This was 18 below the 20 day average for the s p 500 index. Record they were at friday, if they gained at all today even if its only one point, it would be a new record. Nasdaq came up to the closing record level, now sits below the 6321 that number to watch in the case of plastic. Pull the push and Consumer Discretionary facts up the most. Kids are muted come only 1 . Real estate also gaining. We are seeing a little bit of a bounce here, particularly have to watch these numbers from target. Nordstroms and the aqua, macys purple is in pink. We are seeing something of a bounce for these department us target perhaps investors the worst expectations are perhaps not being realized. Movers, jbssorted hunt parking would just ask company came out today, they missed estimates. They rallied after Industry Data truckstop parking industry demands last week rebounded at 35 after falling the week of july 4. This is higher, the Company Appointed charles sharpest ceo. Herecently was ceo of oversaw a more than doubling of the companys shares. Willem marx for hire the information purporting amazon west versus might be looking into a partnership with vmware to developing software for corporate data centers. Ons behind the gains can job looking for those. Anderson as well, trying to gain. Is taking a big stands at the succession planning. Two veteran executives in their 40s the newly formed role of copresident and cochief operating officers. Cofounders no longer at home. Looks pretty and bloombergs new york chief executive editor. Jason has covered private equity for years. Focuses on special recently. Hi jason. The new tycoon. We have new tycoon is. At another one in there. I will choose my words carefully here. This is about sifting apart literally absolutely. It was interesting how, as you said, that specific they were even in the wording in the press the examiner communications. They talked about turning over the day to day operations. Are two guys these who had basically grown up they had in there for 20 years. They came up from the same class. You know they have been all around the world. Are in theuys who sense of this firm. What the discussions here look like . As you know these are small firms, theres less than 2000 people that work there. Versus tens and hundreds of thousands of big banks. Is having the culture, personality, betweennding the bounds deal making. In the case of kkr, being able to navigate the needs of both the public investor and private investor unit. It means the public shareholders and others activities guys so much money. Why is the coceo model seemingly so popular in the private equity world . Carlisle and others. Its interesting. Are cousins. Henry they have known each other effectively since birth. They have this strong relationship. I think as we look across the private equity firm companies are entrepreneurial, small shops. They live in the guise of their personality. Is very variable to bounce these relationships. Other examples, the newbies that they theyre all weve got this effective generation gap, they found these companies in the guys they are bringing on to be potentially the future. Takes a great point. Its very hard to replace yourself and place yourself in a situation where the name is on the door and you are still hanging around. So how do you find that person who can reflect that, especially while you are still down the hall . Think you do me to go to a in the person who is culture of the place. Voting these two gentlemen. Others have been left behind. What happens to them, they go on to seek fortunes elsewhere . The notable departures alex of us who is head of americas private equity. Another person who spent another part of the three decades the firm. He will go off to start his own thing may be. Thats the other interesting byproduct of this section secession plan. As you have seen wall street maybe weve see another generation of private equity firms. We shall see. Great to get your insight. Now to another succession through we are tracking. Carl sharp was appointed us the new ceo. He replaces a person who will remain as chairman of the board through december. Regionalined now by banks support for bloomberg news. Tell us a little bit about charles sharpe. His most recent was as the ceo. Yesterday. He spent the better part of the last four years here running the Worlds Largest payment network. A techy job. Those from this Technology Company dutch based in silicon valley, taking the tech culture. It moves on to mellon the countrys oldest banking institution. Before that he spent time at j. P. Morgan. He spent nine years or so running this bank at j. P. Morgan. Under him the retail bank tripled in size. Eventually he was hooked over to an equity arms for jpmorgan. He definitely has the bank culture down,things are run on wall street. Ie we surprised by this guess i didnt know they were in the market for a new ceo. What you just said there, this a tech geekere is coming into an oldfashioned bank. Does that suggest something about the future direction of the bank . Interesting point. Analyst investors were surprised, also by the fact that brought in someone from the outside that of hiding from their bank. Surprised folks. They really understand the technology is playing a more and more in for role in the industry. I think the is a bring in andone who has focused hopefully is able to bring the culture and. Maybe six shakeup little bit. Keep records, track performance, london securities. They dont really break the mold necessarily. By bringing in charles chart, could this signaling direction