Doolittle. We are building right now . We had a pullback, then a little bit of a rally. Really building on small gains from friday. The nasdaq all sharply higher. Of the for the best day week in months in some cases. S p 500 on pace for the best day since april. A rebound from the selloff last week that was induced by geopolitical tensions. Investors are looking past that. This is par for the course of intellectual partners, suggesting that five days after a big selloff tends to bring a pretty decent rally. This is the imap map in the s p 500, a way to get a quick look at what is happening sectorwise. All sectors are trading higher. Up top we have tech and financials sharing the top spot. Real estate and financials both of their considering the yields rising are helping the Financial Sector you would think that that would hurt real estate. Not today. Tech is being helped by all of the big names. Asrgy had been flipping red oil is down 2 among concerns around chinas refining activity. One stock spiking sharply higher, this is the yogurt, milk, and so a company targeted by an activist investor as an undervalued company. It is building a 400 million we see the shares spiking coming off the highs a little. Still high, nonetheless. Up 20 . Is look how much it is up. More than 7,000,000 since it came into inception in 2010. Notys game to 20 it is entirely clear whats behind this. A Technical Analyst at Goldman Sachs said that bitcoin exceeded her target suggesting it could go to 5,000. The hot commodities of the day, yogurt and bitcoin. President trump i can washington for a brief visit at the white house after meeting with attorney general sessions and Christopher Wray about violent clashes in virginia. President trump condemned the hate groups involved in the violence. Trump braces and isevi racism is evil. Hate groups repugnant to everything hate groups are repugnant to everything we hold dear as americans. Julie the initial response criticism and caused fraser to resign from the council. He said american leaders must honor our values by rejecting hatred, bigotry, and group supremacy. Lets get to the senior white house correspondent. Ken fraizer is sticking with his decision even after the president s remarks. This president rarely responds to schism. R he said he did not do the wrong thing by not responding sooner, but seemed to address concerns. Are they going to be satisfied . Evil said that racism is and called out some of the elements that republicans, business executives, liberal activists, and americans interests has been calling for. The question is twofold. Politically, how much damage has been done to President Trump and his distance from the Republican Party, and will it be the beginning of a healing process for the country . We have a couple of weeks left and more protests are possible and expected. Was he able to stanch this so we performance repeat in another need for him to say the same . Wo areas we will be looking at one, republican lawmakers around the country, will what the president said bring them back together, or will there be backlash . On the business front, are the standalone,stance or will others follow . Julie he did not necessarily condone the president s initial response but is staying put. , reflect on how President Trump gave his statement. A lot of not adlibbing. He was reading from a teleprompter. Margaret there was one crucial decision. The president s decision was to have comments about charlottesville, which is what everyone believed he was gathered therefore was an introduction about the positive performance of his presidency so far in the area of the economy. Goal. S a strategic the new white house chief of staff and the president , highlighting positive accomplishments of the administration. It was an interesting choice given the fragile, you motional atmosphere and expectations andemotional atmosphere expectations surrounding his remarks. He talked about the economy, then charlottesville. He named t, basic groups, but did not describe his own thinking over the last couple of days and any reason about that might have informed americans why he may have been cautious in laying blame or signaling individual groups. Where is the president situated in terms of his ability to move forward and get legislative agenda and goals accomplished . Garneredeems to have criticism from within his own party as well as Corporate America . Were not racial issues front and Center Heading into the august recess. The president or the administration, they dont particularly want that to be the focus when there is so much to do on the policy front. Health care stalled, a real disappointment to republican leadership. They now have essential tax reform, or tax cuts, tackling the debt ceiling, budget issues that is paramount when they come back. Politically, one question is if has cleaved a rift between republicans and the president to her vulnerable mid term considering a political challenge, or if you did enough to bring them back together on foreign policy. Obviously, there is going to be a busy september for the president and republicans. A vast majority of economists believe President Trump and republicans will push through tax cuts in time for next years congressional elections. Or the latest, lets bring in our National Political reporter in washington. The caveat we should add is while the majority of economists surveyed expect the president to push through the tax cut, the effect on the economy will be limited. We dont know what the effect on the economy will be because you cant measure one economy in isolation. If the fed changes interest rates, or if there is some kind of recession, these projections go out the window. We talk about lowering