50 demonstrators. that was a correction? we spate to a reinvigorated bull. a darling of instagram, eva chen. this is bloomberg "surveillance," live from new york. i am tom keene. joining me, scarlet fu and adam johnson. let's get to our morning brief. overnight, u.k. inflation slowed ever so slightly to about 1.6%, it had been about 1.9%. cpi,wn read at 8:30 with expected to slow to 1.9% from 2%. >> over the weekend, inflation will go up because of the affordable care act. >> what is curious about that comment, gdp in the first

quarter declined because people assumed health care was going to create a delay. without further delay, let's go to scarlet on home depot. >> the earnings just came out, a beat, second-quarter earnings per share of $1.52. expectedthan bottom-line number. sales topping estimates as well. depot confirms its full-year sales forecast. adding to its buyback program, overbillion share buyback the remainder of this year. he moved to engineer a higher earnings per share number continues. >> with adam parker joining us in the next hour from morgan stanley, use of cash. the pressure to deploy cash. you see that in the bhp billiton

restructuring. what are we going to do to distribute cash to shareholders. .838 on the the 16 dow. >> a distinction between home depot and lowe's, the bloomberg industries team pointed out sales will likely come in stronger. an estimateds 4.4%. home depot doing it more effectively than lows. medtronic and t tj maxx report earnings as well today. hasuple items of note -- it been 10 years since google started trading on the nasdaq. google ipo. does not seem like that long ago. leavitt, heur turned to me and said what is it worth? i got the guess right.

i did not buy any shares. that one.you on meanwhile. one other birthday of note. happy birthday to william jefferson clinton. happy birthday, mr. president. that's the brief. >> are you checking on what bill clinton is doing? howe is still calculating much money he could have made on google. >> the gerbil is not working this morning. let's look at other data. equities, bonds, currencies, commodities. risk on continues, future go -- future go up 3. the 10 year yield confounding economists. pound-sterling weaker. complacency, 12.32.

, 16, down to 14. the german bonds above 1%. exactly 1.00%. let me go to the monitor, this a correction.h this is the correction in the dow. >> down 4.5% from the peak. >> that is scary. madeis is how much we have up as we consider what we do next. 50%. is the old you go down a certain amount, you get halfway back up, then the guys at the trading desk say 50% retracement. you made a commission along the way. we will give you our front page. we have looked at the newspapers and the webpages. >> greater st. louis, another

night of violence in ferguson, missouri -- that is our top front-page story. police fired tear gas and stun grenades. they battled 50 demonstrators who defied orders to leave. this over the killing of an unarmed black teenager by a police officer 10 days ago. the result of the private autopsy showed that the man was shot six times. >> twice in the head. >> last night, the white house holderat eric will be traveling there tomorrow. meeting with the fbi and others. >> twitter has played so much into this reporting. it was actually fairly calm at about 10:00 and 11:00 p.m. of quiet, that is operated at about 1:00 a.m., plus or minus an hour. very difficult. >> we are going to go there live

in a few minutes. u.s. will keep using it strikes. theident obama says airstrikes have led to "important progress," stopping gains in northern iraq and helping kurdish forces recapture the dam. they have captured all the dam. >> thank you for the perspective. he did this air force yesterday, flying in an f-16, did you go over the atlantic ocean? sidewinderhawk missiles are made by raytheon and cost $359,000. $359,000 to fire one missile. they can carry six missiles. >> you do the math.

