Two dozen hopefuls qualified so far. The Democratic National committee has doubled the requirements to reach the stage. Seek donations for individuals in 20 states. They also must seek to percent in party polls. The United States finalizing what he describes as trade negotiations with china. He made the comments at a joint press conference in bangkok. Resolving the ongoing tariff war in trade technology between the two nations. Discussed tensions with north korea which have escalated following reports pyeongchang announced progress in missile tests conducted over the last week. Pompeo told reporters the United States stands ready to do with our diplomatic conversation with north koreans. It was like that when i have the opportunity to do that while here in bangkok. We are ready to go. Well chairman kim will deploy the team so we can achieve with two leaders chairman supervised the first of new multiple rocket want a system that could potentially enhance its ability to strike targets and south korea in the u. S. Military bases there. The u. S. Government is doubling spending in preparation for no deal brexit. An initial 2. 6 billion in funding if the latest sign Prime MinisterBoris Johnson is serious about leaving the European Union with or without a divorce deal on october 31. Called thatarty funding an appalling waste of taxpayer money. Global news 24 hours a day on air and at tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. This is bloomberg market the close. I am scarlet fu. Caroline 30 minutes from a tumultuous trading day to say the least. In the green, making up most of the yesterday losses. Breaking news does not end this afternoon. The club contract President Trump says favors amazon. Defense secretary mark ordering a review of the pentagon path after criticism amazon has been giving an unfair advantage. This contract is valued as much as 10 billion. Redave seen them turn into at the president s tweets. Now see in nasdaq one of the key underperformers doing even worse. Apple really dragging us low. Enacted. Iff being electronics and electrical machinery. Apple could be hit. Crude oil was where we felt some of it. Down 7 . It feels like an overreaction. We will find out if it is as we look at the commodity space overall. There is a lot of red across the board. We start with oil down again and there is the leg lower on the day. Then we move on. 10 tariff on the imports. Lets start with oil. I didnt see anything specific to supply states with oil. Classy set oil is taking it on the chin. Have its worstn day since november. Most of it was due to oil. It feels like a strong reaction to what people have suggested was coming at this point. The month of july, the lowest in the month of 28 years. Very minor moves minor moves. There were more movements within the range. Indicating last week hedge fund is indicating a six year low. Getting into the market and trying to recall which way it would go. We recall of manufacturing data. 50 fact you are still above is not too bad. It was interpreted as bad. From the demand side, it seems to be taking that side. It would indicate talks are not going well even through back channels in the u. S. And iran. Dichotomy between supply and demand, it has been a focus day today. Hit, and then has anytime either trade talks, there is fear about what it does to global demand. We may have a bounce and we are heading into oversold territory. It is not clear if we will bounce up quickly. It looks a global commodity prices. Parts 12 , gold is higher and nickel and silver are higher. A lot of red here. The dollar is also weaker today. So many trade head tired headlines. It is a plan Interest Rates and what happened there. Gold loves it, still the safe haven despite of any else going on. Interest in the dollar may be shifted to a lower gear than expected. You see people look for places where we know it holds value. Oil, we saw copper go down today. What is interesting, con took a big leg down. The u. S. Is obviously the biggest exporter p or china is the biggest in importer. Nothing necessarily new for cotton but we have a situation or cotton is an tremendous oversupply. They did need to hear anymore bad news. Lets give you a quick programming note. Larry will be joining the open tomorrow. It will be quite a lot of trade talk. This is bloomberg. Lessee get a check of the latest as in headlines. Barclays is cutting the size of its workforce to the firm cut 3000 jobs in that quarter. Tight grip ona expenses. It also watched a criticism of its ability to reach profit targets. And, her s p profits which these be the concern over processes. It now offers the advanced service and parts of the city. That is your business flash update. Lets talk about youtube. Parents it isnce safe for kids. Some feel they are just left rambling. Mark is joining us from San Francisco. Youtube across every single know abouthat do we the changes. Changes . We dont know a great deal. Youtube is saying they are now trying to service that they call body