Minus less than 1 10 of 1 . The president just speaking, and said, we dont need to devalue the dollar. Interesting to look at cnh. At 7. 093,uan trading so quite a lot of weakness today. Guy lets get back to those comments from the president , stoking the fire on trade. He said he wouldnt devalue the dollar. We dont need to. He said talks with china are progressing, but not ready to make a deal. He also said he would be fine if the september china talks are canceled. Lets talk to christian schulz, citigroup director of european economics, live from frankfurt. I just want to ask you a question about the fed. The fed wants 100 basis points from the fed. Inthe talks on trade september are canceled, using the fed will deliver at least another 25 basis points, possibly more . Christian we do expect another rate cut from the fed, and our base case is for these trade talks not to come to a conclusion, certainly not before the end of the year. This is i guess all in line with that base case of further easing from the fed, yes. Guy what would it take to get the dollar down . The president talking a lot about this today. Would a 50 basis point cut deliver some sort of dollar weakness . At the moment, there is no evidence of that happening. The dollar keeps going up, and that is putting a stranglehold on the global economy. Christian it is the result ultimately of the trade wars. The trade wars seem to hit the u. S. Economy generally less, so u. S. Growth random so u. S. Growth were meant to so u. S. Growth mimicked him remains relatively strong, and hits the world quite strongly. It tends to be more important than theollar shortterm outlook on interest rates. Anyway, it makes it more difficult for the fed to cut rates because the economy is so strong in the u. S. Vonnie how much time do you spend in europe talking about the independence of the Federal Reserve and how much the u. S. President is speaking to the fed, about the fed, and at what point that will actually influence the fed one way or another, whether it is through markets or just sheer force of will to make it happen . Well, the Dollar Exchange rate is crucially important for everyone and everything, but it is a two way risk. Tends to ber detrimental to growth via the impact it has on emerging markets, which europe is more exposed. Germany is very exposed to chinese trades. If you get outflows of money out of emerging markets into the u. S. Because of the strong dollar, that tends to be bad for exports here. At the same time, a weak dollar can also be risky for us in europe because it is detrimental , it createsveness the risk of potentially even a currency war when both sides start trying to devalue competitively. I guess stability would be the best thing, and the comments that mr. Trump just made, if anything, are slightly positive. Vonnie right, but federal do you thing how about that, if at all . Yes, in particular, when it came out that the government would try to devalue the dollar one way or another. It became clear that without the help of the fed, that is going to be very difficult to do. Of course, the finance ministry is in charge of the dollar policy at the treasury, and the u. S. Is in charge of ethics policies, but it doesnt really have the firepower you need to massively devalue the dollar, for instance against the euro. The question of course arrives, can the fed be put under so much pressure that it tries whatever it can do to devalue the dollar, be that via cutting interest rates, or even more extreme by intervention . How would the ecb and the rep react . This is something we havent seen since the ecb was created. Guy you bring up the ecb and germany. We had 60 on the german tenyear this week. In big a week has this been terms of signaling where germany is . I see a slew of Economic Data that is absolutely horrible. Ive come a german tenyear that is 60 ive got a german tenyear that is 60. Is germany in recession . Christian on one hand, youve got an extremely weak dataset when it comes to the typically Cyclical Industries here in germany, which tend to drive growth, so Industrial Production is weak, pmi is weak. All of these things clearly point to a recession. But then you look at private consumption, you look at services, and there is no recession at all. We just had retail sales very strong in june. Overall they expanded into the Second Quarter. The pmi looks strong. We still have this divergence between a to economy that looks resilient, and a week many factoring sector. On balance, it is probably just above the zero rate, growth lines are. I dont expect a recession, but very weak growth rates. Guy there is a spark yesterday on the issue of german fiscal policy. That basically hinted at the idea of some sort of sustainable Environmental Green Initiative designed outside the green party, and some ways for a stronger link to paris, but to provide stimulus for the german economy. It takes boxes on so many levels it ticks boxes on so many levels. Do you think that spark is going to turn into a flame . Are we going to see fiscal policy from germany starting maybe to kick into a higher gear . Christian i published a note on this and said theres no smoke without a fire, so sticking with your allonge lizzie with your analogy, i think the overall idea is very plausible. The greens are rising in the polls because people are worried about climate change. Anything [no audio] christian where i am a bit worried is when i actually look at the potential numbers. There is a constitutional debt break, which means the federal government cannot borrow more , so that isf gdp not an enormous amount of money that they could mobilize. There is still a lot of resistance within the government, and this could even bring the government down eventually. Zero borrowing policy is very popular in the population. You hear it everywhere. Theres still a lot of hurdles, and the timing isnt right, and the numbers probably arent going to be that big, but the story to me is quite plausible. Guy christian, stick with us. Christian schulz joining us from citigroup. Vonnie stocks continue to deteriorate. The s p 500 down almost 1 . Oil and gas drillers are the worst performing index, down almost 4 now in the s p 500, which is a little ironic because oil has a bid under it today. 