Tier levels of candidates include senator Kamala Harris from california. She will look to have one of those breakout night to try to continue her momentum into the top tier. Miami, i can type a lot of folks from other campaigns are talking about bullying castro are talking about julian castro, the former hud secretary who went headtohead on immigration policy with beto orourke. Elizabeth warren laying out her Economic Vision for the Democratic Party and for the country. She attacked not just President Trump but big tech, big business, and big pharma. David i want to come back to you on that subject. First, lets turn to erik on capitol hill. Were all mindful of what is going on the southern border. We have a bill from the house in the senate for emerging for emergency funding to take care of the unaccompanied minors at the border. Where does it stand . Nancy pelosi and Mitch Mcconnell are in a standoff over competing versions of the bill. The house wants to add a 24 page amendment to the bill to pass the senate by overwhelming 84 to eight vote yesterday. , buts a bipartisan vote Mitch Mcconnell does not feel he needs to do anything. Polo see says there needs to be a guard rail pelosi says her needs to be a guard rail to help the children at the border. There are been reports they lack so, toothbrushes, and other basic needs. The house will vote early this afternoon on a version of this. Then the standoff will continue. Has been chosen by President Trump to try to negotiate a solution and both sides are saying they will not leave for their july 4 recess until this get started. Until this gets done. David youre talking about a standoff. Democrats want more aid to people on the border, republicans want more enforcement. We have that tragic photo of the father with his young daughter who had drowned at the border. Our members of congress feeling pressure from their constituents who say however you get it done, we have to get it fixed . Erik there is a lot of pressure. We are hearing from all sides that they cannot go home without this getting fixed. They cannot take another photo of a dead fodder a dead father and daughter in the river. There is a lot of squabbling. That itte is afraid could set a bad precedent for future talks in the budget. Many members are saying lets put this aside and get it done. The compromise could happen. They could drop other things liberals have been demanding. Liberals want to cut funding to ice and cut money going to the defense department. Perhaps if they put that back in, they can get this wrapped up today. Much forank you so your report. Lets go to the Supreme Court just behind where eric is. We have two Big Decisions. Lets talk about the gerrymandering decision that basically said we are not touching it. You will start with the easy one. Decision said 54 you cannot challenge congressional legislative maps as being so partisan they violate the constitution. That is a question that has been open for decades. The Supreme Court at one point said you could challenge them but they have never come up with standards. They have never struck down a map as being too partisan and john roberts shut the door. He said this of the political matter and something the court should not be involved in. David it was too hot of a potato to take on. They did get involved in a census. What that was was whether they can include a question about race in the census, and the court said you cannot do it with the justification you have. Where does that leave it . Greg the question is whether the Census Bureau data question asking is this person a citizen on the census. The administration tried to do that, a lower court blocked that. The Supreme Court agreed to some degree with the lower court and disagreed with others. It kicked it back to the commerce department. What the court said was the explanation you gave was not good enough. It was contextual. The evidence showed that wilbur ross came into his job determined to at the question. He eventually got the Justice Department to say it would help us enforce the Voting Rights act , which is designed to protect minority rights at the polls, and the Supreme Court is a splintered court. Roberts with the four liberals said that explanation cannot be squared with the evidence and kicked it back to the commerce department. Now the question is do they have time to get a better explanation and that is not clear. David thanks a much reporting from the Supreme Court. Lets go back to kevin cirilli. You were mentioning some of the things discussed last night. One of the things that struck me was how much substance. Among them was health care. This is part of what Elizabeth Warren had to say. Sen. Warren what is the Business Model of an Insurance Company . To bring in as many dollars as they can in premiums and payout as few dollars as possible for your health care. Medicare for all salts that problem. David it seems like everyone on the stage said we should have universal health care, they disagreed about how to go about it. Is that a subtle distinction voters will pick up on . Kevin it will be completely exacerbated in that divide will grow larger as the debates continue. That particular moment you drew upon was precisely one that laid a marker amongst progressives. Elizabeth warren as well as bill de blasio the only does go candidates on the stage to raise