30 minutes before the european close, lets see where we are. The stoxx 600 is up. Most stocks in europe are higher, with the exception of italy, facing off with europe on its deficit. The leadership in italy is not exactly stable either. Fiat chrysler down 7 10 of 1 as talks continue. Reno trying to merge with Fiat Chrysler. We will see. In line with the drop we are seeing in auto stocks, there may the talks tween stalling of talks between the u. S. And europe. We are seeing the s p trying to reach the 2800 mark again. Yields have had a real journey over the past few days. Index, even though we have very diverging stories here, all of the stocks of the s p 500 retailing index are higher. That makes for a 4 10 of 1 gain. There are some retailers really dragging things down today, not least of which pvh, the parent , calvin klein,er and others. It looks like turkish president erdogan is perhaps backing down on some of his demands. Meanwhile, trade talks between the u. S. And europe have stumbled in the 10 months since President Trump and ecb president Jeanclaude Juncker struck a truce aimed at clearing the way for negotiations. Lets get to the impact on Global Markets, particularly this week, which has been so volatile. Ofare joined by michael bell jv morgan Asset Management. Of j. P. Morgan Asset Management. The markets have become volatile and petulant. Michael i think markets at the moment are focused on the extent to which trade concerns are going to turn into weakness for manufacturing and particularly for. When you look at particularly for capex. When you look at eurozone country investment goods manufacturing pmis, they are really at quite week levels. What the market is trying to what markets had priced in this year going to come to for wishon, or will the trade talks delay that from happening at all . Hence, there is a risk that the weakness in capex and manufacturing spells across into employment. When you look at the employment component of manufacturing pmi, that has fallen below 50 as well, so i think markets are trying to way out that risk as to whether it is going to spill across and affect labor confidence. Vonnie it feels like it might be the second or third step. First we have to figure out if there are going to be tariffs on european autos. What is your thinking at j. P. Morgan Asset Management about where that sector goes . Would you be avoiding it like the plague . Michael i wouldnt go that far, but if you look at the risks at the moment, it is very hard to say how it is going to pan out. There clearly is a risk that you get further tariffs imposed, and that that hits the auto sector in europe. I think were that to happen, it is happening at a much more difficult point in the cycle now then about 18 months ago when the trade concerns first kicked off. If you go back to the beginning of 2018, you were still in a place where global trade was growing pretty strongly, the pmis were still relatively elevated. Fast forward to div a two trade growthbal has slowed already. Think further trade measures from here would be a more meaningful concern than they were back in the beginning of last year. Vonnie as we saw, investors did turn to fixed income, particularly sovereign bonds, particularly u. S. Bonds in the last few days for a little bit of a hiding place, perhaps. Is that the best place to go for the moment . Michael i think it certainly works as a hedge. Weve been speaking to clients over the last six months, since september of last year, about the value that u. S. Treasuries offered when they are at 3. 2 , and that you could see declines. Obviously you have seen quite to give a get declines in the treasury since then, but still, as a hedge to the equity side of portfolios, if you are worried about downturn risk and the potential that the fed has to an rates meaningfully into economic slowdown, and that scenario you would expect the zero. Drawdown close to as a hedge they still have some value even at these low levels, given some of the potential Downside Risk for the economy over the coming 18 months. Vonnie where do you see the 10 year yield in the u. S. Bottoming . Have you seen it . Michael i think it depends on the time horizon. As we say, if you look ahead to the next downturn, and im not saying i know exactly when that will be, but as we get later into the economic cycle, i think what you are seeing is that investors are more and more thinking that we are in the late stage of the economic cycle, and it makes some sense to balance out their portfolio a little bit. Adding into portfolios something that has a good chance of protecting portfolios if equities fall during an economic downturn. In that sort of scenario, i see no reason why 10 year treasury yields cant trade below 1. 5 . Wow. E below 1. 5 , so you would be a buyer here, then. Michael as a hedge, i think it still makes sense for these valuations. I am not saying you should be all equities, but at this stage it makes sense to balance the portfolio a bit, and u. S. Treasuries are one way of doing that. The other things that are attractive in this part of the cycle are things like global macro funds. Historically volatility picks up, global macro funds tend to outperform, and i think you will likely see a rise in volatility over the coming six to 12 months. The other thing is infrastructure. You look for a reasonable yield that is relatively defensive. The steady income stream you tend to see from regulated Utility Companies and some of the Power Generation companies, those kind of contracted revenues are pretty stable and defensive and attractive at this late stage in the cycle. Vonnie the dollar index continues to strengthen, michael , grinding higher, up about 0. 