54 a barrel. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is the european close on bloomberg markets. Lets get a first word news update with courtney donohoe. Courtney President Trump says congressional leadership is now having serious talks on background checks for gun buyers. The president also tweeted that hes been talking with the National Rifle association and others so their views can be represented. He said guns should not be placed in the hands of the mentally ill or do ranged people. The government will not rush two aboard that 10 billion contract for cloud services. President trump has complained. Today the Defense Department said that contractor bids are still under review, and the carried 1 only be million of the possible 10 billion. In malaysia, criminal charges have been filed against 17 current and former Goldman Sachs employees in the 1mdb scandal, accused of misleading investors when it arranged bond sales to the investment fund. Goldman says the charges are misdirected. In hong kong, the antichina demonstrations has spread to the airport. Protesters began a three day sit in of the main terminal today, and they hope to get their message across to international visitors. The hong kong airport is the worlds eighth busiest in terms of passengers. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im courtney donohoe. This is bloomberg. Vonnie thank you. Check on Global Markets without guilty little. Abigail yesterday at the close, the major averages higher on the week. Now they are back down on the week. Take a look at the s p 500 and the nasdaq, sharply lower, down by 1 or more. Uncertainty continuing to plague investors, not sure to what not sure what to make of the trade war. Or pulllloff back, i should say, for stocks. A lot of uncertainty for investors. Beyond the trade war, we are watching yields. Lets take a look at an 11 day chart of the 10 year yield. It has been down 10 of these last 11 days, shedding 38 basis points over that time. One of the biggest down streets for 10 year yields going back to 2012, the most since 2011 during the u. S. Debt crisis. That is the degree to which investors are seeking safety, wondering what is next. What will be the outcome of the trade war and the fed . Last year we had a situation where when yields were rising, bonds go down. These are the losers on the s p 500. You would think these are smallcap companies, but that is not the case. Pxe technology their outlook. Outalso down 3. 2 , rounding some of the earnings losers. Of course, there is a uber, that is one last one not doing so well on the day. Finally, i was mentioning the fact we are looking at weaker declines. Take a look at this chart in the bloomberg. At the end of december we had massive declines. For the most part, it has been when year, but recall may, we had four down weeks in a row. The s p 500 stayed below the moving average for some time. Today we are on pace for the second down we can a row, begging the case of whether we could be lower for the month of august. Guy abigail, thank you very much indeed. Lets get back to christian schulz, director of european economics over at citigroup. Lets start off with the u. K. Market is the signaling we got it when he five basis point cut coming in. Does todays Economic Data justify more than that, do you think . Christian no, i would not say it justifies more. Theres various scenarios we have to consider. If theres a no deal brexit, this pricing is probably incorrect because the bank of england has kind of taught us that there will be earlier and probably deeper rate cuts in that scenario. In a scenario where there is a deal and the u. K. Leaves, i still suspect the bank of england would be hiking next and not cutting, although that may still be some time away. In the kind of middle scenario where brexit is delayed and things stay where they are, where this secondquarter gdp print might be an indication of whats to come, i think in that scenario it is possible that the bank of england would be cutting interest rates, but it still has to keep in mind that inflation is at target. The labor market is extremely tight. Wage growth is very high. The scope for rate cuts is quite limited. Guy i guess the question i am really asking, does todays data point us towards a u. K. Recession . The bank, and to a certain extent the market. Are we heading towards a recession in the u. K. . Can i discount todays numbers, or do any to extrapolate forward . Christian there are some real signs of concern in the data today, especially if you look at the production breakdown of the Services Sector, which had a very weak quarter. That is not good news because the Services Sector tends to have quite a bit of momentum. If that slows a lot, the underlying pace of growth seems to be quite weak. Theres also some positive signs of resilience in the data we got today. In particular, when you look at private consumption, private consumption expanded by 1. 