Speaking to reporters at mexico citys airport, he said he arrived with his hand extended. He added the United States brings hope for a prosperous and stable mexico. The new governor of puerto rico knows he has a tough road ahead, but she says she is preparing for it. Pressld the associated her priorities are to fight corruption, secure federal hurricane recovery funds, and to help puerto rico out of its 30 year recession. She is excited to finish the team of the former governor who resigned earlier this month following a massive protest. The Trump Administration has informed congress it plans to sell f16 fighters worth 8 billion to taiwan. It is a move that is sure to escalate already high tensions with china. Two u. S. Officials and congressional aide say the administers and have informally notified lawmakers of the potential sale. The f16 deal would be highly controversial because china fiercely opposes all arms sales to taiwan, which it regards as a renegade province. 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. Im ritika gupta. This is bloomberg. Scarlet from bloomberg World Headquarters in new york, this is Bloomberg Markets the close. Im scarlet fu. Caroline im caroline hyde. We are about 30 minutes from the end of the trading day. The trading week. What a tumultuous week it has been. We end on a high. Chipmakers really invoked today. Nasdaq beating in terms of its numbers that felt out yesterday. The risk on move. Is it talks . Is it the hope that germany may one day open its pursestrings, spent fiscally . Deutsche bank gets a lift. Scarlet the euro goes a little bit lower. You are watching the pound as we get ever closer to brexit, but we know it will somehow get pushed off and there will be more drama in the meantime. Caroline you sound cynical. I cant believe it. A way to stop the no deal brexit is the key concern here but much talk about the government. Scarlet if you look at each react that tracks big cap german stocks, recovered from a six month low. The lift in german stocks overall and the move in the euro has people wondering whether europe will be the source of the next form of market stimulus and economic stimulus. Oil prices paring some of their gains. They rose as much as 2. 2 earlier. Oil cannot catch a break. Caroline it cant. 30 year bonds. Scarlet look at that. Caroline 4 basis points higher. The german bond selloff. We see the rest on tone. Finally something in the longer data. Scarlet dont get carried away. This is just a breather. The Trump Administration is formally telling congress it supports a potential sale of f16 fighter jets to taiwan. For more now, lets bring in someone who leads the National Security coverage in washington. This is interesting timing if nothing else that the white house plans to move ahead to sell 66 f16 fighter jets to taiwan, knowing full well china will not be happy about this. It certainly is. It has been a very volatile time the past few weeks, the past few months in terms of u. S. And china trade relations. The president just yesterday told reporters that he plans to have a call with the chinese president xi jinping really soon. I dont think this kind of an announcement makes that conversation any easier. The u. S. And china have been looking for a way to have a breakthrough entree. Dollars illion breakthrough in trade. Billion in planes to taiwan. We are not in a situation where jets are bound for taipei at this point, but if this deal goes through, it would be the first sale of u. S. Fighters to taiwan i think since 1992 during president george w. Bushs administration. So it has been a very long time. Other administrations have considered it and decided against it. This is not a final decision, but it gets us one step closer to the sale. Caroline is this going to be a future trade chip in the bargaining talks . Bill it could be. All sorts of reasons to delay a sale, to not approve some sort of a contract that i want six to seeksate that taiwan to negotiate. The president suggests sometimes his decisions on huawei or other Chinese Companies also are things that in theory could be negotiated. Scarlet i would be surprised if it was not used as a negotiating chip right now when it comes to the white house. I want to turn the attention to what is going on in north korea because the country has now fired two more Ballistic Missiles into the eastern seat. Now, and howally does it compare to previous rounds of missile launches . Bill we have seen a rash in the last few weeks. We have seen half a dozen launches. It is a pace that is ahead of where we were in 2017 when tensions between the u. S. And north korea really ratcheted up. The difference this time i think is we are not seeing any of the longrange intercontinental Ballistic Missiles. We are seeing more shortrange missiles. Even though those are also against the u. N. Resolutions and sanctions, President Trump has really kind of dismissed those things as the type of missiles that everyone tests and not one of his major concerns. He has really tried to keep the limited talks on track. He says he still has a Good Relationship with kim jongun. He does not want to i think make a bigger deal out of this than i think people would have in the past. Caroline we have not seen this number of Ballistic Missiles being tested since the threat of fire and fury back in 2017. What is north korea trying to say here . Either try to demonstrate things are not going the way they want. Are they trying to demonstrate things are not going the way they want . Bill north korea is pushing the u. S. To end all military cooperation with south korea. You may remember President Trump to get the first summit in singapore in april last year agreed to suspend Major Military drills with south korea. The North Koreans have been pushing for more. They want a lot of the almost weekly and monthly lowerlevel drills that maybe dont involve tens of thousands of troops but are still significant. They would like to see all of that ended. North korea has long wanted to