4 . What does that mean for currency hedging for you . Anhael i think it is important question, particularly for investors in the u. K. We talked about the attraction still of u. S. Treasuries, but i think a lot of those huge uncertainties here in the u. K. Around the direction of sterling against the dollar given the ongoing brexit uncertainty, many clients i speak to want to take that currency risk out. The hedging cost at the moment for a u. K. Investor for the dollar is approaching 2 . So when you buy a treasury at the current yield and give up most of that yield in the hedging cost, still, i dont think that means it is unattractive as an investment. I dont think you are buying a treasury at this point for the yield. You are buying it for the Capital Appreciation when the fed are forced to cut rates more meaningful fully more meaningfully. Vonnie michael, we have to leave it there, but are things to you. Michael bell, j. P. Morgan Asset Management Global Market strategist. Lets check in on the bloomberg first word news. Heres courtney donohoe. Ofrtney pending sales previously owned homes unexpectedly fell in april. The index dropped 1. 5 from the prior months, missing all economist estimates. Pending home sales are often seen as a measure of the health of the Housing Market in the coming months. The u. S. Economic growth last quarter was revised down by less than expected. Consumption stronger than originally reported. So where exports so where were exports. President trump has renewed his assertion that Robert Muellers report exonerated him of wrongdoing, claiming the special counsel would have brought charges if he had anything. The president s remarks directly conflict with muellers yesterday. He said he was per habited from acting because Justice Department rules did not permit indictment. Itomberg has learned that held you deputy Prime Minister Matteo Salvini has told his party he is willing to let the government collapse if they cannot get a ruling majority. He has the upper hand after his partys victory in the european elections. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im courtney donohoe. This is bloomberg. Vonnie thank you. Lets get a quick check of the markets now as we head towards about an hour and 40 minutes into the session. The dow is unchanged, but plenty of stocks higher and lower. Verizon down 2. 4 . The best performer in the dow mcdonalds, up 9 10 of 1 . The s p 500 is up to tenths of 1 . Retailers telling most of the story today, but we also have cbs up 2. 1 right now, and viacom up almost 4 . The nasdaq up 1 4 of 1 . This is bloomberg. Vonnie from new york, im vonnie quinn. This is the european close on bloomberg markets. Quite a lot of headlines to digest in the last couple of hours. Markets. Ck those Abigail Doolittle is with us. Abigail here in the u. S. , bonds have been trading lower earlier, yields higher. Now they are reversing. Over in europe, we see the german dax still closer to the highs of 0. 5 , with bunds still trading slightly lower. The question is whether this big rally we have seen over the month of may is a sign of slowing. If we go into the bloomberg, lets take a look at a very interesting chart that we took a look at with dan russo yesterday on smart charts. Dan russo says this is a tell only markets. What we are looking at is a ratio of chips, typically a onding indicator used volatility. Certainly leading on the volatility, that big downturn in the fourth quarter. Take a look at the huge divergence between the stoxx and the s p 500. Really a tell, perhaps, that there could be more weakness ahead for the broader markets. As for the stocks on the day, we do have a gain, a bit of a reprieve there. Some of the big movers on the day for the chip sector. Take a look at this. Qualcomm, Texas Instruments investors not buying the dip. Finally, lets take it even more global and hop back into the bloomberg. China has been leading this year. If we take a look at this chart we have, and i am actually just going to reduce to one screen here, we are going to see and actually there we go, we had our chart here what we are looking at in white is the shanghai composite, leading all year. In blue, we have the emr at. In purple and yellow we have the em markets. In purple and yellow we have the s p 500. It will be interesting to see what next we bring, especially if bond yields can go up a little more. Vonnie the bond movements have been so interesting in the last day or so. Abigail, thank you so much. Morgan stanleys chairman and ceo has weighed in on the this be my spit on the disputes between china and the u. S. He spoke exclusively to bloomberg in beijing. 