Pretty simple chart. All about the s p 500. So often, we talk about the wild swings, the 1 , 3 moves. Dayou can see in blue, 50 resistance level 2950. Yellow comedy 200 day at in yellow, the 200 day. We are getting a lot of intraday swings, long term, it doesnt seem like the s p is going anywhere soon. Im looking at the Ishares Semiconductor etf, which is seeing inflows even as we saw trade tensions. 250tors added about million on thursday, the largest inflow of the year, then added another 50 million on friday. They Held Companies like nvidia, qualcomm, intel, companies that are sensitive to trade headlines. Lisa thank you so much for that. Ubsl with us, jason from Wealth Management and bloombergs luke kawa. Isntare range bound, why that an argument for income . Jason it is not a bad environment for carry strategies. We went overweight emergingmarket. They give you pretty good yield. If we get a risk off environment, rates fall. Gethey rally, then you spread compression. In an environment where you will be range bound, it can be tricky. Things get worse, credit spreads and widen quickly. Caroline you are liking some emergingmarket currencies. The u. S. From an export perspective remains a dirty shirt on a clean hanger. What about the dollar. Does the u. S. Dollar remain higher now . Thing thatbiggest will draw the dollar nearterm is not as much rate for rental. We have seen that when the dollar strengthens, the rest of the world slows down. Globally synchronized acceleration, that is when the euro rallies strongly. If europe keeps getting lower in the data keeps getting worse, that doesnt bode well for euro strength. Different kind of environment, the dollar will strengthen because it is a safe haven. Evennk nearterm, it may drift a little bit higher. Joe what else do you have your eye on . My eye still really have waseven when the s p 500 up about a half a percent today, we were still plus350 on the advanced decline line. Downside to the upside, all stocks are moving together. Implied correlation, it seems to be a dynamic. Placems like this is one where they are looking for the fever to bring. That is one place where it looks like a macro market and people want that sort of macro market to break. Thatlisa if there is from the end of the year, treasury yields, where do they go if that situation comes to pass . Quicklyt depends how the fed cuts to zero. Negative yields, i dont think i would go that far. Joe i want to go back to your initial viewpoint about trade tensions. The view, you get paid to hold through the noise. It is easy to sell when you are nervous and there is all the risk, but it seems to be, otherwise why do we make money in the market . What is the problem with that view . Jason that is what we are telling our clients. We dont want clients to go to cash. You think of a balanced portfolio. We are down to 47 equities. This is not apocalypse. If you are looking at the marginal dollar you will invest, even u. S. Eward, longduration treasuries, right now maybe you dont want to take the incremental risk because we have seen things escalate and things could get worse. Caroline what is the number one question you are getting from clients at the moment . Last, how long will this but it cause a recession, how likely is a recession . Ink it will be, in till use the baseball analogy like we inning. 8th i think people will be on the edge of their seats. That is just the market we are in. Lisa thank you both for being with us. We want to bring you some breaking news. J was held j and oklahomascausing opioid academic opioid epidemic. Shares not responding too much, but coming off of their earlier highs in after hours trading. Obviously, ongoing discussions here. One of the big for someone Big Pharmaceutical Companies in the crosshairs. Caroline maybe it was not as much as the market was worrying about. Whatd you miss . Is up next where will be looking at the drama at the g7 summit in france. This is bloomberg. Caroline live from bloomberg World Headquarters in new york, i am caroline hyde. Lisa i am lisa abramowicz, in for romaine bostick. Joe i am joe weisenthal. Caroline one strategist explains why he thinks trading in todays market is way weirder than the financial crisis. The g7 summit wrapped up with plenty of contentious moments and issues over things like Climate Change and iran. We are live in buenos aires as officials assess argentinas current 56 billion bailout. Trump,era of president tweets and offthecuff remarks drive market moves. Littlers are left with choice but to follow along. How we can mix how we can make sense of markets that are more Stranger Things than bloomberg 101. Max. Start with you, it was you who thought it was way weirder trading in these markets than way back in the financial crisis. X it is kind of like we had scary movie in 2008 and now we have Stranger Things. We are in this upside out world where things that we didnt think were possible like negative rates came to the front and the u. S. The president getting in front on policy is a big part of every toolkit. S there are risks coming from so many different directions. Weirdes for a very environment to be in. Joe 2008 was just really bad. Was collapsing. Ambiguityot much about the direction. Today, you have all these conflicting headlines. It is just really weird. Arento thousand eight, you in the midst of a in 2008, you are in the midst of a financial crisis and you knew which way things were going. To tryt only do you have to forecast what the next highlight or comment or tweet is going to say, but you look at the past weekend, it is a perfect example. Downnight, futures opened 1. 