drive a wedge between the u. S. And south korea. South korean president moon wants to try to keep talks on track. So i think north korea feels like they have a little bit of leverage there. That said, the u. S. Has really rebuffed those efforts and President Trumps comments show he is not too concerned at least for now about a lot of these shorter range missile launches. Scarlet north korea releasing an opening to get in between south korea and washington. Thank you so much. Up, the London Stock Exchange hit with a second outage in just over one year. What means for what it the markets and the u. K. Departure from the eu. Everything comes back to brexit. Caroline it never goes away. Scarlet it never goes away. This is bloomberg. Scarlet it is time now for our top calls, a look at some of the movers on the back of analyst recommendations. Tjx upgraded to buy from hold with a 60 price target. Improved brand, attractive assortments, and healthy traffic trends. 2. 75 . Ck is up by a deterioration of trends at the case paint line in particular the kate spade line particular. Nvidia having its best dig in the year after reporting second go to results that beat analyst estimates. The price target increased at morgan stanley. The analyst there said it featured unexpected good news on gaming earnings. Shares are up 7. 5 right now. Those are some of your top calls. Caroline thank you. Lets talk about the London Stock Exchange because it suffered a long blip today. Joining us is the Bloomberg NewsAsset Management reporter. Close to two hours actually. You can imagine any traders waiting for information on pricing for things like the ftse 100, the u. K. Bluechip indexes were in trouble for that one and a half hour period. Scarlet it may only happen 1. 5 hours but it probably felt longer for people. What other problems arose from this glitch . Annie it was mainly a problem for traders waiting for pricing information. It cleared up afterwards so we did not affect end of day prices or anything. But in waiting for that that. As the problem caroline any transparency on what went awry . Annie not much more information that we have now but a software ever. Just a reminder of the kind of very electronic environment the exchanges are operating in where the software is fallible and you see glitches. Scarlet people tend to blame something for anything and everything. They want to make sure etfs are not to blame. Annie they are often the scapegoat, but in this case, they got off scott free. People might remember august 24, 2015, which was another Major Trading issue kind of day. Scarlet there you go. Caroline to be fair, people read because they were taking on a massive m a. They want to be the powerhouse. A future grower having glitches. This is happening more and more often. Annie thats right. This is a week where we saw a lot of Strange Exchange occurrences. You had issues with closing prices for stocks including apple for a while this week. All that sorted out again but it was another strange issue on the u. S. Side. These errors do occur. You have outages sometimes. There has been a threehour outage before. Era, youhe electronic are not completely moving away from issues with exchanges. Caroline as if your week had not been any more tumultuous. Add it to the list. Thank you for breaking it all down for us. Lets get you a quick check on the latest business flash headlines. Opec says Global Oil Market space a somewhat bearish outlook. This comes amid a slowing economy and a trade war that may drive up prices. Saudi arabia has deepened cuts in july to more than 9. 5 billion barrels a day. Apollo global is jumping into investing. Blue because learned the company is happy to raise 1 million for its new fund. Others are pushing into the arena. Wells fargo adding to the gloomy outlook for financials. It is cutting its price target for more than a dozen stocks. The wells fargo analyst says there is no way it should impact negative rates. Have about 15 we minutes to go before the end of the trading day and the end of the trading week. What a week it has been. The russell 2000 is going to end up closing the day up to percent but still a loser for the week 2 but still a loser for the week. Right now, kind of a sigh of relief there are no trade headlines to go off of. Caroline it means we have a slight risk off tone. Talkinging that we are about wells fargo downgrading the banks on the backs of these lower yields. Merrill lyncha revised its forecast. The 10 year at 1. 25 . Yearet the 1two following below. You are getting a break in the never ending bond rally. A weird day. Caroline all about potential stimulus in germany. We will see if that proves true for once. This is bloomberg. Caroline this is countdown to the close. Im caroline hyde. Scarlet im scarlet fu. Joining us at this hour as always is joe weisenthal. For once, we are not going to talk trade but we will talk the prospect of spending out of europe. A headline this morning that got some attention. A german publication saying the government might be willing to relax its commitment to balance budget in the event of a recession, which is not that much. That is what you expect. But even the fact that the headlines are coming out, talks about people recognizing the need for something, i immediately got flashbacks to 2011 during the greek crisis when everyone was looking for headlines to figure out what the germans were going to do. Nonetheless, that gave yields all around the world a bounce. Deutsche bank in the u. S. Up now 7. 