5 , 1. 6 . That is a very good print. Retail was strong throughout the quarter. Consumers enjoy rising wages, benign inflation, and they are much less worried about brexit than the corporates seem to be. Theres no sign of precautionary savings anywhere. That should boost growth Going Forward and be a rock of resilience, unless consumers really take flight. Vonnie we are seeing a little low in communications right now, given that it is the end of august, but what is the base case for you now for brexit, deal or no deal . Christian well, youd have to say that since Boris Johnson has come to power, the risk of no deal come up the perceived risk of no deal, the perceived risk has been up. Everyone thinks, and i thought, that the government is simply auffing and trying to get better deal from. The eu but they are pulling all the levers from the eu. But they are pulling all the levers. They are getting support, or trying to get support, from the u. S. For it. In september, the team really suggests they are serious about a no deal, and now we will see how they get to a new deal if parliament is opposed to it. You would have to say the case for no deal is on the rise, but on balance i am still convinced that if parliament is opposed to no deal brexit and if there is no deal on the table, which there isnt at the moment, then ultimately we are facing a delay and another democratic vote, one way or another, and most likely a general election. Only then will we be able to resolve brexit. Vonnie christian, what do you make of the rumblings yesterday that there might be a fiscal package on the table in germany, and the denial of that by unofficial German Government spokesperson . Are we closer to some kind of climate related fiscal deal . Well, a lot of politicians across europe will be looking at what is going on in the u. S. The u. S. Has had a big fiscal package, and that has led to this major outperformance of the u. S. Economy. It has made it resilient to all of these trade wars and things that are going on. We seen in the u. K. , for instance, Boris Johnson adopting a similar kind of policy of tax cuts and all of that. We had the italians going in the same direction, although its proved to be a bit selfdefeating there. I think as the economy slows, as elections are looming in germany , at least in 2021, i think we get more calls for stimulus as well. As lots of people are discussing come of the rise of green fear in germany has really galvanized everyone behind spending more money to protect the environment. That seems to be a worthy cause, something that is probably enough to get enough Political Support in parliament and the to get a commitment to the blacks zero, so i think there is a chance we will get some stability. Guy in italy, btps are currently 28 basis points higher. A big move to the upside. It looks as if we will see salvini forcing through some early election. If we get a single salvini led government, what do you think that is going to mean for the Italian Economy and the relationship with brussels, along the lines of what you have been talking about in terms of spending . Christian one is good, and the other is bad. In terms of the economy, it is a good thing to have a stable oneparty government committed to probusiness tax cuts, spending increases. Even if that means a higher deficit from that perspective, it should be a good thing. On the other hand, it is the , youre abrussels skeptic part of the government, so as the fivestar movement is presumably removed from government, a purer antibrussels, antieurope government remains, and that creates risks for italy. Italy ultimately depends on the back step the backstop to keep its fiscal side sustainable. That is really the worry here. For us, the intention with brussels is the more important and worrying output for economic growth. Guy btps selling off into the close here in europe, nearly 29 nearlyint hires 29 basis points higher. Christian schulz, thank you for joining us. The european close is coming up next. This is bloomberg. Vonnie checking u. S. Markets now, we have been down all session. We crossed over into the block yesterday for the s p 500. Right now we are down more than 1 . Nextarr therapeutics therapeutics really dragging down on it. Guy european equities down across the board. Ftse down less than most. The pound is taking a beating, protecting the ftse 100. The dax down is a trade narrative. The italian market is being abandoned. Btps selling off into the close with yields rising. Italian banks very much under pressure. The market down by 2. 5 . This is bloomberg. Guy 30 seconds to go until the end of regular trading in europe. Europe is trading lower but there are distinct differences. We come through the close, italy is down hard. The london market getting boosted by the pound, still negative but not as much as the other markets. Stoxx 600 down. 9 . Lets call that 1 . U. S. Markets obviously a factor. Idiosyncratic european stories as well. The real story is Southern Europe and it is moving the italian stock market as what is happening with italy. Selling off into the close. Yields are rising in italy as we come through the close. Prices are coming down. Pound has been down all day. The gdp number do not help. The brexit narrative is there as well. That is helping out the ftse 100. Let me show you how those boards are translating. He ftse 100 only down. 6 still negative. Dax down 1. 