The president has created an uncertainty for outside the norm. Sleptons have been on my North Koreans and foreign entities including a stateowned Foreign Trade bank in addition to the ones only sanctions list. Recent travel they have an asset freezes were added to the north bring itctions list to in line with the Security Council resolution. The resolution was announced last week in response to response toe yongyangs ongoing threats. The gulf coast was hit last night. The argument has downgraded the storm to a tropical depression. Franklin became the first hurricane of the atlantic season on wednesday and hidden are north hit north of the city. There were no reports of deaths. Mexican Authorities Say there was less damage than feared. Global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Crumpton. This is bloomberg. Julia live from bloomberg World Headquarters in new york, i am julia chatterley. Scarlet and im scarlet fu. We are 30 minutes from the close of trading in the u. S. Julia plumber no more. Scarlet the question is whatd you miss . The state of has not markets out of their august older. Doldrum. The makers of the disappearing photo app could disappear. Tesla on a roadshow for its inaugural week, but investors may want to take a look under the hood. Exploding tensions on the Korean Peninsula have not markets out of the august doldrums. Indexoe volatility surging as American Allies warn north korea against firing missiles. Safe havenought assets. The question is where do we go from here . Show. To have you on the i love the line, everyone is expecting a correction. Do you believe that . Guest yeah. Here we are. We see a lot of action. I cannot believe you are sitting history, andmark a saying the vix is twice the 15th or the julia i qualify that normally. Note of a distributed everyone has been successful, selling it for the better part of a yearandahalf or if something works, you keep pressing the button. All of a sudden, what is going on today is not as much about korea or fundamentals to earnings, a lot of what is going hoh, ieople saying, u was having a good year, and i want to continue having a good year, and they are getting nervous about the position. Scarlet water saying it is too frothy right now, i am going to get out. Use lobby weaklings despite the overall you spot the weak links despite the overall probability. It is interesting compared to the s p 500. It is all sorts of index providers that put it in the bucket, and we look at them and say hey, lessee february. Quantitative investors and other investors would call it quality, high quality cash flow, very good extending capital, these are the stocks that until recently have been making highs. Along the way, four times this year ive counted today, it came back and they came back and they came back, and we are on the fourth time now. The question is what would happen here . This has been a crazy week. It could get crazier. The next thing you know, we will hear from pyongyang that, hey, guamlan to send it nuke to is ready, and President Trump will say, oh yeah . And we will have a schoolyard rhetoric. Julia and then what . Guest the short volatility, the dam breaks, and i was a 2420 on the s p 500 futures, we get to the point where people say we are short puts here, just to put it in laymans terms, and the downwardt it is a spiral. From donaldard trump today a doubling down on the rhetoric. He and kim jongun are similar in their levels of rhetoric at least. Michael interesting that that is what we are dealing with. I say roll with it. Somebody in the leadership of these two countries understand the Nuclear Destruction i i foundf voting myself quoting a harvard economist, thomas shelley, the other day, a nuclear cold war, and that is what is happening. Metal miners, that trade has gone well, but no one likes it. That has worked out well. Scarlet they are also long retail. Michael yes, and this is a cautionary tale. Everyone hates something, i want to look at it. Everyone has said the dollar is going to hell, it will never go up against some of the euro is so intuitively, everyone is leaving one day. To start going, and guess what, purchasing power, by the way, everyone senses the next a short, well, not quite yet is at all. That being said, you have stocks by calls and macys today, and my advice is to keep your feet moving like we say at right now. Julia is it hedged . Is the recently edge . The retail a edge . Hedge . Michael i would not say it that way. We heard from target a few weeks ago about how backtoschool is looking better than they thought. The dollar is beaten up, it gets a ride. Julia the time horizon on that that you are willing to set on it and wait for what happens. Michael if they does not working, you throw it out and try something else. The righthanded pitcher is not working, you call the bullpen and get the lefty in, and that is how you have to do it. Arm,e righty has a dead that is when someone says i believe in this guys arm, lets go by the stock. Julia the highyield, what song does it make you want to say . I was listening to led zeppelin, and this morning, hey man, take me to the gallows pole. Oh. Highyield index, the vigilante about the russell 2000, juliette will you come of the joke i made earlier about the russell 2000, julia, the russell is breaking down your highyield is a little more serious. If Everything Else holds up, i am willing to say hey, look, if anything, again, eventually, we are in harry science here. I am not saying stick your neck in or anything, but we could see new highs in the s p 500 in the next week. Scarlet at 4 00 p. M. When there is an awe will be all over it new high, we will be all over it. A look at program numbers. Does it matter to investors . It should. Today is not matter to an investor. Time to be talking the time to be talking about gold was a couple of weeks ago. For l, when it is left dead, that is when you tell investors this is where your opportunity is. In a couple of weeks, i was a you know what, if you