individual and corporate rates in getting rid of loopholes that benefit the few, there is Economic Growth factors to be considered. This is something republicans will be prioritizing. The moment they get all of the things out of the way in september, it will be extremely saa trying to keep the authorized, extending the Health Insurance program, and somehow they have to raise the debt ceiling, too. Meant the effect on the economy will be limited, part of it is because they do not think the tax cuts will be permanent. It will be temporary because they have to offset the cost. Correct it is too early, from my conversations with republican aides, including the white house, to know what the tax bill will look like. All they agree on is they want to get rid of loopholes. There is a debate within the Republican Party if these tax cuts will or should be permanent. Some say lets forget about permanents. Lets do a tax cut, even if it adds to deficit, that will give us the most amount of growth. If you try to offset it, you wont get near the growthproducing engine that they want. There is a lot to be done. Public ends to spend the month of august executing tax reforms, making the case for it. Instead, we have had one controversy after the other. Mitch mcconnell, a Nuclear Standoff with north korea, and now failing to unequivocably condemn why supremacists a few hours ago. National political reporter for bloomberg news, thank you. Lets check in with mark crumpton. The president ur, is expected to sign an executive order asking his trade office to consider an investigation into china for the alleged theft of American Technology and intellectual property. The United States accused china of violating rules on intellectual property, while beijing has promised to open more industry to foreign companies. There are new rules of electric carmaking. L general joseph dumb for on reassured president mo priorityh korea is the that echoes comments from other officials trying to attempt down fears of a nuclear war. Speaker ryan is planning to hold a town hall next week that is the first open to the public in nearly two hours. Both sides of the aisle have criticized the speaker for not holding a public town hall since october 2015. He has had invite only business meetings in his district and over the phone. The event in racine, wisconsin is being organized by cnn. In venezuela, president maduro is planning to defend itself against the madness of President Trump. In the meantime the president of colombia told Vice President pence the u. S. Must not think of using force in venezuela. News, 24 hours a day, powered by 2700 journalists and i amsts in 120 countries, mark crumpton, this is bloomberg. Chinapping up pressure on over trade even as they step up on north korea. What the president is looking to do. This is bloomberg. Julie this is Bloomberg Markets. Im julie hyman. Scarlet i am scarlet fu. Herbalife, helping sharply. S falling the headline just crossed on the bloomberg that it is on circulation of china probes. China looking into these companies according to this. You can see them all down sharply. There have been various investigations of these companies in the United States as well that havent turned up anything, but stocks are reacting. Scarlet the average volume for in volumeows the pop and where it will be at the end of the da the yellow line is the average volumey. For the day. Clearly were getting more action than we normally see. China has been caught up in the middle of a war of words between kim jongun and President Trump. China urging calm while backing military to warn off strikes. The author of Nuclear Showdown in the coming collapse of china spoke about chinas key role. Everyone is concerned about chinas longterm enforcement of human resolutions. Resolutions. China announced they would not by north korean coal, but the februaryought coal in after the announcement in april, may, june, and now they are fromg north korean coal third countries. In the past, they have enforced sanctions immediately after diffuset, then when our intensive, they go back to their old way, besting the sanctions. To redo something that the secretary of state and secretary of defense wrote in the washington journal. The object is the denuclearization of the korean peninsula. They have no interest in regime change or reunification. They also say absent china using its influence to show the world how a great power should act in resolving problems, other in the region are obliged to have prudent defensive measures to protect their people. Is this the run japan into the next . , the trumped Administration Policy in north korea, lays it out in one place. What they are saying is countries like south korea, japan, maybe even taiwan will get their own new Nuclear Deterrent if china does not rain in north korea. The chinese have not restrain the north koreans. This terminal highaltitude area of defense, this is the antimissile system that has south korea on its soil. China hates that so this is another point of leverage for the United States. Wheres the Tipping Point when china loses patience with north korea . The Tipping Point is that you have the United States imposing costs on china that are so severe that beijing has no choice but to comply. If President Trump were to say to the chinese you can support north korea, do business with the United States, but you cant do both. If the chinese that that we meant it, that would be the Tipping Point. Go from did things there . Would north korea be left with clearize orut to denu not . The most important thing that they supply is confidence to regime leaders that they are safe from the international community. If they support we do not support kim jongun