china's talking tough about trade and sounding as though compromise is possible. beijing warned it plans to retaliate for new u.s. tariffs scheduled to take effect next month. china called the tariffs a violation of the accords reached by president trump and president xi jinping. the chinese government said the leaders have kept communications going and hope there can be resolution based on equality and mutual respect. six european nations are hoping to take the 147 migrants stranded on a spanish humanitarian boat off italy. italy says france, germany, romania, portugal and luxembourg will help. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. shery: i'm shery ahn. amanda: i'm amanda lang. welcome to bloomberg markets. here are the top stories we are following from around the world. american shoppers boosted spending in july, following fuel for heightened global uncertainty. we talk to the ceo of canada goose about whether trade concerns are causing corporate goosebumps. warren buffett is boosting his bet on the e-commerce giant increasing his stake to 11%. shery: there will be relief for trading today. we are definitely seeing some internal volatility. you can see virtually flat on the day. utilities the biggest gainers. still of risk off sentiment. we are watching a couple of names that are also weighing on the dow. cisco, ge, procter & gamble is moving higher today. for an see the vix going ride and we were at volatility levels not seen in many months. we will take a look at walmart. we are seeing almost 4.5% move higher. shery: it's really interesting to see walmart and the difference that was so important. it's been really interesting to see that discount retail has outperformed both luxury brand and department stores. overall we are seeing u.s. retail sales pretty strong. also the fifth consecutive month of increases. this despite the fact that we are getting lots of mixed signals when it comes to those trade tensions and the trade war escalating. really interesting that alibaba beat all of the highest estimates. they have a high presence in china. getting a peek of how chinese consumption is doing despite the fact that the trade war continues to go on. war is part of the reason we continue to see recession fears. consumers seeming to be solid. the jump in retail sales having people believe perhaps it's not as bad as we thought. lorraine is with us now. a recession.ng characterize how you think these pieces fit together. it does look as if the consumer was there in august. >> all signs point to yes. we are just not seeing the trade concerns that are so affecting wall street impact main street. need to keep looking ahead because we are going to see growth in the second half of the year very likely slower and it was in the first half and my view is that we get growth that really feels much more sluggish due to the lower global demands that we are seeing. risk that we the are seeing it spill over to the consumption side? thise risk to me is business sentiment and whether the decline in business sentiment so far this year translates into weaker hiring. as long as the u.s. households keep the jobs they are going to keep spending. that's my simplistic view of the world. when we think about our economy as a whole business investment is really the factor. 500 is mind that the s&p for all intents and purposes an international index. i expect a lot of the pain that we are seeing from global slowing economies, the trade uncertainty is going to hit those big traditional bellwethers the hardest. it's the reason volatility is going to remain top of mind for a lot of investors. we got another read on wage growth and we are seeing pretty robust wage growth here in canada, two. those that do have a job are going to take home more of that. that lends to a pretty strong picture. >> i think it does. when we think about growth slowing down, it's a really scary prospect. over the years our structural growth, that speed limit has come down. 2% growth in the u.s. right now is actually not that bad. i think as we look ahead especially going into the 2020 elections, the risk is that businesses really clamp down on their investment spending plans. we could see households get much more cautious. i think the worst outcome that we get is really sluggish growth that could come in 1% in the beginning of next year. i don't see a recession right now despite the signals the yield curve is sending us. this flight to safety continues even with positive economic numbers. we have now topped another record. this chart on the bloombergs showing the worldwide. there is now $16 trillion of negative debt and this just after we topped $15 trillion last week. you talked about the u.s. still being the nicest house in a bad block with negative interest rates abroad, trade war with china, weakening global growth. treasury's just be in constant demand? >> you put it best when you talked about the bad house in a good neighborhood. had such an enormous move i think yields are going to move sideways from here. that as yields settle into this range, yields are going to be capped by the fact that if you are looking for positive yield out there in a safe asset the u.s. yield curve is one of the only games left in town. are also a reason investors going to continue to get more adventurous when they are looking for income. i think