That 22,000 milestone which we are back above once again even though the s p and nasdaq lagging, weve had this divergence recently, especially between the nasdaq and dow, and that divergence continuing today. We havent had the confirmation high by the record other major averages. Also, keep in mind that in terms of what professional traders watch, its not typically the dow. Theres not a lot benchmarked against the dow, which is a price weighted average versus the market cap weighted averages of the s p and nasdaq. Something else to keep in mind about the dow plus gain today. Lets take a look at mov on the bloomberg picked this looks at the movers within a given index. You can buy index points, which individual stocks are contributing the most. We had the scatterplot on the upper right. Tc most of the stocks that are detracting or contributing, and the range of 20 points to the dows gain. Then you have one stock way over in the corner. That dot is representing apple, which is accounting for 54 points of the dows 40 point game. If you subtracted apples gains today, the dow would not be higher. As far apple stock individually and against we are seeing, it is still up by 5. 3 after the companys revenue forecast for the second half of the year, investors hope the apple iphone 8 will perhaps not be delayed. Those shares getting a boost. Were seeing other Earnings Reports dragging down other sectors. We have drug distributors lower after cardinal healths result, the companys forecast for the full year to trailing estimates. The companys management on the call forecasting continued generic price deflation, though not as extreme in the first part of the year but that is something that would affect other industry players as well. The weak todayps is consumer discretionary, a bunch of different stories going on today. Autonation out with its results missing estimates, the company saying it is facing Challenging Market conditions in two of its largest markets, texas and florida. Implementation challenges with its one price strategy. Nordstrom down after womens wear daily report of the company is not conducting a former sale profit or structured auction. Is little changed. What is affecting other Media Companies is our ad Sales Forecast that were lower than some analysts estimates. That is mitigated by big results from wonder woman. Sinclair not seeing that mitigating effect. Other big cap media stocks like disney and viacom also taking a hit. Julie julie hyman, thank you for that. For more on the dow, topping 22000 and whether President Donald Trump can take some credit for that, i want to bring in bloomberg stocks reporter oliver renick. The president just now when he was unveiling the new immigration legislation along with a couple of senators abovened said it went 32,000 and it would go higher 2200 and would go higher. Oliver heres the thing that if i wish i were trumps advisor, i would advise him, timing your success of this document is a risky endeavor. If you play with fire, you might get burned by fire. There is so much that goes into what happens in the equity market and why. Of journalists like myself to figure out every day and investors to figure out. I think the thing that trump runs into trouble with, with the stock market high is because it could flip on a dime. It could also go higher. Vonnie anything could happen, but some of the trade has been the hope of the fewer regulation, hope of tax reform which means tax cuts with this administration and the gop. It could, but as long as this help is out there, it might not. Oliver right now it is putting some floor under markets and specific sectors and general. I think its a dubious notion to take credit for because when the market goes down, and eventually it will go down in history tells justre likely than not, given by how long bull markets generally run, its likely that downturn could happen during his presidency. Then what . Lets look at whats happening in terms of expectations for the market. Were looking at the strategists that we compile here. Theres a very simple analysis, the white line is our effort strategists forecast, 22 people we surveyed. You can see that it recently tips right above where the s p 500 currently trades in the blue. The issue is that sprayed is getting pretty spread is getting pretty narrow. Analysts trying to catch up to the market rally weve had. For a while you could see the estimate throughout this entire period. The spread between the two was below where the s p 500 was. Vonnie its unusual, right . Usually over a high. Oliver roughly 80 of the time according to our estimates since weve been doing this, calls for gains in the market. If the strategy is right, the market might go up and trump will still good. This brings us to the downside scenario, the other part of the terminal i want to dive into. Ive done it for the vix. I want to click over here to heat map. Its such a cool function. Im going to set the period to 20 years. This is showing us the degree to which the vix moves in any given month over the past 20 years. Lets look at august. August is where he gets problematic. Right here, this is basically looking at the average move in the vix during this month. Its a 12 bob, the biggest one out of all the onths. Vonnie can i say this morning we spoke with sandoval, made similar points about the vix. I know we dont talk about the fix a percentage terms. Its now 10. 