector of the stock market, but smart-beta is coming to bonds her. twokrock is starting smart-beta etf's coming next week. there are some funds that already at the -- already exist, but smaller than stocks. >> the fact they came out with the two smart-beta bond etf's last week, we have a particular hyd be, and also investment grade high-yield etf's. value andaking quality and applying it to the debt market. defenses are going down as well. we are looking at bonds that might be slightly less risky. on the other side, we have ige looking at the return portion of that. they are looking at bonds, that are a higher yield, black rock's investment grade market etf's. , generally, know -- difference can be them the difference between them can be a hair's breadth. >> the interesting thing about the funds is how they compare to blackrock etf's. the blackrock etf's go with self indexing rather than paying an external index provider, that means blackrock

. ♪ vonnie: live from bloomberg world headquarters in new york, i'm vonnie quinn. mark: 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 yie

i'm vonnie quinn. this 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: disappoin

. ♪ vonnie: live from new york, i am vonnie quinn. mark: this 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

vonnie: and i am vonnie quinn. it's time for etf friday. julie: 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 thi

vonnie: live from new york, i am vonnie quinn. rebounding 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

vonnie: -- i am nejra. vonnie: i am vonnie quinn. oil is climbing for a their date rally continues to sputter. joining 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 hav

. ♪ vonnie: you're watching "bloomberg markets." i'm vonnie quinn. senate 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 wh

. ♪ i'm vonnie quinn welcome to bloomberg markets. ♪ from bloomberg world headquarters in new york, here are the top 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