they are going to move deeper across the credit structure and into the capital structure of companies. i think when we think about how investors manage this they've gotten a big price gain off of the bond rally but what are you getting from here on out. i think it's going to be a rockier road. laura ream. you, china has signaled it is ready to retaliate on additional tariffs, saying the new threat from president trump has derailed efforts to solve disputes. let me get started with that latest tweet coming from president trump just last night saying that he knows president well.china very zero doubt that if he wants to quickly and humanely solve the hong kong problem he can do it. has the president just added a new layer of complexity to the already very difficult talks bringing in the hong kong issue here? >> absolutely and we have heard from china about that saying they really don't want foreign interference in this issue so of course trump sort of muddying the water tying the trade deal to the humane treatment in the hong kong protest by china. it really doesn't bode well. china wants to keep those kinds of things separate and it would not want to be seen as excepting any advice from the united states about how to deal with it it just adds to these conflicting signals. hemp praising him saying could get a deal. at the same time labeling the country a currency manipulator. it's really hard to see where his head is at with this deal right now. amanda: it's also hard to read where china is at. we have them threatening retaliation and then kind of backing off saying there will be talks by phone. can we gauge the state of mind of the chinese delegation here? some conflicting signals from china. saying they are going to play dirty. the trump administration dragging out the timeline for this 10% tariff is not going to stop china from proceeding with retaliation. goodsimports fewer u.s. than the u.s. imports from china which basically means they have fewer things to spot tariffs on which leaves them using creative means to punish the u.s. and we don't know what they see as their means yet. that's one thing to think about. on the other hand we have china saying we would love to meet you somewhere halfway for a deal. administration said we don't want to give halfway, we want to get everything we want in a deal. perhaps china saying we will meet you halfway is an undercover way of saying we need to have a balanced deal even though they know full well the trump administration only wants of of give. a lot shery: president trump saying a deal must be on u.s. terms. it's interesting to see the capitulation coming from the administration. president trump also talking about the fact that the tariff delay helps china more than the u.s. continue tot as we hear more recession fears, who has most leverage? >> i guess the really big factor that we need to always remember is that trump is heading into a reelection. he will want to campaign on a great economy. jobs. he also promised on the campaign trail to get tough on china. he will have to sort of balance that equation. he will have to keep in mind what's going to keep this economy going strong. i think he will be keeping his eye on that and then trying to follow through at least with tough calls on china if he isn't able to reach this comprehensive deal that he promised to deliver to voters. shery: sarah mcgregor, thank you. canada goose shares are sliding more than 3% today despite topping expectations and sales in the first quarter. investors were not pleased with the guidance. co-founder andth ceo danny reese is next. this is bloomberg. ♪ amanda: canada goose shares are down more than you might expect after they reported earnings yesterday and there was a revenue surge in the first quarter. not enough for investors. wall street was not pleased with the brand sticking to its annual forecast. we sat down with co-founder and ceo dani reiss and asked about global trade friction. inwe factor all these things and we are used to paying tariffs going into countries. it's all built into our pricing structure. able toways been navigate our way around and i think we are going to continue to do that. >> you've seen a full year outlook of topline growth. does that feel like a comfortable range? >> it's our first quarter. we are very comfortable to reiterate that guidance. we are comfortable to reiterate that and that's the same guidance we provided the last three years. your saw last quarter stock really react badly. was that an overreaction? >> i can't control stock markets. what i can control is our execution and the factors within our control. my objective and the objective toour management team is build long-term value for our shareholders and a great brand for our fans. that's what we do. that's what we focus on. >> are you innovating around things like moving away from us ton or real for an effort kind of appease a certain part of this market? >> not at all. .e are always innovating we are always trying new things. innovation is important to us here. >> we just saw this recent whole kerfuffle with an ftc program around ethical treatment of animals. how do you balance that there is kind of a growing feeling that we shouldn't use real for. that we don't need to use goose down and we need to be careful about how the geese are treated clear andsaging is has