Steve bannon, controversial adviser to president is leaving the white house. Bannon has been on shaky grounds. Or weeks heres what President Trump said about bennett on tuesday during a News Conference at trump tower. President trump i like him, hes a good man. Hes not a racist, i can tell you that. He actually gets a very unfair press in that regard. Hes a good person. A good person but he is out. That craigjoins us gordon joins us from our washington bureau. Theres a lot of speculation of steve anna being on thin ice. That steve bannon being on thin ice. Thinve bannon a being ice. A couple of interviews he gave, want to the states, where he essentially said some angst that are in line with Donald Trumps agenda and some things that werent. He said essentially a war with gary cohn, steve mnuchin, this is generally not the thing you say when you have a job at the white house and you openly air this dirty laundry. Like a protest highlights bennetts position. Abandon is said to be clear that he thinks the White Supremacists are a collection of clowns. I dont think he endorsed their view. But he speaks to the grassroots conservative movement. Here is considered driving trump in that direction. There is trump giving that impassioned and explosive comments on race relations. Even the Steve Shannon steve him, and thisme is harmful to his political future. So no john kelly has never been a fan of steve bannon. John kelly is trying to create order. Together andl came today was the day they decided to part ways with Steve Bannons last day. There have been some reports bannon tendered his resignation a couple of weeks ago. Matter . If true does it i think in the grand scheme its clear, steve bannon was serving nicely for donald trump. Hughes viewed as important conservative thinker, speaker and some of the who is driving trumps agenda. Very few people walk away from a job like that voluntarily. Pretty reliably a few days ago the trump actually supported some of the stuff that bannon said in the interviews. Its a little topsyturvy. We are trying to get to the bottom of all this but i think the one thing we know for sure is john kelly is the new chief of staff, steve bannon is not helpful to the cause. Now steve bannon is gone, now we can do the math and john kelly had a big hand in his departure. Craig gordon joining us from the bureau in washington. We want to continue this discussion. We are joined by former White House Communications director under president barack obama. Thank you for joining us, we appreciate your time. We have had a lot of shakeups in this white house so far. If is the departure of steve bannon more significant and why so . Where peopleay should be very wary. Bannons departure is important for a number of reasons. A part of general kellys attempt to bring a measure of order and discipline into the west wing and into the decisionmaking process to the extent he can. A buddy whonnon was is outside of the decisionmaking process. Somebody who is outside of the decisionmaking process. Thing that is important is he viewed himself as a principal instead of a staff person. The interviews he gave this week , which were not run through the White House Communications office were very example of that. Extent bringing order to an extremely chaotic disordered process. But its never going to change because the president is going to change. It wasnt steve bannon who stood at that podium on tuesday, it was the president. This is what i want to pick up on. He stood on the podium and said things that got the congressman pretty upset. Mean in hisat capability to speak with President Trump and try to tailor his message a little more to avoid some of the situations this week . Theres a reason that twitter says real donald trump, because you get the unfiltered reality of Donald Trumps thinking. In that white house, including the president s own relatives have been limited that have limited influence over what at the end of the day comes out of his mouth and onto his twitter handle. At least in the shortterm it appears for Economic Policy and and some of the internal policy classes. They were at least be up to control the information and conversation as it reaches the president. You departed during that first full year in office. When you look at the beginning of that administration versus the beginning of this administration, and look at the staff turnover we have seen, how would you compare it and how would you compare it historically . You cannot compare this administration to any previous administration. Previous and ministrations have far more in common with each other. With any that have come before that. There are certain processes in the white house and third and certain ways of doing things and making sure the information has been vetted. Making sure whatever comes out have beente house reached in the government. Those have been shared by the administration and processes. This has never had that kind of structure. Thisften one part of government will say one thing and another part of the government will contradict it. So i dont think you can compare the Trump White House to any previous white house. We have heard about different factions in the white house and im wondering whether this beent the part sure has created then this will be the end of the departures or are you expecting further departures in the near future . I am not privy to the inside workings of this white house. I only know what i have read. It appears the initial group of people who have been warring with each other have all departed. Process thatnusual the people who come into an administration onto the right