for the bank . Certainly. We had an interview with him this morning, that was a big focus. Technology is the future and we will make sure that we are positioned to take full advantage. What do we need to watch their crush looking at assets under management, custody, making sure the go the right way. Trapasso was dealt a rough hand in the outcome of the last few years of ministry Interest Rates have been so low. The next and perform well. A good foot hopefully we will see more of that continuing. All right, thank you so much. Onl be reporting earnings thursday. Boardcheck first word news this afternoon with mark. President trump continues to enjoy overwhelming support from the people who voted him in, but theyre less of does for his leadership on health care according to the latest rumored national poll. 60 of respondents think it is unrealistic ago lowering premiums than increasing coverage will be passed in the next several years. Health care also ranked as the most important issue facing the country. The president is preparing to shake up his legal team and changes may not stop there. As investigations into campaign tries ties with russia it up, the evidence is likely to put his lifetime attorney into a less prominent role, according to a person familiar with his thinking. The president is also considering what to do with his vacation staff. There is a report that United Arab Emirates was behind the hacking of government websites in qatar last may. According to the washington post, people were richard two qatar, which led to the upheaval and the saudi led coalition. Qatar says the report is not true. American doctor specializing in treating regimented rare genetic conditions is assessing somebody for a condition seemed so the first time. Organized during a Court Hearing last week after he testified a new treatment was worth a try. He suffers from a rare genetic disease that has left him braindamaged and unable to reason unaided. Babies parent and to the United States for treatment. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Now i am mark crumpton, this is bloomberg. Coming up, blue paper fresh lows on growing competition, specifically from amazon, phone 34 . Andill tell you why kerry sing unto consumer and internet. You tomorrow 1 00 p. M. New york time tomorrow. This is bloomberg. Amazon making big shares waves again. Amazon filed trademark application for this another companys acquisition. Lets go now to cory johnson in San Francisco. Talk us through the timeline a little bit. Its been one months and amazon made the bid for whole foods. We know about the details of this so far. I see whats important i think this is overblown in terms of the effects on blue apron. Its useful to look at kuwait, understand their financials because they have given us , of a one which will tell you about. Amazon will try anything, for anything against the wall and what sticks. Food delivery is something that taken a lot of shots at in failed thus far, but they continue to look at this from different perspectives. Foods it makes it seems like maybe they could do food delivery. A notion they want to trade market it doesnt mean they will do well. You did look at apron to see lou apron to see how its not done well. You look at how many tens of millions of dollars in their spending to try to get people to use blue apron and how much of the percentage of sales theyre spending . 25 on every dollar. If they are lining up here, it does feel like it could be that at least fierce competition for blue apron. What if the differentiating factor here for blue apron . Which of the heat cautions about . What it comes down to how good the food is. Can they make a meal quickly enough and in a way that is fun enough to make them to want to use the service over and over again. This was a fun time in the chen marvin expenses you have to keep a customer in the door. Thats about the quality of the food, recipe. That starts to look like blue apron starts to get done. This type moment the term its pretty worrisome coming into an ideal what it suggests to us. I think the key to that is execution. There is the execution of business and getting the food right. I was a customer for month, mark and a half for a canceled. Itthe food wasnt right, and took much longer than two hours. [laughter] about 20 see so many competitors. You have to make the market worth it keeping your customers. Talk to me about financial publications. Companies believe they will be sufficient for a year. At what point does financials ome worrying question mark its how long to keep the customer. For most Companies Come from the life theyre burning cash to keep the same customers. Thank you for that. And jamie dimon is allegedly right to raise we weigh in on the rising level of frustration in washington next. This is bloomberg. As warnings that dovetails are singing over the u. S. Economy. Last week expressed frustration. He said it is quote, almost an embarrassment to be american citizen traveling around the world. One partner was asked whether he agrees. Is a lot of frustration. We had optimism earlier. A lot ofe seeing the promise of what we wanted to get done in tax reform, infrastructure, just isnt gathering momentum. You alltime high have growth that 2 . Fundamentally the optimism needs to be turned into something real. Clearly the frustration that isie dimon rest on friday quite broad. So the frustration broader than just jamie dimon. How does it affect investment decisions, to buy and sell it is having an effect in the real world yes. World, we wind west certain