The white house and appreciates the unifying words that Heather Heyers mother spoke at her daughters memorial yesterday. Walters did not address the question whether the president planned to visit charlottesville. In beijing, americas top general says war with north korea would be horrific, but the chairman of the joint chiefs of letting north korea and develop the ability to launch a Nuclear Attack on the u. S. Is unimaginable. The general told reporters that President Trump asked the pentagon to develop viable military options. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im Mark Crumpton. This is bloomberg. Scarlet live from bloombergs World Headquarters in new york, im abigail doolittle. Scarlet im scarlet fu. Joe julia is off today. We are 30 minutes from the close of trading in the u. S. U. S. Stocks are trading at session lows. The dow is separate worst day since may. Joe the griffin is, bloomberg miss . You miss . What did you two suspects were arrested. We will bring in the latest. Speculation that gary cohn could resign causing a minor blip in the vix and 10 year treasury. If you are willing that your job is going to be taken over by algorithms, do not miss our interview with a partner of Goldman SachsAsset Management who is leading their strategies. Return to the story of the day, the terror attack in barcelona, where police are reporting 13 people died and more than 50 were injured after a van jumped the sidewalk in barcelonas iconic area slamming into pedestrians. Two suspects have been arrested. Here with the latest to get his perspective on what is going on o. Europe is Frederick Asante good to speak with you. I wonder because we have not gone and indication of any claims of responsibility from the perpetrators whether there could be any link to the catalan. Movement in thailan i would say that is extremely unlikely. The information we have is still patchy. There is no clarity on the motives, but i doubt this is from the separatist movement. Although served as movement has a strong base of support in the capital population, there has been no history of this ever getting violent so i think this would be very surprising. In fact, the type of the attack and the details of the attack based on the information we have suggests that this is very much reminiscent of similar attacks we have seen across europe in recent months and years, all of which are linked in one way or another to the Islamic State. Wi would say this is a working assumption at the moment. Joe we have seen a number of these van attacks across europe. What kind of experience has spain had with these so far, or is this fairly new in spain . Federico yes and no. I would say the attack, the timing of the attack is not overly surprising. Analysts have been expecting Islamic State, if the links were to be confirmed, to rely more on terrorist tactics as it comes more and more under military pressure in its territory in iraq and syria. The location of the attack is more surprising. Spain has a long history of political terrorism, including related to islamic extremism, but this has not been the case in recent years. This is the first instance of a n attack of this type on spanish soil in recent times. My First Impression is this is more to do with spain compared to other countries that have experienced similar attacks does not have a large migrant population. Relatively small number of refugees. A fairly open country when it comes to immigration. Crucially, spain is not playing any kind of active role in the military campaign against the Islamic State itself in syria and iraq. I can only speculate, but i suspect the choice of barcelona as a target may have more to do with its status as a major tourist hub for europeans as a whole. Abigail picking up on joes point that we have been seeing an increasing number of these vehicle attacks, it is almost like an invisible weapon. Within authorities do about this, and to what extent will not be a fight against Civil Liberties . When will people talk about that being necessary . Federico unfortunately as we there is before, not a lot authorities can do to prevent this type of attack in particular, which are quite easy for someone to plan and execute. Extentre to some Counterterrorism Measures can help prevent these. There have been those identified as at risk. It requires a huge amount of resources, especially monetary. The number of people at risk, which is bound to rise as a lot of people return from the middle east, have not been involved there. Not much western governments can do i am afraid. Scarlet thank you so much. Just an update here. We now have were thats what people have died and 80 people are hospitalized tha 1t 12 people have died and 80 people are hospitalized. Isis has taken responsibility for the barcelona attack, according to an Islamic State sponsored news agency. Islamic state has been responsibility for the attack in barcelona. Coming up, we will speak with our guest about the equity markets and if bears have a reason to expect a correction this year. This is bloomberg. Whatd you miss . Bob corker just became the first senior republican to question President Trumps confidence in a facebook post. Here with more details is our guest from washington. Joe thanks for joining us. We have seen republicans from time to time offer criticism of the president over various things. How do senator corkers statement differ from things in the past . First of all, senator booker has been a strong supporter of the president. He was a potential secretary of state pick. He was a potential Vice President ial candidate. These are words from infertility who has been an advisor and supporter of the president. Also, the content of the remarks themselves, this idea that the president has not displayed the confidence, he does not understand the character of the nation, these comments are divisive. Always looking to see whether republicans will go the extra