Economic Investment Data pretty much underwhelming in terms of getting investors a sense of direction for whats happening next. We know that the fed is less likely to raise rates. I thought that the isn Service Number of the nail in the rate hike as far as that was concerned. Thats one of the reasons you had some light rallying yesterday. Light selling. Not. But you see real estate actually bloombergimap on the , that will be traded until the 16th, but energy and telecom are doing well. Consumer staples, this is one of the interesting things. If you take a look at the stocks that were big losers today, joe has been banging on about this for a couple of weeks now, the death of the safety trade, consumer staples, off, General Mills was one of the biggest losers on the s p today. Its far as the winners you had today, chipotle was one of the big one as phil ackman took a 10 print 10 point stake 1. 2 billion dollars. Nintendo, massive winner today. Trading over a million shares in the u. S. Not just japan. 5 million in tokyo and a million in the u. S. Today. Huge gain after mario made an appearance with the iphone. Scarlet super mario, not mario draghi. Joe and apparently matt and apparently pokemon is going to go on the watch. I dont know how that is a selling point anymore. But talking about the late day rally, it finishes up 7 10 of 1 . Pretty quiet day on the Government Bond market front. We got joel switch, not really intending to move markets, rarely market moving, they were fine, but as you can see, hardly any action. Terms of currency, the pound was at a oneweek high versus the dollar, but then mark carney testified that he and other bank of england officials basically signaled that more easing is likely if the economy turns south with data today that they cant hold prices to manufacturing output declines, declining and off by 8. 3 over the past three months. Another one that im focusing on today, strengthening the most in a month, the intraday performance. I should say, the dollar weakened by 1. 4 versus the one. N. Wo the next support level according to strategists is 1089. 90. We will keep an eye on that as people are focusing very much on it versus the yen. Silver, falling 1. 3 . It had been on a winning streak, kind of like Everything Else, benefiting from the pushing back of rate hike expectations, which is good for commodities and precious metals. Breaking its street there. Scarlet those are todays market minutes. All right, lets take a deep dive into the bloomberg. Using the function of the bottom of the screen. We got the joint report, which always looks at things like the job rate and the pace of hires. Heres an interesting way to of the the evolution labor market and the number of job openings. Back in 2009 sp near seven. For every job opening that there was there were seven Unemployed People trying to get that job. That is down to 1. 3 . Lower than it was. Matt 1. 3 people, basically. Joe thats actually better than any point in the last recovery. It just gives you another way of seeing how much we have improved in this labor market. Anecdotal backs that up. Ive been looking for a parttime sitter driver after school and its been hard to find someone. Matt i volunteered. I volunteered to sit for your kids. Scarlet they are with the right now. That doesnt work, matt you are with me right now. That doesnt work, matt. Matt i see. Too much anxiety when you look at overnight eurodollar options. This is the one day volatility, pretty muted compared to levels a prior meetings so far this year. Right now at 12. 5 , lower now, looking at 9. 2, the lowest reading among days this year, you can see the green circles are the previous meetings and we are way below that right now. Joe it feels like there is the sense of things arent that great or falling apart, theres no particular urgency to do anything true do anything too dramatic. Maybe wait and see and revisit the question later on in the year. Not a lot of hype going into this meeting. Exactly one of the reasons i think that hans redeker and Morgan Stanley are predicting again in the euro versus the dollar by the end of the year. They dont think that anything mario draghi will do tomorrow or throughout the year is going to be able to hold back the euro. That will obviously frustrate growth. Some percent of it frustrating exports. If you take a look at the chart that ive got, Morgan Stanley, that look at the euro, here you can see what happened in the aftermath of the gregs it brexit. It eventually came down and pierce that level. At the euro is back up 112. 39. Morgan stanley saying it will continue to go up. They keep climbing that wall of worry. Theres no way for capital outflow here. One of the interesting things i think about this call for Morgan Stanley is that it runs exactly the call at Merrill Lynch that we are actually going to see 110 euro and below. Really interesting, bullish call on the euro. Scarlet all right, i have some breaking news here. Talking about hp, hewlettpackard enterprises, the Software Division of the company. The good bank versus the bad bank. We have earnings per share for the quarter that ended, adjusted at . 49. Thats a beat when youre looking at the bottom line. Call . 2 billion for that time, analysts were looking for 12. 