>> per plane, wow. target expensive to do practice. haider al-ibadi putting together a cabinet. standard chartered close to a million.300 earlier this month, standard chartered was expected to be fined over the anti-money-laundering control. >> standard chartered, like a few other banks, is a truly international bank. servicing -- >> asia. >> asia, africa, we have done all sorts of work with their team of economists. they were knee-deep in the united arab dubai,

emirates, singapore, etc. >> pricewaterhousecoopers also paying $25 million to new york regulators. you were covering this on the radio. >> arthur levitt, former sec chairman, was really quite eloquent about what benjamin lawsky is doing. he runs the insurance department, he is the financial voice for the state of new york. mr. lawsky is making a splash. sachs goldman representative ahead of the chief office, probing from the new york head into how deutsche bank is reporting financial information. >> so many years after the

crisis. >> let's continue. away from the economics, finance and investment. files overnight in ferguson, missouri. the st. louis suburb as national guard forces guarded police barracks. bloomberg news reports about 50 demonstrators in attendance. also in attendance, attorney general eric holder. what was the distinction at 1:00 a.m. this morning versus 24 hours ago? >> at 1:00 a.m., the streets were mostly clear. i want :00 a.m. -- at 1:00 a.m., there were defiant protesters taunting the police. after all of that, the police

responded with pretty strong force. a lot of tear gas. it looks like a war zone. there was smoke in the air and teargas all over the place. it was a very disastrous picture. >> it is important that you are nd judge whath a i am seeing on social media and the mainstream media. the size of the press contingent versus the size of the event. these are important events involving the president and the attorney general. size of the protest and the violence versus the reporting of it when you are on the street. there are dozens of reporters, more than 100, on the .cene there are a lot of protesters during the peaceful part of the protest. when the protests became more violent, a lot of peaceful protesters left and the reporters stayed behind. a few defiant

protesters and a large number of reporters. that is why you have that large reporter contingent and it looks like it is made even larger than the protesters that remain. >> good perspective. the protesters have been calling for authorities to make an arrest and the shooting death of michael brown. any update on that front? >> still no charges are being filed. the local prosecutor is looking over all the details. the federal government is also on the ground with about 40 interviewing people and attorney general eric holder will be here tomorrow. there is progress but no charges yet. >> last night was the first policen four that the decided to lift the curfew. can you explain why they did that? called in the national guard. they felt that they had the strategy to make this a peaceful protest and not force people to go home.

the curfew rarely led to some confrontation after midnight with cops -- the curfew really led to some confrontation after midnight with cops using teargas. they took that away but it still ended up with the same result of teargas and confrontations. >> thank you so much, toluse ferguson, from missouri. we turn to what we will see it, theis week -- zip advice of michelle meyer of bank of america-merrill lynch. chair yellen needs to get out of dodge without saying anything. theeed to talk about american economy and a bit. why should janet yellen remain calm and quiet as she travels to william and? -- to william and -- to wyoming? >> she wants to communicate the core views of the fomc. the theme of jackson hole is the

healing of the labor market. i think she will speak intelligently and offer some of the similar views as she has in the past. what she does not want to do is set a market signal. both yellen and bernanke have made a lot of steps to try to remove some of the market focus on jackson hole. to the extent that they could. meyer with bank of america-merrill lynch. every jackson hole is different. one constant theme are very smart academic papers. smart companies, here is scarlet fu. >> the wireless industry pricing. come decision heating up. sprint says it is doubling the available data in shared plans. it the share pack, framily plans are a thing of the past. its full-year profit forecast, rising on

higher freight volumes and lower cost. maersk plans to buy back shares for $1 billion over the next year. the copenhagen firm transports about 50% of the world's containers. on a foreign company under sk,utiny in china, japan's n the first japanese committee to be published amid an investigation into pricing. >> coming up, we hear from the former microsoft ceo, steve ballmer. proud owner of the l.a. clippers. we will talk about that as well as his replacement at microsoft, satya nadella. is bloomberg "surveillance," we are on bloomberg television, streaming on your tablet, your phone, and bloomberg.com. good morning. ♪

