We remain comfortable. The valuation between the disconnect between the u. S. And europe is actually growing. We are in more of a political crisis than americans feel. The brightest minds in business drive the conversation in sun valley. We should get over the notion of the politics of repeal, and onto the notion of fixing the aca. For the industry, there is a lot of Energy Around making Net Neutrality work. It is all straight ahead on bloomberg best. Nejra hello and welcome. I am nejra cehic. This is bloomberg best. Your weekly review of the most important business news, analysis, and interviews. Lets start with a look at the top headlines. On monday, the spotlight fell on Economic Data from china. Supplies gains holding up in june. Signaling demand in the economy there could remain robust in the face of regulatory curbs. Steady as she goes. It is a positive headline. When you look at that ppi, it suggests factory profits are heading in the right direction. As long as ppi stays positive, that is not a bad thing. Servicing debt is such an issue for china. But at the same time, we are a long way from the peak in february when we were 7. 8 . We are not seeing any correlation with the ppi story and consumer prices, which remain tepid. Overall, it is maybe a oneoff restocking of inventories by companies, which is what skewed that number. The overall theme remains ppi is probably headed downwards for the rest of the year. Nejra russia wanted to aid the trump campaign. It is official. The latest reporting is that donald trump jr. Was told in an email that he would receive damaging information about Hillary Clinton at a meeting with the kremlin connected lawyer from russia. The email says the russian government was trying to help his fathers election bid. Is it obvious that any kind of crime has been committed here . Not yet. I am sure everybody, including us in the news bureau, are trying to figure out what the Legal Definition of collusion is. There are election law issues. Youre not allowed to take anything of value from a foreign government. Regardless, it is not good for mr. Trumps son. I spoke with the source close to donald trump jr. Who said they wanted to get this information out as quickly as possible, all in one swipe so to speak. They feel they did not do anything legally wrong. The attorney statement suggests as much. There is no question that this is bad. Politics really could cloud any progress on a host of policy issues republicans want to move forward ahead on like health care. Mitch mcconnell has announced moments ago that the senate will delay the start of the august recess by two weeks. In his statement, he said after the senate finishes its work on health care they can turn to the National Defense authorization act, and a series of nominations from President Trump that mcconnell said democrats have been obstructing. It is a significant response to the pressure he was feeling from members of his own party, saying we have not gotten nearly enough done to go home to our constituents. Janet yellens semiannual testimony before congress, anchor janet yellen has her able testimony before congress, saying they should continue to expand over the next few years ramy she continues to monitor few years. She continues to monitor inflation closely. Want to achieve our 2 inflation target, and it is not a subject of discussion. You have a lot of members of the House Financial Services committee eager to see the multitrillion dollar better multitrillion dollar balance , to bee cleaned up investing in some of these other assets. From that standpoint, a lot of good news. The markets dont care. They seem to be incredibly optimistic. I think so, too. I think overall there is a tendency and markets tendency in markets, there is kind of a fall back there. We probably are more comfortable with higher rates than we ever have been. It is probably more of an evolution. Anchor Senate Republicans have released an updated draft of the health care bill. For the most part, we knew what was going to be in here. What are the compromises that werent in the original . Theres 70 billion to stabilize the insurance markets. Thats in addition to the 112 billion that was already in the original version. Also it would keep in place the taxes from the Affordable Care act. Theres also a smith can increase for opioid addiction spending. More broadly speaking, we were talking for weeks about whether or not be majority leader was going to try and peel off some centrists from democrats. No democrats are going to support this. Anchor rand paul has come out against the bill, and senator Susan Collins has indicated she will not vote for it. The you expected me to be open on the bill, and you expect the vote next week . Thats an excellent question. We cant lose any others. We will have to have 50 and wait and see. Anchor jpmorgan, citigroup, and wells fargo kicking off earnings season for u. S. Banks. Investors are getting a sense of how wall street fared in the corner with sluggish markets and weak loan growth. I think the big thing people focus on his trading. That tendency that tends to be were get the biggest surprises. We had lower expectations approximately a month ago. Jpmorgan basically coming and about in line with those lowered expectations. Citigroup actually coming in better. Theyre fixed income is much more important for their equities business. Jamie dimon has come back from a busy trip overseas. Hes got something on his mind. We have money the most bureaucratic, confusing, litigious societies on the planet. It is almost an embarrassment being an american citizen around the world and listening to the stupid [beep] we have to deal with in this country. We have to get our act together. Jamie dimon is consistent