40 of the worlds gdp is tied up in these two countries. To have a major trade war be bad for both countries. Everybody understands that. I certainly hope that they do. Ceos i talked to understand it. Theres a got is resetting of this relationship, which makes sense. After 30 years of incredible Economic Growth in china, there needs to be resetting. There are certain things on the trade side that need to be addressed that arent being addressed. Do i think this is going to devolved into a full trade war . Is toont, because there much selfinterest in keeping this thing on the rails. Some people have said if it doesnt happen by the g20 in june im not sure about the exact timing of when we need some form of resolution, but clearly the negotiators need to come to the table and figure this out. Not everything. That will take decades to get done. But we need to get the train back on the tracks. Reporter what are the economic applications if we do get a fullblown trade war, if trump pulls the trigger on an additional 25 tariffs on those 300 billion of goods . Unfortunately it is not in isolation. Weve got brexit going on in the background. There are other things in the political environment, the elections coming up. Theres a lot of macro noise right now. Ict exactly what will happen if that tariff number kicks in, but the bottom line is the two largest economies in the world do not serve themselves well by engaging a trade war. The u. S. Runs a surplus and services. China runs a surplus in goods. We need to get this thing back on the tracks. Vonnie Morgan Stanley chairman and Ceo James Gorman speaking exclusively to bloomberg in beijing. Lets get more insight now on the trade tensions, not just u. S. China, but all of the discussions and nondiscussions impacting markets. Lets bring in michael mckee. It seems like we havent had all that much of an actual hard update when it comes to u. S. China, u. S. Europe, usmca. We are not getting anywhere, are we . Michael no, we are not getting anywhere at the moment. Flying under the radar, the usmca. Tied in taking front and center for everybody at this point china taking front and center for everybody at this point. The latest we have is President Trump saying china is not ready to make a deal, im not ready to make a deal. The next round of tariff increases go into effect on saturday, from 10 to 25 . What happens next week . Do the chinese blank . Do they add on extra tariffs to the u. S. . Weve already seen bloomberg reporting that the chinese starting to buy soybeans again as an effort of good faith when talks started again have stopped buying them. Vonnie at least the rhetoric went away. Lets take a look at the data we got this morning. We had the u. S. Goods trade gap widening, but if you look at the chart, you see this massive move back into thousand 8, 2009. 2008, 2009. Here we dont see as much. Michael the trade gap keeps widening. The president came into office promising to narrow it, so hes not getting that done. One of the reasons is in part because of the trade war, and in part because we want to buy stuff from other people. The trade numbers are telling us theres a bit of a problem out there. They may subtract some from Second Quarter growth. Vonnie how is trade getting done now . We had the ceo for merck telling us things are really bad right now, and yet we are managing to get the things we need from the stores. Michael we are. This is a relatively closed economy. We get about 14 of our goods from overseas. It is not big of a deal overall. As the tariffs go up, it will have more of an impact on the economy, but it is not huge. We are seeing a drop in global trade volumes, and it is hitting other countries, particularly germany. But we arent in a fullblown trade war yet. Vonnie in terms of economic impact, when should we look for the brunt of it to hit . Unless we get some kind of breakthrough, Even Congress passing usmca. Michael maybe theres some psychological aspect to it. That is not going to happen this year. They be at the end of the year, but it probably goes into next year. The democrats want to see if there are some areas that need to be changed. And it will have a major impact, as a matter of fact. It could subtract from growth overall. What we have to watch for our escalations. Does the president follow through with the 350 billion in additional tariffs on china . And then the european car tariffs would be a big one if that goes through. The deadline for that is late august or september, so we should see something then. The markets are going to keep their fingers crossed on that. Vonnie michael, thank you. Michael mckee, our International Economics and policy correspondent. Coming up, more from our exclusive interview from pimcos ceo and cio any roman and dan ivascyn. This is bloomberg. Vonnie its time for your latest Bloomberg Business flash, i look at some of the biggest business stories in the news right now. Hsbc may cut hundreds of Investment Banking jobs. At least 500 could go within Global Banking and markets. Hsbcsn flint is pushing top managers to cut costs. The bank cut targets to increase revenues by more than it increased expenses. Fedex is bowing to the surge in ecommerce volume, moving to seven delivery days a week in the u. S. By january of next year. Fedex will also boost its ability to handle larger packages. Company earnings have been pressured as e,s increases residential deliveries as ecommerce increases residential deliveries. That is your latest Bloomberg Business flash. Checking europes markets now, about four minutes to the close, most indices are higher. The ftse has been the outlier all day. Utilities the worst performer in italy, and the Government Faces off against itself and against the European Union. This is bloomberg. Vonnie stocks finishing up the day in european trading. Most in europe are higher. The