projections, saying it would be a record year. Deals over 10 billion. A lot of that is based on certain to decisionmaking, confidence where we go next year. End, 12have a good tail months18 months following investment. I dont think theres enough confidence today that we have 2 growth, some reforms are important. Theres also frustration that if we dont start now by this fall, we start to run into the election calendar of 2018. Now it is time for Bloomberg Business flash, this business stories in the news right now. One Company Fined 246 million. The fed says their oversight of traders was insufficient, and has ordered company to prove oversight and controls. They say they were cooperating with an authority the trevor claim his car suddenly accelerated after engaging autopilot. Crashed into a march. The man sustained minor injuries. The incident plus comments elon musk said to come away from shares today. To win there tough are high expectations. I try to tamp down those expectations. Have gone forward and said several times that the stock price is higher than we have any right to deserve. Shares down more than 2 today. Thats your business flash update. Coming up, president supporters happy with his overall job of the disappointed with his followthrough. This is bloomberg. These days families want to be connected 24 7. Thats why at comcast were continuing to make our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. See that palladium its the best performing actively traded metal out there. A welldefined bullish trend channel. Potential for more upside momentum according to a canadabased trading central. Crude is on track to end the session lower. Market searches for more evidence that cuts are working. And that gap between drilling and fracking. Scarlett. Scarlet we want to focus on politics and the outlook for the economy. A new poll shows President Trumps job Approval Rating stands at almost 90 only 60 2 of those who voted for him a of his handling of health care. Here with more results are chief washington correspondent from capitol hill and economics and policy correspondent michael mckee. When it comes to disappointment over healthwhen it comes to dist over health care, that timeline got a little bit longer here because the senate put off voting for the legislation until john mccain has recovered and returned from washington. , i spoke with several sources who say they think they will be able to bring Senate Majority leader Mitch Mcconnells vote by the august recess. Are eight to 12 republican senator is undecided on this piece of legislation. They have deep concerns from a conservative and moderate standpoint. Is not going to hinder the republicans ability to get tax reform done. Thats what several republicans are suggesting. Earlier this morning i caught up with chuff with Chuck Grassley about whether or not lawmaker should be able to Pass Health Care reform. Heres what he told me. If you get it done it is going to make the passing tax reform a lot easier. Clearly the white house and President Trump would like to get this done. Sagging pollng numbers. On the issue of the economy. Hope and 47 ns of of americans approve of this handling of economic issues. Well some ofing as the insight into the possibility of tax reform going forward. M people were quite illuminating and unlike what happened with health care since i was a bit chaotic and out of control, they are being far more rigorous about tax reform. They will be making announcements in august and the mnuchin does have to get it under control. The Senate Finance committees going to have a meeting on tax reform. Theres a palpable frustration about a lack of policy and plans that have emerged. The white house hasnt received a plan on this. Moderates havent released a plan on this. Any startup about revenue neutrality, the border adjustment tax. Of it is very unclear if the same policy division that drove apart folks on Health Care Reform are going to drive those apart on tax reform. I spoke to a republican of virginia, almost a also a member of the House Appropriations committee. He wants to be spending on defense raise. Atould put him at odd odds with ultraconservatives. The white house wants maybe by the end of the First Quarter of next year. A brief moment of optimism vanquished. Thats why come to you. With bring you into this conversation because you start with talk about President Trumps Approval Rating at almost 90 . Presumably his status on the economy has been better. Has a 46 entioned he Approval Rating on the economy. Deliver more jobs, but that is still in minority. The majority of people still dont think hes doing a good job. There are several Warning Signals for him in this. 64 say they disapprove of his handling of health care. People say they are more pessimistic because of his statements and actions since the elections. The tweeting isnt working for him and he needs to think about that. 58 say they are disappointed in the way they handle relations with other countries. Playingsnt seem to be well with the nations of electorate. And just 24 say they are competent he will put the nations interest above his own family when making deals. Very illuminating about the way people think about trump. Think they are getting closer to reaching their own career and financial aspirations. Good aboutfeeling the country, just not his role in it. There is a real divergence on itir views on donald trump suggests he can only stop tweeting and throwing bombs around and actually could take some credit for the optimism people are feeling. Theres a report they are getting tired of donald trump and republicans have decided to work around him. Theyre going to try put legislativese agreements and figured he will sign them in the end because it looks like in for him but the process goes more smoothly theyre legislating in spite of donald trump. 