6 billion. Later on the sales side here you can see a breakdown of the different revenue per segment, including software. Financial services revenue, 812 million. Billion dollars, about one third of the overall companys revenue. In terms of fullyear earnings, looking for 1. 90 to one dollar 90. Ended were anticipating 1. 80, on the higher end of that range. Joe lets get some more insight into the trading day with bloombergs oliver renick. All of her pretty flat, thats the story of the day. Where theike today, polls are pretty much unchanged, we have written about how much of a diversions of opinion there is on wall street where strategist were poised for a down move through the end of the year, where we had the hedge fund investors. Joel silver, basically giving along the s p with Retail Investors thinking that volatility will go up and institutional will go down. Its always push and pull. One thing thats always important is the idea of declining earnings, flat sort of Profit Margins here, when you look at the money going out of companies you have money coming in and earnings Getting Better with profits rising. Margins getting wider so companies were cutting the cost. A lot of those buybacks were coming back to dividends. We are at the point where those activities have stopped, right . The announcement has been executed at it as an alltime high. If you skip the financial crisis they are extremely high, 45 of earnings right now. If you look at whats happening on the side to balance that, looking at the cash situation, the s p 500 is a hot button topic, im realizing, after writing this. A little bit here and there, it sort of depends on whether they are bullish or bearish on stocks. There are two elements. Here, this is the entire s p. This is the most liquid cash, as we talked about the other day. This is excluding the shortterm investments of marketable securities. But the trend is the same. Heres what it shows. Most cashrich Companies Reaching new highs in terms of the cash policies. Apple, some of the big financial companies, you see the same thing. If you look at the rest of the 475, the 95 of companies in the s p, its getting slimmer, so you have to think about why that is. Part of it is the shareholder activity staying generous at the moment. More about that. We have a chart here that im looking at, these two different trajectories where earnings are. Hrinking, piling higher theres still a lot of cash, as your chart shows. The fundamental undergirding, its not going in the right direction. Thats right. To answer the question on push back, theres a lot of cash out there. Its the trend of peeking over the last year. We know that debt levels have gone higher and higher over the longer term, but when you look at how that relates to earnings, the white line, its hard to see, but in terms of earnings its the lowest in quite some time. On top of that you got debt levels still high. So, the ratio of whats happening of earnings over the interest on that that, a way to gauge whether companies are able to cover themselves, the absolute magnitude is still high , but its getting higher. It doesnt mean one thing is going to break one way or the other anytime soon. Quiteould all smooth out fine. But if that doesnt happen, you got this strain not going anywhere. Scarlet a lot of people matt a lot of people talking about apple today because of the newish iphone and watch. Great i dont have a answer for this, but obviously part of the situation here if you look at their lessening impact on the market i mean, its a huge company. Biggest when it gets smaller and moves the market less, but for withreason the correlation apple has dropped down quite a bit. Whatet what are matt are we looking at . Purple is the apple share price and light blue is the institutional buyers . Thisr im just throwing out there. When you look at the market cap for apple, its up a little bit over the past month. But the correlation over that time has gone down quite a bit. Maybe it has to do with volatility or not him lot of new buyers coming in. Im not sure, but i think its pretty interesting on a day like this where you got all of this news but the market is flat. Here areere on joe my terminal you can see its gotten pretty low. Its been low a few times, but most of the time it has been significantly higher than it is right now. It also strikes me that as i recall, the glory years of apple, the whole market was doomed. Now we have facebook and amazon. Theres always something. Theres a little bit better brett situation in the market. Overall we are pretty much at highs today. A few more companies are taking part in it. Thats encouraging to some extent, we are not completely subject to the whims of apple. Up, whatsming driving asian markets higher . Analysis. Mark im mark crumpton. Lets get to first word news. Some of Trumps Campaign hitting a 10 million increase over the previous month, still trailing Hillary Clinton, who reportedly in the 143 million millioncampaign has 68 dollars on hand. Trumps campaign did not reveal a figure. President obama has dominated a washington dc attorney for the federal bench. If confirmed, he would be the first Muslim American to serve as a federal judge. Maryland for of the district of columbia. Congress is in an abbreviated search and session. U. S. Defense secretary ash carter is accusing russia of sowing seeds of global instability. He also questioned