Lindsey graham encouraged you to aim higher. He just said i disagree with lindsay. He is a congressman. What am i supposed to, wait for senators . So i disagree with lindsay on that. He said a higher. What am i going to do, wait until we get somebody in a Higher Office . These are people that hate our country even john, they hate our country. I think, with a passion. It is possible i am wrong. The voter will decide. When i hear the way they talk about our country, when i hear the antisemitic language they use, the hatred they have for israel, and the love they have for enemies like al qaeda where are you suggesting they go . I do not believe this is good for the democrat party. Certainly not the party that i have known over the years. Does it concern you that many people saw that we as racist . And that White Nationalist groups are finding common cause with you on that point . It does not concern me because many people agree with me. They want to leave, they can leave. It doesnt say leave forever. It says leave. John, what that says is, if they are not happy with the United States, if they are doing nothing but criticizing us all the time, you see these people walking down criticizing the , we justtes states hit the highest stock market in history. Manufacturers, these are great business people, they employ many people. We have workers with us too. They are having the best year they have ever had. Is that a correct statement . And they are hiring more people than ever. More people are making a good living than they ever had. We just hit 27,000 plus on the dow. The highest stock market has ever been. You have to go by the election. The market started going up the day after i won. They like to add all of that tremendous gain, try to give it to obama. The fact is, if i would have lost, the start work at would have crashed. If these people that i watched in those debates ever got their hands on the United States government, 401 k s, the values of your company, Everything Else we talk about that we are proud of, it is down the tubes. People will lose their money, they will lose their wealth, you will have a crash like youve never seen before and a really good about this stuff, i know what im talking about. Thank you all. Ice raids raids, why did they happen like you threatened . Was that just to scare people, mr. President . The ice raids were very successful. People came into our country illegally. Many were felons. Many were convicted of crimes. Ony, many were taken out sunday. You just didnt know about it. In fact, i spoke to the head ofice, i spoke to a couple people. It was a very successful day. But you didnt see a lot of it. Speak to them. Im not even sure they should be telling you but it was a lot. It would have to be sunday. We have been removing m313. Ms 13. They are monsters. I tell my people, much easier to go the other route. I say focus on the criminals. Focus on the people that are killing people, causing crime. Much user just to go to general population. That is easy. I dont do it the easy way. We are getting tremendous numbers of criminals. Yesterday it was reported to me, yesterday . Go and didnt have to start yesterday. The truth is it started before but yesterday was successful. People come into our country illegally and they go out legally. Every person taken out had papers and we had court orders. Ok, thank you. Why the asylum changes, mr. President . Mr. President , how are those tweets not racist . Been listening to donald trump listening outside the white house, following the third annual made in america product showcase on the white house lawn, asked about the tweet over the weekend which targeted four congresspeople. He was responding to questions about the socalled squad, progressive part of the democratic party. He says they hate this country. He says they are people that hate our country, they hate it, i think, with a passion, they talk about the hate for israel, love for al qaeda. He said he didnt think it was good for the democratic party. The main headline was if you are not happy, you can leave. They are free to leave if they want. He also spoke a lot about representative omar, saying that she praises al qaeda. Also mentioned alexandria across your cortez, saying that she was amazonible for keeping out of new york. Also talking about the ice raids, going on for several days but sunday was successful and that we have been removing ms 13 by the thousands. Again, he praised the stock market and performance of the economy. Halfway into the trading day, lets get to taylor riggs. Taylor you are seeing some of the negative sentiment filter in through the broader averages. We welcome this morning, kicking off the earnings season. Looking for secondquarter earnings, a drop of 3. 3 . Some of the negative fundamentals filtering through to sentiment. That means you are getting a risk off tone with 10year yield now down three basis points below that 2. 10 level. Is kicking how that off everything we are talking about today, banking stocks. Citigroup and Goldman Sachs leading the decline. Citi cost cutting their way into a profit, highlighting the struggles about equity trading. In q3, that number looks to be worse on a yearoveryear basis. Goldman sachs on deck this week. Regionals as well hit just as hard by the equity rate cuts. And deposit growth can offset that. Some concerns in the market today. If you come into my terminal, this is my chart for the year. As you can see, in white, it is all about record highs on the s p 500. Then the divergence within bond yields. Typically, you either sell bonds to buy stocks. Both of these are going into bonds. I am waiting to see who blinks first. Speaking of, i want to look at crude. We are below that key 60 a barrel mark. There are some technical reasons and you are seeing some selling, but a lot of this is weak growth , particularly out of data from china last night, secondquarter growth coming in lower than estimates. You are getting opec