53 he will be millions of illegal immigrants. There are aspects you can follow through. He doesnt need congressional approval. Health care ranks the highest amongst americans. So that is a concern for the president Kevin Cirilli on capitol hill and her National Economics correspondent michael mckee. The future checks of the headlines with mark crumpton. The central round of brexit talk began today in brussels. David davis is urging negotiators to push for progress on the rights of citizens living in each others nations. Its important we make Good Progress and identify the differences we can do with them. And now it is time to get down to work and make this a successful negotiation. The eu says Citizens Rights is one of three issues where there must be progress be more it will assess future ties with the u. K. American businesses will be up at the bring in an extra 15,000 seasonal farmworkers in fiscal 2017. The only companies who can get the visas would be those who it would suffer irreparable harm. A Record Number of civilians were killed during the First Six Months of this year. That is according to a u. N. Report released earlier. The high commissioner for human rights call the deaths of more than 1600 people horrifying and said the numbers can never fully convey the sheer human suffering of the people of afghanistan. Securityt committed forces saying fewer civilians were cried in the crossfire compared to last year. Chiefan union follow see union policy cheese policy which conducted its first Intercontinental Ballistic Missile test. Tensions on the peninsula had to be solved by peaceful means. We stressed the leading roles that the republican of korea has to havetion to tensions full ownership and leadership in the way forward. Including through confident measures. Those confidence Building Measures should include military to military dialogue between soul and p on yang. Global news 24 hours per day powered by 27 hundred journalists and analysts in more than 120 countries. I am mark crumpton, this is bloomberg. Electric half tell us why italy is a good entry point for investing in europe. This is bloomberg. This is bloomberg markets. Bloombergme for the business flash a look at some of the biggest business stories in the news right now. Secondquarter revenue missing analyst estimates for a fourth straight quarter. This despite a record 74 billion in exchange. The company cited a drop in m a activity. A proxy fight against proctor and gamble, seeking a seat on p gs board. Stock is underperformed because of what it calls the companies slowmoving culture. P g says they havent provided any new are actionable ideas to drive additional value for shareholders. One of two top activists are back in the news. It theres julie hyman with more. It has been a busy time for activists and in many cases make cell with their various pushes an activist campaigns. Procter gamble, not much has changed. We will see how it ends up working out. Elliott management and paul singer are a couple of names that have been popping up with increasing frequency. Elliott management is ramping up a retail targeted campaign to affect them. Hey launched this website elliott has been criticizing some practices, including its australia Corporate Structure and its investment in the u. S. Shale industry. Elliott initially came out with proposals in april after months of private talk that got them public. When a receding big picture in this world . We came up with a chart. But as this one way of looking at it here this is hedge fund research, which cracked the Hedge Fund Industry. The Hedge Fund Industry has been underperforming. Of hedge Global Index Fund research. Then you have this activist fund index. Obviously it has been outperforming quite handily. You dont always win them. Take a look at energy. This is one where you had Elliott Management get involved, push for changes to the company. The holding was first revealed at the as of the end of last year. One where they got involved. Among other changes they put for the changing of the guard there. Stepping down but that hasnt yielded as much of a result. I spoke with the ceo of gas. An i asked if he thinks there has been an emotional shift in how they are perceived following the french election. Gas. Its perhaps more a change in the sentiment of people towards europe than on the perception of the business about the eurozone i think there were several reasons for that elections that took place in the netherlands, the way texas has been unforced. The way germany is going into elections. Also the way italy is not going to early elections. I think europeans understand the value of europe much more. Cycle of the economy speaking up quite well i will say there is a second life of the european idea that needs to be analyzed and understood well but it is going well at this moment. It is getting much better than you would think a year or two ago. The different relationships donald trump has gotten, whether it is Emmanuel Macron or angela merkel. He has been a catalyst for greater cohesion in europe area definitely i would say for a foreign leader of a big country like the u. S. To understand the way it works is the challenge. Issa beside sympathize to some extent. I think europe has understood that. I think they each have interpreted