the sincerity of a viable ceasefire in syria. During a speech at Oxford University today, secretary skepticismessed about russian intentions in syria. The International Olympic committee is promising to fully cooperate with brazilian authorities in it to pick ticket scalping investigation the targeted one of its top executives. Theissed the opening of paralympics so that police could interview him about the case. Irelands Olympic Committee president is one of the 10 people charged with ticket scalping, conspiracy, and ambush marketing. Global news, powered by 2600 journalists and analysts in over 120 countries. Im mark crumpton, this is bloomberg. Scarlet whatd you miss . What effect did the brexit have on u. K. Economic data . This from the u. S. , eurozone, u. K. , china, japan the red line is the clear outlier. Upside over everyone else who has clustered around the middle. What is the red line . Is the redline. Mark carney conceded that the data has been running a bit stronger than projected. He said thats why the index is staying elevated and proving partly because the bank of england took action by cutting interest rates. Joe thats always a hard thing, establishing the counterfactual. Possiblyiticized for jumping the gun, but we dont know what the data would have orn if they had not eased instilled confidence. Its always a tough thing, you know, figuring out the moving part. Scarlet and there has been a lot of political blowback, lawmakers saying that he exaggerated the Economic Cost of leaving the european union. I want to go back to the jolt report that we got. Its always a wealth of insight. The rate of job openings minus the rate of hiring. Whats happening is there are a lot of unfilled job openings right now. At the top of the show we mentioned that there were not as many would be employees looking for a job. But theyre also just seemed to be an extraordinary amount of openings that they were just not being hired for at all and it is causing a lot of economists to scratch their head and wonder right now the gap is pretty wide and it is causing people to scratch their heads regarding quality employees. Could it be that some of these openings are not real job openings and theyre just surf casting about theoretically looking for people without actually intending to fill them . Lots of questions, this is one we are going to be looking out for a while. Scarlet all right, coming up we will take a look at what is driving asian markets higher. Carlet whatd you miss . A bold case for asian markets. We are speaking with jing ulrich , she has just returned from the g20 summit that just took place. Jing, welcome back to bloomberg. Give us your first impressions. What surprised you the most . Jing it was extremely well organized. G20 is an extremely important event. Covering 85 of the Global Economy, two thirds of the global population, and this year the chinese presidency, right . It was amazing to come to a city of 8 million people, but it was pretty much emptied out. Blue, the topics, there was none. The city was very welcome to the Global Leaders and business executives. Overall the environment was very different from year ago. Terms of the conversation, economic topics, what surprised you the most . Interestingly enough, the businesse and the community presented a proposal to Global Leaders. But the Business Community wants to achieve in terms of trade, investments, employment and so forth. A lot of big topics, like trade barriers, how to remove investment hurdles across national borders, they were discussed. What was surprising was that it did not come up as a major topic of discussion. The r b is considered in the last 12 months, the currency has weakened about 7 against the u. S. Dollar, about 6 against a basket of currencies. If this were last year, it would have been the center of attention in the global community. We were talking about that before. There was a lot more volatility and intervention from chinese officials last year that we havent seen this year. Clearly the external world has become much more accustomed to chinas view. I think that chinese leadership has done a great job in terms of managing external expectations. You mentioned to the trade agenda. How much concern is there in the Business Community that so Many Companies seem to be turning against global trade. We saw what happened with the rags it vote, which could lead to diminished trade between the u. K. And the eu. Both opposing the transpacific partnership. How much worry is there that we could start to see unraveling and a loss of momentum . Since 2008 and the financial crisis, global trade has been down. It used to be a major driver of growth now it has become a drag. In this environment, interestingly enough, chinas trade has been gaining market share against other trading partners. Even though exports and imports are down, its down less compared to other trading partners. Whats interesting is that the topic of overcapacity claim came up quite a bit. Obviously a Huge Industry with a lot of overcapacity and he called it a global issue with china. Obviously there have been some accusations of china dumping trading to other partners. Theres a lot of talk about how china can resolve the overcapacity issue and really trying to get the chinese industry to be much more efficient. ,carlet all right, jing