exception seems to be in a late, which is down seems to be italy, which is down a fraction. The cac 40 in paris doing better than it did earlier in the week. The ibex up. 8 and the dax up. 5 despite drags on some of those indices. Lets get to the drags. Automobiles are a big player today. Before we get to that, we will show you the ftse, why that is lower of all of the disease of all of the indices. There is a turnaround in progress but it is not fast enough for investors. Getting a little nauseous. We have some of the banks as well lower and that is dragging on the european indices, at least italy. Lets move to some of the individual movers in italy. Weve already looked at these higher stocks. The publisher in talks with kkr to go private and that is helping the dax higher. , andchrysler down. 9 idiosyncratic as wells the overall story about germany and european car exports. There are cars being made by renault in france and Fiat Chrysler in italy. That is weighing on those stocks. Those stocks are at an impasse. Decisions be made late in the summer. Renault down. 7 . Lets move to the u. S. Markets. The s p 500 is up. 2 . The retailing index contributing is up. 5 . The 10 year yield at 2. 25 is bouncing around. Demand for treasuries has been waxing and waning. Todayrkish lira stronger by 1. 9 . Turkey is a story to keep an eye on as well. Lets get more insight on the credit market as the yield on the 10 year and treasuries in general starts to wax and wane. Jonathan ferro spoke with pimcos ceo manny roman and cei dan ivacsyn about their trading strategies. Emmanuel we will push hard to call the turn of the market. What you want to have is a framework where you take a value and given a scenario, what we you do, what are the things you want to buy and make sure we do what we say we will do. Pride in what funds are offered, because in times of turbulent markets, when equities go down, we need to perform with other Building Blocks when they count us to perform and difficult markets. The last thing they need is for us to be overweight in lacey credit or the credit drops 15 points. Han number five is the one that stuck out to me. Financial market vulnerabilities. The idea that the market no longer absorbs the news. It makes the news. How much are you concerned about this Financial Market vulnerability . We are concerned. It may take time for the market to rear its head, but we are concerned about the market when investor mindset changes. As an active manager, you need to be prepared for market overshooting and if youre prepared, you can profit. Active. The keyword, i imagine the argument for active is much stronger. Emmauel active over fixed income. We think active fixed Income Management it is as simple as this. There are structural reasons in terms of how the indices are computed. There are behavioral reasons why some agent in a market have not economic reason to buy papers. Think of the central bank, think of Insurance Companies who have solvency issues. Deliver we can excessive return on other benchmarks in a much easier way than Equity Managers can. When i hear about active versus passive, i say do not talk to us. We delivered on a 1, 2, three, and fiveyear basis. There are reasons, and our job is easier than Equity Managers. Wed knowledge this. Theres a lot we can do. The Company Always has 200 bonds outstanding. Some traded in dollars, some trading euros. There are so many things we can do to enhance value and deliver better alpha. Vonnie pimco ceo manny roman and cio dan isaacson speaking with jonathan ferro. Joining us now to talk more fixed income is bloombergs Life Reporter Heather Burke who joins us from london. Lets start with europe and italy. Negative yields all over the block. Italy seems to be an exception. Explain why we are seeing the 10 year in italy rise and particularly spread closing out 300 basis points again. We are seeing a return of fears of budget contagion. Italy wants to enact plans to improve employment, bring it back as it emerges from our session and part of that is running a budget deficit that might go over eu limits and the European Union has said it is considering disciplinary actions which could lead to millions of euros of fines for italy. That is bringing back the ghost we saw last year that rock stocks and italian bond yields. We also have the Coalition Government fragile. The Prime Minister saying he would be willing to break the coalition. Italy is a hotspot in an area where people have been going to the safety of bonds. Vonnie you can see the spread has come in a little bit. Still at 279 basis points. To look for another country where you are seeing those kinds of numbers, you have to go to greece. I cannot spot any other country in europe that has those kinds of yields. Are are managers saying it might be a bit of an opportunity given that italy has never fallen apart completely . Heather that is true. For some people, they might be willing to take the risk. The big thing where watching on the market live blog is if the political and budget tension with the eu ratchets up, is that going to spread to the other peripheral and semi core . We are not seeing that right now, that is a flashpoint markets will be watching. Vonnie the Prime Minister telling the party he will end the coalition unless five star plays ball. Is this political theater . Italy is often in a place where does not have a fully functioning