5. Days, longest streak ever. August has the secondmost 1 or more swings, going back since the beginning of the stock market. This is a month were typically things get pretty volatile for one reason or another. Did, theyif investors would prepare for it better. Vonnie he was talking about a lot of it being positioning, institutions going into september. Talk to us about things like breadth and depth and volume. Typically august should not be a quiet month. Oliver l is a summer months. Typically we see a popular on august 15. Even last year we had some volatility. Brent is mixed. Iu look at the s p 500 like to look at relative strength index is. Weve had more companies in an overbought level, a technical way to look at the market, more companies overbought, about 9 of the market have been under bought. Its been that way all year. This happens a lot of times in a mortgage run up quickly. Generally its at a pretty tepid level, and percent of market being overbought is not typically something you see i high levels, usually jumps to 25, 20ish in terms of comfort is trading at that level. Vonnie question of the day, do we close about 22,000 . Oliver its risky. I would be violating my role as an urschel market observer impartial market observer. Vonnie lets check in on first word news. Mark President Trump today endorsed new legislation that would reduce Legal Immigration to the u. S. And evaluate visa applications based on merit, with a preference for people with Higher Education or job skills. The president unveiled the measure alongside republican senators tom cotton of arkansas and david purdue of georgia. The legislation would represent Major Medical overhaul of the current u. S. Immigration system, leading towards a significant decrease in the number of green cards issued to immigrants. The president also cited the russian sanctions bill that congress forced on him but he added a signing statement saying he has reservations about its impact and whether parts of it are constitutional. The measure gives congress the power to block the president from lifting the sanctions. The white house has been discussing additional sanctions on venezuela. The country held an election over the weekend that could lead to president Nicolas Maduro increasing his power. President trump already imposed sanctions on president maduro. Senator marco rubio told reporters he discussed additional penalties well visiting the white house. I saw the president yesterday, i talked to the Vice President yesterday, weve been in Constant Contact with them. Every time madruo do something outrageous, the white house will respond with additional sanctions. Mark the u. S. Is the biggest buyer of Venezuelan Oil. The stateowned oil company is looking for new markets if the u. S. Imposes sanctions. In brazil, protesters call for the president s ousting at the opening of a congressional session. Brazilian lawmakers are voting on whether to authorize the Supreme Court to put the president on trial on bribery charges. The president is deeply unpopular among brazilians. Week what poll last his approval ready at 5 . Despite that, the government believes it has enough votes for him to survive. Global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. Vonnie thank you for that. Coming up, the Goldman Sachs ceo lightbank fine Lloyd Blankfein thinks he has a fix. Why hes not panicking yet. This is bloomberg. Vonnie this is Bloomberg Markets. Goldman sachs ceo Lloyd Blankfein says hes not worried about the banks trading roles, even after goldman posted its worst is cap since he took over. In an interview with bloomberg, blankfein discuss the future of the fixed income business and regulatory sentiments with alix steel in baltimore. It imposed aruled little bit of a state of mind test. , but theyke positions wanted to damp down speculation. But the line between speculation, which as a word seems easily we should back off of, and market making, i. E. Facilitating other peoples trading, taking the other side of what your client wants to do, is also a risktaking principal activity, and the line between the two is very blurry and indistinct. But what the volcker rule says in effect, if youre taking positions, points of view, in anticipation or in connection with a specific client operation, thats good. If youre doing it away from that specific, its not good. If youre a Market Makers sitting in the desk, its very hard to know where that distinction is. Is areally makes a market Million People all at the same time, buying and selling because someone thinks its going to go down, someone thinks its going to go up, and then clients enjoying that moving sidewalk thats called the market. In practice, its been very cumbersome, very hard to do, makes people who sit on trading desks very nervous, and i think its had a dampening effect on liquidity in the marketplace. And i think the regulators appreciate it. The regulators were filling in ie regulations statutes, but think now that its been in place for a while and they see how it operates, i think there is a consensus it has to be reexamined. Alix the question after the quarter was your fixed business. How can something not be wrong after the last two quarters . We didnt make as much money. That was wrong. First of all, we are a diversified business group, and everyone performed very well, so well we did well as a firm. Our return on equity doubled, for the six months doubledigit. That being said, we didnt perform well in fic. It is a risk business. We dont always perform well. Other people who other firms were operating the same environment better than us. We are on the balls of our feet. We are of course concerned about it. In my 35 years doing this, there have been periods a lot longer than this period where we underperformed only to outperform. Its been very newsworthy, not because we are chronic underperformer, that because weve been chronic outperform or. That being said, we underperformed. We know what we have to do, and were doing it. Its an execution matter for us. Thats what we do. Alix execution seems to me, theres a structural problem in the commodities business. Weve all caps off a lot cut back a lot. If we were simply bigger and had more to invest in more assets, we would make more money. Thats why