fit, particularly the people who have been campaign people. Differentre very things, campaigning and governing are two very different paths and require different skills. As long as the president behaves the way he does in terms of playing outside of the established lanes that you will continue to see a degree of turmoil that is inescapable. Thank you very much for your time we are getting reports that bannon is getting ready to go back to breitbart. Lets get a check on where stocks are trading. Reactiona wishywashy on this news that steve bannon is out on this white house position. Hour we dide last have three major averages turning higher after declines earlier today. That the s p 500 and the nasdaq only slightly higher coming off of the highs. Knowings not really quite what this means. Its not the first departure in recent times. This is 3203 or the chart. Was goingt gary cohn to perhaps resign from his that the s p 500 took eight it lower. Perhaps the next in line. We see the s p 500 took a leg lower. Taking a leg higher on this come investors try to figure out what all this means. Oil stocks, this is a huge spike we had crude up 3 . He told me this is short covering, seeing this strong of a spike higher. The gain on all of these headline suggesting that oil traders see this as a removal of uncertainty for the growth in commodity. Another interesting day in the driven i waskets happening in d. C. A lot of news happening outside of what we are hearing from the white house. Two people have been stabbed to death in an attack on finland. Knife about 100 miles west of the capital, the suspect is in custody. Officials say it is too soon to know whether todays attack was an act of terror. Rex tillerson is condemning hate bigotry and unamerican. An american was killed in that deadly attack in barcelona. Weeks press rcep and these we express our some of these to the loved ones and the loss of life and we offer our thoughts and prayers to the families as they will be dealing with a very tough few days ahead of them. Secretary tillerson called racism evil and pledged to diversify the openly white francs of the senior diplomatic corps. Local residents and tourists have found many ways to pay their respects to the victims of yesterdays attack. People started putting flowers and candles in columns trees in lamp posts. Many hospitalized in critical condition. Steve bannon is out as President Trumps chief strategist. As bannondia reports wrote mr. Trumps 2016 campaign was removed after clashing with members of mr. Trumps family and other white house officials in recent weeks. Powered by more than 2700 journalists and analysts in more than 120 countries. In the wake of Steve Bannons departure we will be joined by the former treasury and fed official who will weigh in on the path for for President Trumps economic agenda. This is Bloomberg Markets. Questions remain about President Trumps ability to focus on the economic agenda. A four treasury official said trump classes with Business Leaders and lawmakers could hinder progress in issues such as tax overhaul and Infrastructure Spending. I think the president has a long hill to climb. He dug a hole for himself. Going to war with the leadership on the hill. The policy agenda is really unclear. Joining us is seth carpenter, a former treasury and fed official who is now chief u. S. Economist. My first question is what has changed . About have been talking turmoil on dust turmoil in the white house. People say its politics. Do you buy that . Usually when we think about market changes the question is what has changed . A bit of chaos. A month or so ago what has changed is chief of staff kelly is clearly making some substantial changes and i change theple calculus in what might have been economist in this white house. Wouldnt changes for the better in terms of getting policy done because you are supposed to bring order to the white house . With this white house in particular it is a bit unorthodox. The white house is being operated in a different way. Change as a result of uncertainty . Departing andnon unclear what effect that will have. You still have this rift between the white house and congress, even the president s own party. Thats a really impressed really important point. Its a necessary requirement for policy changes. There is a challenge between what is going on in the white house. Unitys a huge amount of in the republican party. Economistsds of surveyed by bloomberg believe there will be some sort of tax planor part of a tax passed by the end of this year. Do you fall into that camp . When you make the question sufficiently open like some sort of something, then it increases the chance of it happening. It is tax reform, legitimate tax reform to overhaul the admittedly very complex task system is unlikely to happen in very in any material way. I think they come up show for it because come up short because of the lack. It, would take a run at come up short and do a tax rate cut early next year. Maybe not even next year, then all for economic growth, how contingent is your forecast for growth on something getting done in washington . The ebs Economic Outlook is not in many ways particularly remarkable. We have had very remarkable growth. The rest of this year is roughly the same. Little Economic Impact from any fiscal policy coming out of washington. The stock market where it is currently valued has priced out any sort of tax plan or Infrastructure Spending plan that is going to take place within the next year or two . That is a very hard question. Equity prices are now high by historical standards. I think one question that makes it hard to