>> good morning, bloomberg "surveillance." one of the most interesting guys in modern new york city -- raymond kelly, former new york city police commissioner. hisfather was a milkman, mother checked coats at macy's. he became a force within new york city with his 11-year leadership as police commissioner. whatever you think about the politics. 11:00 a.m. this morning i "market makers," really looking forward to that. this is bloomberg "surveillance." i am tom keene. with me, scarlet fu and adam johnson. scarlet, get us started on the screamer and she. >> microsoft ceo steve balmer? he has a loud personality. he is the new owner of the l.a. clippers. he made his debut yesterday. he sat down with trish regan. he is setting the bar pretty

high for his new $2 billion investment. >> i want the clippers the best the clippers can be. the best team, the best players, the best character, the best coaching staff, the best business. i want all of that for the clippers. that just means we're going to have to be hard-core about better, tenacious, more and more excellent in everything we do. ballmer promising to be hard-core, you know he is going to be a hands-on manager. >> he is going to be paying some $4for million bucks -- million a year and they will spring their ankle, will he start screaming? >> that is what he does, he screams. usually i think what is challenging in professional sports, the manager does not make as much money as the stars. now you have an owner who can bear down on the players, too.

steve ballmer spoke about microsoft undersell siena dela. -- satya nadella. a fantasticoff to start. it is a long-term gain. businesses get built not in months, but in years. for six months, i love sougha tya's work. the truth is, it will take years before we know how well he is doing. >> years to find out how well satya nadella is doing. cisco,ft, hewlett-packard, enterprise first tech companies are dealing with amazon, apple, and google. >> he is rooting for satya,

still the fourth largest shareholder at microsoft, he owns 4%> >> nadella has been yelling and shouting. >> courageous show, there it is. show, there ist is. this is why we call him the screamer. [shouting] >> he's a salesman. does this happen at bank of america-merrill lynch? >> maybe one day, we hope. >> i am looking at this guy going for does he think he is? >> having attended the walmart annual meeting where tom cruise made an appearance, hugh jackman made an appearance, they get fired up. >> there's only one steve ballmer, he is the owner of the l.a. clippers. >> coming up right here on

bloomberg "surveillance," adam parker onset. equity strategist at morgan stanley. guest host on bloomberg television and radio. you are watching on your television, you might be listening on your radio or you could be doing so on your iphone, ipad, galaxy s 3. if you are using it, we are on it. we will be right back. ♪

>> good morning, bloomberg "surveillance." futures of three, a little bit of risk on. good morning this tuesday morning. must get to our morning read. scarlet fu pulled the short straw. morning must listen

from tiger woods. erik schatzker sat down with the leagend to discuss the future of the sport. >> participation is hard. other top see athletes, say i am michael jordan, play golf. even stephen curry has good game. other athletes have played golf and have played very well. that is where you can make off cool. many competing with so other distractions for young people, can you imagine taking out four hours on the golf course and not tweeting? twitter, you do something in 140 characters. hours, you have got to drive there and get back, it is like six hours. >> this is a huge deal.

to do with sports, music, art. meyer, this is a huge deal and economic study. hown general, it is about opinions ofnd cohorts are changing. what thea view of generation looks like and what it means for the economy. >> we will be back with michelle meyer and why she is optimistic.

morning, bloomberg "surveillance." i am tom keene. with me, scarlet fu and adam johnson. a risk on data check. not like yesterday, but up, up. futures up 3. point 37%.ld at two the linking of equities and bonds. euro-dollar 1.3 352. nymex crude and brent, south. housing at 8:30 this morning. >> she describes housing as "good but not great your coat sales up but prices are flat and millenials are still living with their parents. michelle meyer, amid all the noise and the conflicting

signals, what matters most? rememberk we have to when we think about the housing recovery, it is a gradual recovery. on the end focus result. people living with parents, people doubling up. what is the trajectory of household formation? i am in the camp that household formation has been artificially depressed by the week pace of the recovery. not a permanent slowdown. we will ultimately see some rebound. when that occurs, we have to build in order to accommodate the increase in households. i think we will see a high homebuilding, it is a function of the slow progress of the recovery. and then thethings inside things, is the recovery of the last three years