warning about a 2020 glut. Today the demand concerns shrugging off any of the supply boost we were getting, and that means crude as well is lower today. Vonnie thank you. Of bank earnings, joining us now is allison williams. We have been talking about and how the at citi results were broadly in line, a little bit of disappointment among analysts on the street. What is the readthrough for the rest of the week with the major banks . To your point, i thought the quarter was fine. A couple of the metrics it is difficult to say they will directly filter through to the other banks. Net interest margin was disappointing, something we expect to see in others, but the drivers in citi tend to be different. They have a bigger card business attempt to be more insulated. More focus on the u. S. , more exposure to global. Ates than others at the margin, the change has been in the u. S. To the extent they disappointed, it is something people are looking at. A rise in the deposit cost, specifically a lot of focus on that. We will hear more about that from banks. The bottom line is they reaffirmed their return on tangible common equity. That is a key metric for the company. Despite the fact that they have the revenue headwinds, they are cutting costs. The call, certainly, analysts seemed skeptical. When i think about citigroup, i think about, december was really difficult. They missed their target in december and a lot of that was because they implemented new measures that were not going to take place fast enough, but we should see some of that benefit in the second half. Vonnie landscape for the rest of the year, some of deutsche banksbusinesses are in play. Are we going to see some grabbing of market share . The equities business has been a focus for them. Citi has made some rise in the ranks to do that focus. I think they are looking to more to get more gains in the business. We will hear more about that from j. P. Morgan and goldman tomorrow. It should be noted there equity trading missed estimates, so that is a negative ahead of the companies tomorrow. They also talked about the fact that corporate client business in the derivatives businesses holding a better. That is relatively more negative as well for goldman because the is that the institutional side is weaker, and that is the part of the client makes that is more important for goldman. Vonnie thank you. Coming up, symantec and broadcom opera proposed merger. Deep dive into what happened. This is bloomberg. Vonnie this is bloomberg markets. Symantec and broadcom have halted discussions for a proposed merger. The two sides could not agree on a price. It is more nuanced than that, and we will get to that now. It is not quite that they could not agree on a price but according to reporting, Due Diligence was looked at again and was found to be lacking and therefore broadcom try to take down the price. This is a darned if you do, dark if you dont. Had aec has not continuous ceo for the past four years. It currently does not have a ceo, cfo. There has been some accounting challenges in a business that has some structural Revenue Growth issues. Symantec is not a power player in the business anymore. On a relative basis, not the cleanest money assets can buy. Hand, they have an opportunity. If anybody can turn this around and extract synergies out of it, there is an opportunity for them to do it. Vonnie why would symantec play such hardball . Apparently the price difference was not massive. Would it have been so awful to take a lesser price . I think maybe the deal perhapsed earlier then either party liked. One party seem to feel like they have an upper hand in negotiations. Both have alternates. From the broadcom perspective, they can look at other Software Assets that are potentially cleaner, that they can integrate easier. On the other hand, it may have less synergies. May not be able to extract as much cost. Samplerther hand, our analyst has been saying, other companies have gone private. Symantec may not get the price to go private that these other companies have because of the issues with the company. In both cases, they have alternates. Is broadcom potentially in a better position relative to symantec . We think so. Vonnie i dont think this is the end of the story. Thank you for that. Meanwhile, chinas economy has hit its weakest pace since quarterly data began two decades ago in 1992, amid the ongoing trade war with the u. S. And china. President trump took credit for the soft data, writing in part, u. S. Tariffs are having a major impact on companies wanting to leave china to nontariffed companies. This is why china wants to make a deal. Lets welcome our deals reporter damien says hour. And from london, we have george magnus. Great to have you. What did you make of the softening in china data, something to be concerned about, or can china manage this very easily. . As usual, the devil is in the detail. Everyone expected the growth rate to drop him where it had been in the First Quarter of 2019. We all know that there is an official data series of gdp, carefully manicured. It does not really convey any information about the volatility or fluctuations that are going on in the economy. Basically is we know the economy was quite weak in the end of 2018, that if stabilized in the beginning of march and but then in april, things started to go awry again. Like there was a pickup again in june, but it is too soon to be tell whether this is anything other than noise. Actually the headwinds facing the economy are quite considerable. Vonnie what is your base case for how the trade war progresses and ultimately how it impacts the two economies . George the politics on both volatile and it is always possible that there could be some kind of i say agreement, but i mean agreement like inverted quotes. It will not solve the fundamental problem, which is norms ofbout standards, industrial behavior, technology policy. It is possible that, for political reasons, both President