and your weapons program, we will make life difficult for you and that the South Koreans take you over, the regime would change. They would drop their weapons, they might get rid of kim on the, and were be road to a solution. This is something that i think china has the power to do if it wants to. Into theng trade dialogue, if china wants to play a greater role in the geostrategic environment globally, how does it react to the trump from administration on trade . Would notrst said it mean anything. That was a china daily editorial. In a few hours they came out with a new piece saying this would poison relations with the United States. A different, darker tone. I think it will get worse. , authorwas gordon chang of the coming collapse of china. More coming up at 3 00 p. M. In new york. Still ahead, the maker of the angry birds mobile game could go public as early as next month, but are those birds worth 2 billion . This is bloomberg. Company behind angry birds is set to be planning an ipo as early as next month. They value the company around 2 billion. Caroline hyde joins us from london. The obvious question is why go public when newly listed Software Companies have not done particularly well . Caroline they are down about 16 overall if youre looking at the Software Entertainment part of the business, ipos have sunk. In particular one in south korea. You can see it on the top of the listings. They have fallen 16 after initially going public in may. We are questioning valuations. You have seen snap and blue apron every day sinking lower over their initial share price. The performance of late. Performance up 34 . The First Quarter of 2017, revenue almost doubled and earnings are picking up. They have new games doing well. In 2016 they had a film that brought in 350 million. Part of the funds from the used towards another movie. How much to they need to feed the beast and, with new content to keep it going . Inoline angry birds particular. They do seem to be a one trick pony. The franchise is the only one they have got that has been supported. Angry birds 1 did well. They want to be 400 million they could potentially raise to bring out the thumb, but that wouldnt come until 2019. Is what has people potentially excited. A new studio in london to develop franchise is, but you would have to wait a couple of years. When you have the likes of king digital pat was forced out below its own ipo valuation of late, that was brought out last year. They struggled to build on the candy crush saga. They were a one trick pony. It seems many of the mobile , it is a question on if they can keep feeding the beast and keep showing that they can outperform and come up with new ideas. London. Ine hyde from as i recall, i was on the floor the New York Stock Exchange that king digital came public. All of these people dressed up as candy crush characters. There was skepticism and people were making the same discussions that it was a one trick pony. Can you believe it was five years ago that rovio turned down 5 billion for the company . A look at what is behind the Oil Barrel Price drop. This is bloomberg. Bloomberg World Headquarters in manhattan, i am julie hyman. Commodity markets are closing in new york very lets start with oil. Crude falling to the lowest level in three weeks. Down 2. 5 . Under 48 a barrel. It went above 50 briefly last week, but couldnt sustain that level. Gold losing some of its appeal as the risk of a fullblown crisis in north korea dissipates a little. Coffee trading at the lowest amplein a week due to supply. Overall, we have seen softness in the commodities. If you look at the agricultural index it is dropping to the lowest since september of 2008. Sugar is the only gainer in the group. You can see making the round from december of 2008. Scarlet thank you. A busy week for retail. U. S. Retail sales before the bell tomorrow. High Profile Companies will be reporting their Quarterly Results throughout the week,. Ncluding home depot, walmart joining us is our discretionary analyst. Why dont we start with target, which preannounced and gave investors a bit of and idea for the quarter looked like . Theraffic and sales improve first two months of the quarter. They forecasted a lot of the game from a onetime tax benefit. Sales seem to have turned and people are excited about that. The question is at what cost. We will see how markets come out. We are looking at a positive number, not just less bad than expected. Seema so far. Dismal results from the department stores. In many cases, they are selling many of the same categories as our Mass Merchant retailers like walmart and target. Walmart and target seem to be weathering the situation better. Is it because they also have food categories or are they doing better in competing categories like apparel and Home Furnishings . Seema part of it is they have consumables that drive traffic. And walmart has a bit of a different Customer Base dan walmart. That department stores. They are going into home, beauty, fine jewelry in a way to drive that traffic. Scarlet some Mass Merchants to use yourlity navigate online websites and for the consumer to be there more often . Seema and they have the categories that people want. Julie and then they are benefiting from peoples ability to buy apparel at lower price points and jewelry that you are referring to with walmart and target. Brandsthe affinity for with the advent of online and is so much Price Transparency you need to have the private label. That is why target is adding privatelabel in every category. They are able to have something unique to have the customer come in. Scarlet you mentioned online where amazon is being the killer of everything. Yet, you have walmart in particu