i tell you its an execution issue. The expectation is we would do better because historically we have. And wereally havent, know theres several reasons in retrospect we can look at and say, we may have slipped up great we tend to be overly weighted in our business to a client base, a terrific client base which we will never abandon, but disproportionately involved in trading kind of clients who trade a lot but say hedge funds in other things. We are an investment bank. The more corporate banks have much more business with corporate sent others. Thats something we should fix. We should not get it let it get that disproportionate. Some of the products we tend to focus on, we are in the commodities business. Commodities has been more session, and very few of the other banks in that business are in that other business. If you look at other firms, commodity firms, thats been in a bit of a recession. Thats a cyclical matter. Do i think that oil will always be in this price, within three dollars of this price for a long time . I dont think so. We would need to scale it to the environment were in. Whether its the kind of things we trade, we have to focus on, whether its the people we serve , we should be serving everybody and not a disproportionately more focused base, and we are working on it. I cant say we are right all the time because we are obviously not, but i will tell you we have a good reputation for resilience and adaptation and that really is our core skill set. The markets are always changing, but never that dramatically. Vonnie that was Goldman Sachs ceo Lloyd Blankfein speaking with alix steel in baltimore. Time for the latest Bloomberg Business flash, a look at some of the business stories in the news right now. For blackrock, having an altar chief hedge fund is paying off. The style Advantage Fund more 1. 6doubled its assets to billion in the first half according to an investor documents in by bloomberg news. The fund charges less than 1 , making it one of the industrys cheapest. Daimler, and volkswagen will fix software on more than 5. Illion diesel ours cars b the companies a German Government reached the agreement at an emergency summit in berlin. Separately the german carmaker has been sued in the u. S. For acting as a cartel. Sharedges the Trio Technology information and stifle competition from 1996 to do at least 2015. Qatar air will not invest in american airlines, claiming the move quote, no longer meets our objectives. Qatar says it will continue investigating other opportunities in the u. S. And elsewhere could the american called the move, quote, puzzling at best and quote, concerning at best. Still ahead, senator marco rubio pushing for a harder line on venezuelan president nicholas maduro. Why he says Oil Sanctions could be possible. Thats next. This is bloomberg. Vonnie this is Bloomberg Markets. Im vying quinn great we are seeing price action in General Mills the last few minutes, the stock spiking at 2 . That is on volume. We arent exactly sure why, but there seems to be a lot of activity around General Mills. Venezuela gearing up for more political turmoil as the National Assembly will face off against another legislative body appointed by president Nicolas Maduro. So far the u. S. Held back from imposing broader economic sanctions. Senator marco rubio says Oil Sanctions are possible. I thought it was important for the people of venezuela to hear directly from an american policymaker. I spoke to them for not as a u. S. Senator but someone who is born and raised in a Community Deeply shaped by the tragedies of the western hemisphere, castroism and cuba, and and now maduro and venezuela. Them to understand why the president of the United States is doing what its doing. I wanted them to know despite all the divisions we have in this country i number of issues, we are united on the idea that we support democracy and human rights in venezuela. Two, the we are with the people of venezuela. The overwhelming majority of the evil in venezuela just want an election people in venezuela just want an election. The leaders of venezuela, if theres so job that they are on the right track for the country, why dont they submit themselves to an election . [inaudible] first of all because its our values and principles. Incrediblendered regional unity. You think about what the president has been able to do. All these countries are united behind what the president is doing a venezuela. Is, they will then begin to spread and sponsor what theyre doing there into colombia and mexico and honduras. Its already happening in nicaragua. And to all sorts of other places great before you know it we have these antiamerican, left of center narco states creating migratory pressure on the u. S. Serving as a base of operation for russia and china against our interests, and marco trafficking and narco trafficking and drug pressure on america. Have you spoken with the white house about the potential for new sanctions . Absolutely. I saw the president yesterday. I spoke to the Vice President yesterday. I think you can expect every time maduro does something outrageous, the white house will respond with additional sanctions. For every action, there will be a strong reaction. Other countries will join us right when the president sanctioned 13 people last week, multiple countries in the hemisphere announced they too would be sanctioning the same people. Are Oil Sanctions on the table . They are. Im not going to give away the president s hand. Most certainly everything is on the table but theyre doing it incrementally, strategic that strategically, very targeted. The people of venezuela do not benefit from venezuelas oil. Theres a lot of talk that is not over. Do you think anything gets done before the august recess . And hope so. Certainly in september we hopefully will take one more shot