Economy through the next leg of expansion. We will come back to david we come back to you in just a moment. We what to go to Kevin Cirilli at the white house. Tell us about what happened at the mall. Are you down there . Then i was not there for actual speech but i was hanging around the area. President trump striking in a political tone in his address featuring the first lady. There were a from all of the Different Military branches. He praised prominent africanamerican leaders like Frederick Douglass and Harriet Tubman and he said the u. S. Economy has never been stronger than it is today. It was largely President Trump trying to deliver a unifying speech. He faced criticism from democrats who argued it was a waste of money. It went off without a hitch. Even the rain cannot stop the fireworks. Guy in the meantime david in the meantime, we heard from the president about the census. We thought that was resolved, now it appears not so fast. Kevin precisely. President trump saying he is instructing his administration to find a way to look into whether that question could be added. The business, community, all different types of businesses actively lobbying against this. They say adding this question would impact the Data Collected in order for businesses to use to calculate and forecast how they make business decisions. The second point is this is a political fight. The president says, and republicans argue, they need to have a full count of how many immigrants are here illegally. Deterats say this will anyone from actively reporting. They have to figure this out because they have to print the census in order to get it out to folks to fill out. David business relies on this data. It is not just about districts. Businesses depend on this data to be accurate. Thanks a much to Kevin Cirilli from the white house. Ali ints turn to son new york talking about Deutsche Bank. Will we get the plans . Sonali this weekend and we would get news about potential job cuts in new york and london and asia. Evil will start getting notices. David Deutsche Bank said they would be losing a senior official. Carl it has been talked about for a long time. Garth ritchie is the head of the Investment Bank. The ceo will be taking over the Investment Bank i himself, which is a big indication. He will be a busy man. David we are looking for cuts and how they will save money. What about revenue . Sonali revenue and profitability in general is going to be a costly restructuring. How are you going to grow revenue and cut costs when costs will already be growing because of this 5 billion Restructuring Plan . David thank you so much. We will talk you monday about what actually happened. Lets go back to Carl Riccadonna. The question of what the fed will do. We heard larry kudlow say what he thinks the fed should have done. Inflation, which is way below the fed target. That is the reason i think they should take back the Interest Rate hike. Im not encroaching on fed independence, i am reading the market tea leaves. The fed will act in its own time. I think that is the case. Secondly, with a weak global economy, taking out an insurance policy is not a bad thing. Carl david explain how this works. We just got a strong jobs number. How could the fed justifier cut with those kind of strong numbers . Carl when a white house official as saying the fed should cut rates, it is hard to say they are not trying to manipulate fed policy. We can see the economy is on good footing. The backup of the Unemployment Rate was Unfavorable Development that showed more people entering the workforce. There is not that strong of a case for insurance moves. Nonetheless the inversion of the yield curve is a pesky problem that the markets are signaling policy tightening has been overdone. The fed should recalibrate accordingly. The fed has to walk a fine line of not entering a sustained easing cycle, which will squander their ammunition. If they just of the market what it once when it once, the market will call for more than what the fed is willing to offer up. Based on the strong data, jay powell in his testimony can say the easing is coming, but not at the end of the month. Septemberld out until when the Balance Sheet unwind has run its course. David how much more difficult is jay powells job now than it was . Carl i think it is easier because there is less of a feeding frenzy in the market to move as much as 50 basis points. Now jay powell can walk a cool or line and be stingier in terms of offering up accommodation. David fascinating. Carl riccadonna, thank you so much for joining us. Now lets get a check on the markets with taylor riggs. Taylor youre looking at losses on the screen, read on the screen as weve been talking about all day. The good payrolls number means the fed may not cut as much as we want and the equity markets are not happy about that. In the s p the big decliners. For me, it is all about the 10 year yield. We are up about 10 basis points. You are seeing the threemonth tenure go from 25 basis points to only 18 basis points on the inversion. If you come into my terminal at , one thing we have talking about our expectations for the fed and the rate cut. You just heard from Carl Riccadonna about how it makes jay powells job easier now that the market has gotten back as it was getting ahead of itself. This morning, the market was pricing in three cuts for 2019. We have walked that back and are now only looking at 2. 