Pesticide on the market despite studies that show it harms childrens rights. Bpa says it is reviewing the epa says it is reviewing the lawsuit. The Illinois House vote budget was delayed while Police Investigate a suspicious powder. The vote would end a record long impact over the budget, reducing the risk of the state on rating would be cut to junk. Global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. Live from bloomberg World Headquarters scarlet in new york, i am julie chatterley. Headquarters in new york, i am julia chatterley. Scarlet im scarlet fu. Joe im joe weisenthal. Missedstion is, what you whatd you miss . Scarlet tensions escalate in hamburg, germany, as leaders assemble for the g20 summit. We will hear from ian bremmer, president of the Eurasia Group. Ck. Labor leader jeremy orbyn says there is potential to cooperate with Prime Minister theresa may. Lets get a look at where the major averages stand as we head towards the close. Abigail doolittle is standing by. Abigail we have bearish action for the major averages heading to the close. Nasdaq is down 1 . We have the major averages nearing session lows. Look at this index, down nearly 2 . The worst fullback for all of these averages in about a week. Surprisingly, you would think that with the nasdaq down, tech is the worst sector. Not true. One of them as health care, and two of the biotech giants are down sharply. Riskoff day, investors going away. Names have 2 big pharma lower, merck and bristolmyers squibb. Clinical trials are on hold and that could be pressuring that stock and space overall. Of theyear yield one big stories today has been the bond selloff. Continuing today, the 10year yield up for basis points from represented in red. Perhaps reaction to what is considered to be more hawkish talk from global central bankers. Interestingly, before we had one of the only positive spots for stocks today, the Financial Sector had been higher, but now the banks are trading lower with the overall risk tone. A big story in the bloomberg right now is the chief Investment Officer saying that the bond selloff a be starting. Decimate just be starting. May just be starting. We have a chart suggesting it will not take effect right away. This is a longterm chart of the 10year yield. This huge downturn in the 10year yield represents a big bond bull market we have had the last more than 30 years. You see right now that the 10year yield as well below the 3 level. Above 3 , perhaps the bond bull market will come to an end. This suggests that bonds are not oversold, and they could see more buying and perhaps even the 10year yield will go back in that range, back below 2 . Andow this will be covered im sure all of you will be talking about it more as well. Julia thanks, abigail. Whatd you miss . President trump is in hamburg, germany, for the historic g20 meeting beginning tomorrow could for the first time, the United States is not the Global Leader in trade or climate change, spaces that germany and china are trying to fill. Bremmer, who ian wrote the book about this, every nation for itself. Glike . U ever felt less ian gee whiz. Some timeobvious for that america was moving away from leadership but it came faster than i expected because of the election of President Trump. It was coming, would have been more incremental china was creating an alternative model to the u. S. Led economic system,he transatlantic relationships brexit happening. But then you had America First. The Republican Base is still very much with trump, but internationally, America First doesnt play well. The firstrump for time sitting around is the cable with 19 other leaders from the worlds most important economies, and most of them dont trust and dont like the leader of the worlds only superpower. That is a serious problem. It is going to be very hard for him to navigate that he does he doesnt care all that much from his base doesnt care at all, but these other leaders do. They will talk about one thing what do we make of this guy, how do we had, what do we do . Julia the first time meeting putin facetoface, and many of the column inches dedicated what comes of the meeting . What kinds of exchanges do we see, if at all . Do you believe it is a strategy from trumps side . General mcmaster suggests it would be an ad hoc meeting with no real plan. Ian i think there is definitely to the base the people who dont like him, the media. The meeting between trump and putin will probably be the best bilateral meeting at the g20. If you think of how misaligned u. S. And Russia National interests are on anything, from north korea to syria to cyber to trade, you name it human rights, anywhere you want to go i never in my career as a political scientist have seen 2 major countries were the countries themselves are that much against each other. U. S. Roll up shut u. S. Russia relations are the worst at any point since when the two leaders are trying to say we really like each other. That is going to be on display tomorrow. Could care less what the International Community has to say about that. I think that creates more authenticity. A no establishmentn nonestablishment outside the box kind of guy and he will do it his way. Scarlet the 2 personalities mesh quite well, what could be accomplished by the meeting . Ian a little bit. We are seeing from rex tillerson, the secretary of state already, talk of cooperation with nofly zones over syria. Russia will determine what happens to assad. To be fair, that was true under obama, too. Just that obama never admitted it. The fact that trump is talking backed with reality on the backd in syria tracking to reality on the ground in syria could be called a win. They could be friendly. Scarlet should we make anything of the fact that the president in todays news briefing distance himself from