in calling for tax reform and how he thinks that can benefit the economy. We have been hearing this from him generally consistently. He is perhaps exceeding expectations with his enthusiasm on the subject and his sort of passionate plea for action to be done. Anchor still to come as we review the reek review the week, the leader of frances central bank offers a view into the policies. Plus, conversations from sun valley on u. S. Health care reform and other hot topics. Up next, more of the weeks top business headlines. Another opec nation may be ready to follow saudi arabia and sell shares in its stateowned oil business. This comes as many golf own economies and Energy Companies are reconsidering their strategies in the face of lower oil prices. Anchor this is bloomberg. Anchor lets continue our global to her our global tour of the business stories of the week. Late yesterday we learned President Donald Trump is going to be nominated the senior treasurer official in the george w. Bush administration to be the Federal Reserve chief banking regulator. He would be expected to play a pivotal role in carrying out President Trumps pledge to ease regulatory constraints that we put on banks after the 2008 title crisis. This is a big move 2008 financial crisis. This is a big move. What will this do to banks . This should mean less regulation for banks, and perhaps a little more profit. The question is, how much can he get done on his own . A lot of doddfrank is written into the legislation and federally supervises the biggest banks. He have to get big changes through the fed board of governors and working with the comptroller of the currency and the fdic to try and standardized regulations across the industry. But it would probably do things like have the volcker rule lightened up. He doesnt want to see banks broken up, and doesnt like the Resolution Authority that they have put in place to wind down banks if they are failing. He thinks capital standards are too high. He says that causes banks to raise Interest Rates to increase profits. He does think there are some good things about doddfrank mustve is not going to take a meet ask to everything a meat axe to everything. One thing would be to light up on stress test regulation. I would. These apple dobby abu dhabis stateowned oil company this is hot on the heels of saudi aramcos plan. Is thatdifference here adnoc says it does not intend to sell a slice of the entire company. Instead it is going to sell some minority stakes in its services business. This is still a big deal for a company that for many years was basically synonymous with the abu dhabi government and ruling elite. It comes as many gulf economies and Energy Companies are trying to reconsider their strategies in the face of lower oil prices. Saudi arabia isnt the only one. Neither is abu dhabi. We have also seen oman saying it is intending to sell some shares in downstream energy assets, and some kuwaiti countries as well. Ever country abercrombie investorsing hopes of trying to rescue this retailer. It has a brand that is tarnished at this point. Part of the reason this deal didnt happen is if you take a look at the revenue and the net income of this company, over the past few years it is a pretty stark downturn. The estimates are perhaps even worse on both ends. You come into this and say, all right, well, abercrombie needs a new strategy. Thats what part of the idea was here, lets try to talk to American Eagle or kick does company private. Throughabercrombie went the process of this and probably found from the buyer perspective that there just wasnt anyone there is a public company. Have told authorities telcos to stop the use of vpns. That is an attempt to plug loopholes in the several great firewall of china the socalled great firewall of china. What are they trying to do . Virtual private networks are a form of technology that peoples, businesses, universities used to tunnel through the great firewall and access sites that are blocked outside china, from the new york times, google, facebook, instagram. In the past government has taken a rather ad hoc approach to targeting individual vpns for shutdown. The new move which is supposed next into effect by february with a much more copperheads of an aggressive approach by asking chinas major stated major stateowned next telecoms to block traffic that appears to be vpns. Virtually everyone in china gets onto the internet through one of these telecoms. Anchor saudi arabia says the antiterror pact signed between qatar and the u. S. Is not enough to end the diplomatic isolation. They say qatar is violating the 2013 riyadh agreement which was kept secret until it was leaked to the media on tuesday. The handwritten document barred qatar and other gulf nations from supporting opposition and terror groups. They say accusations that it is violating the agreement are false. Idea from the United States is there going to go to kuwait, get some ideas. They signed a deal and this memorandum of understanding around Terrorism Financing would possibly unlocks doors when they go sit down with the saudi led block later on. As you go into thursday now, the response we got speaks to a picture that is insufficient from the qatari side, underscoring that more needs to be done and thrown the prospect of an immediate resolution for the moment into cold water. We are continuing to see spending power of the u. K. Unemploymentte falling to a fouryear low. Well behind the rate of inflation last month, inflation up 2. 