step against the president , and this is maybe the first time we have seen someone say that he may not be examining these skills a president needs. Cans senator corker, reconsider him almost to be the first domino to fall when we think back to the Manufacturing Council and the Advisory Council many months ago . Elon musk resigned as did a few other ceos. More recently of course, test tim frazier was the first to resign after the tragedy in virginia. Can we see senator bob corker the first to start speaking up against the president on the gop . Arit i think we have to see what he says in the coming days. In may after the president revealed confidential information to russians in the oval office, corker said the white house was in a downward spiral. A couple days later or even the said that is something i would say to the administration, the president himself. It is not clear whether this is senator corker working away, or him saying, mr. President , this is not how you run a country. This is not how you display confidence, give confidence to americans. This is not how you show your competent and prepared for this job. Can you tell us a little more about bob corker, the senator. Who are his allies . I ask because we have already seen Lindsey Graham, the senator from South Carolina, and john mccain, the senator from arizona, come under fire from the president for very specific reasons, but now that bob corker has taken the extra steps to criticize the president , i wonder if there are any natural allies we should be looking to two perhaps followup or push back against. Arit i think that senator corker is an ally of all the republicans. We saw him in the videos you posted saying senator jeff flake, who has been a strong critic of the president , is a great person. Senator corker will look out for his hello senate republicans, especially if they are being attacked by the president. This idea that a sitting republican president would go after other sitting republican senators and say, i am glad he has a primary challenge, i hope other people run against him, that is something i do not think senator corker is also interested in. No comment yet from the president following what corker did, is there . Arit right. He went after jeff flake. He went after Lindsey Graham. It will be interesting to see if this is president if President Trump sees this as bob set some good things and bad things about me, or if he says this is a step too far. Thank you so much. Thank you for bringing us some perspective on this developing story. We will continue to monitor what happens next. As for equities, whatd you miss . Stocks are selling opposition those. We want to bring in the chief investment emo. Tegist list from b give us perspective about me declines we are seeing today because we have not seen sizable moves in u. S. Equities of late. If you look at the chart, they have been steadily drifting lower this afternoon. For all intents and purposes, stocks have really been irrespective of what is going on with north korean rumors and we saw last week, but since the third week of july, the markets have been range bound. Given the fact that next week starts the traditional holiday vacation season, the last couple of weeks of august, people typically go hide away, not surprising we are seeing a bit of a pullback. There are a lot of Different Things confounding investors on a shortterm basis. We are not surprised to see a bit of a pullback. We never want to see people lose money, but it was a little overdue to see a bit of selling pressure. This is very normal and very overdue. Joe do you think any of the political headlines are exhibiting to this, or is that just trying to connect one thing to another thing . Brian i think investors in general have been looking for any kind of opportunity to react to anything, especially given the ascension of stock prices. Actually, we are giving politicians way too much credit. Stocks go up because of earnings and fundamentals and the economy , not because of what is coming out or coming into washington. Again, we would love to be transfixed with headlines, twitter, and all that funny nearterm stuff, but at the end of the day, stocks are driven by continentals. The fundamental construct of the u. S. Stock market is pretty darn good. Following up antha appointment today perhaps is the person we saw investors connect volatility to the stock market when it was rumored gary , economic director of the Economic Council gary cohen economic director of the council would resign. We saw the s p 500 go lower when is that aefuted, but sign investors are in fact starting to really connect the politics to the s p 500 and stock trading . Brian i dont know. The market kind of sold off and was becoming a little bit wishywashy post the inauguration in january and february after the big cap rally. I think the using it as an excuse to tech stocks lower. If i poll my clients around the world that have the Great Fortune of visiting with, i think 150 of them believe nothing will happen in washington with respect to any kind of political platform, so tuned out today be blaming noise and rhetoric out of washington or instability with respect to the policy of trump to be selling stocks, my grandma taught me a cool world a long time ago, bunked. , yourr fair cases 2350 bold cases 2500. Give us a sense of historically what it is going to look like for the second half of the year after some pretty sizable gains in the first half of the year. Brian to clarify, our base case is quite low. Our bull case, we came out with that last year, and to be clear if you take a look at history and how stocks have done well in the first seven months of the year since a precedent in terms of how they will do going forward. When you see these types of moves the first seven months of the year, it typically portends to hire markets. Think about the investing landscape and how great earnings were and how great