39 . Down 2. 54 . It is being affected by the btps. Ist is the way the macro affecting the granular stock story. Lets talk about some of the individual stops stocks to give you an idea what is going on. Bayer is a factor in the german market. Unicredit is down. Bayer is helping out the german market. Up 3. 27 . Up by more earlier on. Looks like we could see settlement on the roundup story. The market has been waiting. Something else helping out the would seem the ftse 100 is wpp coming out with numbers earlier on. The market likes what it had to say. Up 7. 5 . The macro is definitely affecting the story. Individual names coming up from the bottom. The big stories are big move down the pound. That has affected the ftse 100. A big move in btp affecting the italian market. What a week it has been. Vonnie in the u. S. We have stocks lower. We had a race to those losses this week by the close yesterday but we may be adding to those losses today. The s p 500 is holding on to the 2900 mark but we will see if that keeps throughout the day. The dollar index down. 2 despite comments earlier on from President Trump that he is not looking to devalue the dollar. We dont need to comcast he says. , he says. Need to gold is above 1500 an ounce. The oil and gas drilling index down almost 4 , it is the worst performing index in the s p 500 and that is funny because crude is above 54 a barrel, getting a boost. Copper on the china growth and 3. 5 inlks story, down the s p 500. News corp. Is one of the out performers, it is not that isnings did well, but it going to concentrate on online efforts and real estate to push markets. That stock up 5. 1 . Norwegian cruise line up 1. 8 . Guy listed back to italy. The countries may be heading for fresh elections. The deputy Prime Minister calls the governing coalition unworkable. Italian bonds tumbling. Where ouro rome reporter joins us. Im hearing the 23rd of october, is this government over . Yes. Most likely it is over. It will go through a confidence vote in Parliament Next Week or most likely the week after the is unlikely to survive the confidence vote, and after that the vote will be in the hand of the president who will most likely dissolve parliament and therefore mode vote in october. Vonnie how does this impact who has more power in italy . Does powershift . Indeed. Was already the de facto leader of the government and of the country. His party is pulling 36 , even 30 , pretty close to an even 38 , pretty close to an absolute majority. He was getting everything he wanted done. In a way it is peculiar he decided to pull the plug on the government and see collections right now. At the same time, what he wants is to capitalize on the soaring poll numbers and become, personally, the Prime Minister. Guy are they quaking in their boots in brussels as a result of this . What will the relationship look like if he can get an absolute majority . Salvini will be bruising towards brussels. Will already showing he hear his campaign against angela macron,against emmanuel against brussels. I cannot see brussels quaking in its boots because Everybody Knows that italy has a public debt of over 130 . Lvini really wants to carry through with his plans for tax cuts, he will not have to talk with brussels, he will have to talk with the markets. Vonnie italys parliament is currently in recess. How does that complicate the matter . This puts a spanner in the s plans. Salvini this means on monday there will be a meeting of the head of the parties in parliament and they will decide for the noconfidence vote. It could happen next week. Most likely will be the week after the next and this wins this means parliament will probably not be dissolved for the end of august. Guy is there talk about the fact that the spread could widen significantly over germany . Trading 239 basis points over bunds at the moment. In moments of tension we talked about the idea this could go through 300 and that would be a line in the sand. Are we starting to hear that commentary again . Therell be a lot of volatility on btps on italian bonds all throughout the campaign, especially if salvini comes out aggressively in the spending plans. The ecb will probably expand its stimulus again in september. Ons should keep a ceiling how high the threat can go. It is true that this renewed political crisis has provided investors of all of the woes of the Italian Economy come of the debt, of the stagnant growth, and this is not going away. I wonder if that ecb buying program could be a factor in salvinis mind. Thank you very much indeed. Vonnie lets turn to the Banking Sector and what is going on. Ubs mulling an Investment Bank overhaul, which could put hundreds of jobs thaat risk. Goldman sachs has been charged in a scandal. Joining us is Bloomberg Finance reporter. Why is ubs talking about an overhaul . All european banks have been overhauling for several years. It does not end, partly because they struggle to make money. Interest rates are very low in europe, much lower than here, and they have lost a lot of market share. Investment banking and trading, and that also hurts the bottom line. The Banking Sector is struggling so they have to keep cutting costs. When you keep cutting costs, you lose business when you do not have the people to do that. Thinkve