differentiate policymakers from fundamentals is our economies going to continue to grow and that the market is going to realize the longterm Interest Rates we have are there for a long time. That should give some support for the prices overall. There is a mix of views. People are giving up on some meaningful stimulus but i dont think it is 100 gone. To get back to the core economy versus policy, what are we seeing in retail sales. We havent seen retail sales really rollover. Consumer confidence continues to be relatively strong. If we continue to see these retail side retail sales now one would imagine the confidence would have to follow suit. Is that going to eventually cause gdp as well . When they put together their outlook for the economy retail part, absolutely critical of a like 70 of the u. S. Economy. Our view is the household sector is reasonably strong if you look at the jobs reports. They have been doing that quite well. If you do see Material Weakness in Household Spending you do have to worry. Economist. S. We will have much more on our top story today. Steve bannon is out with the latest white house exit means for Capitol Hills latest agenda. This is bloomberg. Still ahead we will have much more on the departure of steve bannon from the white house. What drove the reversal . E will have that next it is friday and it is bloomberg. From bloomberg World Headquarters this is Bloomberg Markets. Commodity markets are closing in new york and it has been an interesting day for oil. Trading lower just before noon eastern and then a pretty huge spike higher. It is now up 3 . This new to signs that oil supplies are tightening to some degree. Says rent spreads are ripping are dripping. Although it did parent oil down 1 over the last five days. At one point it was down 4 on the week. Gains after news that steve bannon is out at the white house. Futures in steady decline on the trading day. Again to theack up unchanged level. We see it coming back in the green and bouncing around. Lets dive into the departure of steve bannon. It had been on shaky ground for of whenpresident President Trumps new chief of staff went on a personal review of the staff. He called for an economic war with china. Lets bring in Bloomberg National political reporter maying reports that amn return to a lead editorial position at right guard news, known as an altright publication, and that he basically would become that he has a killing machine in Breitbart News and is willing to wage war. There is a tweet saying from a source close to bannon democrats have seized control of the white house. How it is his ouster change President Trumps support with numberional base . One, i dont think this has a meaningful impact on President Trumps support with the nationalist native base. President has that Campaign Apparatus in place, he has been message that is largely around stoking grievances over trade and immigration. Around global elites. That doesnt necessarily change. Whethere in that basis to President Trump is firing bannon and a shift on his part away from that. To me itt seem likely reflects a major shift in his eye at the dish in in his ideological thinking. Is this more just and execution shift or methodology shift . Evidence thereve is a policy shift or a shift in the thinking of this administration or making things more discipline and focused, i would not assume that another persons departure after many high profile personal departures in the white house necessarily mean a shift in the ideological thinking. Mentioned banning mentioned bannon may be returning to his home in breitbart. Breitbart is an influential publication. Himas pretty supportive of and openly so during the campaign and president ial primary. Been a power of for President Trump and it is whatknow what an and bannon is thinking. There was an article comparing President Trump to the next arnold schwarzenegger, which is not a favorable comparison. We have started to see more conflicts. Oblems and questioning the president s ousternce, does bannons change that at all . Before he joined President Trumps Campaign Staff he rammed basically forcing them into a position they considered dangerous and ideological come attacking them as sellouts when they didnt hold the line on those positions. Republicans are more happy than not. A lot of hope things will change in the white house. That hope has been around for a long time. That direction comes from the very top of the white house. I want to do followup on that, the idea there has been a toplevel departure. This one its more significant than others or just one among the turmoil . It is probably more significant than others in a. Ertain sense steve bannon represented the heart of the message President Trump carried in the campaign. The person in the white house who is most similar to steve bannon is the president of the united states. Likemindede very in their method. And building a wall and things like that, the question will be does this signal a change in president s thinking . Dont think so but that remains to be seen. Lets check the headline on the bloomberg first word news. Senator joe manchin from West Virginia says he is not joining President Trumps cabinet. According to people familiar with the discussion the idea serves as a possible way to a successor. Senator manchin said thats not going to happen. Hes facing a tough Reelection Campaign in 2018. 