videos. They do not have a working definition that they have shared publicly about it. The issue is they built a lot of an economy. Childrens videos are incredibly popular. A lot of creators make the city of for kids in the make a lot of money for the ad revenue. They will make these changes, sometimes they will talk about them publicly and more often they wont of a will have major consequences. Videos have done phenomenally better in the past few weeks whereas others are seeing a lot less traffic. That is because you to the surfacing them less often in search results and the , watching ones video after another. To noway for creators living. Sister caroline is nodding vigorously. Where the changes about how the company, how it operates overall. Had this issue for the past few years. Major headlines where we have , violenceprobe videos and sometimes sexual that children are watching. They have taken a variety of steps and this is one of them. At the same time, we in settlement talks. That is around childrens privacy, and disorder sort of on whether or not Internet Companies are collecting data which the law prohibits. If you read the terms of service , another 13 should be using this site. Advocates at and that is fine for kids. It is fairly obvious talking to a lot of parents and anecdotally, that that is not the case. The company has no way of knowing if someone is beyond it is something that may have to change. Baby shark is the complete at the moment. You mentioned the fcc edition. Affect kids media in general . Were looking at a lot of reports not serving any to kids. I think that one is very hard to implement and force. A kids video, a lot of kids watch that. Wrote impose one of the most popular youtube stars in the world. A major audience and preteens and young kids. You to pass,imates five to 7 of it is advertising enue from childrens thank you, mark, joining us from San Francisco. By. 7 . Oking this is bloomberg. Bloomberg. Before we get to what we are in the markets right now, we do have some headlines. President trump is speaking at the moment. It comes on the heels of him announcing via twitter, to an official statement that he is planning to impose tariffs effective september 1. That the hell did not go as well as we thought. There is really a resumption and that preceded about trade. That accelerated when the trump tweets came out about trade. A swing on the treasury, biggest swing since early 2018. Prior to that, you would have to go back to the big swings on u. S. Election day 2016 when there was a flight to quality and a lot of uncertainty about the new trump presidency. Amazing with commodities as well. That was fascinating and you see how it ties into the dollar. Sort of went on a whole round trip today. It still held up for the high. How can you have a disconnect of the strong dollar at such low rates something going completely haywire at some point . There seem to be a lot of extreme moves that have to be converted back. You look at how Industry Groups are faring, safety at work here. Trump still speaking about china, saying it is not moving not moving fast enough. Therefore in the sector perspective, so impacted, the bank today. Yes. The banks are down by 3. 2 . His pain upon pain. A lot of cyclicals also getting hurt as well. Energy, we talked about the plunge and oil prices. Semiconductors, i give up earlier gains as well. Yes. Rerating ofplete expectations. Rerating going on when you saw the leg lower in u. S. Equities and the move down in u. S. Treasury yields as well. We are moments away from a close right now. Lets look at the action meeting the numbers with renita and alec l. I have watched commodities for much of the day. Might as well watch some of the bigger commodities giants falling right now after being higher earlier and after the trump trade were was escalated currently going through a cost cutting process to word out the thin margins in case the United States and china trade war drags on longer. Prices since much of the commodities normally exported to china have slowed. Abigail also trading lower on the trade, take a look at apple. 2 ,e had been a more than down 2. 4 percent. 4 on the day after trading higher by 2 yesterday on the decent quarter. A goods into the u. S. , 20 of the revenue comes from china. These will apply more to consumer products. Investors are worried about a chart we talk about the other day. It is interesting. Apple headed the sox, Fourth Quarter volatility. This year, they reconverged. Ame deal now we look at this the other day. A big gap between stocks and apple. You can see it reconverged and coming down with more ahead. 