government and they can run for years like that. Is that what we are seeing . Heather it is an interesting question. Vani came out of the european elections very strong. It is easy to say he has the upper hand and we will see how that unfolds. Of sign of the possibility new elections will keep italian and we have also seen the italian stock market underperforming a race of its gains. No matter what ends up happening , there have been ramifications across the various asset crowd classes asset classes. Vonnie you say bonds are due for a pullback but will not end the rally. Where specifically . Mightr right now, today be a pause for breath. Yesterday was a textbook risk aversion day. Investors markets are starting escalation, the draw out of a trade war that a lot of the rally we saw, especially in stocks was predicated on a solution being found. Now we have 4 trillion wiped from the stock market. We have yields know the lowest in 2017 and a lot of the Economic Data we have seen has not captured what happened in may. The stocks have to price the future ramifications. We need to see with the eco data says. Until his ramifications are priced in, investors him to be looking for safety which they are finding in bonds. In stocks, we will see up and downs. The risk on we saw at the start of the year seems gone for now. Vonnie bloombergs Heather Burke. Follow her writings and all of eam writings on mlid on your bloomberg. Lets get first word news with courtney donohoe. Courtney the u. S. Has learned beijing is putting purchases of american soybeans on hold. They do not expect china is the Worlds Largest buyer of soybeans. Angela merkel visits the u. S. Today to give a commencement address at harvard, that it is a sign of germanys growing unease with the u. S. She will not go to the white house. For angela merkel, the turning point came last june when President Trump scuttle the agreement she and made with other g7 leaders in canada. In india, the Prime Minister has been sworn in for a second term. Party hindu nationalist won an overwhelming victory. Did not invite pakistans Prime Minister. Relationssigned tends continue between the Nuclear Armed rivals tense relations continue between the Nuclear Armed rivals. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. I am courtney donohoe. This is bloomberg. Vonnie lets check where european stocks have settled as we head to the break. The ftse 100, up about. 5 . Not a bad day for the u. K. The dax in germany up more than. 5 . The cac 40 up. 5 . The ftse lower, being dragged down by some of the luxury stocks and some of the automakers. This is bloomberg. Vonnie time for the latest Bloomberg Business flash. A big transaction in the wireless power industry. American tower has agreed to buy you can tower for 1. 9 million. That will allow the buyer to expand in the African Tower market. Has s towers eden towers across five continents. Goldman sachs has upgraded citigroup to buy. Discounting a stronger Interest Rate and stronger global growth. In southern, disneyland is bracing for record crowds. The park has unveiled the widely axysipated star wars gal edge attraction. It is the largest addition ever to the theme park that open 60 years ago. Disneyland will require reservations. Visitors will be able to stay for hours at galaxy edge and then asked to leave. Too means there will not be many lines because you will not be able to spend too much time in line if you are only allowed to spend four hours at galaxys edge. , the u. S. Justice department is labeling tmobile and sprint lay the groundwork for a new wireless carrier. With the latest is our reporter. Im speechless. Merging tmobile and sprint would take away a fourth but leaving sprint on its own it is not clear sprint would survive. How would any fourth survive . What the Justice Department is looking at is trying to preserve some form of competition and just going from four to three might obliterate some of that. They are saying maybe could spin out the sprint rand. We are not sure how the structure would work but what they want is to preserve another brand in the market. Isnt the regulator engaging in magical thinking or is this actually possible . If the infrastructure is there is the political will and Administration Support . The concern from the start about this deal is they would go from four to three carriers. If there some way the head of the doj can say we are preserving competition while allowing this deal to go through, i think that is what the company is hoping for and it is going right down to the wire. They extend the closing date to the end of july. We know the two key architects behind the deal are living in d. C. These days, having daily meetings with the doj. Vonnie how does a resolve situation look . Who takes on these assets that perhaps get spun out . Nabila the guy who founded boost has been very vocal about wanting to buy some of that back. He is in new york this week meeting with bankers trying to line up how that sort of a deal might look, trying to get financing. The doj might require them to sell more than just used in the prepaid market. They have three brands. They have said they would sell one. There are other brands. The doj might also ask them to offload spectrum. That would good go that would go some way to preserving a fourth carrier. Vonnie is there any other company that might be a will to put their hand up and come into this