the idea that there is russian interference in the election . He thought of this idea that it could have been anyone ian number one, he said that before scarlet in an International Setting . Ian who caresian . If you are trump come you dont care if it is an International Setting. Even if there were no weston at all of the Trump Administration and russia, no investigation, no feeling they were misbehaving with the fact is that for trump to embrace the idea of russian hacks against the election delegitimize his, in his eyes, the validity of his win. The thing to understand about addresses cystic president about a narcissistic president like trump is you will not do anything to undermine his win. It is insane to me that anyone sensible would think, given what we know about trump, what about those hacks add to the fact that obama was president when the hacks occurred and he didnt do anything. Andy wanted to go public obama told him dont do it. Obama thought hillary was going to win. Hes fairly riskaverse. He thought hillary would take care of it. The fact that he made that that a difficult bet, but ultimately, the consequence of that bet is that trump now has much more space to ignore this issue. Obama, wheng of asking about the prospect of trump tearing of his legacy, he talked of the federal government as a supertanker. Does that same principle apply in the foreignpolicy realm, that there is a certain inertia with the way the u. S. Behave towards the world, and even if trump tries to change it, it will be slow no matter what . Ian hell, it applies to new york city and bill de blasio. If you talk about the united itses and its policies and attraction as a market to the rest of the world, the markets are telling you you are right. But if you are talking about the way the u. S. Interacts with the rest of the world, ripping up tpp matters. Aump absolutely facilitated saudi vs. Other countries, qatar, rift. I also think the likelihood of a u. S. China rift is greater and likely to be more severe, with economic implications. The reason for all that is not just trump. In the case of american policy, any american president is steering into the wind. Everything is pushing against getting stuff done. Bestworld increasing quality moving increasingly away from u. S. Leadership the world is actually tacking toward trumps abandonment of Global Leadership. He is saying we dont want to pay for all of this stuff come we dont want to be the architect of global trade. There is no democracy in that speech he gave in poland. World wasf the already moving in that direction. This speeds up the process we are already seeing. Julia accelerator. Scarlet ian bremmer will stick with us. We will talk about north korea and china. In the meantime, breaking news. Theing a deal to acquire Health Education consultant advisory board, according to people familiar with the matter. Unitedhealth group acquire the advisory division, this stuff would get vista would get the education business. From new york, this is bloomberg. Scarlet still with us is ian bremmer, Eurasia Group president and founder. I want to talk about north korea, and i saw this quotation today, New York Times from a propensity at the university of southern california. A says north korea is in class of its own but we ignore that it is a real country with a functioning government at our peril. Making steady progress in alleviating the humanitarian and economic progress while maintaining strong deterrence against the Nuclear Program is the only way forward. I want to get from you we kim a tendency to mock jongun as a freak and by doing that, we underestimate his power, and it suggests he is a lightweight when he is proving he is not. That is a risk. Ian yeah. We increasingly can see that about the american president as well. Peopleever good to mock with real power. Shouldnt mock people generally. You genuinely dont want to mock people with real power. In the case of north korea, the chinese understand this well. They have been living with this threat for a long time. The chinese would really like the north korea issue to quietly go away. They dont want them doing cyberattacks. They dont want them shooting off an icbm. They certainly dont want a crisis here. The chinese understand that even though they are paying all this money to north korea, the real options are limited or they are going to hurt themselves. Understoodot yet that, and his administration hasnt, either. Scarlet why would sanctions work, then . Ian who said they would . Scarlet the u. S. Is going to pursue that. Ian well, sure, but there are many reasons you want to pursue things. You want to look like a tough guy. Dore is little the u. S. Can in terms of additional sanctions against north korea. We have pretty much cut them all. We can put sanctions against chinese banks and companies doing business and that will irritate the chinese. We can put direct tariffs and other linkages against china as a country because they are not behaving the way we want. To be fair, we are much more powerful than china. We have a much bigger economy and they need us more than we need them. Its possible that if we do that, the chinese will move to a greater degree to squeeze north korea. There is no reason to believe that will work, but i can imagine trump saying, see, i pushed the chinese. And steve bannon and others, many in the Trump Administration dealing with china, they think the u. S. Should push china carter and we will get more out of them. They may well be right about that, but that doesnt help with north korea. Joe when you said earlier china cutting off payments to north korea would be hurting itself, what you mean specifically . How would that blowback . Ian a couple of ways. The answer is they dont know and they are reluctant to push them really hard to get