to constantly what part of this business should i be in, focus my talent there so constantly there is new shuffling going on and some divisions lose manpower, they get out of business. It is not only ubs that has done this. Ubs has done it better than others, to be honest. They restructure, they have shrunk fixed income and paid attention to the equities business which is a bigger strength, and they are doing much better. It is not easy to stop because there needs to be more costcutting and to make money and they have new bosses in the Trading Division and they will think of ways to do it better. Guy the Business Model at ubs is different. Is there to serve the Asset Management side of the business. It is there as a service to clients. Very different than the structure other banks have. It has a return on equity of around 10 , around half what rest of the business generates. Considering this is a service, how much more can they cut to eat into that. Does it need to generate the same r. O. E. At the other parts of the business . Yalman the success ubs has had in restructuring has been to focus more on the Wealth Management side. Wealth management is very important for swiss banks. To do suisse is trying that more after it saw that ubs did it better. Arel, ubs and Credit Suisse in banking and trading and they cannot let that go because it is the part of the synergies required to be in Wealth Management. Your wealth decline youre wealthy clients want to be taking part in ipos and be able to trade things. And be a good scale wealth manager. What they are trying to do is make the functions, Investment Banking, trading, bit better with the Wealth Management, which is the top priority. Two would never come closer. Vonnie lets talk Goldman Sachs. Malaysias attorney general is expanding his efforts to try to charge charge goldman executives. Yalman it is a long list of names. Former and current. Effort to getan goldman to agree to a settlement that will be flashy, that will make a political point and help the country recouped some of the losses they claim they did because of the corruption going on there. The prosecutor said they were offered a couple hundred Million Dollars by goldman, which they see as small. At the end, some of these settlements and up being several Million Dollars and malaysia claims they lost 5 million or 6 billion. If they get a billion dollars from goldman, that will politically look better for the politicians there and the prosecutors. When you charge people, that forces the hands of companies to do something about the settlement. That is where things are leading. Guy the reason you would settle is because it is affecting your business. Is that affecting Goldman Sachss business . Yalman it has been a reputation problem. ,very time the headlines hit and a time their stock prices were affected. It is something that is overhanging and a lot of report, during the earnings calls, people keep asking about this. The uncertainty of how this will end, how much goldman might pay, whether it might lose some business, that is the kind of thing investors do not like. It does impact the business goldmanly and i am sure is trying to put an end to it. It is a bargaining process and it might take a wild. Vonnie fascinating. Goldman is up 22 since beginning of the year but down 12 yearoveryear. Thank you. One of our finance reporters at bloomberg. Turning to Central Banks, the philippines may not be done cutting rates. We spoke exclusively with the Central Banks governor. Right now, what were contemplating is another rate points. 5 basis could come as early as september or it could be in the fourth quarter. Ourlso intend to cut requirement. To 18rted easing from 20 and 16 now. Another possible 100 basis points before the end of the year. Vonnie the philippines inflation rate has hit a two year low. Guy lets figure out where europe has settled down. We are through the auction process. The week is over. A little bit of a bounce during the option, which was interesting considering the u. K. Market was selling off. We finished down. 5 . For london, the caught now market is down by more. The italian market down the most. If you want to carry on the market coverage, we will do that on dab digital radio, Bloomberg Radio taking to the airwaves at the top the hour with the cable show. Carry on the conversation, talking about what the president has been addressing this afternoon and the italian story. A big impact on btp today. That is coming up. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, i am vonnie quinn. Guy lets get a first word news update with courtney donohoe. Courtney President Trump says everything is going well with china but he says the u. S. Is not ready to make a deal on trade. He says next month negotiations may not take place. The president spoke to reporters at the white house ands at the tariffs imposed on china have been amazing. Fellure of wholesale for the first time in two years. Fromcer prices decline. 1 june. The 2. 1 annual increase was the slowest is 2017. It is a blow to newly installed british Prime MinisterBoris Johnson. The u. K. Me economy sank the u. K. Economy sank in the Second Quarter and that has not happened since 2012. Gdp fell. 2 . Companies ran down inventories built up ahead of the initial march deadline for brexit. British manufacturing fell the most in a decade. Tiger woods has withdrawn from the opening fedexcup playoff event. He says he has mild muscle strain. Round of 75pening and was far back in the pack at the tournament in new jersey. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. I am courtney donohoe. This is bloomberg. Vonnie thank you. The hour. Ur stock of guy we are looking at the german agricultural and health care giant bayer. Shares rising the most in a decade. Closing up more than 3 . Here with the details and the bloomberg scoop is, chandra is emma chandra. Emma the movement in stock related to the company, or the report the company is planning to settle more than 18,000 lawsuits over in the u. S. The key is the amount. Proposing ao be higher number, it is significantly lower than what some of the analysts had been estimating. They had been estimating between 2. 5 billion and 20 billion. It is also below the number lawyers have been proposing, 10 billion. Negotiations are ongoing, but the fact that negotiations are happening means shareholders are happy because it suggests we could be toward the beginning of the end of the issue. This has cost shareholders dear. We are looking at a chart of boughtince it monsanto. , it alsoought monsanto bought the roundup weedkiller. As the stock has fallen, as weve gotten more and more negative news about the company in regards to those allegations of cancer and roundup, we have seen 40 billion wiped off the Company Market cap in that time. This is not the only issue facing bayer. Bloomberg intelligence saying a settlement would remove the overhang on the stock, but there are concerns with the company. That faces Macro Economic headwinds. Take a look at health care. The majority of its revenue coming from health care. Bloomberg intelligence saying it needs deals to improve its pipeline and it says any large settlement will take money away from deals. Vonnie thank you for that stock of the hour. Coming up, our global battle of the charts. This is bloomberg. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you preorder a new samsung note. Click, call or visit a store today. Vonnie it is time for our global battle of the charts. You can see the charts on the bloomberg by running gtv. Kicking things off in new york is jessica summers. Jessica i want to take a look at the oil market and the spread between wti and brent crude, which is quite interesting. You can see my chart has narrowed quite significantly to the smallest in a year. That is likely to shrink even , which according to says increased demand for u. S. Oil in the next two to three months will push that spread to two to three dollars a barrel. You can check out my chart on the bloomberg at gtv. Vonnie that is one red chart, jessica. Guy, what you have . Guy i have some red on my chart as well. This is only has pricing for the bank of england. On the penultimate day of mark carneys tenure as governor of the bank of england, he is likely deliver a 25 basis point hike. Todays data further augments that story. We saw disappointing q2. The banks probably already baked that in, but the market has completely swung around over for five months. The market was expecting the bank to remain over the last few months as the fed and other Central Banks have turned tail, we are seeing the bank of england forced into a position where was likely cut rates. The u. K. Is unlikely to going to recession, but nevertheless it looks like mark carney will leave as governor of the bank of england with rates exactly, where he found them 50 basis points. It is a tough does it vonnie it is a tough decision. Given that it is friday, i feel like i have the right to award a time. Ive a good mind to make you do a tiebreaker, because we probably have time to fit it one more before the end of the show, but i will not make you. Wti discount to spread and the bank of england, which be gearing up for exciting times. Guy absolutely. Well see what the Central Banks do. It is worth noting europe is now closed. What a week it has been. The complete market story this week, weve seen equity markets gyrating, bond markets catching a strong bid. The massive moves in the treasury market in the bond market and now the btp market. Some volatility in foreign exchange. What a week it has been, and this is august. Who wouldve thought we would have a quiet august . Vonnie a few years ago august changed and it has been busy every august. Finishing the week where the week began on china, the president commenting he does not care of talks go ahead. He would be fine if they do not. Coming up, im sticking along with balance of power along with evans early. Well bes with kevin cirilli. Well be speaking with u. S. Immigration Services Acting director. Checking with u. S. Market, the s p down 1. 2 , the nasdaq down 1. 5 . Vonnie from bloomberg World Headquarters in new york, im vonnie quinn. Kevin from washington, d. C. , i am kevin cirilli. Congoo balance of power where the world of politics meets the world of business. Vonnie the white house is now holding off on a decision of licenses to restart business saidhuawei after beijing it was halting purchases of u. S. Farm goods. President trump to reporters earlier about the situation. Trump what is happening with china now, we have an open dialogue. We will see if we keep our meeting in september, if we do, that is fine, if we do not, that is fine. It is time somebody knows what we are doing. Vonnie lets welcome bloomberg trade reporter shawn donnan in washington, d. C. This decision, opting against making a decision to provide companies with licenses to restart business against huawei, does it