20 of the revenue plus the supply chain in china. Thank you both so much more headlines from President Trump who is speaking at the moment in addition to saying china devalues its currency, president xi jinping is not moving quickly enough, President Trump also says he is not concerned about Market Reaction to tariffs. Specifically 10 tariffs on 300 billion of chinese goods he announced around 1 00 p. M. Today that cause balance oil to plunge. Lets bring in luke. Are you of the mindset that the president feels emboldened to move ahead on tariffs because the Federal Reserve is cutting Interest Rates and has the room to cut it even more . May be to get sure it is another cut. Was at worst, we have always been attached to the idea that we will always get two more this year, the trade situation tipped the thinking around that. The coin flip does not going favor of the market, then does this have anything prior to the rally . Look at the big pillar of the market. When yields are thinking generally not a great environment for banks. Those are big sectors of the market and two segments that have strength. Both of those are coming under the cross hairs from a narrative and a that a macro standpoint. It becomes difficult even if you get more fed evening easing then you would have thought at one point in the afternoon. Lets bring in the chief equities, even more insight analysis reaction. What you make of trump saying he had a short talk with put now going international, but were sticking with straight and with china. Do you anticipate the market selloff . Is there any seven we have not covered today . Literally. No. Look, the fact is that an escalation of the trade war would not was not on anyones radar. That is an outright negative for stocks right here. We are still in close proximity highs from ayes weekend change ago. The fact is the effect of the essentially means the more cyclical areas of the market, the ones being hurt we are not quinn Avenue Market rallied without those places participating. This makes it more difficult. If no one expected this, i am surprised you are not doing more. 7 on the nasdaq. Be diverseets can about the sometimes. It is working for you right now plus again, this is the first day of the month. There havent been a ton of inflows recently but if there are coming you will see them today. Trading off the fundamentals. We are in the middle than earnings season. It does not seem to be a strong correlation between corporate fundamentals in the market. Not as strong as it would be in the past. Seeing the mix you are out there . To a certain extent, it has been trade traded in fundamentals. Expectedtter than certainly reinforcing peoples and then you heard yesterday from chairman powell, if you think there will be a recession, we know there are risks with regard to an international slowdown in the trade war. There is unlikely to be a recession. Those are positive fundamentals. Up by. 9 . We were up by more than one percentage point today. We are seeing the Dow Jones Industrial average, 80 increase in volume. We surpassed yesterday, that was about 562 points. I am glad you brought that up. That was a pretty sharp reaction from only being up 1 or more. An immediate and violent reaction, we have no idea what the impact will be with the fundamentals. Lets dive deeper into the action with all of our reporters. Thisil take a look at intraday chart. Is the worst stretch for the bloomberg commodity index. Today, the dollar is down about a quarter of a percent. The commodity complex is getting hit even with the dollar. This is really getting sold off worse. It is less liquid. China is the was biggest consumer of natural resources. This could be one reason. Take a look at this longerterm chart. Why we are looking at the s p 500 in blue. Both different areas of the risk asset. They both traded roughly in line. The commodity complex started to slide well ahead of the volatility for the west for the s p 500. This could be worrisome over the longterm. Not just for commodities but also for stock. Stocks and commodities are down but some currencies are down. Especially when it comes to looking at safe haven currencies that are higher. Bit. Is moving quite a we have fallen by the most since may. On the other hand, the yen is actually advancing against all of its g10 peers. Very interesting. Back to you guys. We have some earnings. Interest is across the board. They see that fullyear revenue near 1. 2 billion. Seen secondquarter adjusted. There is still lost. The estimate was for 45 million. This is a company that is rising 10 , indicating this price. At to that, i want to jump in. We have more headlines from President Trump who is still speaking. He says that it 10 tariff is for a shortterm timeframe. Not only is he implying that it will go to 25 but it can go beyond 25 . He is answering on a variety of topics. He said he had a short but good talk with vladimir putin. He said he did not discuss the inf treaty with him. What you need to note is the tariff is for a shortterm timeframe. Luke, we saw a little bit of a spike, historically, 18 is not off the charts. Are we at a structure in the lowball, lower for longer, will that be upended in any way . It could be. Wheres one situation lower yields dont save you. This is something that really hits it. We need that hockey stick growth and inflection and margins everyone has been