ulrich thank you so much for joining us today. Coming up, apple pulls back the curtain on a new product. A water resistant, faster iphone seven with no speaker port. This is bloomberg. Im mark mark crumpton, lets get to first word news. Donald trump calling for an increase in military personnel. On the list . Asking congress to fully in the will eliminate the defense sequester. He also blasted Hillary Clinton for tenure as secretary of state. Trump sometimes it seemed like there wasnt the country in the middle east that Hillary Clinton didnt want to invade, intervene in, or topple. Shes triggerhappy and very unstable. He also wants an active army of 540000 and a marine on 36 battalions with the navy based on 360 ships and submarines and an air force of 1200 fighter planes. The Senate Majority leader says that keeping the government running past and of september is the top priority. Mitch mcconnell told reporters that the senate is preparing to pass a measure to fund the government until the ninth. Senator mcconnell also says that passage of the continuing resolution could come as early as next week. Differences on both sides of the are believed to be a major sticking point. In egypt a train went off the tracks 31 mile south of cairo. Trains from halted cairo to provinces south of the capital for several hours. The uninsured rate in the u. S. Fell to a market low of 8. 6 , therding to a survey from centers of Disease Control and prevention. That is a fraction of the earlier gains seen under president obamas health care law. When the expansion got underway, the number of uninsured went down by nearly 9 million. Global news, 24 hours per day, powered by 2600 journalists and analysts in 120 countries. Im mark crumpton, this is bloomberg. Scarlet, back to you. Scarlet pretty flat for the dow and the s p today, the nasdaq climbing to a record high for a second day. , hewlettpackard enterprises reporting profits. The bottom line pete analysts estimates. The top line missed. Quarter may beat some analysts estimates. They will also spin off Software Sentiment for an eight billion dollars deal including big data, Enterprise Security and management business. Joe whatd you miss . Appleg announcements from today. Whats new . The iphone seven and iphone seven plus, including Wireless Headphones called your pods ear pods. For more lets go to san francisco. Om joins us tom, what is your big take away from todays news . Will the new iphone be able to drive a solid of rate for the company . Tom i think it is a set of very solid updates. It is getting harder and harder to sort of rock the world with a new iphone every year. I think that what apple did was sort of put together a nice set of features that people in the market for a new phone will likely find pleasing. More specifically they started to set the table for future updates that will take advantage of some of the technology that they put into this years phone. Matt interesting, you said people in the market for a new phone. It used to be that if i could roundup the cash around september i would purchase a new one every time they came out and now i really feel no need to buy this new phone because ive already got the six. For salesbummer growth at apple . People dont feel compelled to wait on line for three days and by the phone, no matter what . Tom coleman it is definitely a challenge that the entire smartphone industry is facing right now. It has become saturated and, to are at an, we iterative stage. We are not really seeing groundbreaking features that each grab the phone. People are holding onto them longer. I think features like waterproof really matter to people. I think that apple is beginning. O move towards wireless i thought that it was interesting that during the keynote they pointed out that no one really wants to be that tethered to their phone with your pods. But then of course they put them in the box. It costs you extra to move wireless. I think that what they have done there is they are trying to address a technical challenge that most of us have had when trying to use regular bluetooth. I think it will be a good experience, but it will take a while to get people to buy into that. Its also so basic. Water resistant is very different from waterproof. Ive been using Wireless Headphones for a year now from a company that apple owns. Thats a good point. The wireless they have rolled out here, i think they are trying to make it more seamless than traditional bluetooth. Which if you have been using them for a while you realize it not as smooth and operation as you would hope. I think the thing that that was the most interesting about the customs was the silicone. Now its to provide a better experience for phone calls and music. The fact that they are putting music in shows us where they are headed longterm. At some point we wont just be talking about the apple watch as types that but other take advantage. Scarlet there is no new headphone jack. A lot of people might be tempted to get the six s. Will it become like samsung, where they have phones of every different size and every price point . Or will they limited to the iphone seven and get rid of Everything Else . To the iphone seven and get rid of Everything Else . Tom from what we have seen from tim cook, apple is willing to expand its products and take advantage of the