their hand when asked by lester holt whether or not they would get rid of private Health Insurance in order to advocate for government Health Insurance. I was able to speak briefly with Elizabeth Warren in the spin room. She told me after i asked her what a warrant administration what a Elizabeth Warren administration would do on day having the courage to take on big pharma and big business, and she said she would look at the department of justice as using that as an apparatus to accomplish some of her regulatory goals. David thank you for that terrific reporting in miami. He will have more coverage throughout the day leading up tonight two of the democratic debate. The swiss government confirms it is banning trading in swiss shares in the European Union starting july 1. This was government activated the measure to protect the stock market. Switzerland and the eu have failed to make progress on a political deal governing the relationship. Now we have switzerland at odds with the European Union. We will keep covering that as it develops. In the meantime we will get a check on the markets with abigail doolittle. Abigial looking at mixed moves on this thursday. The dow is down fractionally, on pace for its third down day in a row. It will be the first losing streak going back to february, which is extraordinary. The s p 500 snapping a fourday losing streak and the nasdaq up. 5 . These major averages not matching their trading action as they sometimes do. Investors skittish ahead of the g20 and consolidating a number of weeks of gains. You see outperformance in the Asian Session from the csi 300, up 1 . Perhaps optimism by chinese Equity Investors ahead of the g20 starting tomorrow into saturday. ,f we take a look at the sox this is one area of outperformance in the u. S. Climbing as micron put up a blowout quarter and the guidance was good. Plus, shipping some of their pieces to huawei, moving around that dan. Investors seeing some hope for the chip space and a bottom. Other movers in the u. S. , lets look at the stocks that are dragging on the s p 500. Conagra plunging 12. 8 . They missed estimates for their quarterly results. Guidance week. The growth margins a problem. Investors wanted more. Nor nordstrom downgraded by Goldman Sachs to a sell. The analyst saying the second half could be difficult. Boeing down 2. 4 as the faa is saying there could be more safety fixes ahead for the 737 max. Finally, if we going to the bloomberg ahead of the g20, we are seeing a small bit for bonds with some investors seeking safety on the year. Goldman sachs just slashed their 10 year yield forecast to 1. 75 from 2. 8 . In blue we have the 10 year yield and in white we have the forecast. We see that the market is well ahead of the forecast. The forecast at 2. 35 for current expectations. The 10 year yield above 2 . We do have Goldman Sachs saying it could be 1. 75 by the end of the year. Investors seeking the safety of bonds and thinking about the fed and does go rate cuts by the end of the year. David now we have news. Twitter has announced a new plan that could affect its most famous user, president donald trump. Twitter will now hide questionable tweets behind a warning label that explains the tweed is against Company Guidelines but has been left up because it is deemed newsworthy. Users will have to click past the label to see the post. A Company Spokesperson says the action is not aimed at one specific user, but it will only be used at verified government accounts or those running for all press more than 100,000 followers. The miami to osaka, while democratic president ial hopefuls look to the debate stage, President Trump to the g20 in osaka. Will legal trade breakthrough . We will ask Libby Cantrill of pimco. That is next. This is bloomberg. David this is balance of power. We turned to Mark Crumpton for bloomberg first word news. Mark two Big Decisions from the Supreme Court. Justices rolled the constitution does not let judges throw out voting maps for being too partisan. That could boost republicans. The courts five republican appointees voted in the majority. Justice is also blocked and Citizenship Question on the census for now. The court says the trump administrations explanation was contrived. The president is in osaka japan and kicked off meetings with a includingeaders australian Prime MinisterScott Morrison who praise the bonds between australia and the u. S. He says he raise the issue of Collateral Damage from the ongoing u. S. China trade war but the leaders did not discuss the issue with reporters resin. Asked with reporters present. Asked whether his America First policies weakened ties with allies, President Trump said the countries worked closely together on trade issues. The president has added another highprofile meeting. He will have breakfast with saudi arabias Crown Prince Mohammed Bin Salman saturday before sitting down with xi jinping. U. S. Relations with the saudis have been rocked by the mortar by the murder of Jamal Khashoggi and the war in yemen. Democrats took to the stage in miami for the first of two nights of president ial debates. Senator Elizabeth Warren was the only high polling candidate to take the stage. The democratic hopefuls disagreed on immigration and how to confront companies but they were work they were not on the same page of the economy, saying it needed to be made remake. Tonights debate will focus on joe biden and senator Bernie Sanders. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. David . David American Voters have their eyes on miami, but World Leaders are looking at japan. The summit may be overshadowed by the u. S. China trade conflict. The chinese leader on its position that the United States has to take a different tact on its negotiation. Chinast was said core concerns need to be addressed properly. We hope the United States can drop its wrong practices and we can solve the problems through equal dialogue and concentration. , head ofibby cantrill Public Policy of pimco. Listening to what the spokesperson said, and report from the wall street journal that china is saying you have to let one way back in, are both sides toughening their positions before the meeting . Libby what china is saying is consistent with the white paper they are put out a few weeks ago. Also their conditions for negotiations getting back on track. They are consistent with what they have already put out in public. The fact they are reiterating these so close to the xi trump meeting is of interest. President trump also said he could ratchet up tariffs if the chinese do not exceed to the u. S. Demands. Some of this is posturing, but i think it does underscore how far away these countries are on a big settlement. David they seems to be a consensus that they will say nice things, decide not to impose more tariffs, and agreed to talk some more. If in fact that is the most likely result, is it likely president xi and President Trump have already decided that because they were not going to the meeting. They will not going to the meeting to have it blowup. Libby i think there is some of that. In our view that as a best Case Scenario that these negotiations get back on track. It does seem plum back channeling it does seem from back channel that this is a precondition from xi. The u. S. Will not walk out of the meeting and go to tariffs. But President Trump has said he believes tariffs are a tool to extract leverage. I do not think we can discount the chance of escalation, even though i think youre right that that is the base case, especially in the markets that we see some sort of truce rather than a settlement. David lets turn to the democratic debates. I but there was more policy discussed and i thought there might be. There was a lot of talk, whether it is health care or antitrust enforcement, lots of things. It tended to be toward the spectrum,e end of the particularly against big business. Libby i wrote a note to our clients saying the candidates are trying to out progressive each other and i think that was, for some of the candidates, on display. In some ways senator warren was anchoring the debate by some of her bold policy prognostications. From a markets perspective, the things we care about at pimco, im encouraging people to Pay Attention but not take too seriously at this point this early in the democratic contest. You will not even have the convention it is a year away. We are early days here. Certainly it is interesting that the rhetoric was as left as it was, but from a market perspective im not sure how credibly we should take this. David there is the question of theher you can achieve in general what you can in the primary. You can say things in the primary you have to change when you get to the general. Libby this is the beauty or the difficulty of our democracy. For the primary, because you are trying to get your own voters within your party to turn out, and then you have to tact center. It will interesting it will be interesting to see some of the positions staked out last night on medicare for all, or a private option, whether that would haunt Elizabeth Warren if she is the nominee. The general, you bring up a good point about who will win the general. You look at the states that a candidate needs to win in order to be trump, it is michigan, pennsylvania, ohio, it is wisconsin and florida, where that progressive rhetoric will not resonate as much in the general population. David we also heard that nancy pelosi said she would reopen usmca with the specter toward enforcement, surgically, what does that mean for the prospects of getting that ratified . Libby it is interesting because the white house has been adamant through u. S. Trade representative ambassador lighthizer that that is a no go. They do not want to reopen nafta 2. 0 or the usmca under any terms. The fact that Speaker Pelosi said that on the record is quite interesting. I think it increases the chances we get to a standoff between Speaker Pelosi and President Trump, a game of chicken over this. Our concern from a market perspective is that President Trump hollow throughs with his threat from withdrawing with nafta to force the vote on nafta 2. 0. I do not think Speaker Pelosi will respond favorably to that. David the markets will react to that for sure. Libby, thank you so much for being with us. Pimco head of Public Policy, Libby Cantrill. Ford has been talking about cutbacks in europe but now we have the numbers putting its stock in the crosshairs today. That is next. This is bloomberg. David you are watching balance of power. I am david westin. Time for our stock of the hour. Our company today is for. The Company Announced it is cutting 25 cutting 20 of its workforce in europe. The stock i