space . Nabila there are the Cable Operators out there. Im sure they would love more spectrum. You have comcast charter, those guys would be somebody, an obvious candidate to take some spectrum if that were to be offloaded. There are also private equity as well. A lot of infrastructure players getting into the market. Spectrum is the hot thing with the 5g network. That is what everybody wants. Vonnie when might we see a resolution . Nabila that is the 26 billion question on everybodys lips. The deal is not due to close until the end of july but the companies are right down to the wire, they are hoping to get this. The at the sec agreed to the isger and it is the doj that the hold out and they are doing everything they can to try to get this over the line. There are hoping for resolution sometime this month. Vonnie thank you for keeping on top of all the details. Ahmed on thea sprint tmobile deal. Our stock of the hour is Dollar General. Kailey leinz is here with more. Theey the reason for outperformance today as they posted a strong First Quarter earnings beat. Comp sales beat expectations versus the street expectation of 2. 8 . That is driven by food, both fresh and frozen. They are putting more food into their stores, which is pulling higher Income Customers in the store and they stuck to their for your guidance. Our analysts at Bloomberg Intelligence saying that may be conservative given how much they beat this quarter than maybe there is room. The other hand you do have dollar tree, which cut therefore your earnings items by . 17 at the higher end and now they see it only going as high as 5. 07 per share. Dollar stores have proliferated. They are closing some, so that will weigh on them as well. The shares went down in premarket. The street saying there is some momentum, especially in family dollar, which posted a second consecutive quarter of comp sales. Vonnie it was interesting, the price action today. What about the impact of tariffs . Kailey if tariffs hit the consumer than have to pinch pennies more. You think that would drive them into the door of Dollar Stores. On the other hand, they are Dollar Stores and they may be impacted on the price they could have and the cost of consumers. The cfo of Dollar General said costs may be passed on to the consumer. Vonnie we will wait and see when those costs get passed on. Kailey leinz with our stock of the hour. Thank you. Coming up, our global battle of the charts. This is bloomberg. Vonnie it is time for our global battle of the charts. You can see these charts on the bloomberg, just run the function gtv. Kicking things off as alix steel. Alix i will become hearing all of this on my show today. This is soy versus corn. Typically, when you want to plant soybeans is when you have a ratio of 2. 5 , which is right about here. As you can see, the ratio is now 2. 05 . That is the lowest weve seen since 2013. That means it is much more profitable to plant corn than soy. Because of the recent weather, farmers have been hit so hard they cannot plant the corn. It means they might be forced to plant more soybeans because the window for planting corn is closing and that could mean lower Soybean Prices making it less profitable for these farmers in the midst of the trade war. Vonnie that chart does tell a story. You were talking about Crop Insurance yesterday and how you cannot plant a crop you can benefit from insurance and plant another crop. Thank you. Looking forward to commodities edge. Lets go to Sarah Ponczek. Sarah the bond rally has been in focus all week long but now wall street is saying maybe it is coming to an end. White line, 10 year treasury yield. Blue bars showing the price action. As you can see all your long, 10 year yields moving to 2 while tlt has been getting and i slept. 14 daybottom, you see a relative index. It is now oversold for tlt and has been a good indicator this year. In march, overbought. We saw yields get a nice top. Same in early january. Maybell street is saying we will see a pop in Interest Rates. Twitter coming out on saying will probably see vonnie well done. Fantastic charts. I think my money is going to go with Sarah Ponczek today. Alix i am like a threeweek loser now. I am struggling. Vonnie you are always the winner in my book. You are also coming up on commodities edge. So you have another chance. Alix redeem myself, apparently. That is at 1 00 eastern, 6 00 in london. That is alix steel on commodities edge. Coming up on balance of power, rich clarida is scheduled to speak. With michaelspeak steele us of Morgan Stanley. The dow has just turned negative. This is bloomberg. Kev from bloombergs bureau in downtown washington, d. C. In , ivan kevin cirilli. Vonnie welcome to balance of power or the world of politics meets the world of business. We know the president is about is right of but washington, d. C. Is buzzing over special counsel mueller. Kevin it was a mueller mike drop as a lot of people are referring to it in the beltway. Republicans are trying to carefully sift through what special counsel Robert Muellers remarks meant. We are hearing from democrats, including 2020 president ial democrats, who say they know this is enough to begin impeachment proceedings, with one glaring exception, former Vice President joe biden has been tepid in calling for outright impeachment and republicans are saying this is another illustration of the case being closed. , special co