5 . In fairness, someone say this is predictable. Any sign of heating up in trade tension, markets will thaw. I wonder how much we can just blame the algorithms. Max we use a hybrid approach. We use Machine Learning and what some would say is ai, and we have folks who look at the geopolitical situation and try to analyze that. The reality is that a lot of algorithms will drive a lot of movement. We believe it is the Human Element as much as the quant element that is responsible for the volatility. I would argue that it is more of a Human Element. They tend to stick on a trade and ride that out. Caroline for a long time, we were handwringing that followed he was not there are enough and everything was too boring it too same. Is anyone dining out . Sarah from a trading perspective, most of the traders i have spoken with say it is difficult to gain an edge in this type of environment. Difficult to know what is coming next, when it is coming, and act quickly enough. That being said, i have spoken to people who have used this volatility to get in. But it is difficult. Trading, doare not you really have to Pay Attention to trumps tweets. If you have a longterm perspective on the market, can you just say, this is noise and fundamentals are still what is important. It is not actually something i think you can do as an investor unless you have a long horizon. Real tweets are shaping policy. We saw that last year when we did have a tweet that led to imposition of tariffs, that did lead to Business Sentiment dropping, and now it is leading to Consumer Sentiment dropping. Imprudentould be very for a longerterm trader to react, it would likewise be a little bit foolish to just flatout ignore and try to trade through the noise, so to speak. Lisa thank you so much. We just want to reiterate some breaking news. Johnson johnson must pay 572 million to oklahoma for wrongfully marketing opioid drugs. This was expected. We do see the shares up after hours partially because oklahoma saw as much as 17 billion. This reward much lower than the potential. Still a lot of cases ongoing against a lot of the pharmaceutical companies for their role in the opioid epidemic. This is bloomberg. Caroline lets get you a quick check of the latest headlines. Agiant chance to buy blockbuster drug just as some of those big sellers are starting to fade. Tesla asis drug of thrives this drug the psoriasis drug otezla. Bringing back a ceo. Replacing next week, the former person who returns to 3g capital. The company is still reeling after taking a write down on the value of its brands just this year. Apple has joined walmart in blaming tesla panels for fires. The Worlds Largest online retailer says it has no plans to install more panels. Sued tesla saying the panels caused fires at more than a dozen stores. And the g7 is wrapping up the World Leaders held their last day of talks before heading home. Trade talks with china, stricking a deal with french president emmanuel on taxes, and opening the door for a possible deal with iran. Maria, thank you very much for staying up and joining us. Days feel like the g6 plus trump. Was there any progress and what are the Key Takeaways . Here willy official tell you that President Trump struck a much more conciliatory tone. They feel the meeting went well. There were no angry tweets, no out first, really no drama. President trump was actually playing nice with regards to china, iran, trade deals with the european union, japan. They feel this was a good summit. They thought trump would try to pull a quick number on Emmanuel Macron and it looked like macron ended up looking like a winner but he had a friendly relationship with trump. Lisa is this meeting usually one where there is actually substance, or is that usually what we look for, that everyone plays nice . Played nice. Ne the fact that there was no joint statement, agreed upon before the summit. There was progress made in particular when it comes to iran. Yesterday pulled a very bold number when he decided to invite irans foreign minister. He had trump say, i would be happy to meet with him as long as he drops the Nuclear Weapons and maybe offer financial relief. Many will tell you that Emmanuel Macron played a key role. A very bold move that paid off. Caroline it has been a very busy day. We thank you for sticking on the phone with us. President trump agreed to a meeting with iranian president romney. Pres. Trump if the correct, ies were would agree to that. At the in the meantime, they have to be good players. If they do that, they will be met with very violent force. Caroline lets bring in the National Editor for bloomberg in washington. We had someone earlier saying that rouhani doesnt actually run iran. Where you stand on how important a meeting would be . Any meeting would be historic. These are two leaders who havent had those kind of talks in 40 years. I think any decision by the irradiance to meet with donald trump would require the supreme leaders consent for it to take place. That is just one of the hurdles. The other from the u. S. Side is opposition in the u. S. Congress, opposition from other members of his own administration, and opposition from key allies like saudi arabia and israel. All of them have a shared interest in seeing iran remain on the defensive. Joe isolating iran is a major goal for a significant contingent of thinkers, politicians, Security