2012 republican president ial nominee mitt romney issued a statement this morning, one that fabric and the called on the president to apologize. The on the africanamerican republican in the senate and barb and bob corker. Mother of the woman killed at that rally says she will not speak to the president. Comparinger comments protesters to White Supremacists is unforgivable. She says the first call a mr. Trump they had would the chances of finding survivors in the debris behind the mudslide or diminishing by the day. More than 400 bodies have been recovered in and around the capital. 600 people are missing and feared dead. 100 victims are said to be children. Despite the threat of further disaster. 2700 journalists and analysts in over 100 20 countries. This is bloomberg. Retail roundup, foot locker get scrambled as investors run away after a tough earnings report. Where this company and the industry goes from here. Cast turnaround could be paying off. We will have more than more on that. This is bloomberg. This is Bloomberg Markets. Shares in gap spiked early on the back of earnings reports, all signs of the turnaround plan but the biggest apparel retailer in the u. S. And it seems like it is taking hold. Can you walk us through what the main action was, how good these gains were. They really surprised analysts and investors. Third consecutive quarter. It went soaring after the bell. The spike in the stock price has sortback and people have of doug into the numbers the initial surprise. Analysts are still coming out with their notes. Really showing we have seen a different gaps waxed and waned. They really drove that secondquarter and they have sales growth, positive up 5 . The revenue also grew. Terminal on in my we have broken out revenue for both old navy and that widening spread between the revenue. As well as one wells fargo analyst told us, value is everything in this environment. Thank you. We appreciate it. Season andarnings retailers to scott worse. Samestore sales fell since 2010. Widespread losses in the sector once again. Dicks Sporting Goods had lackluster results on tuesday. We have been talking about this trend and Athletic Apparel in particular. It seems foot locker was surprised. The company said this was surprisingly bad. Traders and investors appear to be caught off guard. Why was it such a surprise . What is troubling in particular is just that it reflects not some blip on the radar but some deep trend that all of these athletic appear retailers are going to have to contend with for the long haul. It is a short consumer Attention Span. It is really compressing how long the things are affected. It is coming to the athletic sector. The idea that short Attention Spans, it is quite remarkable. Death ofeard about the leisure. That is different from Sports Apparel. You use it to walk around the house. Can you give us a sense of both of these kinds of areas. At leisure is definitely very trend driven. Anesthetic and fashion choice. What there is is an interest in healthy lifestyle. So i think that retailers to , there are some good prospects. Who specializes in the fabrics you are talking about . I think nike and under armour are positioned to ride with that. It is interesting days continue to want to play in that lifestyle. I dont know if that is the right track for them since that trend is going on. Ask you more broadly now that we are at the end of retail earnings both the retail Sports Apparel and specialty like from the Department Stores, what are some of your big takeaways . It seems like the Retail Sector is patchy. The Department Store sector remains deeply troubled. Then you have plenty of other in this other players environment. The reflects really important work around freshness and produce. It all comes down to their ability to execute their environment. I wonder for talking about athletic wear, it reminds me and reminds you a little bit of what we saw among Electronics Retailers several months ago. Is at theplain downturn cycling through different sectors . The wanting i couldnt help think about, they talked about this lack of innovation with something that is weighing on them right now. Work its wayis through best buy, target, walmart. The new iphones that were coming out, the new ipads, there were the same as the old iphones and ipads. Thats kind of what is happening with these brands right now. The enough nation has not been compelling shoppers to pull out their wallets and they are suffering for that. It may help them a bit. Six planning the short Attention Span that seems to be plaguing retailers. A look at some of the biggest is the stories in the news right now. Americans are splurging increasingly on their fourlegged friends and markets are take note. Pet passion index, the tracker for pet related companies tracked 19 over the last year. Petmed express and pet pharmacy have seen its shares doubled and shares are up 44 . After just a week tesla bonds are trading lower. The carmakers 1. 8 billion and a hit due in 2025 . 97 on the dollar immediately. Yield. D low test your Bloomberg Business flash update. Jackson hole is fast approaching. Janet yellen or mario draghi . With Mohamed Elerian has to say on bloomberg next. This is Bloomberg Markets. When the world central bankers gathering the shadow of next week there will be a number of learning questions. The winding down of the fed Balance Sheet and the unwind of qe in europe. Mohamed elerian, chief economic eggs chief Economic Advisor ways in. From a market perspective i will be paying more attention to mario draghi. Simply because the fed is well embarked against our Value Concept of beautiful normalization. I dont think the fed is going to want to shake that process. Expect janet yellen to be saying anything. She will focus on financial stability. Very different situation for mario draghi. They are going to explain how theyre going to do