expecting. That does not happen if you had trade tensions rationing up. This is the first day since may 7 we have had calls crack a million. It suggests there are people tot see this as a good way enter portfolios. If you look at the last two years, you had these massive ebbs and flows and volatility. It is amazing how short the. Arket memory is from our point of view, you combined the fact that between the fed and what the president has said, you have two significant unknowns that are more unknown than they were 48 hours ago. Along with the fact that seasonably, there is this tendency in july and august in front of september that tends to be a seasonably week. Period for stocks. You see us moving around a lot but ending up where we were today before the trump tweet came through. It,an if you think about the president is not incentivized to see the economy on his back foot into 2020. It is an election year. He learned the lessons of 1992. President bush was not reelected because the economy was week. From that perspective, this is the sound of to make sure that china comes ready or battier to do a deal than it was last week. More ready to do a deal than it was last week. The idea is that any selloff is likely to be met with this. How much hell do you think he will get from the market continues to react later like it did today . If they continue to throw these tantrums, is powell going to give them the pacifier . Do you have confidence in that . Julian that is a tricky question. Part of yesterday was an attempt to insert a measure of independence from the white house and from the market expectations. That lasted approximately 30 minutes until the press conference started. What we found out when he talked about what the problems were and the risks, they were all international. From that perspective, you could say that the chair is the holden xi and boris she johnson. Thinking about it that way, it is very likely that another cut is coming before years end. Whether it is september or october, that is very dependent on how these events unfold. , thank you souel much. We have some breaking earnings. You have these metrics. That revenue number is coming in at 181 million. We are not seeing a forecast in here yet. Shares are down point seven. 5 . . 21, they see thirdquarter adjusted revenue, 590600 nine dollars. Million dollars. The estimate has been for the highest end of that. Expectations are a little underwhelming. Remember door . A lot of food delivery. Door preferred stock. Doordash preferred stock. This is a preliminary firstquarter earnings below the consensus estimate. We dont have a read for you here. Declinely, it would given that it cut its fullyear outlook. That does it for the closing bell. What did you miss is up next. We will have announcements and all the latest earnings and more on President Trump. This is bloomberg. Bloombergs World Headquarters in new york, i am caroline hyde. A snapshot of how much we fell. The turnaround was sensational. Caroline President Trump ratchets up the trade war with china. Stocks plunge. Tomorrows u. S. Labor for tell us . Pinterest ends where delivering results just moments ago. Delivering results just moments ago. Announcing a 10 have on chinese imports. Are set forriffs november 1. Lets will come in peter coy. Peter, i will start with you. I dont know if this was necessarily a surprise. T caught the market the trade talks in shanghai, they went over, they were constructed. Constructive is a good thing. That is from the white house. For them to turn around and say we will raise tariffs, it caught a lot of people by surprise. Caroline it caught the market by the surprise by surprise. It has been incredible and really focused on the short end. One of the things Jerome Powell said he was watching was the evolution of these trade tensions. Traders put those hats back on. To 1. 87. Ar is down at 2 this morning. It has been a big turnaround. Romaine one thing about the press conference, he got shaken by some of the questions. He seemed to be talking around the risks out there. He did not say explicitly but that seemed to be the main takeaway. When you get this tweet today, it seems to confirm. Peter it does. , inflationut rates was too low. One of them was exactly this. It was not the tariffs themselves doing a lot of damage, the damage the Business Confidence from the uncertainty about tariffs. I believe we have a quote on this, tariffs have gone from a simmer a boil and then back to a simmer. It looks to me like they are back to a boil. We will be hearing from President Trump any moment now. Here we are, the president himself. Trump i expected that a little bit. This. Dont expect we have taxed china on 300 billion worth of goods, they are being sold in our country. China eats it because they have to pace. What they do is they devalue their currency and they push money out. 25 onalso charging them 250 billion. We are taking in many billions of dollars. There has been no inflation. It has not caused our consumer