a role i think donald trump will get to understand your a lot better. About donaldmore trump than the appearance of what donald trump is. I think i understand what you mean. Lets talk about italy. When we talk to investors and bake asset managers, they still come back to italy as a possible flashpoint. A significant eurosceptic in italy. Always one ofeen the most european prone countries. ProEuropean Countries from the very beginning. It has been one of the elections were people voted the most. The Political Parties of italy and most European Countries have to pushope as the tool unpopular decisions, which we are not only europe linked. So this bad habit or understandable political is candid. By and large most italians would say no, we would stay in europe for sure. If you going to the defense of the european regulations, there are regulations people appreciated. Theme acrossmmon europe. I dont see at all this risk. There is a reason for that. Any investors about italy . We had a 0. 9 gdp production gdp projection. Be 1. 4. Ng to one wonders what it is that they never got it right the first time. I think we have an expert there are lots of it is a much more good entry point into the eurozone its a great place to Start Playing the eurozone growth curve. Quiet confidence. He says no election this year, no one there thinks there will be an election this year. That is the big worry here. Hesitate. From politics in europe to earnings in the u. S. The numbers to watch for coming up from new york. This is bloomberg. This is bloomberg markets. Earnings getting underway today when netflix kicks things off. Mrs. Subscriber growth. Joining me is Bloomberg Intelligence media analysts in princeton. Thati find interesting is compared to the First Quarter we are going to see a drop off not just in pockets but sales. It all gets moved to the Second Quarter. Absolutely. To the glee the Second Quarter is a seasonably week quarter. We saw them rearrange their content calendar a little bit. They profiled the they shifted their hit shows. As you pointed out, content cost is up as well. That is a concern in the International Segment where they are trying to shift the narrative a little bit. They posted a profit for the first time in the country. Because of the swelling content costs are we going to see the profits dipped a little bit in the segment. As you pointed out the comparison from last year is pretty good. Also to pick on your point of the importance of the international vote. I think everybody expects trong will they be able to sustain the subscriber amendment. It might be a little bit lighter because they had all these shows half Second Quarter. A lot of focus going to be on that Third Quarter number and then definitely on the International Segment. The domestic market has reached a maturation point. Especially the european ones like france and germany. What they have been trying to do is localized a lot of the content. Add a lot of new original shows. Is that leading to subscriber acquisition . Bloomberg Intelligence Analyst in princeton new jersey. His views on asia and japan. Stay with us this is bloomberg. 12 00 p. M. In San Francisco and 8 p. M. In london. Welcome to bloomberg markets. We are live in bloomberg World Headquarters in new york. U. S. Stocks are a little changed but nevertheless touching new record highs today. Activist investment or goes after proctor and gamble. We will dive into two economies this hour. Going at 6. 9 in the Second Quarter. The bank of japan meets this we are one hour after the close of trading. I was wondering whether it was going to be unchanged. Now on to as has distant flat line. Getting into the summer doldrums here. Surely as that picks up we are going to see much more micro stock activity even if this and there are some individual movers to talk about. Said that companys ceo that a recent computer crash of the Company System may have a material of fact as it tries to catch up with a backlog of building. Didnt have to do with cyber attacking. Then there is the amazon affect both good and bad. We have the information reported today that they may team up with Amazon Web Services to develop software for corporate eta centers with the company. It has been enough to send the shares up by 3 . Amazon filed for a patent. Even the idea that it is getting into that business is enough to send blue april down further. We getting ready for earnings season. Earnings the 12 months per share. We are looking at a 17 gap between the two. That is the most optimistic we been in terms of dollar value of those earnings per share going back to 2008. We will see that particular earnings season will meet those expectations or exceed them. One of the Companies Reporting close to the trading. Little changed as well going into the numbers. Attention toular the subscriber numbers and an international domestic. We will be on the lookout for that. We want to turn our focus to asia. Over in japan the boj is preparing for Monetary Policy decisions on thursday. We are joined by wisdom trees japan ceo. Start with china gdp. We talk about a Second Quarter expansion. What does that mean for their priorities . As well as effort to reduce leverage and debt in the financial system. Credit where credit is due. This is a soft landing. This is what the communist party wanted to engineer. Its a wonderful pace because it allows for the Unemployment Rate to be stable, allows for corporate profitability to rise and for the chinese economy to go, really in terms of Economic Leadership for china it is 10 for 10. Does it remove