that. The economy is more fragile than the u. S. I think theyre going to have much more information content. Take those comments and put them together with the counselor we got this week. How much did they take away from what draghi might be saying. They are particularly focused on the strength of the euro. Away . Hat take thunder shows anthing it appreciate of currency and strong currency like a hot potato in the global economy. And if you end up with it it is a real problem. It undermines your competitiveness. At the same time mr. Draghi has to other things he is seeing at the economy and politically. Very much increased my interest in what hes going to be saying. We know what some point from what we understand they want to hold off on this communicate with the next move actually is. What is next . I think less qe is going to be very gradual. Central banks are going to remain cautious. Erring on the side of the more dovish than they would be otherwise. I think of this image as central bankers are trying to soft land this plane they are in. Their instrument panels are giving them very strange readings and they are trying to figure out which instrument panels to trust. You are ultracautious. I do want to get your thoughts on the Federal Reserve read the ecb is all aligned. They dont like what they see. They have had is quite a market environment over the last couple of months. You came out from the start of the year. The take away from the most is maybe they hold up on race. Is this the fed that needs to reassert itself and should we be paying more attention to the more recent comments . Think the fed should assert itself on markets for a while. They are going to wake and get information and react. They are going to try to make the reduction in the Balance Sheet as boring as it can be. To want to make headlines, not to want to make news and hold out the possibility of the december hike. Elerianas mohamed earlier today. What to expect from the markets following the departure from steve bannon departure of steve bannon from the white house. His is bloomberg frexits 3 p. M. In new york, 12 p. M. In san francisco, 8 p. M. In london. Lisa welcome to Bloomberg Markets. Julie were allies in bloomberg World Headquarters in new york. Here are the top stories were covering on the bloomberg and around the world. The revolving door at the white house gets another exit. Steve bannon is out as chief strategist and could be returning to his former home at breitbart. U. S. Equities hovering around exit of bannon, question jermaine over trumps economic agenda. It has been a week of exit for trump. Ceos leave the Advisory Council in the wake of his response to charlottesville. We are one hour from the close of trading, lets get a check on markets with abigail doolittle. Mentioned, the major averages unchanged at this point. The dow trading slightly lower. Earlier onen lower ass news around steve bannon the white houses chief strategist. Lets take a look at what they look like. Here is the intraday chart of the s p 500. After yesterdays big selloff. A continuation to some degree. There was news that bannon could be out, that trump could talk about what is next for bannon. We see a leg higher into the green. Confirmed that those gains had gone away and still up ever so slightly. We have the major average or the s p 500 up slightly, it tells us that they like the fact that bannon is out. Hes the fourth big departure in such a long time. We will certainly be paying attention. Take a look at the s p 500 on the week. On the week, its a different story. G tv 6133. The year to date chart. The second weekly decline for the s p 500, this is the fourth such backtoback for the s p 500 this year. In the biggest backtoback weekly declines for the average. The s p 500 for the year. We may have the s p 500 flat on the day, julie, but another down week. Haven assets are flat to slightly up. Flat to slightly down, i should say. Not so much confirmed by the cross asset check. Get back to the big story now, steve bannon ousted from the white house, leaving his role as President Trumps chief strategist. Tim miller is the former Communications Director for jeb bush. Thanks for joining us. I was perusing your twitter feed and you expressed skepticism that bannons ouster will really change the strategy at the white house . the impact is much less. Got rid of paul manafort, reince street this, each time the mediaset out and trump hasnt done it. Is almost asnon powerful a megaphone to push the nationalist agenda and the protection of the agenda from breitbart. Out, he being kicked will have to prove to that base that he is still in line with them and he will get a lot of pressure from the rightwing media to continue to institute that agenda. Will be asnk there big a change as many people speculate. Up on thatt to pick point. If steve bannon uses breitbart typesulpit for populist of economic advocacy, is this going to create more turmoil for President Trump and inhibit his progress on that front . Or does that push President Trump more toward the center and more toward where Republican Congress people said. With the theory if he goes to the center, that is not wear his base is and hes given up a lot of goodwill in the center. Its hard to imagine democrats coming on board with any part of his agenda given what weve seen the first eight months. Hes so toxic with the democratic party, and for good reason. I think breitbart which is the largest conservative news site is absolutely going to have sway and go to heighten your hold him accountable to maintain his strict immigration policy and protectionist trade policies. I think