exogenous -- foreclosures, rich guys buying houses? we are waiting for the normal housing recovery. >> there's been a lot of special factors. when you think about the initial stages of the recovery, it came very much from investors buying distressed properties. .eople who purchase properties in order to see the real momentum build, you need to see the typical feedback loop, people have access to credit and they look to buy. it is happening slowly. >> this is the conundrum now. while we wait for it to happen, here is existing home sales, right back to where they were five years ago. the price of an existing house is near where it was in 2006. >> problem solved. that took haves

advantage. >> the case-shiller price index is still off the high. never let the facts get in the way of a story. at was we were looking median home prices from national association of homebuilders. there will be sampling skews and the fact that more of the homes are sold to higher end. the case schiller index is an arms length transaction, probably a better read. home prices have seen a pretty nice pop higher since those lows. >> how big a presence are institutional investors in housing? they have for good, been pretty quiet, what would it take for them to get back in? >> i think the reason institutional buying has calmed down, the share of distressed transactions has come down. you do not have the same amount

to purchase. for institutional investors to buy properties to get into the market, it has to be the right type of purchase. one where you can buy in bulk. and that there is a rental market for those properties. endgame for a lot of these institutional investors is to buy distressed properties, renovate, and rent out for a period of time and get that return. you are not seeing as many of those purchases. >> could they leave in exodus? good question. right now, there has been a conversion to ownership to rental from the institutional investors. but what is the ultimate plan? either looking to sell the property once home prices get to a certain level. we have heard anecdotally that a lot of investors are in it for the long-term and aca trajectory for rental. to a fair extent, that makes sense. going back to the people now that are graduating college, 48

for a period of time, they will rent before they buy. people will be in starter rentals before they buy. >> housing starts and building permits, over the past two months, each has declined. this morning, we are expected to get a rebound. is this noise and we should try not to look at monthly data? >> we should look at monthly data because it is high frequency. housing statistics on a monthly basis are incredibly noisy. monthg at the three moving average to get the trend. components, you can get swinging at 30% a month, it will likely be a payback.

there are a lot of special factors so you have to be careful. see as a sell side analyst, if you talk to them, is the kind of house we are going to buy in the future differently or are we just going back to 2004, 2005, we argued about the granite countertop. >> people are making homes out of container ships. >> it's cool. >> you would know that. is it the same housing economy of 2004 and 2005, do we all want eight veterans and granite ght veterans-- ei and granite -- eight bedrooms and granite countertops? >> people still want nice appliances but there is a shift towards urbanization. maybe you can have a smaller

property that is closer to the city center. >> the big road for toll brothers is building apartments. right up that lexington avenue. the urbanization, a one-bedroom half-bath. as we anticipate a federal reserve rate increase in 2015, what is your projection of the rent versus buy cancellation? isthe idea of what affordability look like. i think that we have to make one assumption, if and when we get rate hikes, it will be in the environment when the economy is stronger. income growth is picking up. the housing market should be able to handle that rise if it is coming with that stronger economy. it also means greater confidence and will hope to allow for some greater lending. that combination of events, if it happens in that respect, would be supported for housing.

if you get a rise in and a rise in- if you get interest rates, it would be more troublesome. in spring we had a huge rise in interest rates without larger growth. it was problematic for the housing market. >> the quickest way to get into an argument at a cocktail party is rent versus buy. >> especially in new york. >> good not great. housing is a back-and-forth, it is push-pull. >> said officials have their hands full as they try to determine this. we talk about the cost of cocoa luckyhanel's bag with magazine's eva chen. which magazines do you subscribe to? "the newnity fair," yorker." >> i do everything online. >> "hockey illustrated."