Experts in d. C. Trump would have quite a domestic battle on his hands if he started warming up to iran in any way. Withere are some parallels north korea. When trump took office, tensions rose with the missile launches. That one point, trump said he would be willing to sit down and have a hamburger with kim jongun. Everybody laughed at that. There been three meetings. They havent had a hamburger or a major breakthrough, but they have met. Inn is a different ballgame the sense that there is a Big Community in d. C. That really has built their careers around these two countries not talking. President trump has this very close alliance with Benjamin Netanyahu in israel. Wanted to never had see iran sitting in a table with the united states. Lisa do you think how macron brought the delegation to france and President Trump didnt respond badly said that, does that indicate there is closer coordination with europe and the u. S. When it comes to iran . If there isnow closer coordination. That was a moment that i think a lot of us were holding our breath. How will trump react to this . Will he let it roll off . And didntin stride react to it. We dont know if that is because of some groundwork laid by macron. In the past, he has said im sitting by my phone, how come they dont call . But to do it this way signals a possible change in strategy. Caroline coming up, a landmark verdict. A judge rules against Johnson Johnson in oklahoma. This is bloomberg. With im Mark Crumpton bloombergs first word news. President trump says he is open to meeting with iran about the nuclear standoff. During a joint press conference with Emmanuel Macron at the g7 summit, he issued a Flood Warning to tehran. Pres. Trump if the circumstances were correct, i would certainly agree to that. Bethe meantime, they have to good players. You understand what that means. They cant do what they were going to do because if they do that, they will be met with very violent force. President macron said he hopes President Trump and irani and president rouhani iranian president romney will meet in the coming weeks. A diplomatic president rouhani will meet in the coming weeks. The United Nations chief is warning that the world is facing a climate emergency. World leaders will be attending a summit in new york next month to agree to cut Greenhouse Gas emissions by more than they promised in the climate accord. Worse thane are much we were during paris. The group of seven nations today pledged tens of millions of dollars to help amazon countries fight raging wildfires, even as brazilian president Jair Bolsonaro accused rich countries of sheet of treating the area like a colony. Canada has also offered to send firefighting planes to brazil. People around the world are to see and devastated the amazon engulfed in flames. Our government has been in touch with the brazilian government to offer our support to put an end to this crisis. Mark thousands of people have demonstrated in cities throughout brazil and outside brazilian embassies around the world. President macron says there will be a meeting next month on the ukraine conflict between himself, leaders of russia, ukraine, and germany. He gave no details. President macron said the g7 leaders could not agree on whether to invite russia back into the grouping of leading democracies. President trump said he could invite russian president Vladimir Putin to next years g7 summit which trump wants to holden miami. 120 million to shorten the time it will take to replace pipes with high lead levels. The plan would cut the time from 10 years to under 30 months to lead lines in the city. Officials are set to vote tuesday. The mayor the client to reveal any results from the most recent round of testing. They passed out water filters last year but had to start handing out bottled water weeks higherer some homes had lead levels. Governor murphy said just two homes had tested positive for lead. Global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Oomberg technology now joe now to a developing story. Johnson johnson being held liable for causing the Opioid Crisis in oklahoma. They were ordered to pay 570 million. Shares were climbing as those damages came in at the lower end of expectations. Why dont you explain a little bit the market reaction, how this news comes in . J this is a big case because j went all the way to trial. There was some concern from the Investor Community that the fine could be as high as 5 billion. Everybody was waiting for the 4 00 judges ruling. Number for a huge company that faces hundred if not thousands more cases, it is much less than wall street expected. Lisa i know you have been tracking the Opioid Crisis, sort of how local and the federal government is responding. How many more cases like this are there out there . Company cases one faces Something Like 1900 more. They start out with one company and they get swallowed up into master cases. One of them is in ohio, and that will sort of be the big one. There are a lot of cases and a lot of what is going on here will probably be more settlement talks behind the scenes. But if Companies Feel they have no wrongdoing and they can keep fighting, maybe they will continue to take them to trial. A situation like this where it seems like the cards are stacked against the drugmakers. Billion inalf a fines, in perspective, they are making 4 billion net profits per quarter. They using more than cynthia the companies that settled in this case were in the 275 million range. A unique kind