Bullet finish the session there . We will have to wait and see. Some stocks recovering from major losses yesterday, including hunts transport services, having dropped 22 yesterday. Companies like alumina, which gave a negative outlook, really getting punished today, down 16 . The 10 year yield backup to 2. 12 . That is widening the spread. Crude oil above 60 a barrel and holding. The mexican peso had been weakening. It is back above 19. The president tweeting this morning that the Biggest Development in u. S. mexico talks on trade has yet to be revealed. Stephen mnuchin in the last few minutes warning the u. S. May hit the debt limit by Early September in a letter to nancy pelosi. Once again, the treasury secretary warning that the u. S. May run out of cash in Early September. Another develop and, up President Trumps labor secretary out. One week left. Alex acosta announcing this morning he is resigning. It was a surprise appearance by the president. We are joined by our Bloomberg National reporter. Right . Ric circles, the labor secretary gave a News Conference yesterday which seemed to defend his actions 10 , and ago and remove them then less than 24 hours later, hes resigning. Will there be more fallout from the Jeffrey Epstein scandal . Reporter that is certainly ongoing, and i think we will continue to hear a lot more about that in his trial and prosecution. This is a Major Development in the trump administration. The labor secretary alex acosta is resigning. As you mentioned, in the midst of a firestorm over a plea deal he gave to Jeffrey Epstein into thousand eight when he was u. S. Attorney in miami, critics said that in 2008 when he was u. S. Attorney in miami that critics said let epstein off the hook. Acosta gave a press conference this week and defended his plea deal. He did not apologize or express any regret for that. He did Say Something about how satiety how society treats victims differently today than in 2008. He still had agency to let Jeffrey Epstein off the hook in the way he did, and now it is coming back to roost. It says something about him and about society, as well. Vonnie President Trump praised him and his work, and almost lamented that this had to happen. Impugning that it shouldnt have had to happen, that the labor secretary should be able to stay on and that it was public opinion, or some other pressure, that made him resign. The president was also very careful to say he had never been to Jeffrey Epsteins island. He is distancing himself from the billionaire. Sahil a tweet in the last few moments from the president praising alex acosta, saying he was a great labor secretary. No criticism of him, and the president seems to suggest he decided to resign in the midst of all this criticism because acosta conveyed to the president it would be a distraction to his administration. The president has, of course, try to distance himself from jesse epstein. The two used to be friends. There are photos of them from years and years ago, but he says he hasnt spoken to epstein in many years. The water cooler talk in washington, d. C. . Obviously Jeffrey Epstein himself is in trouble, but will it rub off on other people in politics, perhaps close to the Administration Even . Sahil we seen that ongoing for a while. Weve seen a lot of been in various perfect a lot of men in various professions, including politics, media, and business face these accusations. A lot of them have lost their careers for all of these instances in the past, ranging from sexual harassment, inappropriate touching, to some of the more horrifying and egregious actions of the sort that Jeffrey Epstein is accused. So yes, it has been ongoing, and will continue to be for a wild come. Vonnie reports from politico that the mueller testimony is going to be postponed by a week, now looking at july 24. Any particular reason . Sahil the discussions for the delay seemed to be around the idea of creating more time for questioning. There is a lot to get to. The Mueller Report was a very long document and there are many things that democrats in particular want to explore. They view this as an opportunity to get this information out to a wider audience. The fact that muellers one Public Statement he gave about this at so much attention and had such an impact in the way the public viewed this is an indication to democrats that they want him on camera explaining the findings of his report. It seems like the discussion of delaying that testimony are about creating more time for the numbers of congress to question the special counsel about what he found in this russia investigation. Vonnie thank you. Sahil kapur there. We should note that a lawyer for epstein did not immediately respond to comment. Sticking with markets now, Global Growth concerns mounting with an unexpected contraction in singapores economy, a slump in chinas exports in the data overnight, all sending a warning simmering trade tensions weigh on Business Confidence. We are joined by james bevan, c cla Investment Management cio. Trade one of the things that is weighing on Business Confidence . Obviously with brexit still undecided, it would seem to me that that might be something impacting things more. James for sure. People certainly anticipate that trade is asus dental issue for the Global Economy, and the rate of sunshine a substantial issue for the Global Economy, and the ray of sunshine is that the Global Economy can continue even if the trade outcome is less precious than many might hope. Vonnie we had tom lee of fundstrat earlier on the show. He doesnt see any problems. The