>> michelle meyer? >> "the economist." >> tweet us. ♪

>> good morning, bloomberg "surveillance." we welcome you to new york city.

truly, it has been a spectacular summer with the days getting shorter. the sun is rising later. back to school. adam johnson running through central park, had he seen any leaves changing colors? >> not yet, the leaf patrol is still -- leaf tong for the first change. adam johnson and scarlet fu as well. mr. johnson has our top leaf headlines. raising itst, outlook for the year after a strong second quarter. the home improvement giant tops the forecast usually. -- easily. planning to pump $3.5 million more into stock by that, thanks to strong sales, up 5.9%. not seeing a housing rebound anymore, people are dealing with the homes they have got an going to home depot. the company says the harsh

winter slowed construction. the real problem is that home shoppers are growing cautious. beverage ofeakfast choice is not orange juice anymore. the latest sales figures are the lowest on record, people are waking up with exotic juices like pomegranate and turning to energy drinks. those are the top headlines. i am an espresso man. >> very good. time for our single best chart. on one of the more reliable investments in the past 50 or 60 years, the chanel bag. we checked the cost of the in 1955 kedium bag, cost $220. that would be equivalent to $1900. last year, the same person cost more than $4500, up 13% from two years prior. precious little inflation. some of the reasons why prices

keep rising, chanel makes bags in france and italy, the cost of labor is high. prestige pricing, it raises prices because they can. the first floor of bergdorf's, it is like a frenzy. >> have you purchased a chanel bag? >> i got one without a flap. >> is this the tom keene diversity program. alternative assets, chanel is one of them. >> is an investment. a lot of friends i know talk about it. >> it is not an investment! chen, editor-in-chief of lucky magazine. a magazine about shopping. it does not go out of style, do people buy this as an investment? an investment,

my whole closet is full of them. that is my portfolio. it is one of those pieces that you pass onto your daughter and she passes on to her daughter. in a way, it is an investment. it is a chanel bag, people are going to buy them no matter what the prices. the way of louis vuitton bags, they are overexposed and consumers in emerging markets no longer gravitate towards them? >> louis vuitton has a new designer so we are seeing a resurgence in interest. the new bags are almost sold out. there are a few smaller clutches that are gone completely. louis vuitton is doing well. chanel markets their brand very well. they will always have prestige. it is very important that it will just continue to sell. >> michelle meyer of bank of america, what will be the bag of choice? >> i have yet to have purchased a chanel bag. >> ethan harris, if you heard

that, put a chanel bag on her desk at merrill lynch? >> hopefully one will come in the mail. i have a few mark jacobs bags. they are very user-friendly and adaptable. >> educate us. great, as a bag chanel or hermes versus a coach or -- educate me. moreach is a price bag american women can afford. you are looking for quality. i have a coach bag that my mother gave me that she owned in the 1970's. it is one of my most luscious items. you are looking for something classic. i am sure your marked jacobs ones that you take care of and will pass on one day. you do not want to buy something that you will only use for one season and then discard.

feeling of investment and the feeling it is something that you will use for the rest of your life. you?ke, your bag defines >> a bag is part of your signature style. >> let scarlet speak. >> zip it! >> adam johnson is doing research. eva, quickly, you are a huge presence on instagram. you have 200,000 followers. aref that adam, tom, and i jealous of. a lot of those are in asia. you have brought this market along to follow you in fashion. how invested are they in fast fashion, the quick turnaround we see in trends? >> fast fashion is a deceptive term. nowadays, it is more like people want to see changing constantly.

on social media, it is a way to look into someone's life in a different part of the world. i follow a lot of people in korea and japan to get a sense of what is going on. it has been fun to take people along on a journey with me. on acky magazine is journey as well. lucky magazine's editor-in-chief is with us. the big changes at the magazine and how e-commerce and editorial content might be the perfect blend. our twitter question of the day, which magazines do you still subscribe to? do you get them in the mail every month? tweet us @bsurveillance. ♪