the possibility of a hard landing . There is always the risk that some unforeseen event is going to jolt the picture. Adjustment, when you look at the sectoral in balance with high debt, particularly to the property sector, that right off, that adjustment is going well. 7 ,n economy is growing at they are really not a problem. You can swap them out of the system. This meeting discussing regulations and regulatory powers. Around 4 as an example. Language, greater accountability. Be a dereliction of duty if regulators dispose of this in a timely manner. Though its just the millet suggest the element of ramping up. Looking at perhaps more stringent controls and regulations for the next several years. Steps forwardwo and one step backward approach the communist party is tanking. The traditional financial allocation and a very good grip on it. The stock market is much more fickle because there are all these investment vehicles that chinas consumers are using but should not be using but cramping down on that is the right way forward. Lets not lose track of what the communist party wants in china. They want the market to be ready for globalization and liberalization in five years china will will be chinas asia financial sector. Certainly china plays a long game in a way many in the u. S. Dont. Julie mentioned dereliction of duty. These would behind impact threats that people should see coming that often dont. What might they be in china . Speculators being put into financial product, theyre really not valuable. Most of it has slim affecting oversight. You have to give the communist party, the peoples republic of credit because the adjustment in the real economy is going very well. This stop go approach of make in the market more credible and transparent is the right way forward. You are so excited about japan. Is that a pretty divisive election defeat in the tokyo election. , its kind of abe a kick off the bottom saying we need have more reforms, more policies enacted ahead of the election here. First of all why are you excited about japan . Its because the corporate sector is doing the right thing. Dividendthe highest Growth Market we have in the world so capital stewardship is really coming to japan. You invest in Companies Rather than just the political system. Business investment is going well. After four years in power a little bit of complacency has slipped into the administration. The fact that the tokyo governor did win a slammed landslide victory is a welcome wakeup call. Watch for his response. Hes going to reshuffle the not going toh is be a reshuffling of the paces, but there will be new poll new policies that are coming. With a include cutting the sales tax for instance . The biggest is going to be on privatization. That is the japanese government they have. Thats going to be a big japan thing going forward. Haveiggest sector that you is really the japan postup privatization. Now there is going to be more to come. The metro system in tokyo. And then you have narita airport in tokyo. And then the highway systems as well. Ministeroint for prime abe, using the shock of the governor election, as a catalyst to drive forward the deregulation and privatization agenda, that is where japan is going to get very interested in Court Interested in foreign and defense foreign investors. We thought they would be aggressive in maintaining that cap. But they faced challenges of other Central Banks around the world. That is tapering. The bank of japan is decoupling from the rest of the world. Significant that big intervention in the bond market. It came on the day before the g20 meeting. And nobody said anything about this. Allows for japan to be independent to do its own thing. On the inflation front they are way off this. Your is going to do it europe wants. But japan is going to do what japan wants. Japan wants to have the weaker currency and more inflation to the system. Would you grade in my opinion it is a nine out of 10. It is a very good thing by switching away from quantitative targets toward the Interest Rate target. That target happens to be zero. Whether it takes a Balance Sheet is irrelevant. That is something the markets would still have to get used to. Thank you so much as always. You are supposed to say you love my forecast. I also love your glasses. He will be back with us again when he comes back next. Thes get a check of headlines with mark crumpton, who is not wearing glasses that change colors. According to the new Bloomberg National poll, americans feel good about the economy, but not so good about the president. 58 of those servants said they are moving closer to realizing their own career and an agile aspirations. That ties for the first since 2013. 55 of americans view President Trump unfavorably. Sinces up 12 points december. His made in america week kicks off today at the white house. States the 50 present as the call on u. S. Companies to make more products at home. Tomorrow the british Prime Minister theresa may will remind members of her cabinet that they need to keep their meetings private area that is after saying the chancellor, according to newspaper reports he has described publicsector works is overpaid and reportedly made a sexist comment. Turkey continues to beef up its military presence inside cutter. Richard burr to warm says they will continue protecting the border and the security of the qatari government. His gulf neighbors egypt and the United Arab Emirates cut diplomatic ties last month. They gave a list of demands they must comply with before they restore them. By 2700ews