are a longterm investor maybe it is your time to take your profits and financials. The toughest Bank Investors will tell us wells fargo will go for the next 40 years. I will say good for you. What are we even talking . They like talking to me. I am a pleasure to be with, i will have you know. He pointed, a longterm investor should be watching for opportunities like what could come later. We get more rhetoric overnight, volatility traits blowup in frankly, weaces, get the s p below 2400, and that is where we start saying where are the stoxx, can i stand firm here and say this is where i buy more of the . Tech stocks . That is what they need to be watching for. Opportunity. Michael block, chief strategist at Rhino Trading partners, thank you so much. Julia uber is going to remove former chief executive officer Travis Kalanick and his allies off the board. A lawsuit was filed today. The first calls employee, brian graves, is also stepping down. He has been the focus on his directorship. If he passes, what will be lost to say . We will keep you abreast of any headlines on uber there. From new york, this is bloomberg. Julia whatd you miss . I went to give you a the markets. With the equities weaken. The nasdaq now down to present. The 2 . The s p 500 now off by 1. 3 . Scarlet the nasdaq 216 decline 2. 6 decline is the most since may of 2015. August, so the particulars as we head into the close here, lets look at the the classictoo, safe haven assets, the dollar lower by. 8 . Sending mixed messages over concerns about the supply from opec as well. Coming on board to and increasing exten. Now 49 a barrel. We will keep you abreast of what were seeing in the market. Scarlet leaving to makers will be reporting earnings, and we see shares of nvidia down. Lets bring in Abigail Doolittle to talk a little bit about what is happening here. I guess the context is it has been going gangbusters for a while. Abigail you are right about that. The stock is at session lows right now. More that youoff guys just outlined relative to the writer. Rudder. They are pretty optimistic. It represents 51 and 38 percent yearoveryear growth respectively during good growth, but expectations. Sachs have been beating, but they also say the lack is priced in, and i could be why the stock is fluctuating. Scarlet when you look at the revenue contribution, gaining is a big part of it. When you look at gaming consoles, we know how that is going, but there is contribution from the data centers as well as central currencies. Abigail youre right about that, scarlet. Gaming has been a huge part of it, 68 of overall revenue, and ative, about 7 on those autos. That has been a surprise over the last few quarters, helping for then some big beats company, and now it is critical that the company is still into gaming. A Bloomberg Intelligence analyst with a all the focus is on data centers and whether or not gaming can perform as well as it has been is critical. Ift point, it happened we hopped into the bloomberg and take a look at this great chart this is just how much they have been beating relative to etfs over the last several quarters by 25 . This is a huge amount. 8 on revenue. Here we see the day after up about 13 . The stock really reacting quite favorably. Look at this down your. If they do for some reason, they do not surprised that site on gaining some of who knows, maybe we have another downside surprise. Options say it could move on the report. ,ulia the point you just said if they do keep the point on the gaming, do you think that is performance relative to bitcoin over the last few years . That is eyeopening. Abigail it really is oh. There is not a study on what is driving that point, but some investors want to know the outcome currencies. If we call back into the bloomberg and take a look at another chart, actually, maybe i can pull it up here, g btv 6236. This is what you are talking about, julia, and white, nvidia. In blue, we have been quite death we have bitcoin up we have bitcoin up about 500 . It is a bit arbitrary. What happens. We now have a point of 260 on year, nvidia of 55 . But they really do have to put of the high bar that everyone is looking for. Scarlet expectations present to the stock. Abigail doolittle, thank you so much. Removeuber is suing to former chief executive Travis Kalanick and his allies off the companys board. He is accused of fraud in a lawsuit filed today. Gregill bring in great stohr. When we are talking a lot of those of his on the board involved in this, what are we talking about . Of the mosts one unusual lawsuits ive seen in my time covering silicon valley. Suing the former ceo to get him off the board. Nominally, this is about three board seats. Occupied,vis kalanick to are still open, actually. Benchmark is saying they never would have given Travis Kalanick these extra or the second 2006 if they had known everything that has subsequently emerged. Really, you can take a step back and say this is a battle for control over uber. There is a ceo process ongoing. The board is unclear about what kind of ceo they should hire. Travis kalanick and his allies wanted to take a long as you and benchmark investors. Julia talk to me about the ownership here because my understanding is travis owns 10 of the outstanding shares. A smaller proportion has been benchmarked. If they succeed in kicking off the board, what happens to the Share Ownership . Brad it was not affected Share Ownership, but the numbers are in the lawsuit. These are ubers two biggest investors, both with sizable stakes and voting blocs, who interests are basically online anymore. A lot of the evidence of their interests are misaligned. Benchmark led the effort to out Travis Kalanick as ceo in now wants him off the board. There is similar stakes of stock, and part of the story of the last six months is the story of the benchmarkTravis Kalanick relationship souring. Julia we will continue to watch this, brad, great to have you want. Breast dont brad stone. Scarlet the president is speaking