sales growth has been. We have low interest rates. I hate to use the over use the term goldilocks, but if you take a look at u. S. Stocks versus a great run we have seen in emerging markets this year and how europe is beginning to unwind and where asset bubbles can be coming into play with the bond market and private equity market, we still think that u. S. Stocks for the long haul for the next 10 years is the place to be. We have had a call for several years now that we are into a 20 year bull market. We are eight years into it. That does not mean we will not see bumps and bruises along the way. This is the process where it is pretty normal and pretty healthy. Perhaps another bump in the road. Brian, you are sticking with us. If you have a bloomberg, check it out on your terminal tv. You can watch as online. It is like magic. It is magic. Joe charts, headlines. There is me moving my hands like i am doing right now. Seeing what is going on becaus. Complaint, questions for our guests, anything like that, go to tv on your terminal. Scarlet interactive tv is the future of television. From new york, this is bloomberg. Pences is Vice President speaking following the attack in barcelona. Lets listen in momentarily. Vice president pence our futures are forever linked. Scarlet wheel that 11 people have died and 80 people we know that 11 people have died and 80 people have been hospitalized. There was a claim of responsibility from the Islamic State, according to the Islamic State sponsored news agency. In the meantime, we are checking on the market right now. U. S. Stocks are holding your session lows. We are back with brian from bmo Capital Market in toronto. When we talk about the markets being down, the backdrop as they have been on this incredible run powered by the same names, when you have also found that another group of stocks have helped drive this rally that is underappreciated. Lowrisk stocks. What counts as low risk . Brian things like low beta, low volatility in terms of earnings, which are really important because volatility of earnings is looking at how consistent these companies are delivering Earnings Growth. Those are two key metrics which i think are very interesting. You have some utility stocks, clearly, but you are a fair amount of tech stocks because of the consistency of earning. People fail to realize that Technology Companies that actually become increasingly consisted earners since the tech wreck in 2000 and 2001 transfer onto themselves, but in general we continue to think that as more and more companies in the u. S. Marketplace continue to give above market growth, we think we are heading into more of a fundamentally donald driven market, which i think can be very positive for the longerterm breadth and strength of the u. S. Market on a fun and mental basis. Scarlet sticking with technology, something pretty interesting has happened this year, which is the spread between the vix 100, the nasdaq 100 vix, and the s p 500 vix. Blue out highs we have not seen since 2007 telling us that volatility for Technology Stocks really blew out. Is good, think that but on a day like today, we have the s p 500 fixed closer to 16. Nasdaq 100 vix. Item you cannot see this chart, but this is a similar that to what happened in 2007. Does that concern you at all that despite the fact that the Earnings Growth is great for those Technology Companies there has been more volatility, there than for other sectors . Brian yes and no. That is a dangerous chart because you are comparing apples to oranges. The construct of the nasdaq 100 now versus 2007 is a little different. 2007, the market cap structure in terms of how the s p 500 and where the readings were is pretty different because in 2007, it was a record year for wall street. In fact, tomorrow is the 10th anniversary of me going 10 yearsht financials ago tomorrow on friday. I was one of the first religious in the world to do so. Marketcept o construct of the was different versus today. Years, a lot has changed with respect to how the markets were put together. It gives you a picture in terms of how much we have gone up, but stocks do not go down just because they have gone up. Joe when it comes to ideas like save stocks and low volatility stocks as the chart we just talked about before showed they are outperforming this year, in your view, is this a permanent strategy that can outperform, or do you believe in sort of switching of gears and switching up factors depending on the state of the market . Brian it is a great question. What we found in our low risk categories typically is historically low risk works very well. We have experienced some technical difficulties. We lost our connection with brian belski. You have a chart earlier you were going to pull up to talk to. It is a technical chart. Abigail it is a technical chart. Why wanted to ask brian about was the muscle 2000. It is up only fractionally on the year and the s p is up 9 , 10 . We saw the small caps start to before the s p 500. He was the chart scarlet was talking about. Term. A fiveyear you see this beautiful leg up, also the leg up owner of the election. Of the election. At the end of last year, there was a pickup, but look at is the correction here, here, here. This can be an indicator we can see a bit of a selloff. Joe speaking of how we are looking at today, we have the s p down close to 1. 5 today. Nasdaq down 1. 8 . Dow off 2. 9 . If you look at how they are doing today, i will bring that up quickly. Airlines getting hit really hard. Steel, communications leading the downside. Only a few sectors up, but not very much. S p 500 copper sector is doing well. Other than that, red. The dows worst day since may 17. The s p 500s lowest level since july 11. You can see a pretty steady decline into the close. Market close is next. We are talking biggest declines relatively speaking for the major u. S. Stock indexes. Track your pack. Set a curfew, or two. Make