at it. I was elected on the promise every feeling and replacing obamacare. To do promise, im going everything i can on one vote that i will do everything i personally can to keep that promise. Mark that was senator marco rubio with Kevin Cirilli. This is bloomberg. Is this a phone . Or a little internet machine . [ phone ringing ] hi mom. It makes you wonder. Shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. See how much you can save. Choose by the gig or unlimited. Call or go to xfinitymobile. Com introducing Xfinity Mobile. A new kind of network designed to save you money. Vonnie live from bloomberg World Headquarters in new york city, im vonnie quinn and this is number markets. Lets get to some first word news. Mark the Trump Administration is beginning to be is planning to begin a wide investigation into china trade practices. It will focus on chinas alleged violation of intellectual property. A former u. S. Ambassador to china spoke to bloomberg about the relationship between washington and beijing. You have to show strength. The chinese respect strength more than any other people. Mark relationships between the worlds two biggest economies have recently become tense. The two sides were unable to produce a joint statement. Adviser in the Reagan Administration was nominated by president to be the next director of the office of personnel met at an but has withdrawn his name from consideration. He said he was backing out because his chances of being confirmed were quote, remote. His nomination was strongly opposed by federal employee unions. Attended aent pence leader summit in montenegro. This is his first third stop to european nations that feel threatened by russian aggression. The United States has successfully tested an unarmed intercontinental ballistic missile. The launch came days after north korea conducted its own icbm testfiring. It roared into the skies from from an air force base in california. According to the pentagon, it was not a response to the north korean launches. Global news, 24 hours a day covered by more than 2700 journalists and analysts. This is bloomberg. Vonnie apple shares surging after the company signaled Strong Demand for the new generation of iphones scheduled for release later, this year. In a interview with emily chang, ceo tim cook said we are very happy to give guard give guidance of 49 billion. We like what we see with the beginning of backtoschool season. The stock jumped about 6 and even held records. A tech me now is reporter for bloomberg news. It was primarily services we have to thank as well as this idea that there is something coming down the pipe, this anticipation for a long demand in the next for a lot of demand in the next quarter. Alex the fear has been that the sales of the iphone going to the next order and that the top model is slightly delayed would affect the earnings. Analysts had reduced their average forecast for the fourth quarter. Apple then comes out with his own outlook. The thing is, these services have gotten a lot bigger in intervening years and also the other products, the ipad and the mac have grown in the recent quarter. Vonnie does that mean that next quarter, investors will be looking past the next generation of iphone sales and we might see the balance tip in the other direction . Alex the buzzword of the moment is will it will it work . It is a super cycle. They introduce the new iphone and it goes through a few generations. 8s,re might be the 8, the and then more in the years to come. There is always the fear of what comes after that. Tim cook has been bullish about augmented reality. They have the platform for that, now. That is giving investors more and more reasonable optimism. Vonnie our thanks to alex webb. For more on apple, i want to bring in michael wolff, ceo and cofounder of Tech Consulting firm, activate. Michael, what are you feeling . Michael first of all, even though global pc sales are down, mac sales are up. The ipad, everyone viewed tablets, forecasting the end of tablets. Their tablet units are up 15 . Even though this is the time where everybody waits to buy a new phone, the iphone sales were slightly up, but they were down, they were flat. Vonnie if you are an apple aficionado, you had to wait a long time or a six, so you might have been able to buy the phonee mac but not a real that was any different from , soious phones or the ipads maybe they were just satisfying a niche. Michael i think it was more than that. And the is relevant, bigger formats have worked for them, so the larger format ipad, the larger format phone. They are really showing that people want a larger format and they want a new device. A lot of the sales increase on the max was the increase the pricing but to your point, people are still really hooked on macs. Vonnie it seems like apple is recognizing that services are the way to go and i just wonder, people bought a lot of ipads this time around, but can that continue . Services have been a huge piece of their growth and it is amazing to see that it keeps going. Things like the Music Services or their apps. They have a bunch of new products on the horizon. The homepod should be a big winner. They have a are ar. If you go on youtube, the number of applications, the number of people making videos using their developer kit before the new phone comes out and we will have an iphone eight or whatever it is called and it will be very expensive and i bet people will pay for it. Vonnie i want to move to tesla, a company that can seemingly do no wrong. They got those 30 cars delivered. It was a hallelujah moment for the company. Will we see investors continue to have confidence . Michael the forecast is for continued losses. Analysts believe it is going to lose about two dollars a share. All the focus is going to be forwardlooking. They are going to look at what is