4 cuts. Certainly making taylor jay powells job easier. We will take a look at the individual sector and where we are within the s p 500. Weve been talking a lot about bond rates. Financials are the best performer of them all. They are benefiting. You get a lift up of the rates. These are more profitable and we will be heading into earnings season. Take a look at that equity trading. It is all about the industrials. Earlier it was real estate and utilities and the bond sensitive sectors. It is now about the industrials. They continue to lead the decline. If weve look up the board, we can take a look at individual movers. It is ge, honeywell, 3m, john deere. We were talking about siemens in germany because of the poor german factory orders. Some concern about the economy, which does not square up given the good jobs number. I guess that is what makes markets. All over the place today. David thanks so much to taylor riggs. Coming up, is good jobs news bad news for democrats trying to unseat President Trump . We talk with a senior economic adviser to president clinton and president obama. That is next and this is bloomberg. David this is balance of power on bloomberg television. Im david westin. We turn to riddick a group to for first word news. Payrolls rebounded in june and be all estimates from economist. Employers added 224,000 jobs in june after downwardly resolved 72,000 the month before. 1 tomployment rose 3. 7 . Nato says russia is showing no sign of respecting a major cold war era missile treaty. In february, washington began the sixmonth process of withdrawing from the 1987 intermediate range Nuclear Forces pact, blaming roster for developing blaming russia for developing a missile that did not comply with it. The treaty will end unless russia destroys the missile by august 2. In greece, the populist movement is expected to come to any entity. Opinion polls show that on sunday voters are likely to give the Government Back to a new democracy, one of graces traditional party. He lost he restored faith with greece internationally lost it with the average voter. India plans to narrow its deficit and sell global bond. The money will be used to spur economic growth. Prime minister modis government wants the deficit not to exceed 3. 3 of gdp. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. David thanks very much. The United States added 224,000 jobs in june, far more than the 160,000 that had been expected. The president touted the numbers and took a swipe at the fed at the same time, saying this a short time ago. If we had a fed that would lower Interest Rates, we would be like a rocket ship. We are paying a lot of interest and it is unnecessary. It is one of those little things. For read on what this means for the economy, we welcome gene sperling, who headed the National Economic council for president clinton and president obama. Respond to what the president is saying. There is no denying 224,000 jobs added is a good signal. At the same time, inflation is low. Is he right that we could do even better if we cut rates . Gene there are a lot of us who have that more dovish view, that the fed should keep Interest Rates lower and we should wait to see the whites of their eyes or the actual inflation rise instead of taking the more traditional view that the economy was like a steamship and you had to turn it well in advance. What is ironic is that you have all of the people who work for tight money now sounding like dovish democrats. Of course, this seems more politically opportunistic than a principled view. If you had looked at the people who the conservatives were pushing to be head of the fed, even before jay powell, almost all of them would of been tighter money type of people. In some ways i have some agreement with the president in waiting to see the inflation actually happen. However, it is hard not to see his motivations as somewhat cynical and political. The bashing of the fed and the politicization we are seeing of the fed is one more sad example of the president undercutting a lot of the norms by which we have governed and operated by as a country. I do not think that is good of anyone. David whatever is said and whatever the style of what is that, results are what matters. Look at 2020, if youre a democrat, is good news for the economy bad news for your campaign . Gene i believe as an american you never root for bad news. I do not think one needs to. First of all, it is not hard to point out the obvious, which is that the President Trump is very good at inheriting things. Inheriting wealth from his father. An economy that was strengthening under president obama. It is not going to be difficult to point out the obvious, which is that while the trends in the economy inherited from president obama have continued, they certainly do not represent a break because President Trump was there. If you take the 29month period we have had. If you take a look at the previous 29month, 221,000 jobs created on average. Been trump, it has 194,000. Even after the tax cut, the 2 trillion sugar high, even then the average is 208,000. Of course President Trump will try to maximize whatever political gain he can get from talking about the economy, that it will not be hard for democrats to show that this trend started under president obama and he has inherited that. Perhaps we have not seen it fall off but it has simply continued. I think the most important thing, and i say this to democrats, but i would say this to any political person, you have to talk to people how they live and where they live. People do not sit around and say their life is great because they saw an economic metric. The main issues that people deal with in terms of their middleclass life health care, the cost of college, the cost of prescription drugs, the cost of childcare, all of these things have been rising higher than wages for a long time. You have many families feeling that they are running harder to stay in place or falling behind. I do think the general democratic agenda of talking about helping these families with these every day issues of childcare, of health care, is what people want to hear. Thatwant to hear something Will Champion their Kitchen TableEconomic Issues and make sure the economy is working for average families, not just the top 1 . That message will be powerful regardless of what the month by month job numbers are. David you correctly point out areas of the economy where the prices are going up faster than inflation. Higher education, and health care. If you look at overall, there is real wage growth. 