powered journalists and analysts in over 120 countries. This is bloomberg. Decides theinvestor culture is slow and insular. Why Large Companies are becoming targets for the global head of corporate defense. This is bloomberg. I am scarlet fu. Facing ar and gamble site from activist investor. He has underperformed rivals this year because of what he calls the company slow and insular culture. Reporter spoke with Morgan Stanleys head of corporate defense. They spoke why Large Consumer comedies are being targeted by activist. It is certainly one of the trends we are seeing in 18 months. The targets are getting bigger. If you look at the activity level it is at an alltime high, on an annualized basis. Potential activist situations with gm. You had a bristolmyers. Other ones. They have then vulnerable for a long time. And helps himself with some sex with some success with ge and dupont. Although, do we know exactly what he is looking for here . We know what the Public Statement is. Is sometimes the goal not the Public Statement . It is certainly the case that with any activist you have to make sure that you are thinking about what the possible motivations are behind the Public Statements. It is not always wide not always right on the surface. Two charts and it is interesting what we are seeing here. If you look at the largest activist funds, the trendline is somewhat flat if not a little bit down from what we have seen yesterday in terms of total campaigns. If you look at activism in general the trendline is clearly up. Are the bigger funds pulling back a little bit while funds in general it is go time . Ofcertainly there are some the biggest funds, the celebrity activists. Some highprofile failures. When you look at assets under management it has leveled out. Now it has leveled off. Sayactivity, as you continues to go significantly up. The gap is being filled by what you can only risk for two as nonactivist activists. They are essentially institutional investors, hedge funds and others that are not traditionally activists. Starting to employ activist strategies far more frequently, whether it is behind andscenes with letters discussions with management, or Public Statements and even campaigns. Is this healthy for the economy . You do see activist funds tend to do pretty well against the s p 500. Is there such a thing as bad activism . Everything is situational. Everybodyre to tell tell anybody all activism is bad. It really depends on what the situation is. We were talking about the musk cofounder elon talking about the fact that he believes the stock price was higher than we have any right to deserve. We are watching him speaking it was very ominous. Clarification. He believes in teslas future. Thats more like it. On the stock price, which is a dangerous thing to do anyway. Its not the first time he has done that. It. Ou have to talk about this is bloomberg. This is bloomberg. This is scarlet fu. Times now for an options insight. Is an km holdings. Zone. In the dead calm we have a chart on the bloomberg showing this i seasonably adjusted average over the past 10 years, this shows the trajectory through the year. This is the chart that you brought to my attention today. Although it is incredibly obvious volatility is low we are sitting on the historical seasonal low for volatility. Yeare bottom line is this volatility has been even more depressed than it has been in the past. That would be a white line in the middle of the screen. Not given volatility any sort of product. All this talk about how low volatility is. Not just in u. S. Equities. To come here was the spy etf. Have theon track to lowest Trading Volume since 2006. ,olatility low trading activity summer doldrums combined with not a lot of activity. We are awaiting things to and one of the things is for the administration to perhaps announce some action on yield tariffs. Exactly were looking at more we got aatic events little hint of this last week. President trump was considering both quotas and tariffs thursday afternoon. The thing about nucor really the four large public companies. I was an indication of what could come. The commerce secretary said we would know by the end of june. Any day we could get where an expectation is that we will see some sort of tariffs. We think that is a nice catalyst. Thank you so much. Back to you. Touringdent trump is products because it has made an american week at the white house. Hes due to be speaking in the east room of the white house shortly. This is bloomberg. Mark it is time for first word news. President trump continues to enjoy overwhelming support from the people who voted him in, but they are less enthused about his leadership on health care, according to the latest Bloomberg National poll. Correspondents think it is unrealistic that a bill that lowers premiums and increases coverage will be passed in the next several years. Health care ranked as the most important issue facing the country in our survey. The European Union is considering cap perceptions on north korea over its first Intercontinental Ballistic Missile test, to prevent the country from funding further weapons development. The e. U. Foreign ministers condemned the test earlier this month as a serious threat to International Peace and security , and urged an end to such actions. Moscow is demanding the United States return the moscow embassys country houses outside washington and new york. The Obama Administration seized the houses at the end of the year in retaliation for election hacking. Russia calls that a breach of international law, and wants to