anything. What has happened is a lot of companies are moving out of china. This is their worst year in 27 years. I dont want that. When my people came home, they said we are talking. We are having another meeting in early september. I said that is fine but until there is a deal, we will be taxing them. We are getting very good numbers from the border. The 21,000 soldiers supplied by mexico. I want to thank mexico, they are doing a great job, the numbers are way down at the border. Launchedkorea just their third missile in about a week. I think it is under control. Will you start negotiations again . What would you say it is . Let me ask you a question what would you say when china has been taking hundreds of billions of dollars out of our country and we had a president that would never do anything, a number that would never do anything about it, what would you say . China has been taking money at by the hundreds of billions of dollars for year. We have rebuilt china. It is time that we change things around. If they dont want to trade with us anymore, that would be fine with me, we would save a lot of money. I think president xi wants to make a deal. I like him a lot. Probably, he is not going fast enough. Buying fromould be our farmers, he did not do that. We are losing thousands of people. Very importantly, for many years, you have been covering this, china has been taking up hundreds of billions of dollars per year. They were rebuilding china. It is time we rebuild our country. The one thing i have to say, you have to say this, what china is doing is they are devaluing their currency and pumping money out like they have never done before. They are paying for this tariffs. We are not. Something is probably happening with hong kong. When you look at what is going on, they have had rise for a long time. At some point, theyre going to want to stop that but that is between hong kong, china, hong kong is a part of china. They dont need advice. President the reason is it takes a long time for the ships to come over. Fourweek up a timeframe. Overe taking in tariffs on 300 billion at 10 . 25 on 250 billion. It has been proven that our people are not paying for those tariffs. Go ahead. Short range missiles, we never made an agreement on that. I have no problem, we will see what happens. These are short range missiles, they are very standard. Go ahead. Congressman ratcliff is an outstanding man. Im sure he will be able to do very well. I think he is outstanding. Highly respected by everyone. We are not allowing huawei into our country. We can do business on nonsecurity things with huawei. Anything to do with national security, we are not dealing with them. I have not actually heard that. I know there are a lot of things going on. That is a piece of it. I dont know. I have not spoken about that. I would be surprised because of what james comey did. It was illegal. I would be surprised but i dont know anything about that. Are you prepared to tell your supporters they have been chanting something problematic . Im going to cincinnati. The arena is a very large one. We could probably sell it out 10 times from what i hear. ,he applications for seats never had an ntc. I dont know. We have a great group of people, they love our country. Kind of peoplehe that want to represent us from the last two nights, that is not what they want. I cant tell you whether or not they will do that. I dont know that you can stop people. We will see what we can do. I would prefer they dont. If they do it, we will have to make a decision. I have a message. My message is for the people. Applications00,000 for 14,000 seat arena. We are way over 122,000 applications for those seats. My message is i love them. I think they love me. I actually think they love me. Have they accepted the offer or not . That is up to the Prime Minister. I think they are fantastic people. If they wanted somebody to intervene or to help them, and i spoke with pakistan about that, i spoke frankly to indian india about it. That has been going on for a long time. To, can, if they wanted me i would certainly intervene. I cant comment about that but bin laden was very threatening to our country. He was saying very bad things about our country. I will let you make your own comment about it. I dont comment. I will say that bin laden was very threatening to our country. You cant do that. As far as anything beyond that, i have no comment. You dont really believe this. Do you believe this . We did not talk about that. I spoke with president putin of russia. They are having massive fires in their forest. Ive never seen a thing like it. It is very big. We are very good at putting out forest fires. If they should need it, i offered our assistance. We had a short talk but a good talk and i think he appreciated it. We would be able to help them. These are massive fires like i havent seen. That was the primary importance of the conversation. I think they very much appreciated it. I watched mueller, im not sure that he knows what is