Trump and president xi jinping may want to have some kind of agreement that they can call a deal, but it is not really going to solve the fundamental problems. A are set, in my view, for protracted period of attention, which will be part of the commercial, but will spill over into other things as well. Vonnie i want to bring in Damian Sassower and ask how asset are reacting to this data overnight. You heard when george had to say about how this progresses, a lot of uncertainty. Is this big in . The markets were prepared for it, that is what we saw. If you look deeper into the High Frequency retail sales, ip data, retail sales, everyone says it is a blowout number. Within the data, you find a lot of it may have been inventory rebuilding in auto sales. Auto sales havent fallen off the cliff in the past two years. To see that uptick in retail, it is a high volatile number, so you cannot put that much faith into it. It is hard to put confidence in the china data coming out, but from an export economy to rely consumption and growth, it will take more time than the markets are dissipating. Ofnie how does the Balance Power play out over the five next five or 10 years . Does the u. S. Hold onto power . We have china, one set of negotiations, the u. S. And china, but all of the other countries surrounding china, southeast asia, trying to benefit in the trade war with the u. S. It is interesting. Earlier in the package, you were talking about Companies Moving out of china. There is one thing, which is there are some winners and losers in this. It is not all bleak for everybody. According to surveys done by the American Chamber of commerce in china, also the European Chamber of commerce, and also some private research organizations, that roughly a third afford companies have already made tons or implemented plans move some of their supply chain operations away from china as a direct consequence of their view ar has plantedf w deep roots. Another third of companies surveyed in these inquiries by chief Financial Officers and other Corporate Executives seem to indicate there is quite a lot more coming. Unfortunately, i dont think the United States itself will necessarily be a beneficiary. A lot of these companies are moving operations to mexico or northern asia, where the political stability looks more secure, where infrastructure is high. It doesnt necessarily mean that everyone is bailing out to go to vietnam and cambodia, although some companies are going there. This trade war will have quite a pernicious effect in my view on where companies locate, and clearly, some countries and sectors will be benefiting as a consequence of new flows of f ti. Having said that, the overall impact of the trade war, we can already see this in trade numbers. It is depressing the level of speaking,erally including for many countries in asia. It is not good. What are thee, next tools for china, what will president xi jinping do . One of them was a bunch of layoffs at huawei in the u. S. There will be layoffs here and eventually in china. Jinpingpoint does xi get to his next toolkit, and what is the toolkit . Has runobviously, china out of room to basically hit at any further initiatives the u. S. Administration may take with respect to tariffs. Pretty much all of americas exports to china have already been subject to punitive tariffs. Soon after the Commerce Department in the u. S. Published this entity list of companies that would go on to this list from which u. S. Companies by and large would be banned from selling components if it was a threat to national security, the chinese published said they would announce their own ,ersion, their own Entity List Companies that were harming Chinese National interest. Is, ifger i think really the situation cannot be stabilized between president jinping, president xi companies will be drawn into this, not just u. S. And chinese companies. Vonnie thank you so much, george a. Magnus. Also thank you to Damian Sassower. This is bloomberg. Mark im Mark Crumpton with bloomberg first word news. Hisident trump is defending weekend tweets about four democratic congresswoman. Speaking today, the president denied his tweets were racist. Fouren he said the democratic congresswoman of color should go back to the broken and crime infested countries they came from. If you are not happy here, you can leave. That is what i say all the time. That is what i said in a tweet which some think is controversial. A lot of people love it, by the way. If you are not happy in the u. S. , if you are complaining all the time, simply, you can leave right now. Come back if you want, dont come back, that is ok, too. Mark all four of the lawmakers that President Trump was addressing on twitter are american citizens and we were born in the u. S. European Union Nations are throwing their diplomatic weight behind the unraveling Iran Nuclear Deal in an effort to keep the pack from collapsing under u. S. Pressure. Eu Foreign Ministers want to get iran to respect the terms of the deal again. That was the focus of their regular monthly meeting today in brussels. We will see how we can together with the Member States and also with the rest of our international partners, preserve the nuclear deal with iran and put in place all the measures so that iran can go back to full compliance, as it has been until a few weeks ago. Are while the eu nations looking to deescalate tensions in the Persian Gulf Region they also blame the Trump Administration for quitting the landmark 2015 nuclear deal last year, and for imposing sanctions and trying to keep european nations from trading with iran. After months of delay, President Trump is expected today to nominate a successor to jim mattis as secretary of defense. Italy mark esper, who has been serving as acting secretary since june. Patrick shanahan abruptly quit after serving as the acting surgery for six months. The World Health Organization is meeting in geneva today to decide whether the c