going to happen with the sales of the model three and even though they have 500,000 preorders, people who have put down 1000 a piece, those people will not be getting their cars until next year. Can the increase their Manufacturing Capabilities . Can they increase their Manufacturing Capabilities . What about these new models that are rumored like a truck or an expanded suv . Everyone is wondering what that is going to be. Finally, their solar business. The solar shingles are only coming online now, so the question is whether they will be able to sell them. Vonnie michael wolff, ceo of Tech Consulting firm, activate. Thank you. Much more on has luck, i had. We will head to the west coast to get an idea of what investors are watching for. This is bloomberg. Vonnie this is Bloomberg Markets. We will havel, another marquee Earnings Report for the Second Quarter and that is tesla. Shares were down more than 1 . Care to discuss what this report may bring is our abigail doolittle. We were talking about how june Quarterly Results would not matter too much for apple. What about has luck . Abigail it is a great what about tesla . Abigail what a great comparison. Delivered 22,000 vehicles, less than what investors were looking or. They said this has to do with demand and our Bloomberg Intelligence analyst said relatively to relative to the Second Quarter, it has everything to do with numbers being pushed down. If we take a look at the eeg function, this is what secondquarter earnings estimates have been doing and you can see the are clearly going in the wrong direction. On anmakes the point that annual basis, back in 2015, investors were looking for five dollars per share in earnings. Now they are looking for a loss of more than six dollars and all of this as the company spends for the model three, spends for the future. You can imagine there are some pretty big bold bears. Vonnie that is kind of the point, that they spent a lot of money. One would expect estimates to go down. Abigail you are exactly right. They really are spending for the future. There are lots of investors that think this is the right thing to do. There is a big bull case in the stock and a big bear case. It doubled, the stock more than doubled out of the election. Those of the bulls who are on board with ceo elon musk spending for the company. When they did that bearish preannouncement, it has been to the upside. Stocks started to break down. This chart what Pretty Healthy in terms of this area of consolidation looking like it was consolidating and a healthy way. It is starting to break down, suggesting that the bears who talk about the fact that deliveries were below what investors were looking for, but also in terms of cash burn and cash flow issues. That is also weighing on the shares. Vonnie thank you, abigail doolittle. From get more perspective dana hull who covers has luck. Who covers has left has blood tesla. The model three is key. To meett expected tesla this deadline, which they have done. The question is, what does the production ramp look like and can they exit the year making 5000 cars a week . They talked about production health. What other challenges to the face, and can they clear them . Another thing investors will be paying attention to is cash flow and capex. Tesla is spending heavily. How much more are how much more are they going to spend . There are there was a lot going on at that company, right now. Vonnie what is the breaking point for investors . Imagine he does not meet the 20,000 a month at the end of the year, we dont see much cash flow or that it is negative. Investors dont seem to care about metrics when it comes to tesla. The care about elon musk and his conviction in the future. Dana you have to look at who the top shareholders in the company are. Must himself and a bunch of loyal longterm future focused investors who are thinking about where musk is going to be, 10 years from now. They recognize this is a high Gross Company that is constantly investing in future growth. Are investors willing to fund that again . You have to think about delusion. I dont think one is expected for this year, but there is a lot about this year that we dont know. We dont know how many cars total, tesla is planning to sell. We dont know if the model three interest is cannibalizing exit existing sales. That seems to be the case given the sales reports, but what is tesla likely to say about that . Solarcity, what is happening with that company . We have not heard much. Elon as the penchant for dangling future products out in front of folks. There is the tesla pickup truck, the model why. The model y. Vonnie fantastic reporting. She will be giving us a full run done rundown following those earnings. It is time for the Bloomberg Business flash. Carlyle group earning more than doubled from last year. The sale of several assets boosted growth. Symantec is paying the price a rapid turnover. Rolled largest developer of Security Software has gone through four ceos in the last five years. As a result, symantec has spent 127 billion 127 million in severance packages and replacement rewards. Walmart is scrutinizing its suppliers you suppliers use of chemicals. And you program that analyzes dangerous substances in sold new program that analyzes dangerous substances in sold items began last year. Johnson johnson and staples are also participants in the project. Coming up, we speak with nathan about thenathan crook political turmoil in venezuela and what that might mean for bondholders. This is bloomberg. Vonnie this is Bloomberg Markets. Tensions continue to mount the between opposing forces in venezuela. Despite International Condemnation and allegations of fraud, Nicolas Maduro is installing his socalled constitution thursday but a Venezuelan Assembly will meet alongside the legislative super body to decide the