going on if you want to know the truth. Said noow is that he collusion with us and ultimately no obstruction because it led to no obstruction by a very smart group of people including our attorney general. O collusion, no structure and as far as the performance, you would have to say it was not so good. Why wasnt a quarter rate cut good enough . Our country is doing very well. We have more people working in the United States than ever before. The stock market will take a little hit but it will be phenomenal because it will be much better. Somebody should have done this with china along time ago. They decided not to do it, they made a big mistake. I will say this, there has never been a time in the history of our country like we have right now. The highest number of people employed, the best employment numbers for africanamericans, hispanic women, the best numbers we have ever had. Our military is being rebuilt. It is almost fully rebuilt. It will be stronger and better than ever before with new aircrafts, new missiles, new everything. Hopefully we dont have to use it. Nobody knows what she meant like that by that. She does not know what she is talking about. If you remember, a short while ago, i defeated isis. Right now, we have captured over 10,000. We have 2500 isis fighters that we want europe to take. They were going back into europe, france, germany, various places. We have 2500 isis that we have captured. We captured 100 of the caliphate. Al a big job on a kata qaeda and everything else. For her to make that statement is so ridiculous. She is taking a lot of heat on it. Nobody has done more against that war than i have. We have thousands of isis fighters that we want europe to take. Lets see if they take them. If they dont, we will probably have to release them to europe. Can you still negotiate with kinm after what he has done . Sure. These are short range missiles. We talked about nuclear. Those were short range missiles. That is funny. It is so interesting. You are saying i should have done more. I did more than anyone thought with the first 250 billion. The 10 is for a shortterm. I can do more or i can do less. I am very happy with the way it is right now. My people came back, they will meet again in september. In the meantime, we will pay they will pay a tariff. Mr. President , Speaker Pelosi the house wants to launch a house in paris. No one has mentioned this inquiry. No one has mentioned this. People are thinking it is a hoax. You know it is a hoax. No one has mentioned it to me. The one thing i will say that you have not covered, two days ago, a highly respected judge in the Southern District of new york and manhattan came out. Romaine you are listening to President Trump on his way to cincinnati, giving one of his interviews as he walks to the helicopter. A pretty wide ranging q a. He talked about the mother report, these trade tariffs. He talked about how he is not the concern about Market Reaction. He talked about china devaluing its currency. And catherine. Oy i will start with you. I want to talk about currency. He brought up the issue of china devaluing its currency. Through all this turmoil with him, the fed and everything in between, the dollar is still pretty strong. The dollar is still the best of that bunch. Going everywhere else. We finally got a cup from the fed. That will keep the dollar supported relative to at least the group of 10 currencies. Oil get smashed. The dollar weakened today. It feels as though apple took a beating. Inflation did not take higher. Inflationo to the question. Discussed what catherine is speaking about. When the chinese yuan depreciates, that makes products less expensive in the u. S. When trump said American Consumers are not paying the cost of the tariffs, to the it is that that is true, because of depreciation of the chinese currency. ,he thing he is bragging about that china is absorbing the currency is also what he is complaining about. That china is avoiding maintaining market share by devaluing the currency. I think he could stand to sit down with an econ professor and go over this a little bit. Coye want to thank peter for staying with us. This was a great conversation to react to. Ng we will credit to autos. General motors jumping today. Having a tougher time in china. Joining us from michigan is stephanie brenly. She is an automotive analyst. With not only gm but fiat chrysler. That was the resurgence of the big pickup truck. Stephanie we are back to the time when take us are contributing to profitability. All three of the u. S. Automakers are doing quite well in that pickup truck space. We also have new pickup truck product. A lot of times, when you come back and feel it back, people buy new cars. You have a new product to offer, that makes a big difference. Caroline gm had been trading higher until that tweet came from President Trump. How much is china a risk factor to these u. S. Auto companies . The sector in general . Stephanie its a big problem in that they are selling their. Ford and gm are going through here. It shows up in the equity income. They are both global automakers. Inn you have one region difficult straits and another doing well, you are in a more difficult situation. Answer to hown these were affected. Romaine when you look to have , where do youend think we will end up and what sort of obstacles do you think will be in the way to achieve that target . Lowernie it will be 2. 