of position. A lot of the companies that made opioid sarin for financial shape. Poor financialin shape. Out how to figure navigate that. Some of the companies, like purdue, running into big trouble and they are the ones that a lot are saying are the biggest cause of the problem. They may have to figure out how to navigate, sure, they sold products but will they be affected disproportionately . Lisa that is a really good point. Thank you so much for joining us. Lets head to argentina where officials arrived over the weekend to decide whether to keep doling out the cash amid fears of the last imf argentina bailout which ended in a depression. Joining us is patrick gillespie, Bloomberg News economics reporter. They dont really want to put more of their own money on the line. However, they have so much already that they risk losing entirely if they dont keep aiding argentina. They face a real catch 22. They can continue to dole out cash to argentina. Or, they can pull the plug on the program, but that would risk worsening things. The last time the imf loaned money to argentina, they end up pulling the plug argentina defaulted and that led to a Major Economic collapse. They want to improve their image both in argentina and in the region. Ofentina shows no signs recovery and the Political Uncertainty makes it even harder for the imf to justify Going Forward because you dont know ist the plan of fernandez and you dont know how macri can recover. Joe does the imf want to be in the business of changing its policies just because a vote went the way Financial Markets didnt like. Right now, there is no indication that the country is going out of compliance. Does that kind of create the impression of the imf picking winners and losers and politicizing . Patrick the imf does not want to be seen as forcing the situation or having impact on the election results. One of the criteria is called debt sustainability. Right now, we are pricing in about 80 chance of a default. Checkbox, itcular is hard for argentina to argue that its debt is on a sustainable path. Youre right, the imf does not want to worsen the situation. At the same time, it needs to make sure the integrity of the imf is preserved. Joe coming up a look at alphabets private investment arm and why their success is raising questions. This is bloomberg. Alphabets private investment arm has been generating billions of dollars in gains lately. Questions about the companys strategy and influence over the technology industry. The numbers are startling. How big a player they are at the moment in terms of the unicorns. They are one of the biggest out there. It seems that a lot of Successful Companies want to have a google affiliated vc in their cap table come on their board, and they are happy to take money from google. That its vclaims arm is just about making money like other ones and it is not strategic it do people believe that in as a moneymaker, has it been a good one . Puthey were in lyft, they 500 million in a couple of years ago and it has already doubled. A very goodhat is return. Some skepticism about making money. At the end of the day, even a billion dollars return is little for a company like google. Not steal the information but at least get ideas for startups. One concern is that it could be an antitrust issue. I think that is less prominent. This is a way for google to really understand what is going on in the valley, at the seeds level of technology. They can go out there and look at all the startups and potentially get a view into some of those new ideas. If you go and have a meeting with any of their venture arms, they are not going to bring the idea to the next office and google will copy it, but im sure some people are a little paranoid about that. Caroline some companies have turned down money. Out in the valley, you do have this conversation. Is that going to stop amazon from acquiring you . Is that going to make a concern that amazon might compete against you. Thatis point, it does seem people are sort of weighing the benefits. Fascinating. Shining a light on whatever google has out there in terms of private capital. And lyft,ut for uber blacklane has been expanding its footprint in the united states. Launchnounced a plan to two new offices. I caught up with the cofounder to discuss financial plans and its road to the public park it. We have started to expand into the united states. We launched our first markets in the usual suspects, chicago, new york, l. A. We were constantly growing our presence. Now, we are serving roughly 80 in north america. The u. S. Is our strongest country that we have. One third of our revenue is coming from u. S. Customers. Caroline talk to us about how you make your offering distinct. It is more of a luxurious experience than perhaps uber or uber has the but luxurious part as well. It is indeed a service made for the business traveler, frequent traveler. We want to be present and available. It is all about quality at the end of the day. We are making sure we are in control of every little detail of the journey, dealing with things like making sure every writer is safe. It is about the comfort that they are experiencing. Also, we are focusing on longer distances. Onecustomers are sitting hour on average in the car. This is where you are enjoying quality over any quick ride. Caroline what about the Business Model in terms of sheer profitability . We have seen uber and lyft struggling, they seem to be trying to gain market share. How are you dealing with the