the president will continue to perus those. Julie you are tied in for the former Communications Director of the Jeb Bush Campaign and tied into the more moderate wing of the republican party. Where does that wing go from here . We will start to see moves independent of the white house, more attempts to dealmaking. As we move into the fall and renewed legislation pushed . Be a lotwill obviously of pressure to get stuff past. Andou look at paul ryan mcconnell, they will want to get a win. The president has not been helpful on the legislative runt. He was horrible on the obamacare effort and i do think that, on to reform, they will try to push something through that hopefully they can get to the president s desk and he will sign. I think it is probably the best case scenario. Tims former communications to do for the president ial campaign of jeb bush. Markets reacting to the news on steve bannon. Oil surged, though not necessarily a reaction to that. Havens like gold and the yen gives back games. Gains we just heard tim miller expressed some skepticism that we will see any kind of changed Economic Policy as a result of bannon leaving and perhaps renewed push to protectionism. I agree completely. You think his illumination would be viewed as a positive given that sort of nationalist antiglobalist agenda. Rasputin, there was no internet 100 years ago. There was no twitter. There was no alternative source of view. And i completely think that the risk is that he promulgates his National Agenda with a much stronger more than hes had the interview. E is the first ive heard i think he will have a more prominent voice. Relatively little in stabilizing or promulgating the policies of President Trump that he said he would get past when he was running. This is the beginning of a more volatile period in the markets. These kinds of changes. Given the response to the different departures. I think the risk as you see sort of corporate america. Reflective, a loss of that it could have a more pernicious impact on the market. We saw an unprecedented jump. After trumps election. Despite the lack of tangible results. Chart,we have this actually, g btv 6534. In white, it shows that confidence. This is a compendium in white. The standard deviation relative to a longerterm average we have it, basically, a two standard deviation move to more or less unprecedented levels. That will helpk underpin Market Sentiment despite soso economic data, and trump, rotate away from and that begins to filter through and an erosion of confidence. Thank you so much for the inside, cameron price, global macro reporter for bloomberg news. Lets get a check of the headlines on bloomberg first word news this hour. ,ark as we have been reporting another shakeup in President Trump center President Trumps inner circle. Steve bannon has been removed as mr. Trumps chief strategist. With memberslashes of the president s family and other white house officials. Will continue to follow this story throughout the day here on bloomberg television. Tuesdays attack in barcelona couldve been a lot worse. Terrorists had planned an assault with explosives. The original plan failed. At least 13 people were killed. Later, a car rent over people killing at least one. One is from spain, another from morocco. European flags today fluid halfstaff outside European Commission headquarters in tribute to the victims of yesterdays attack in barcelona. We express our sorrow, shock, disbelief, and above all, we express our support to the city of barcelona, its inhabitants, the spanish people. Has President Trump approved a pentagon plan to create an independent and more aggressive cyber command. It will allow the military to ramp up cyber war operations. Command mayer eventually be split off from the National Security agency. Global news 24 hours a day for howard by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Stock may stand out this year. We will blowout earnings and what is on the horizon for the chinese tech giant in the week in tech. This is bloomberg. Lisa this is Bloomberg Markets. Uber is reportedly an exclusive talks to arrange up to 12 billion in funding before investors. Other big stories of the week, emily . Emily we will leave work for a moment and talk about that for a second. E have our uber reporter but i want to start with President Trump and the business council. Not so great right now, but i want to talk about tech specifically. Still at the point where trump said this is over. The council had already decided to disband. Where did President Trumps relationship with Silicon Valley stand right now. It is tenuous and very fraud. Tech executives leaving the council. It looks like he was one of the smarter ones in on the right side of history. Motiveslon, despite his [talking over each other] Brian Krzanich left. Facing acompanies consumer backlash. It sounded like there was some kind of principle behind them. Still on the was council. For people familiar with the thosehe along with primarily behind the scenes for a real strong statement if not a complete disbanding of the council. Which they later did and trump came out saying anybody left, forget it. A very fraud relationship between tech and the trump administration. Emily remind us why Travis Kalanick left the council. It was not necessarily his choice. Breakingrotests, uber a driver attempt to protest a strike. It became this trending hashtag. And to appease the angry masses, we will step off this council. Far before the lawn did or anyone else. Stancell have to take a when hundreds of thousands of people deleted their accounts. They had a lot of early pressure. It was a very consumer facing company. Brought to usws by yours truly. Several investors talking about a very late stage investment. Softbank and dd are the headliners. It is potentially a massive deal. Ubersct investment in 1 billion to 1. 