6 . We dont see a lot of downsides in meeting that objective. Of until now, automakers have been handling incentives. This was a bit more incentive happening. The last quarter of the effects of. In the next year. It might pick up a little bit. Is barring those unforeseen things. We could have more weather issues. We could have Economic Issues we are watching that we cant protect. Caroline thank you for joining us. Now lets get the first word news. Deal past of the senate today and is headed to the white house for President Trump to sign. It prevents the government to resume borrowing to pay all its 1. 3 7and set an overall trillion dollars budget. It would ruin the prospect of a Government Shutdown in october and automatic spending cuts. Deal that the house has passed. President e deal trumps wedding and eager to sign into law. This is the deal that every member of this body should support. Lays theegislation groundwork to avoid another Government Shutdown. Rand paul in kentucky called the legislation a spectacular failure. They are preparing for leaving the European Union without a brexit deal. The British Government said yesterday that the money was being set aside to hire border officers, stockpile essential medicines and fund other areas such as public information. This could lead to a good deal. If we dont get back the deal, we will be leaving with no deal. I have turbocharged our preparations across government to prepare for this deal. Not because we want it but we have to be prepared because we will be leaving on october 31. Will beovernment launching an Awareness Campaign for businesses. As you heard moments ago, President Trump speaking to reporters at the white house. He said he might raise u. S. Tariffs on chinese goods beyond if trade negotiations trade negotiations with beijing remained stalled. A 10 tariff on 300 billion for the imposed shortterm and it could go up or down after that. He did not elaborate. Mr. Trump said the chinese president is not moving fast enough to resolve the trade war with the United States. The maker of the rifle used in the Sandy Hook Elementary School shouldnt is asking the u. S. Print port hear its appeal. Remington arms is appealing a Connecticut Court ruling that reinstated a wrongful death lawsuit against the company. Used one of their rifles to kill firstgraders at this connecticut school. Global news, 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. I am mark crumpton, this is bloomberg. Romaine we want to bring you uptodate on some earnings. Falling prettys heavily afterhours. The company pronouncing his earnings for the fiscal First Quarter as well. Given the outlook for the full year. The First Quarter eps was amiss. The revenue guidance was cut. Expected to report those full earnings on august 14. Lets go to one that is doing pretty well right now, pinterest. See betteranted to monthly active users growth. They got it. The investments they have been doing in improving the product is paying off. The First Quarter, they missed expectations. You have video ads, video products in general. These are Machine Learning investments. The impact to be felt and 2020 is paying off early. They are monetizing the site better. The idea that they will become less of a scrapbooking site and a shopping site. If you look at the revenue, the large advertisers are still a big portion. They could push their products on consumers and make it available to buy or show the link to buy or the pricing or what have you. It really helps them accelerate revenue. Clearly there are signs that they are working. Turn toere going to squares earnings. Joining us now is david ridder of bloomberg intelligence. What is your first read on this . To shedounced this deal this caviar of food delivery. The numbers were solid. I think the outlook was a little bit disappointing for investors. What i look at more than anything is growth in their subscription services. This is from other services outside of payment. That is quite strong. That came in ahead of consensus. As for sales, i think this is overdue. This is something to have been considering for a couple of years. That is a hypercompetitive business between grubhub and uber eats and door itself. I think it is enough for them to be able to provide the capability to a small restaurant train chain without having the margin drag. I think it makes a lot of sense for them. David, are you saying the share price for today because of the runup in the shares . That why wedate, is are seeing the harsh reaction . David it is a highgrowth, highvalue story. Sometimes expectations can get a little