economies of scale theyve created with prior generations. That being said, they will never come close to the extensive lineup that samsung has. I think that based on the presentation today, they keep it under a relatively small number of new phones. Six s and s plus become the midrange phones. And then they got the seven and the seven plus. Notably, they added more ram to the six, the last generation of phone and the new generation of phone. Thats something that people have been after apple to do for a long time. I thought that it was good that they did that and it was interesting that with the apple two theyving to series reintroduced the original apple watch as a series one with a new processor. They are not just yeah . You have covered virtual reality, augmented reality. With these new advanced cameras it seems that people have been talking about how apple maybe setting a stage with this technology that they might be able to make a real play in those spaces going forward. Is that your read on these Technological Advancements on the new phone . Absolutely. I think that what we will see from them in the next year is that they will move towards my bet is augmented reality before virtual reality. With the new cameras and the new processors, some of the acquisitions they have made around sensors and augmented reality software, i think that what you will see is something onn to todays pokemon go steroids, bringing augmented reality to the iphone in the next year. Right, tom mainelli, thank you very much for joining us from san francisco. Scarlet tv is buying intels Security Unit. Tpg is buying intels Security Unit, including debt. They will own a majority stake, 51 of mcafee. Intel will hold the remaining 49 . This transaction is expected to close in the Second Quarter of 2017. Matt just so you know, there is a lawsuit. We had john mcafee on today on bloomberg radio. He is suing intel to try to get the name back from the Cyber Security unit that he started for his own business. Clearly he has nothing to do with the entity that was sold. Matt of course not. I think he was on the run just a few short months ago. The president of belize, dropping in popularity after public backlash to the trump visit. We had to mexico city. This is bloomberg. Scarlet time for the Bloomberg Business flash, looking at the biggest stories right now. Ap emerging with micro focus in a transaction value at 9 billion. Hpets to be spun off include information management, governance, and i. T. Operation management. It also includes a 2. 5 billion cash payment. Alternatetpg, the asset manager has purchased the intel Security Unit at 4. 2 billion, including debt. Company own 51 of the known as mcafee. Intel will hold a 49 stake. The transaction is expected to be completed in the second order of next year. , the possibility involving a movie studio, paramount pictures. Directors will hold the review on the 14th. The former ceo submitted details of his talks to the board last week. That is your blue Bloomberg Business flash. Matt the mexican Prime Minister afterving his position three years. Hes been a close advisor to the president and has come under fire after boards that he advised the president to meet with donald trump last week. For more analysis, victor hugo in mexico city. Victor, tell us what we know so far. Has the finance minister left his position . Have we gotten any details as to why . Officially . At this point we are calling it the after effects of hurricane trump. Especially after reports surfaced in the last few days that we realized the now former point now former finance minister was behind the business by the president ial candidate. President of the the Mexican Government has not stated officially the reason behind the resignation. We have to say this. He was one of the closest advisers for president pena. Cans stepping down and it only be described as something massive happening. We have to remember, Donald Trumps visit has generated a massive backlash to president opinion yet to president pena. Bloombergng inside my right now, the dollar against the peso, you can see that when the news came out the dollar spiked. Not dramatically, but there was a peso weakening. In terms of the current economic agenda in mexico, what is the significance of the shakeup . Victor we have to remember that videgaray is being placed by one of the insiders of the finance minister ministry. He already had this post a couple of years ago. That move was designed to reassure the markets that the political economy, the political economy in mexico was not going to change. There was not going to be a change on the fundamentals. At this point we could say the markets are having a nice reaction. The reaction is that this stability, we have not seen any big movements on the stock market or in the peso dollar stock exchange. We can say that the decision to toe was precisely designed avoid any massive uproar in the markets. What we are seeing on the political side is massive uproar. Good point. Ts a are you hearing any talk of policy changes at the top of the finance ministry . No, theres not going to be any change. The president stated this morning that the Main Objective for the finance minister is to return a balanced budget tomorrow. The same agenda that videgaray had before being sacked from the office. The not going to be