very nature of your business and supporting it from a revenue and profit perspective . A i am proud to have built very profitable business. We have very healthy unit economics. We are having the opposite of the trend that we can see in the ridehailing industry. Our costs are growing significantly smaller than our revenues. To give you an idea, the bottom is oneit economics, it ride to generate the same bottom line contribution margin than a ridehailer would be able to deliver with 200 rides. Tooline will you be looking them to see how you educate the investor how you are similar and different from them. We are still investing more in our product and innovation then we would learn from the bottom line impact. We are looking for investments as we are preparing for potential ipo a few years down the road. 23re currently thinking of years in the future. Washe educational side, it kind of a blessing for us that we could see the recent ipos happening because it was easier to educate shareholders. They couldnt be further away if you ask me. Caroline the ceo and cofounder of blacklane there. There has been no let up in the pressure in hong kong. We will discuss it all on asia ahead. This is bloomberg. Lisa tensions flared and hung, on a weekend that began with a peaceful human chain across the city and culminated two days later with Police Firing a weapon it using Water Cannons for the first time. It was a return to violence after a brief respite last weekend. Things turned a little bit sour and this weekend, the 12th consecutive weekend of unrest. The police and the headquarters behind me say they arrested a total of 86 people. The big news was, for the first time, six officers pulled their sidearms. One of them actually discharged a live round into the air to repel protesters who came at them with steel rods, bricks. There is a standoff right now. Protesters are obviously very frustrated that the local government has not met any of their demands. The police are frustrated. They feel like they are trying to use Law Enforcement to resolve a very political problem. Like i said, there is no resolution on the table. In a sharply worded commentary from state media in china, they might have some sort of a solution which would not go over well here in hong kong. They said, it is not only chinas central governments authority, but also their responsibility to intervene when riots take place in hong kong. That is a not so veiled threat about the possible use of Peoples LiberationArmy Soldiers that have amassed across the border. Lisa for more, we go to asia ahead with bloombergs shery ahn. What are you looking for . Shery last week, we saw that we were headed towards more peaceful protests. This weekend was a completely different story. We were looking for some sort of breakthrough when chief executive carrie lam met with officials trying to hear out some ideas. We didnt get much out of that meeting. We heard from the hong kong chief secretary who joined us on the show last night and said that just talking really wont do that much. Far adamantly refused to a seed to any of them to any of to accede them. If the dialogue goes nowhere, this will just add to the anger felt on the part of the protesters. Shery what is interesting is that chinese editorials are coming out anson chan as part of the gate of four. This happened in the 1960s where there were four masterminds behind these protests and they were charged with treason. She doesnt consider herself one of the masterminds behind these protests, that there is no leader in this movement. Joe the economy and the market continue to suffer. Protestss the continue, we are talking about the export numbers last night. Smaller than was the plunge we were expecting, 5. 7 , still not the 8. 2 . Saw indecline that we the month of june. Government officials attributing this to a global slowdown. Of course, you have to picture the import side of things. A contraction of 8. 7 . 2 billion, right . Expectations are not too high. Thatcial secretary saying Economic Growth this year will probably be flat. Caroline shery ahn, dont miss australiabreak starting at 6 00 eastern time. Emmanuel macron gives a speech on Foreign Policy tomorrow. Joe numbers for u. S. Consumer confidence for august. Reports fourthquarter earnings by the bell. Joe have a great evening. This is bloomberg. When you rest on a leesa hybrid mattress, bedtime is no longer simply the time you go to sleep. Its time to switch off and catch up. Enjoy me time, and we time. 40 winks or 8 hours solid. The leesa hybrid mattress combines two technologies to give you deeper rest and rejuvenation. 1,000 pocket springs provide edge to edge support, responsiveness and comfort, while premium foams relieve pressure. Keep you comfortably cool and limit motion transfer. Leesas hybrid mattress is not only recommended by experts, experts choose to sleep on it too. Try it yourself in any west elm store. Or order online and well ship it to your door so you can try it risk free. The leesa hybrid is american made. Built to last. And, because Everyone Needs a place to rest, we donate tens of thousands of mattresses to those in need. Experience the leesa hybrid mattress. Right now, its on sale. Order today. Go to leesa. Com. Taylor im taylor riggs in new york in for emily chang. This is bloomberg technology. While President Donald Trump says china wants to make a deal on trade, the u. S. And france actually strike a deal. Trade is front and center for apple investors. The company sheds