>> this is bloomberg "surveillance," i am scarlet philip tom keene adam johnson. some company news from the files of bloomberg last. microsoft's cloud computing service had a major global outage for about five hours yesterday. a critical part of satya nadella's plan to remake the company. roku ready to take over your living room. the first roku tv's will arrive next month.

televisions will include video apps like netflix, hulu plus, an hbo go. verizon is back on top. the company regained the wireless crowd and lost to at&t a year ago. added capacity to relieve network congestion in major cities. that is today's company news from the files of "bloomberg west." you did not switch carriers? >> i am a loyalty guy. ive been with at&t and apple, had the iphone three when the five came out. maybe i am too loyal. >> takes him to change adam johnson. after video killed the radio star in the 1880's, video is doing the same to print. condé nast is spinning off lucky and merging it with a web retailer. even chen was tasked with reviving the brand, along with leveraging her 200,000 plus instagram followers.

our guest host, michelle meyer of bank of america-merrill lynch. on withat what is going lucky magazine. you have a new company called lucky group that has been merged echman.aucham the magazine will be published 10 times a year. the changes for readers? >> for readers and advertisers, it will be seamless. our print magazine will have the same frequency in the same creative team. nothing changes. we are going to juice up the website and add e-commerce. create a seamless link between the print magazine and the shopping experience. >> the print magazine is suffering. if you look at the september issue, the number of ad pages fell by a third from the same time last year. that is the steepest drop out of all the major magazines.

with people be wrong in concluding that lucky's brand health is fading? >> everyone's advertisement pages are down. >> town and country increased. >> good for town & country. there are quite a different magazine. it takes time to pivot a company. our digital ad sales have gone up. we are hoping to bring the best of both worlds, beechmint and conde nast. venture capitalist, you would have me sold. the venture is still not making money, why is that? >> the venture of lucky? >> you combine content -- b eechmint. it seems logical, if you have great content and then a way to go buy that stuff it seems so

logical. yet it is not making money. done ite has really super successfully. you are seeing a lot of e-commerce adding content in the , adding another last minute. we will be creating content first and then adding commerce secondary. it will be a new model for e-commerce. content first, and then e-commerce. of these new shopping sites do not necessarily have an editorial voice. editorial voice is what lucky has done for 14 years, we have a very distinct point of view. we will be able to translate that into e-commerce. >> this is not a subscription model, people come in and buy if they want to. people get scared off by that. >> it will not be a subscription model. for the women at the table, how often do you read a fashion magazine and you are like oh, ok, i have to call this 646 number, i've never heard of this store. we will put everything in the

magazine on e-commerce. it will be seamless. you will be able to buy it online. >> let's say you are looking at it on an ipad and there is a picture of, whatever, a chanel bag. andd you actually touch there would be a hyperlink in the picture? now i am taken to the site where i can buy it. >> that is the goal. we literally just started mapping out the new site. we have that now on our ipad edition, you can shop from the ipad. we want to bring a new level of content to that. addition to just the fashion and the link to shopping and purchasing, what about the news in terms of editorial, what we can learn from picking up a fashion magazine and hearing about different experiences, different ways to dress? that is what we do better than anything. we teach the reader how to wear it and how to shop.

>> eva chen, editor-in-chief of lucky magazine. michelle meyer, senior u.s. economy at bank of america-merrill lynch. >> dollars-jan, rubel improving as well. it is bloomberg "surveillance." , good morning. ♪ . .