any massive changes. There wont be any changes in the economy in mexico. We can say that the guy thats coming in is going to follow the same agenda, the same recipes the other guy has until this point. Joe we knew that president penas popularity was not high. Any indication of his standing as of today . Nothing new at this point, but we can assume that there will be a massive impact on his popularity. The uproar in mexico after the visit of donald trump has been and we cannot understate this, it has been massive. They have been criticizing president paying from the left, from the right, even inside the government. A lot of people here in mexico have said that nobody can seem to remember a situation like this, when a president has been hit so hard after a decision like this. Let me ask an obvious question what was he trying to a conflict in a meeting with donald trump . Was it a publicity stunt and nothing more . Victor that is the question that everybody is making here in mexico. What was the president thinking when he opened the door to donald trump . In the basic message she has stuck to is that they and vital invited donald trump to try to moderate his appeal and show him how important mexico is to the united states. Again a few hours later you have this speech in phoenix where he insists that hes going to build a wall of mexico and a couple of days later you have him saying that he broke the rules of the game by saying that he wasnt going to pay for the wall. At this point is nothing to win. Theres no love lost for the Mexican Government. A loss of face, particularly amongst opinion makers here in mexico. Theres even been talk of calling him a traitor to the homeland. Something that you dont usually hear here in mexico city. Joe thank you for joining us. Scarlet what does this cash strapped company say about jet markets . Next, on bloomberg. Bank leadheres a big change sweeping asian markets. The recent drop included shipping company that was a prime example of investors coming to terms with the new normal and corporate financing with banks becoming more conservative in their lending practices. Fors bring in betty liu more. Set the scene for us here. That theres about 85 ships stranded on the waters right now , fast becoming ghost ships because ports in the u. S. And europe and other parts of asia are turning them away because the company filed for bankruptcy. There is concern whether they theirle to pay all of fees, including the port costs, right . They are all stranded, anchored off warts of oregon and elsewhere. This is really a classic case of supply and demand. There isnt as much demand given the way the Global Economy has been in the last couple of years. Lenders are finally waking up and saying we are not going to lend to you at such low rates this amount of money. Hanjin is the biggest sufferer of that supply demand case. Biggest, a sad story and i will get to why in a minute, but what of the coolest parts of the bloomberg terminal is our ability to map those ships around the world. If you type it in and search for hanjin shipping, you will get this. We see those 80 ships that that he mentioned, youve got obviously a few of them in ports, but a lot of them, here you can see all around the world , miami, europe california, mexico, all over the place. The sad part about this, beyond the business story and to the human story, is that there are a lot of people on the ships that cant get off. Because these ships cant get into port and they cant do any of the things they need to do. Dump water, get fresh water. Betty i fight you were going to say that the sad part is that perhaps my nintendo is not going to be delivered on time. [laughter] matt is there a new nintendo coming out . Betty whatever. Joe is it known how the people on the ships will be getting off . I rather they are running out of food and water. Betty they are running low. Its unclear. But i dont think theyre going to let them starve to death on the ships. Matt they have a lot of stuff on some of the ships. Betty they do, they do. The worlds goods matt . Goods. Ber the worlds matt i remember when that ship went down full of cars. Betty you would vividly remember that. Matt i guess they could trade with pirates. Betty there are supplies being traded backandforth. Matt that makes me feel better. Joe you can catch betty liu for bloomberg daybreak asia. Scarlet coming up, what do you need to know to gear up for tomorrows trading day . This is bloomberg. All right, dont miss this, the chinese trade balance, imports, exports, all due out tonight matt . And you cannot miss the ash tonight. Matt and you cannot miss and you cannot miss the all due out tonight. Matt and you cannot miss the ecb numbers coming out. Tomorrow morning they are expected to pick up ever so slightly, 265 k from 263, which is still incredibly low. Scarlet that does it for whatd you miss . , thanks for watching. Joe have a great evening. This is bloomberg. John im john heilemann. Mark and im mark halperin. To thel due respect apple geniuses that jumped the gun on their Product Announcement on twitter, all we have to say is aye aye aye. Mark aye aye, captain trump. We are pumped for the matt lauer hour power, the abc news commanderinchief for them, where Hillary Clinton and donald trump will answer questions on military affairs and veterans issues