always been transparent. our sources and practices are traceable and ethical and always in compliance with ethics standards. this recent issue with the ftc was grossly exaggerated in the media and peta and organizations like that used it as they do to build false narratives around that story. to set the facts straight in regards to that, the ftc never asked -- no changes of theirs were mandated. the facts are that our sources and practices have only gotten stronger over time. anything to the contrary is not true. reiss, ceot was dani of canada goose. shery: we are seeing the 10 year yield now falling to today's lows and below that 1.5% level. this would be at the lowest level since july of 2016. we continue to see this pressure on yields despite positive economic data earlier today on retail sales jumping the most. at a0 year yield already record low and the 10 year yield below 1.5 percent at 1.495 at the moment. this is bloomberg. ♪ amanda: this is bloomberg markets. i'm amanda lang in toronto. shery: i'm shery ahn in new york. the world's largest online retailer stake rose 11% in the second quarter and is now valued at more than a billion dollars. joining us is bloomberg news finance reporter. great to have you with us. we are talking about a lot of money and yet it is smaller than their stake in apple. >> it's a good point. it's still relatively new within the whole berkshire portfolio of companies. it's now $1 billion and i think that's a big sign. that was made by one of his investing deputies. the fact that he's actually iing further with it was think interesting for buffett watchers. long time buffett stayed away from the sector altogether. there is sort of a new guard there. is this kind of a changeover where we will see more of these kinds of investments? >> i think it definitely increases the potential. himself has praised amazon and jeff bezos. he's never actually put money behind it and the fact that we are seeing todd combs and ted weschler saying it's worth kind of putting my money there is a -- my mindset a little bit. shery: they are coming under claimsions -- that those are meritless. marcotte bliss who is famous for pointing out the bernie made off scheme mentioned ge's insurance reserves. this is important because those have been so volatile. it provided a huge headache for the company. he is suggesting that is going to get a little work. shery: how much money are we talking about? the insurance side it could be 29 billion dollars. 18 .5 just if you reconcile it to some of its peers. another non-cash charge if you think about the new insurance .ccounting standards that's quite sizable. he also pointed out the company's investment in baker hughes and says there's some issues there. either way you added up its sizable. shery: ge of course has seen several issues over the past year. they have been trying to turn around the business. what's the outlook for the company? has tried to push the company around and calm some of the investor worries that ge isn't the industrial giant it used to be. i think while he's really working hard to shifted around, it is a heavy weight and this report suggests that even more. from: we have a statement ge that they will take any investigation of financial misconduct seriously but this is market manipulation. and simple. it could have been corrected if he had checked the claims before publishing the report. that statement continues. we will have plenty more coming up. .his is bloomberg ♪ when you rest on a leesa hybrid mattress, bedtime is no longer simply the time you go to sleep. it's time to switch off and catch up. enjoy me time, and we time. 40 winks or 8 hours solid. the leesa hybrid mattress combines two technologies to give you deeper rest and rejuvenation. 1,000 pocket springs provide edge to edge support, responsiveness and comfort, while premium foams relieve pressure. keep you comfortably cool and limit motion transfer. leesa's hybrid mattress is not only recommended by experts, experts choose to sleep on it too. try it yourself in any west elm store. or order online and we'll ship it to your door so you can try it risk free. the leesa hybrid is american made. built to last. and, because everyone needs a place to rest, we donate tens of thousands of mattresses to those in need. experience the leesa hybrid mattress. right now, it's on sale. order today. go to leesa.com. mark: i'm mark crumpton with bloomberg's first word news. the house judiciary committee is subpoenaing former trump campaign manager cory wardell aide asd a white house part of the investigation into president trump's conduct in office. robert mueller's report said they were aware of mr. trump's efforts to have robert mueller fired. the committee chairman jerry nadler says the committee wants to hear from both men next month . the moscow, a russian airline pilot narrowly averted disaster today. he landed in airbus a321 in a cornfield after the plane lost power in both engines. the plane struck a flock of seagulls shortly after takeoff. all 231 people on board survived. a dozen were injured, none seriously. hundreds of firefighters are battling a fire on a greek island. crews are dropping water from planes and helicopters but the most active part of the blaze is far from inhabited areas, burning through dense

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