>> this is "bloomberg surveillance."

whether protesters or violent criminals overnight, unrest continues in ferguson. police clash with about 50 demonstrators. now with a correction, we speak with a reinvigorated bull. i am all in cash. th4e quietballmer, guy, he is revving up the l.a. clippers. our trish regan speaks with steve balmer. good morning, everyone. "bloomberg surveillance." it is tuesday, august 19. our guest host for the hour, adam parker at morgan stanley. >> overnight, u.k. inflation declined more than forecast, it had been 1.9%. below, we will get our own read on inflation here in the u.s. at 8:30 with the cpi. it is also excited to decline, though not as much with about 2.1% last month, now we are

looking for about 1.9%. building permits also coming out. earnings before the bell, we learned home depot came out ahead of the estimates. meanwhile, medtronic will be reporting before the bell. we will let you know before that comes out. ipo'd onsince google the nasdaq, and also a happy birthday going out to one former jefferson william clinton, who turns 68 today. scarlet, you have the more -- you have been moving brief. >> we start with home depot. it is raising its outlook for the year after its quarterly results topped forecasts. the home improvement retailer says sales were strong. the company plans to pump $3.5 billion more into its stock buyback program. and earnings are climbing on higher freight volumes and lower costs.

the copenhagen-based firm transport about 15% of the world's containers. rising competition is heating up in the wireless competition. the new ceo of sprint calls the new offering the sprint family share pack. the company is dropping its so-called framily plan. that is today's company news. >> late last night, police and ferguson, missouri fired tear gas as 50 protesters defied orders to disperse. isloomberg news reporter there. he joins us live from ferguson. does 50 speak for thousands, or are they somehow skewing our perception of what is happening? >> well, there are lots of people coming out of the streets everything will day to protest the death of an 18-year-old, unarmed teenager last weekend, and there are still a lot of people coming out, hundreds of

people have been coming out, some days even thousands. so it is a big crowd we are seeing on a daily basis here in ferguson. >> what is curious -- last night, police lifted the curfew for the first time in four days, and from your earlier reporting, the 50 people effectively did not disperse, but as the sun rises, do you have a sense that those 50 who would not disperse will be joined by hundreds who won't disperse, or the hundreds or thousands who would join are more peaceful? majority of the people that we are seeing our peaceful protesters. we are seeing hundreds of people who come out and chant and walk and march, but among them we are seeing dozens of what police are calling agitators, people who are coming to rile up the crowd, to provoke police, and to get a response out of the police officers who are here. that is what we have been seeing for the last few days, and i believe we will probably see that again today. >> attorney general eric holder

will be making its way to ferguson. do we have any sense for who he is going to me or whether he might address the crowd? whacks well, he has already sent about 40 investigators to meet with eyewitnesses. he will be coming tomorrow. i am sure he will probably be meeting with the family. he has been in close conversations with the family, as well as people in the community. there is a lot of unrest in the community, a lot of angst over years and years of what people believe have been wrong police practices. i believe he will want to reach out to the community and try to heal some of those wounds. lorunnipa, thank you. >> terrific coverage from him. all night, he has been going 7, as are other news organizations. dow 17,000. we first reached 17,000 on july

3. you are averaging your very close portfolio into oblivion. adam parker from morgan stanley or suggests this morning you acquire back shares. how would you guess how many would "miss" this market? >> morgan stanley scoured of the biggest in the world come over $2 trillion in that network, and that is invested pretty fully. >> you are a new reinvigorated goal, with your scope and scale broader than that, three years or four years? >> i think we got lucky. risky place.a then we got a pullback and the earnings season looked pretty good, so i thought all right, we are back in. >> but the visibility and month to a month -- >> i think it is a pretty good outlook. how do you call a cycle? i think there are two things --

hubris and debt. you see too much arrogance from it is meant terms of capital spending, hiring, inventory, you get more worry. that could result in earning decline. we just do not have that environment right now. i got to keep thinking of stocks is a relative investment because as treasury yields stay below 2.4%, that just makes u.s. equities look all the more attractive even with the nasdaq riding a 14-year high. >> i think that is right. set,ook at the alternative and i think for us -- you know, it is a mediocre case, but you could still figure out -- >> it still works. >> that is right. >> the german 10-year 1.997. >> can you really have a situation where the u.s. just the couples from so many of these other a nations in europe that are really struggling you ? >> in the ligety gdp's -- if you