3. 2 annual wage growth, which is better than the overall cost of inflation. In so far as there are places where it is too much, there are it must be underperforming. Cant President Trump say i am making your life better, you lower middle class people, because there is more money in your pocket . Gene we have had a long improvement in the tightness of the labor market. You have seen wages and Family Income start to improve. That happened in the last few years of the obama administration. It has continued. Anyone would have to be very careful to overdo it. Number was the 3. 1 considered the weaker part of the job report. Perhaps a sign we are not seeing the big wage increases that were promised and his tax cut and strategy are under delivering, not over delivering for working families. Things as great in the economy as a tighter labor market, and that is the reason why it is good to see that happening. It is good to see more people coming in. I would suggest the overall tightness, the wage increases, they are still partly making up for a few decades of stagnation. Again, to the degree that does not buy you what you need and the things that define whether you are feeling a life of Economic Security and dignity in health care or childcare. It is not Getting Better and your political leader is not fighting for you in that area, you will start looking for someone who is fighting for your specific issues that impact your sense of wellbeing. David we are hearing from Democratic Candidates about some proposals about how to address that. For example, medicare for all, free college tuition. Will someone asked how we pay for it . Is it possible to pay for it without running up more deficits . Gene i will tell you who cannot ask that question is President Trump or any of the republicans who voted for a 2 trillion increase in the deficit for their tax cut. Now we are seeing the deficit may be even higher than projected and the amount of corporate revenue could be at a 50 year low. One can raise that issue but i think nobody who voted for this tax cut has standing to raise to be fair, a lot of people may object to some of the proposals being put forward. What i have seen is democrats like Elizabeth Warren with her wealth tax, biden, harris, most of them are talking about raising taxes on more welloff people to pay for their initiatives. Hink you are seeing People Democrats talking about paying for initiatives by increasing the fairness of the tax code. David do you have a candidate you are favorable to at this point . I know you served under president obama when Vice President biden was there. Gene i am working on a book, writing. Im not endorsing a particular candidate. I am fortunate enough to know several of them. I worked with joe biden for many years and think very well of him. I also have relationships with other candidates. I have supported Elizabeth Warren on her wealth tax. I will do my best to be able to come on your show and be independent as opposed to somebody endorsing a particular candidate. We have seen impressive performances by harris, by warren. We have seen biden be able to maintain his lead. I would say is it is very early. I think they are all very substantive. They are addressing important issues and in that sense they are pushing each other in a positive way. David we value you coming on the program and speaking on the merits. Thanks so much to gene sperling. Still ahead, qualcomm is our stock of the hour. The chipmaker is dealt another blow in the federal antitrust case. That is next and this is bloomberg. David you are watching balance of power. Time for our stock of the hour. Qualcomm shares are under pressure after samsungs Quarterly Results underscore demand concern. Kailey leinz is here to tell us about it. Kailey you have to hop on over to korea and samsung. Profit topped expectations. It was the fact that their operating income dropped by so much. I have a chart on gtv. It fell 50 in the quarter. That is emphasizing the headwinds these companies are facing in chips and mobile between the u. S. And china. Ongoing trade in terms concerns and the Global Economic slowdown weighing on demand. You are seeing chipmakers fall. Qualcomm dealing with other issues as well. David you have to give them credit. They missed by 56 and beat expectations. There was a role for the antitrust judge that said we will not say this after all. Stay. theyd asked for a she had ruled against qualcomm. Qualcomm now has no choice but to start renegotiating those licensing contracts with those customers. That is a blow to qualcomm. Not much down since the original rolling. David qualcomm saying they are going on top. Thanks a much to kailey leinz. It was a fourth of July Celebration on the mall that included traditional music and fireworks but this time with the president ial speech and a substantial military component. We will talk about whether it was a net positive or negative for the president during live from new york, this is bloomberg. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a