5 billion. Anywhere from 2 billion to 10 billion buying out existing investors and letting some of the people cash out. Bringing in potentially new Board Members into a contentious situations. Emily given an update on the lawsuit. Making hisow finally response. Basically benchmark forced his hand and pressured him right after his mother died to agree, in a nonbinding form, to get rid of these board seats. And hes not going to do it anymore. And basically, benchmark as a. Oard member was in the loop a lot of the decisions the company made. It was not a big surprise for them to learn about the lawsuit and these other issues. Lawsuit still baffles me. It is a byproduct of the fact that these companies are staying private for so much longer. What do you do when you have a break with management . You dont just sit and wait for an ipo any longer. Its not like before when a company would go public. These investors have to become the activist. Emily especially bill gurley of benchmark has been publicly aligned with travis. And now this public break. I want to touch on alibaba, a blowout order. Quarter. Benefiting from the strength of the consumer in china. They are also benefiting from a cloud business. Like . Oes that sound it is very much out of the amazon playbook. Just go through the roof. One quarter after another with stock price going up. People like was they see out of seattle. And a parallel situation with alibaba. Point at what point does alibaba overtake amazon in terms of market cap . Emily shares growing more than 56 this quarter, which is pretty incredible. Tom giles, eric newcomer, hank you both. Thank you both. Emily chang in san francisco. It later today, emily will be speaking with the chief operating officer at essential. It that Company Founded by an android cofounder and is now launching a new premium smartphone. And getting a lot of attention. Oil markets remain in a vicious cycle with opec production policy efforts proving largely ineffective. Todays trade looking at how to play this cycle. From new york, this is bloomberg. Lisa this is Bloomberg Markets and its time for the options insight with julie. Julie joining me is chris, chief Energy Strategist at macro risk advisors. Chris, we were talking about what happened with oil today. We see oil trading down over the course of the week. And it really spike today in a way that we didnt see with other assets. Oil closed up 3. 5 today. The news this morning when headlines of steve dan and moving out of the white house hit. Dollar. Elated to the which was trading down 2. 6 when that headline hit, raised market on the tenure and moved. Dollar isivity of the increasing. This might have expectations for renewed tax cuts. It is still on at the white house. You remain a longerterm bear on oil. Given the rate outlook, how is that playing for your oil outlook right now . We want to take advantage of the friday strength of the overall market. From our perspective, the fundamentals in the market are going to deteriorate over the next several months. Rates were added in the Second Quarter as well as utilization falling off. A combination of lower purchases in the market, the lower 48 output, i think it will be cohesion with opec. Going to the second half of the year. I think its a recipe for further weakness. You are looking at the xle, and etf that attracts energy companies. And what are you structuring the trade that you are looking at . Thehe last time i was on show, we recommended the bearish calendar risk reversal. We were selling the 68th to buy the 62putts. In the october and december timeframe excuse me, october and january timeframe. Xleant to sell a march 2018 call to buy the december 60 put. This is a way to play for further downside, large cap we continue to see the xle move downward as we see Oil Prices Move downward. Energy stocks dont always move in tandem with oil. It tends to be a little more resistant to the fluctuation in oil prices. How the largest cap interests up 3. 5 cted, oil is today and exxon was up 70 after a very tough week. The Oil Companies that have been volatile are starting to weaken into the fall. Chief Energy Strategist at macro risk advisors. Lisa we will take more of a look at the shakeups in the white house. Chief strategist steve bannon is out. Could there be more exits . We will begin to that. This is bloomberg. Track your pack. Set a curfew, or two. Make dinnertime device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. Introducing xfinity xfi. Amazing speed, coverage and control. Change the way you wifi. Xfinity. The future of awesome. Mark time now for first word news. Bloomberg reports that people with knowledge of the situation say that sebastian gorka, an ally of steve bannon who is removed today as white house chief strategist also faces removal from his post as a counterterrorism aid to President Trump. Orca previously worked with bannon at Breitbart News and has on fox newsularly to speak on the trump administrations behalf. Year, he drew sharp criticism after reports he had links to a far right group and hungry alleged to be antisemitic. Gorka has dismissed those accusations is groundless. A democrat from West Virginia says hes not going to join President Trumps cabinet as energy secretary. Week as aurfaced last possible way to let the republican governor name a successor. Said that its not going to happen. He faces a tough Reelection Campaign in 2018