they dont understand the impact it would have. 3 potential impacts come all the one of them good. One, oh, you are serious, we better behave better. Another is how do these people . How dare these people . Cybere nukes and capability and we better stop that appeared third is that the north korean regime starts to crumble, and then we have refugee issues, massive concerns about what happens with the reunification, geostrategic uncertainty. And we also have things like loose nukes. What does that mean in a country that has the military capabilities it does . It is not at all clear. A lot of neocons in the United States pushing iran because they want regime change. Regime change would have been dangerous for the United States. The in between path is really rocky. The same would be true in a bigger way with a hermit kingdom. We should remember the power him john kuhn has, but we should also remember that this place is excreted there extra the nearly dangerous because extraordinarily dangerous because it is a totalitarian state. There is the possibility this regime implodes and that is a danger when they dont talk eye to eye. The day after the crisis hits, there is a much greater chance of severe miscalculation and over escalation precisely because we dont have plans. Julia and there can be a misunderstanding of how this works using the iranian example, pressure to bringing them to the table, and a perfect example, imperfect example, comparison of how pressure works. Pressure on china may work. What does not working look like . At what point does china get frustrated, the south china sea, the bombs that trump is throwing in their court . Ian i think they are frustrated already. Theyutin meeting is what Pay Attention to. The meeting with xi Jinping Chinas economy is going to be the largest in the world soon. If the chinese get seriously antagonized and decide that they are going to escalate, we move towards a trade war. That is an economy we do rely on that affects corporations and consumers. Hasry interesting poll obviously taken by someone on twitter. What percentage of american gdp would you be prepared to sacrifice to force the chinese to get the North Koreans to the table . That is really the question. There are economic consequences of pushing the chinese heart, and it is like saying how much you care about human rights in syria, how much do you care about refugees . Most americans dont care that much. That is why this is all America First. Ultimately, an icbm that they can punch at canada lunch at canada and alaska and hawaii does not make him want to sacrifice much. That is just the reality. Scarlet we see u. K. Prime minister theresa may arriving in hamburg for the g20 summit tomorrow. China has been warming ties with europe. There is a lot more emphasis, it seems, on that, as the u. S. Stands off to the side. What is the risk to the United States in doing so, as china and germany and the u. K. Are forging closer ties and perhaps leaving the u. S. Out, or is that the wrong way to look at it . No, it is a way to look at it. When trump made his First International trip to the middle east and europe, the most important thing was china inviting 29 heads of state to come to beijing and to have their first ever oneroad summit. The reason that was the most important meeting and not trump was announcing deals with the saudis already done while china was putting out real money for infrastructure and of element. Countries respond when you write checks. The United States is still by far the most attractive economy for people to come to. The chinese themselves want to send their kids to be educated in new york and to buy apartments in new york and San Francisco and all those things. Mostmericans are not the attractive partner to be with from a Foreign Policy perspective. Economically, especially in asia, the Economic Future of the world, the chinese are becoming the dominant economic player, not the United States. Scarlet ian bremmer, great to have you on. Eurasia Group President and founder. Perfect timing as we get ready to kick off g20. Julia you are looking at live pictures of protests outside the g20 summit in hamburg. Cannot read the protest signs. It is actually quite normal to see protests outside a g20 meeting. Two, that iss pretty sizable, but when you talk to people, what they are protesting, they tell you alsos of things globalization, not necessarily the actual politics of the situation. Violence earlier, for now seems pretty peaceful as we head towards evening and we count down to the beginning of the g20 summit. Expect fireworks. From new york, this is bloomberg. Scarlet breaking company news from moments ago Elliott Management has a stake, adding another twist to the takeover battle for the maker of drugs it began buying shares last week as part of an offer for the company begin to unravel. We will keep you posted on the development. Market closes next. Down, along with bonds. From new york, this is bloomberg. Whoooo. Youre searching for something. Like the perfect deal. On the perfect hotel. So wouldnt it be perfect if there was a single site where you could find the right hotel for you at the best price . There is. Because tripadvisor now compares prices from over 200 booking sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The lowest prices. Would you miss . Global bonds under pressure. The dollar at its weakest mark since may. Im julia chatterley. I am scarlet fu. Joe it i am joe weisenthal. We want to welcome you on twitter. Scarlet we begin with our market minute. Major indexes for equities. Red arrows all around, and we are looking at losses of more than 1 at least to just at 1 for the nasdaq. We came off the close. The lowest level for the s p since midmay. The dow losing 155 points. I look at sector groups, even utilities