right now in new jersey, at the summer white house. Manafort,garding paul who was his former campaign manager, that he found him to be a decent man. He commented as well in his relationship with attorney general jeff sessions, and he made remarks on north korea, saying that he is not getting away with it, referring to kim jongun, and i feel economy would like to have the rise denuclearize the world. This is bloomberg. The scarlet moments ago, President Trump made some comments from bedminster, new jersey, saying he will not get away with it, referring to kim jongun of course, and saying the arsenal isnt it option, and until demilitarization happens, the u. S. Will be the strongest by far. He also referred to iran, saying he does not think iran is in compliance with the spirit of the nuclear deal. Marks on the compliance after the u. S. Government had certified it. In sahilts bring kapur will. He is a again, he is not getting on with it, s getting away with it, so he is continuing the rhetoric. Thread thatriginal north korea would face the fire and fury of the United States, unlike having the world had sinceeen before, and tha then, his administratin officials, including secretary of state and james mattis, say they should not be worried, and mattis had changed the parameters of the president s comments, saying they would respond to actions from north korea, not to rhetoric from the leader of north korea. There are a couple of different tones and messages coming out of the Trump Administration with regard to the Nuclear Armed country. Scarlet there are quickly on iran, no matter what the insident said, he was never favor of the nuclear deal of the Obama Administration have made with the country. Sahil that is true. He campaigned pretty vigorously against it. Is arguing against it was less archaeological. Ideological. He said he did make a better deal. He was not specific about what the better deal would look like. Within the administration, as to whether there are people who have warned that walking away with it would not do anything big, and moving closer to the path of a nuclear weapon, it is a very difficult position. Politically, he didnt say one thing, but as we have seen, it is not quite as simple as a campaign promise. Scarlet some notable sahil kapur joining us from washington, thank you. Looking at losses from u. S. Equities, the nasdaq down, off more than 2 , the dow down more than 190 points. Whatd you miss . Ended with a on lows, with tensions over the caribbean as low knocking the market out of it still Korean Peninsula knocking the market out of its doldrums. Im julie chatterley. Scarlet and scarlet fu. Joe weisenthal has off for the week. We want to give you a look at how markets have ended the day. Juliet mentioned that the geopolitical tensions are knocking the markets out of the doldrums. Losses,e fairly steep and for the dow, this is a daydata client 3 decline. It feels like it has been long er. The yen has been strong, rmer against all the major currencies. Any temper is the asset seems to be set any type of risky asset. It is still at low levels. Julia what it is up some 43 . We have been watching headlines coming from President Donald Trump today actually continuing his fiery language as far as north korea is concerned. He says he would like to see the world can you could their lives, but until that takes place from world to nuclear nuclearized, but until that takes place he wants the u. S. To be strongest. He is trolling Mitch Mcconnell via twitter and says that he is very disappointed in mitch. Were still waiting for snap crossfitto james comey has a rating james currently has a rating on snap. Talk to us a little bit about the company as a whole. You used to work in the tech sector. You headed up several technology companies. Our assessment of snap looks at a pretty holistic view. Put uprics you just explain the longerterm and shorterterm perspective of the company. I happen to think it is an exciting company. It has a unique product, there is a lot of usage on a daily basis. But how they are going to make money over the longterm is really a challenge, and i think they are in a position where they are trying to figure out what they want to be when they grow up. If you think about the company when it was a socialmedia company, before it ipod, and then they cast themselves as a camera company, and now as a video content company. They are going through some changes and they need to figure out what they want to be. Scarlet they are evolving. Should they have waited to go public . James they absolutely should have waited. Over the next two to three years, they have intense challenges being able to survive as a company. The Financial Health rating means they have a fair amount of liquidity. What they do with the money, r they can whethe catch it up and raise that, that is the challenge they have at the moment. Something pretty challenging is going to happen for them. Julia all the exciting things theyre doing, facebook and do it and they can do it better. They have more users. I kind of wonder at the point is what the point is of signing up for snap. James youre right. It is not a defendable business model. They are the first mover in their take on it. But they are being copied and copied quickly and in a way they are not able to defend against. 90 of companies that have failed we have rated at 40 and below, and this is a company that has a core health of 16. They lose the shortterm resilience. The comment has a long way to go before it is sustainable on an organic basis. Scarlet snape does not look great when you compare it to a company like facebook. What about a company like twitter, where the user growth has stalled out . James i now twitter has a slightly higher Financial Health rating. The shorterterm oneyour perspective is stronger for twitter. Is 17. Tters core health they look similar in a lot of metrics. Julia what do we need to see from snap . They are managing to add users can even if the growth is not what we