Victim on the portland my rail light rail has been discharged from the hospital. Jeremy Joseph Christian allegedly attacked three men who intervened, killing two of them, and wounding fletcher. Christian is charged with felony aggravated murder. Jacob zuma survived his second ousting attempt in three months. The Rejection Committee rejected a proposal recall proposal this weekend, but 51 of voters want him to step down. Antiopposition has grown. Inas term as president and december, 2017. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am ramy inocencio. This is bloomberg. Julia live from bloombergs world is in new york, im julia chatterley. Scarlet i am scarlet fu. Joe and i am joe weisenthal. We are 30 minutes away from the close of trading in the u. S. Julia investors returned from a threeday weekend. The s p 500 snapping a sevenday winning streak. Joe the question is, whatd you miss . Scarlet Energy Shares leading the selloff not really selloff retreat. How about that . Tech shares leading them the upside with amazon hitting 1000. Cash president President Trump ratcheting up a dispute with Angela Merkel that threatens to undermine relations. Elections with a u. K. , italy, and germany will. President azil michel temer says they will get to 2018 with a house in order. Speaking at an event, he also said the government cannot and should not abandon its agenda and there is no plan b for fiscal reform. We will speak with Alberto Ramos of Goldman Sachs. Now lets take a look at where the major averages and as we head toward the close. Bloombergs Abigail Doolittle is standing by. Abigail doolittle it is shaping up to be a relatively quiet trading day for the major averages the dow, s p 500, and the nasdaq down so slightly, as you mentioned, snapping right now a sevenday when history, but if they happen to turn fractionally higher, we can see the s p 500 up for its eighth day in a row, and the longest such streak since 2014. We will take you back to the bloomberg, a great way to see what is happening sector wise. Not surprising with the s p 500 down ever so slightly, we see a mix between green and red. Up top, telecom, consumer technology, and Consumer Discretionary trading higher. Slightly. On the bottom, energy, down more than 1 . When we look at what is happening oil was down on the day. It is still down on the day, well off the lows earlier. This has served as a drag for some of the enp name spirit we see losses for devon energy, range resources. A Bloomberg IntelligenceEnergy Analyst says these names seem to be on the far side of the beta web. It is interesting to see the divergence. It is a continuing theme. Mike at Seaport Global securities seems to think we will see a bounceback for the energy sector, not today, but maybe in the weeks ahead. Lets look at the winners first, verizon at t getting a boost from craig moffett, upgrading the sector and upgrading at t from a neutral. Ell to a sell joseph moore has picked up giving on prices, a a lift. Nvidi lets look at a longterm chart of amazon. Today, amazonries did hit 1000 a share. Not there right now. Less than five dollars away. This is a chart of amazon on the back to its ipo in may 15 on may 15, 1997. It is up nearly 1000 . In thebad for investors ecommerce giant seeming to take over in many ways right now. Joe that is an incredible chart. Whatd you miss . Lets get the latest on the increasingly tenuous relationship between President Donald Trump and u. S. Allies in europe. Kevin cirilli is washington bloombergs chief washington correspondent. President trump returning after his trip overseas. How is the white house feeling about his trip, and what is the reaction in d. C. To all the things that happened . Kevin cirilli the president is continuing his beef with german chancellor Angela Merkel, but behind the scenes the white house is preparing for a shakeup of sorts. The Deputy Communications director having resigned earlier today, and sean spicer giving his press briefings. The main headlines out of the briefings is essentially they feel they will be able to continue to move forward. They feel the trip was a success, but the russian probe the questions surrounding the russian probe are only going to be magnified, particularly as the congress is out on recess, and investigators on the u. S. Senate Intelligence Committee are in the phase of the investigation where they are starting to gather information, and they are going to keep doing that. It is a drip, drip, drip of negative headlines that are only going to continue. Julia couple of questions here. What are we hearing about a new fbi chief . Have you been developments on that story, and the second thing i read in the wall street journal over the weekend, the possibility of lawyers vetting Donald Trumps tweets what are you hearing on that front . Kevin lets start with the letter with twitter. I have spoken to several sources , julia, who have Major Concerns about the president s use of twitter, and we did notice last week during the president s First International trip that he was much more scripted then perhaps we had seen. There are anecdotes after anecdotes of the frustration of seniorlevel staff, very seniorlevel staff being frustrated with the president s use of twitter during his time in office and during the campaign. I can think back to one particular moment during the president s first 100 days in office in which the Political Consulting world world was pressing for access to the president s account, back to when the president was tweeting about various ceos. That twitter account is a story in and of itself, but definitely frustration that they need to rain that in, but he said he has no intention of doing so. Scarlet also, what about the latest with the fbi, replacing james comey, which was supposed to happen before present trump left for