ahead of themselves. A very innovative company. They have a lot of new products in the market. If you look at the past year, most of the products they sell to the merchants and consumers with the square cash at have been introduced over the past 18 months. Some of those will take time to build. We are optimistic they have the potential to triple their Service Revenue over the next three or four years based on our calculations. That is david ridder of bloomberg intelligence. We will stick in this tech space. Software company. Carl icahn taking a 12 stake in the company. There are the shares rising after hours. It seems as though they are reporting the stake. May seek more representation. They could seek talks in the business. This is bloomberg. Caroline back to our top story. President trump weighing in on his terror threat. He said it is shortterm but it could be raised about 25 . The president a nasa fresh 10 tariff on 300 billion of tariff ona fresh 10 300 billion with of imports from china. This is damaging to the markets. Also damaging to the economy. Our initial estimate is that it 3 10 of ae 2 10 or percent from gdp. 2. 4 , thatexpecting is our forecast, we might have to change it to 2. 1 if the twig becomes policy. The economy is still strong. That will slow down from our initial estimates. We kind of always look at it from the u. S. Perspective or chinese perspective. There has been a drag on global trade as a whole because of the uncertainty. Do you see the escalation of these tariffs having any impact . I think it will. This notion that they can use tariffs to redirect supply chains is not always spoken about. The president talks about it sometimes. It is going to have an impact in the sense that we have more tariffs on more goods. Also, this is a clear sign that the prospects for a deal are diminished. If you are company, it could be a u. S. Company, a european company,even a chinese you are thinking that much more about shifting your production from china to a market like vietnam or mexico. Money flows are going to different countries. Malaysia for example. Southeast asia seems to be a winner here. Michael i dont think the pressure will work. This just makes the politics that much harder for beijing. I think it is relatively optimistic, President Trump is by looking to really looking to accelerate the ad purchases that are part of the many deal that he announced coming out of the summit with president xi. China could step up agricultural purchases. The u. S. Could use up on huawei ease up on huawei. I dont think that is going to change. I think chinese leaders will have been surprised but not shocked by this move. Known that this was a possibility. That suggests to me a continued firming of positions. I dont think this tactic will deliver a deal. S could trigger some act ag purchases. I think that is optimistic. Romaine powell suggests pretty clearly that part of the fed reaction function was related to trade and the uncertainty around that trade. How does the fed deal with something that is maybe a little less tangible to decipher what it is . They will have to reanswer that. If this becomes policy, that. Eans a rate cut do they try to anticipate where it is going . It goeswill wait until into effect and they will see how it impacts sentiment. It will start affecting sentiment right away. Another thing is to look at how it impacts different sectors of the economy. If manufacturing was already teetering on the brink of a slowdown, that means the outright recession in the sector. Manufacturing was a big deal. If that is going to a contraction, that will push their hand. Inflation will go on the back of this . For bad reasons, not for good reasons. This will push inflation closer to the 50 target. This is a very hard line in the sense of the exchange rates. 71, that is what it is. That will filter into consumer inflation here. We want to thank michael of the eurasia group. You can catch larry kudlow tomorrow on the open at 9 30 a. M. Eastern time right here on bloomberg. This is bloomberg. Just to recap several earnings that we have. App falling. T missing on both revenue and eps and cutting the fullyear revenue forecast. Caroline the thirdquarter forecast is not looking pretty even as they sell caviar to doordash. Interest is arriving. This is a stock that had been pretty much range bound after having a pretty phenomenal ipo back in april. Even as it raises outlook for the second half of the year. Meanwhile, we have to move on. The stock report comes out at 8 30 a. M. Eastern. That is it for what it do miss whatd you miss . Romaine Bloomberg Technology is coming up next. This is bloomberg. Emily im emily chang in San Francisco and this is Bloomberg Technology. Coming up in the next hour, trade tensions rise. President trump will impose a new 10 or up on 300 billion in chinese imports starting next month. 25 in addition to the tariffs already imposed on other chinese goods. U. S. Stocks tumbled. Could iphone and other things rise as a result