market is pretty healthy, according to him. What about europe . Are we seeing something a little less healthy . Bonds selling off today on the thinking that the ecb is going to buy more. James i think the european economy is in a particularly difficult position. We have a challenge of very deteriorating demographics, and great contrast to the United States. We have productivity challenges as well. This something in the order of 10 less then in italy and spain. We either need to see germany and brace inflation, and of course they have no appetite to we need to see outright deflation in italy and spain. You can imagine that is deeply unpopular and a real political concern. Vonnie how do you think about this as an investor . You invest for endowments, charities, and on and on. Where do you see 60 right now . James i see where do you see safety right now . James the Free Cash Flow that equities offer, a country in mild excess of bond yields is a fabulous place to be right now. The forwardlooking excess return from equities holy justifies people being paired to take a bit of risk in their portfolios. I look at they yields from , andable from bond markets this is an accident waiting to happen. Vonnie i want to pull of the probability of recession in the u. S. 12 months from the new york fed. It is visible via gtv on your bloomberg as well. It shows that any time this goes above 30 , theres been a recession that followed. Right now, where are we . We are close to 33 . Do you foresee a recession 12 months out . James no i dont. These charts are predicated on the premise that an inverted yield curve, when short yields are in excess of long yields, predicts a recession in the pipeline. I would say that is long on three counts. First, we have not had the excesses build up in prior cycles to encourage tightened policy and drive the economy into recession. The second issue is i do think long yields will rise from current levels. They are so far below nominal Economic Growth. When the economy is thinking about where tos fair value reside, it was all about trying to recalibrate normal Economic Growth with nominal bond yields. Of course, we are a million miles from their. I am expecting 25 basis points off of the open Market Committee meeting at the end of july, and probably another 25 basis points by the end of the year. Vonnie james, if that is the case, would you be hanging out in equities in the United States . Do you see value in europe at all . Many of the sectors are up. Of course, this is just one day. But im wondering if you see value there. James i see remarkably little value outside of the traditional longterm growth stories. I would be a buyer of unilever, the basic staples. As ald be a hold of lvmh luxuries company. Those as a global view can absolutely hold their own. I worry that the european banks still havent done enough to cleanse their Balance Sheets come put themselves on a forwardlooking basis of rising profitability. We have negative Interest Rates from the European Central bank that will get even more negative before the cycle turns. Vonnie what sectors would you be comfortable in right now . James in a global perspective, im absolutely focused on quality and growth. I see good capacity to achieve i. T. T returns and parts of , and certainly in payment systems. I would be a buyer of microsoft and visa. Equally, i do think that some of the Health Care Businesses look extremely wellplaced. Stryker, for example, is a company that can offer excellent longterm shareholder returns. Vonnie you are not concerned at all for the administrations werets to mess with, as it , areas of health care . Healthry today is that care is going to draw the most ire from the the most from the administration. James i think traditional pharmaceutical companies will be in trouble because they are being disrupted, which means that the competitor propositions get to the market very quickly. For me it is not about thanking about drug companies. It is thinking about diagnostics, medical instruments, and about the opportunity to help people with health using instruments and strategies that are noninvasive and nonpharmaceutical. Vonnie james, thank you for joining us today. Our thanks to james bevan, ccla Investment Management cio. Here in the u. S. , the Dow Jones Industrial average is up 4 10 of 1 . Todaythe outperform her the outperformer today. 1 10, but firmly above the 3000 mark. The nasdaq up to tenths of 1 . This is bloomberg. Vonnie live from new york, im vonnie quinn. This is the european close on bloomberg markets. Lets check in on the bloomberg first word news with courtney donohoe. Courtney treasury secretary Steven Mnuchin told nancy pelosi the government may run out of cash in Early September if congress doesnt increase the debt ceiling. He wants lawmakers to act before they take their six week recess starting on july 26, but it is not clear that the white house can reach a deal by then. A Tropical Storm racing through the gulf of mexico to louisiana could hit the coast as a hurricane tomorrow. The National Hurricane center says two feet of rain could fall in some places, and that is likely to increase flooding in new orleans and cost up to 1 billion in damage. The storm has already shut down about half of its Global Oil Output in the gulf. China promising to impose sanctions on u. S. Companies involved in arms sales to taiwan. The Foreign Ministry says those will hurt chinas sovereignty and National Security. The state department has approved a package for taiwan that includes tanks and stinger missiles. To the Worlds Largest automaker two of the Worlds Largest automakers up on autonomous vehicles. Argos invest in unit, positioning as a challenge others. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im courtney donohoe. This is bloomberg. Vonnie lets get a check on global markets. Heres taylor riggs. Dow 27,000, s p 3000, and nasdaq somewhere in between, up about 3 10 of 1 . Better cpi yesterday, better ppi data this morning. Even though we talk about how we are at record highs on the dow and the s p, it has been a slow crawl back. We had a record high on the s p on wednesday, july 3. Weve come off those, and it wasnt until wednesday of this week when we slowly started to climb back every single day, so we are sort of hitting a look these record highs, but it did take a mile to get there. Something else interesting is going on as we take a look cross asset. Is fix is lower the vix lower, and we are seeing yen and wissie strength. This wouldnt normally happen since they are safe havens. Despite some of the calm we are seeing in the vix, there are some other safe haven assets and play. Betterthanexpected ppi data came out this morning, so that is having an impact on the industrial and transportation companies. 5 inparticular up almost particular jb in nt in particular up almost 5 . We get next week earnings from the bank. Hasmbergs Hannah Levitt been keeping an eye on an interminable search for a new wells fargo ceo. Lets begin on the big banks, reporting next week. You can see bank of america cautious on select banks today, saying that earnings visibility and the outlook was cloudier and downgrading some. Hannah we are looking at rates falling all year. The 10 year treasury has been going down. The fed is widely expected to cut Interest Rates at the end of the month. For banks, that means their net interest income, the money they make from what they charge consumers on loans minus what they are paying out on deposits, that is what suffers for banks. That makes up half or more of the revenue stream. Vonnie presumably this will affect some banks more than others. Lets begin with the begin vestment banks. , itah the investment banks was not a good quarter. There was a lot of uncertainty with trade, everything from brexit to iran to mexico to china. The investment banks were looking at lower trading results and Investment Banking results that were actually quite lower. One analyst is expecting as much is a 21 drop in Investment Banking results. Vonnie a 21 drop across the board. There were some big ipos. Investors will also be looking for guidance around deal pipelines for the rest of the year. Vonnie right. After this round of earnings, is there a possibility that we will see more deals, particularly among the smaller players . Will there be another round of Bank Consolidation . Hannah thats been a big question all year. We saw bb t and suntrust earlier this year in the biggest deal since the crisis. Everyone has been waiting to the answer to that question, so i guess we will see. The leaders of these banks have been pretty cautious on saying anything about it. Theyve said they are happy with their current market share, etc. Vonnie i woke up this morning and one of the first stories i read was this great story that wells fargo is in its ceo hunt day 106. What is the problem . Hannah the former ceo steps down in march after political and regulatory scrutiny. At the time, the bank set out to find it external ceo. The chair of the board said that would help complete the transformation. Theyve been dealing with scandals that started with fake accounts in 2016. Theyve been conducting this external search, and what we reported today is that the pool of candidates has narrowed. Running,ant is in the alsoordon smith, and then the cocielo and president cocoo and president is not in the running. Vonnie is wells fargo spoiled for choice and cant decide, or peoplee a dearth of who can take the reins . Hannah that is a really good question. Theres been a lot of speculation, dozens of names that have been thrown out. It is kind of a tough search when you look at how much you would have to pay someone to come over, and it is kind of a daunting Job Description when he think about the regulatory scrutiny and the rebuilding that has to go on. Thats one of the big issues. Vonnie you have to wonder if it is the candidates interviewing wells fargo or the other way around. Hannah levitt with a wonderful fargosday on wells continuing ceo search. This is bloomberg. Omberg. Vonnie live from new york, im vonnie quinn. This is the european close on bloomberg markets. The dow is up half of 1 . The s p 500 also holding onto ate gains, up six points 3006 right now. Well see whether they close above 3000. The nasdaq is up 1 3 of 1 . At about 12. 5 . Right now, the dax down just seven points. The cac 40 is up 1 4 of 1 . French bonds selling off today, among bonds selling off more generally. The ftse 100 down fractionally as well. Many groups in the stoxx 600 are higher today, being led higher by chemicals. The european close is next. This is bloomberg. Xfinity mobile is a Wireless Network designed to save you money. Whether you use your phone to get fit or to find the perfect gift, youll use less data with a network that automatically connects to millions of wifi hotspots and the best lte everywhere else. So you save hundreds of dollars a year on your wireless bill. Xfinity mobile has the best network. Best devices. Best value. Simple. Easy. Awesome. Click, call or visit a store today. Vonnie stocks finishing of the day in european trading. A mixed pic