his President Trump left for his truck, but it was held off. Kevin i just spoke to one source who told me they are anticipating potentially sometime within the next two weeks or so. There are some names making the rounds, but as of now nothing that Bloomberg News is able to report on. Joe kevin, what about the domestic policy situation . It has been a long time since it felt like there is any momentum, and whether it is health care or texas obviously all of this russia stuff and travel has occupied the headlines, but what is happening on that front . Kevin for couple of things. Sean spicer at the latest briefing saying treasury secretary Steve Mnuchin is continuing to engage in talks on tax reform and to some extent health care reform. They want to keep having those conversations, joe, on policy, but they have not been able to get out in front of the russia probe. What you see in a shakeup of the communications office, the announcement of there being a board room of sorts in the west wing, it is an effort to, number one, will be on the russia story, and number two, separate it, because those questions will only continue. I can the infighting within the Republican Party on tax reform is very much alive and well. I was speaking to a source this weekend who works on tax reform policy, and there is confident among several Industry Groups that the border adjustment tax is dead, but they are not taking anything for granted, especially in this very unpredictable political washington climate. Scarlet thank you so much to bloombergs chief washington correspondent, kevin cirilli. Kevin thank you. Scarlet as he reassessed geopolitical alignments, what will the new world order look like . It is a broad question. Lets ask carsten nickels. He joins us on the phone from brussels. My first question for you, simply, is the old world order, the transatlantic alliance, the mutual defense pledge of nato, at risk of dying in the next year . Carsten nickels definitely not from the european side. What we should see behind the macro statements of the last couple of days is really a signal from the european side and the eu are determined to hold onto that alliance. The question, of course, is what is happening in washington, and the problem from the european side his they are facing economicissues on the front, migration front, that require urgent answers. The question from the european side is when there will be greater clarity on the u. S. Side because it is clearly it is clear your past and move ahead. It is clear europe is determined to go ahead with an operation among the eu states. Julia how important is personality differences here in addition to the policy differences we see between germany and the united states, because donald trump does have a point on nato spending, which is uncomfortable for germany at this point. Perhaps it is the delivery, the tone the germans take exception to. Angela merkel has to respond because she is fighting an Election Campaign and cannot take this lying down. Carsten exactly. I think her centrist, pragmatic positioning has been selling well with german voters for more than a decade now, so there is no reason for her to change that tone. Obviously, these different personalities matter here. There is no doubt about that. I think structurally and fundamentally, what we are saying is simply a different outlook on political systems. On the one hand, the u. S. , where we are struggling with increasing polarization, and we see as a result uncertainty surrounding the u. S. Administration. Then we see Continental Europe going through different stages, but the survival of certain degrees of consensus culture, and that is what Angela Merkel is embodying and betting on with a view toward the german election. Joe i want you to listen to some comments made by german counselor Angela Merkel and get your comments. Angela merkel our transatlantic relationship is of the utmost importance, and the statement that i made, or what i said recently, is due to the fact that in the face of the present circumstances, we have additional reasons for us to realize that we have to take our own our fate in our own hands in europe. Onesten, when europe Angela Merkel talks about taking europes fate into their own hands, what does it mean specifically . How will we see policy changes differ than they otherwise would have down the road . Carsten first of all, we have to make it through the german elections, but there is a growing realization in berlin that with emmanuel in power in france, and backed up with his majority, and we will see if he manages to get that, there might be a window toward the end of the year, once we are through the german election cycle, for enhanced cooperation between germany and france. That has to happen in two arenas. One is the eurozone where we have to look at integration on the monetary fund, and the other front would be on security. Here it would be on the french leadership that germany and france need to work closer together. The other two areas to watch. Scarlet pasta keep an eye on. Carson nichols lots to keep an eye on. Nickels. Julia we should also point out that Angela Merkels comments were not just toward donald trump. It was also toward the u. K. Scarlet and she is very much talking to the german electorate. Julia absolutely. That was a point we wanted to bring up. Coming up, one will washington deliver on expectations . James bullard says the honeymoon will come to an end. The question is, when . From new york, this is bloomberg. Scarlet whatd you miss . President jim bullard warning washington needs to deliver on policy expectations that has driven the stock market to record highs since the election. The process ofys unwinding the Balance Sheet should come in baby steps. Our colleagues on daybreak asia asked bullard for his thoughts on the