9 year on year. These figures underscore the dilemma that split the bank of england other whether or not over whether or not to raise Interest Rates. They said are not ready to vote for higher rates even though they see the pressure building up to do so. Hes is there is reason to see the committee moving in the direction, but lots of in ponder of things making the decision at the tricky at the moment. To my mind, Ben Broadbent is right. Banking to before looking. Is rise in inflation actually squeezing real wages, slowing the economy down. That means as long as Wage Inflation doesnt pick up, the bank of england will be hitting the target going forward. I think the bank of england recognizes domestic inflation remains relatively high, that global inflation is not within its control. It is fiscal policy and encouraging investment that now needs to be the real focus. Amazon isnt revealing exact figures, but analysts at jpmorgan estimate that their 30 hour sale generated about 1 billion in revenue. Is the biggest day in sales theyve ever had. They did about 1 billion in revenue in about and about 2. 5 million in gross revenue, which is a pretty fast growth for them for the Small Businesses selling on friday. On prime day. The added most numbers in a single day in the history of a company. For us, prime is the biggest driver of their Retail Business growth over the longterm. The market reacted positively to this news. Is that because they now dont expect him to run in 2018 . Yes, exactly. Thats a very good point. We are talking about someone with a very Strong Political influence in brazil. Mightdication that lula not be able to run for president next year is a good indication for the markets because lula is not someone that is against all of the reforms that are being and limited now in brazil, including the Pension System reform that was voted this week. The markets have given a clear message here. Any bad news for lula is good news for investors. Socalled repeal bill is aimed at transferring eu laws onto the british statute look with the brexit takes place in march 2019. The draft would handy government two years to alter u. K. Law three fasttrack process. Through a fasttrack process. It could turn into a vote of confidence on the government. Allgot remember, they actively what brexit in their manifestoes, but they want different forms of brexit. Certainly for jeremy corbyn, the you can draw torilla member you can draw tory members over to push legislation through. Anchor welcome back to bloomberg west bloomberg best. When and how will the ecb changes stimulus settings . Theuncil discussed direction of european Monetary Policy in an exclusive interview with bloomberg television. He speaks our target is midterm inflation self sustained to one or 2 . What we have to do and what we started to do is to adapt the intensity of this Monetary Policy to the progress towards andinflation target economic recovery in europe. If you are what we did last from 80 towe reduced agowe announced one month that we wouldnt reduce further Interest Rates. In the future and this will be our decision next fall we will go on adapting the intensity of this accommodative Monetary Policy. Reporter do you think that it should move quicker with mark quicker . Do you think the markets are expecting it to move more quickly . Guest i think we have been extremely clear about the project ability of a the predictability of our monetary strategy. Last december we announced our Monetary Policy for the year. We will see what happens after that. We will clarify next fall, no impatience please. I say this especially to the financial markets. Being independent from political pressures, but also for such market impatience. Reporter are you also waiting for the political . The governing council is waiting. Have greater risks involved for this year . Guest this is an important characteristic of the european situation. If you are never what was said 27 hear ago after brexit, was supposed to be a dangerous 2017 the eurozone was supposed to be a dangerous year for the eurozone, which much turmoil. We have seen the opposite. Our trade is solid because it is domestic trade. Our policies are at risk, but more at a global level outside the eurozone. Brexit negotiation is a real challenge. There are uncertainties about the new american policies. What we have to do, an important state of the g20 summit happening as we speak, is to go on with policy with International Rules on financial regulation. These are the best solutions for global growth, and also the best solution against inequalities. Anchor coming up, we will get a exclusivee fed in an conversation with the dallas Federal Reserve president. Plus, u. S. Energy policy makes a green Energy Advocates see red. Investors from around the globe link perspective of the markets. A heavy header says he sees no sign that credit is contracting. Guest when you take a look at the levels of activity, it really does not show it subsiding anytime soon. Anchor this is bloomberg. These days families want to be connected 24 7. Thats why at comcast were continuing to make our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. We talked to switzerland on reignite on reuniting the country. That the outcome maybe people were hopeful of at beginning of the process. Have you built in any expectations that we would see some sort of reunification . Guest none at all. It is regrettable. Results. To deliver obviously it takes two to tango. We still have to see tangible , which are must worse. Anchor that was the finance minister of cyprus speaking exclusively with bloomberg. Lets revisit more of the weeks top interviews, starting with billionaire investor and Clean Energy Advocate tom steyer. He has criticized the Trump AdministrationEnergy Policies and its decision to pull out of the paris climate accord, leading to speculation he might be preparing to run for political office. The polling says that americans oft that every stripe across