constitutional rewrite. Joining us to shed light on the clash of powers is nathan crook. Explain where we are exactly following last sundays vote and everything that has happened up to today. Nathan we are still waiting for this constituent assembly to really start operating. We expect to see that tomorrow. It could be a contentious day because they said they have actually they have said they actually want to meet in the same place for the current National Assembly meets and that is controlled by the opposition. We are expecting to see a crazy day, tomorrow. Another major thing was the news coming out from the firm that runs venezuelas Voting Machines , saying that they had evidence of the vote on sunday, the pitcher not had been grossly overestimated by the government turnout had been grossly overestimated by the government. Happen inat tends to a situation like this . Nathan the whole idea of this constituent assembly was that it was going to give maduro more power. It is going to sit on all top of all other branches, including the opposition controlled National Assembly. This body will be the most powerful brand because it sits on top of everything. In past conflicts between madero and the National Assembly controlled by the opposition, the Supreme Court has always sided with mindoro. It may look messy, that institutionally, this new body is going to be with the power is at. Vonnie are there any free Opposition Forces left . Nathan besides the National Assembly, that was convened when they won the election in 2015, there was a lot of expectation of the time that it was going to serve as a check and balance. The only kind of institution that is controlled by the opposition but it has seen its power completely stymied by the Supreme Court. Vonnie on the u. S. Response, our own Kevin Cirilli spoke with senator marco rubio and i want you to have a listen. Sen. Rubio i talked to the Vice President yesterday, we have been in Constant Contact. You can expect every time murder us some does something, the white house will respond. Great news is, other countries are going to join us. When the president sanctioned those 13 people last week, multiple countries in the hemisphere announced they to hang will be sanctioning they too will be sanctioning those same people. Vonnie u. S. Sanctions to venezuela would raise oil prices. Saying it will be difficult for the venezuelan people. Are u. S. Sanctions going to help the plight of the people . Nathan to what marco rubio said, right after that was especially interesting. To people who are critical of sanctions, especially sanctions that would impact the oil industry say that it will help it will hurt the people. The counter argument to that is that venezuelans are not currently being helped by any of the oil revenue. It with all the revenue the government is getting, you still see food lines, huge shortages shortages of medicine. They will say look at venezuela, the people are already hurting. That is definitely an argument you will hear about. Story,ing with this venezuelan bonds have lost almost a fifth of their value. The question of whether venezuela may default has been on the table years. There has always been a willingness, which is ironic for a heavily socialistic government, a willingness to pay bondholders in new york. The question is, if there are sanctions on the table, does that take away the willingness, does that take away the excuse to say the yankees made us do it in the u. S. Takes about 25 of Venezuelan Oil exports . 25 is pretty big. That takes away all that money. That could impact their ability to pay, in the short term. It spikes the chance of a default in the shortterm. It takes away their willingness because they can just blame it on the u. S. Vonnie it looks like we are now going to see some kind of solution. At one point, there was a question of whether madero would be able to do this. There was that idea out there. It has been a downward spiral for venezuela over the last couple years. There was a question that if there is a restructuring, who are you negotiating with and if there are sanctions of government, are you even allowed to sit at the table . There has been the possibility floated that you might not be able to trade venezuelan debt. Vonnie i had not thought of that. Is the rainy president for this is there any precedent for this . Katia there is. In russia, sanctions prevented wall street from being able to trade new longterm debt issued by russia and also equity that was existing from banks in russia. Vonnie have you spoken with bondholders . Katia i have. Vonnie what are they saying . Katia it is very hairy. Vonnie they like every situations. You will give us an update in four weeks, no doubt. In the next hour, former u. S. Trade representative will talk about what is next for u. S. China relations. That is coming up in the Bloomberg Markets the trump economy following the show. A quick look at the indices as we head toward the lunchtime hour. At 10. 5. S up about 4 this is bloomberg. David it is 1 00 in washington. From bloombergs worth World Headquarters, in new york, im david gura. Here the top stories we are watching. President trump grudgingly signs new legislation that could tailor his ability to remove sanctions on countries, particularly russia. The clock is ticking for tax reform. Lawmakers have a busy agenda when they return to washington next month. An investigation into the trade relationship between the u. S. And China Threatens to make things more difficult between the Worlds Largest to economies. Largest two economies. I sit down with michael froman. No cameras in the room when President Trump sign the countering u. S. Adversaries through sanctions act. In a statement, he said by limiting the executives civility, the bill makes it harder for the united takes to strike good deals for th