matter. Bullard unwinding the Balance Sheet will create policy space for the committee in the future, if we needed, and on the rate itself, i think we are not very far from an appropriate rate for the u. S. Economy that will keep inflation not too far from target, and the labor market performing well. So, what i disagree with is the idea that we have to go to hundred basis points higher to get to some sort of neutral right. I dont think that is the environment we are in. I think we can stay about where we are, possibly a little bit higher than where we are today. I have to follow up on the question of the markets taking balancesheet reduction in stride. There are no details on where the caps will be set on how much can be rolled off every month. Jpmorgan says it will be 12 billion to start. Jpmorgan pick of america is saying 5 billion. The bottom line is the banks dont have a blueprint for this. Neither do you. There will be a big source of demand removed from the situation because the fed has been buying so many bonds to replace the ones rolling off. I am guessing it will be predictive, but i am wondering why someone why everybody is so sanguine that this will be no big deal to the market. James the markets are not big enough to have a very large impact there will be some impact, but it will be relatively small. To the extent there would be months where there would be a lot of rolloff, we would put caps on that to keep it under control, so there would be a, sort of, maximum markets would face in any particular month. Exact details are up to the chair. We will let her make the call on the in conjunction with the markets desk in new york. Betty you know, it is also a weekend, perhaps, jim, with more worries on what is going on in the in conjunction with the markets desk in newwashington. I want to pull up another chart that tells you what is on consumer minds confidence. Those numbers going up. Not bringing spending along. Spending on a divergent path from confidence, but nonetheless, jim, Consumer Confidence remains high. I am curious if you think that is on shaky grounds if we see more chaos out of washington, more distractions for President Trump do you think that eventually if we see more of this the fed will have to consider that impact on confidence not just Consumer Confidence, but is this confidence . James i think the Business Confidence numbers shot up after the election. The president was perceived as more probusiness than the previous administration. Washington does have to deliver at some point, and i think that is a concern Going Forward, whether the honeymoon period mayd end at some point, and the reality of american politics would settle in. We will see if that happens or not. I think the jury is still out on all of the. On all that. Scarlet that was st. Louis fed president jim bullard. Gm shares down about 4 this year. More could be were downside to come, at least by one technical measure. From new york, this is bloomberg. Scarlet i am scarlet fu. Whatd you miss . Trump had slammed german carmakers that flood the u. S. With exports. In the past, he complained about how you can see a mercedes and every Street Corner in manhattan, but it is hard to find a chevrolet in germany. Of its ownruggles after allegations of cheating on diesel emissions tests, and we want to look at how gm shares look from a technical perspective. Here it is at the start of 2017, matt, lets go over here shares were trading at a twoyear high, and since then they have declined 12 . Now gm is in a death cross, when the shortterm trend line, the yellow 50day moving average has theen below the green line, 200day moving average. This is happened four previous times in the last five years and each time it has happened we have seen the stock decline as a result. Gm shareholders may want to be aware braced himself for brace themselves for rocking us. Julia i would be concerned about a death cross. I want to talk about japan, and the data we got over night the strongest retail sales growth in over two years. I want to tie the directly to what we have seen in terms of job growth job rates in japan. We are the lowest level of unemployment since 1994. Where is the wage growth . You can see since 2014 it has improved, but it is still in negative territory. Our apps is less exciting than it looks, what i am showing is the propensity to spend. If it is read, it is saving. If it is green, it is spending. We are still not really seeing japanese consumers going out and spending but we see data of the strongest retail sales growth, growth expectations strengthen for next year. Perhaps this is about to turn. Joe at least by japans standards, it is impressive. Julia china. Acceleration in growth. Joe here is the deceleration we got the latest german inflation data out today. That is this white line here. It decelerated down to 1. 4 . Earlier in the year it had been over 2 . If you overlay this chart with euro zone wider inflation, they tracked themselves pretty closely each other pretty closely. There is a bigger story the diminishing i dimensioning trendshing inflationary around the world. You look at germany, china, the u. S. , we are not seeing the global inflation story everyone was talking about the beginning of the year, starting since last summer, picking up after trump was elected, and we will talk about bonds in the next block, but we see rates failing to rise , as someone people predicted. The german part of the global story. People perhaps being full disobedience wish breakout year. Scarlet and most important for the julia and most important for the fed the on the june meeting. Scarlet look at how markets are faring the s p, the dow had been climbing for seven straight days. They are giving back some of the advance. The s p 500 retreating, down 2. 5 . 08 . Sdaq off from new york, t