7 . That might be the best day of this year or very close. The best day of this year was in the middle of january. It speaks to the idea that the banks in europe, i dont think they want more monetary easing or more negative rates. They want to see more growth and fiscal stimulus. Very tentative. You dont want to put too much on these when im have onsite reports, but it is interesting that some of this is trickling out. Just keep saying it. Eventually one of the rumors come true. Scarlet reports that monetary stimulus will be more than anybody expect. That adds to itself. Caroline for mario draghi. He has done so much. Everything he can pull out. He just wants germany to start spending. Scarlet everyone is passing the baton around, and we will see where it ends up. When you look at how it affected the equity markets, every single sector when you look at 24 sectors in the s p 500 is higher. Chipmakers up because of nvidia so that is giving got a lift. Banks have had a painful week. Finally getting a little bit. Caroline a little lower today. Interesting, the bloomberg scoop. The likes of jamie dimon, moynahan, all on the phone with trump. Capital goods, transportation, even autos up there. Scarlet the inverted yield curve. Crazy. Joe it is crazy. I love that theory. Scarlet on the downside, you got safe havens of choice. Staples, theyd are up but not as much as the rest of the market. You put it altogether and it has been a pretty Straight Line higher. Caroline for once scarlet the russell 2000. Caroline finally the upper former. Scarlet it has lagged behind everything. Be innot a good time to this stage of the cycle. We are moments away from the close. Seven minutes to go. Lets take a closer look at some of the action in the markets. Jessica, what are you watching . Jessica im taking a look at crude oil because it has been a whirlwind of a week. Fluctuating between gains and losses this week. If you take a look at my chart, closed below 50 a barrel. The driver has been the u. S. And china trade war and the concerns about oil demand. I want to bring up the opec report today, which has been much focused on. We had opec come out and say it has a bearish outlook on oil for the rest of the year. To meet, this put pressure on saudi arabia to cut production even further. Saudi had conversations last week with many producers about a potential oil policy response. So we will see if anything formalized. Abigail also on a whirlwind move at least over the last few days, ge. Yesterday, a big loser, finishing down 11 , the worst day since 2008. Today, the best stock on the s p 500. This is a three day chart so you can see the drop and gain. Harry,this yesterday as the bernie made off whistleblower, said there is accounting fraud at ge. Basically saying 38 billion with the funds could be owed. A lot coming out i got stuck today. I spoke with nick kamen, the stock. Defending the stock. In addition, you have other big investors including Stanley Miller and the famous short seller also buying. They are saying fraud is not the same as aggressive accounting. What we put this together with the rsi or momentum indicator, since last year, deeply oversold. At that point, the stock climbed sharply this year and when into overbought territory. Kind of in the middle but we have been in deeply oversold territory. Back out of there. There may be a buying opportunity ahead for ge. Caroline they rose to the buying opportunity today. We thank you. We for more market analysis, are joined by the Senior Market editor for Bloomberg News. What a week. What a week. I sort of question the respect today. I think the president calling to bank ceos is a big deal. It is the most read story on the bloomberg today. That tells you people are very interested in that. He is getting some outside counsel. The story i have some questions about. Im not sure that it signals a big stimulus package. If you read the translation i read if there is a recession, there will be a drop in tax revenue. They will issue bonds to cover the shortfall. It does not sound to me like they are planning a big stimulus package. Especially one to front run a recession. We will have to wait for a recession for this for one thing. It might bring the german yields up a bit. Craziness inugust the markets today. Caroline what about jackson joe what about jackson hole next week . Michael im not sure if we are get any sort of huge news out of it. Jay powell will deliver his challenges. I dont know if he will talk about a certain twitter account being part of the challenges. [laughter] michael the negative yields guy here. But certainly the pressure will be on for him to deliver something reassuring to the market. I imagine he will take that opportunity to do that to some degree. I dont know if it would be a massive risk on rally. Scarlet im sure expeditions will build up as we get closer to it. We are about three minutes to go before the close so lets bring in ryan leavitt. Brian, clearly a pretty wild week here. Is the reprieve we are seeing today shortlived or can at last . It is probably shortlived. At least in the very near term. We are still dealing with quite a bit of policy uncertainty. These markets will likely turn. We may see a further downturn in here. What we are looking for is some clarity. Mean, we started to see it from the central bank. I think the central bank will continue to give indications of it rightfully so. What we need more is from the administration. Businesses are stalled right now because we are adjusting tariff rates, changing policy on the fly. It makes it more difficult to put forward an investment plan. Caroline if we look to the Federal Reserve, is there anything that they can say jackson hole or otherwise afterwards that would give you the policy caret you needed to think the levels of the s p are vindicated and can go higher . Brian yes because the two large underpinnings of this cycle has been Central Banks responding when growth weakens and china responding with stimulus when growth weakens. If those are two large underpinnings of this cycle, this trade conflict and brexit actually extend the length of an easy fed environment and china coming forth with stimulus. I have been saying for some time this cycle will go on far longer than most people suspect. There is an inverted yield curve for a brief moment this week. Does it give me some pause on that . Yes, of course. But just because you have an inverted yield curve for a brief moment does not mean you need to stay in the environment. T