gdp's, there are some fits and starts. u.s. countries are in good shape. record margins, balance sheet in good shape, the market never goes down by 10% or more unless you're afraid of an earnings recession, so we can have awful news, but as long as the earnings do not decline, i think you can still advance. bear stearns and native american now, robert looks at the production of united states versus european economies. missing, our american exceptionalism. you are the u.s. strategist, when you talk to morgan stanley worldwide, do you say -- i want to be in the united states? close call.t is a europe has lower margins and lower multiples, so if you believe the world, you probably get more expansion there. u.s. strategy -- i think the companies are better. i think that is a big case. >> morgan stanley allows

internal voices within their house. steve roach did that years ago in economics, and i think it is really cool that parker is allowed to disagree with his four bosses. >> we all try to make the right judgment, hell people think about it, and to me, u.s. has better buddies. u.s. is 19%, europe is about 5%. >> i did not know that. >> there is a reason why the u.s. has higher margins -- better companies. >> that may be the case, but they are also increasingly exposed to the rest of the world. the s&p 500 is essentially made up of multinational companies. japan and europe are stagnating. >> sure. we get about 15, 20 e-mail the day from investors. six months ago the people said adam, give me u.s. company's with emerging markets. i want to buy them. now they say give me u.s. markets with emerging exposure, i want to sell them. yourso late depending on

outlook for emerging markets. -- it oscillates depending on your he outlook for you emerging markets. >> how much longer do you think you will stay bull? >> i think it depends -- i will not call that cycle until hubris and debt gets worse. we got lucky with the one last month here and there, but unless i see a real risk of an earnings decline, i just say stakes say stayive -- constructive. >> lots to talk about with adam parker of morgan stanley. let's do a quick data check. futures up 3. it is risk on. it is not like the enthusiasm of yesterday. euro-dollar $1.3348. with all pounds sterling up, lesser inflation. hydrocarbon subdued as well. -- wowrude under $102

-- $101.87. eight 30ming out at a.m., and housing starts also coming out at 8:30. we will of course update you with those as soon as we get them. coming up on "surveillance," and ukraine,q, those are just a few of the problems that president obama is grappling with. we will discuss how the president is reshaping policy. coming up on "surveillance." and our twitter question today the day, this is a separate issue -- weibwhich magazines do you still subscribe to? adam does not suspect anything. tweet us @bsurveillance. we will be right back. ♪

>> good morning, everyone. "bloomberg surveillance." i am tom keene. this morning is always scarlet fu and adam johnson with me as well. on equities, here is scarlet fu. >> our guest host is adam parker, chief u.s. equity strategist at morgan stanley. you make changes to your or folio, downgrading materials and upgrading technology. this is part of your continuing soft.ase for u.s. >> soffit does better in the second half of the year. one of our main course pieces is

that capital spending will not be that small. companies will not go out and build company plan equipment. what are they going to do -- productivity. you want to own some software to the end of the year. with materials, we had a big that in u.s. chemicals, which benefits, and that worked really well over the last three years, and i think it was time to start taking profits. apex peaking? >> i think it could be. the consensus view is it will continue expanding. it might be peaking. that is probably going to create a more muted gdp out like, -- outlook. what did you learn? >> we track it pretty carefully. you need to things to be more bullish on capex. backlogs are bigger, meaning customers are ordering more, and you need ratios to the above 1. >> this is the nasdaq 100,

heavily influenced by apple. feeling,just this adam, wait a minute, wise guy from morgan stanley, you wanted me to buy right here? that is the heart of the debate. >> sure. corporate earnings are at an all-time high, balance sheets are at the best shape they have ever been, so at some point, you expect the market to reach new levels. if i say tom, you are managing in equity portfolio, the fastest three are biotech, internet, and software. do you want to own none of those in your portfolio? we have to be mindful. >> what you're getting at is peg ratio. you should be willing to pay higher valuation for higher growth. >> actually, it is stronger than that. fast-growing stocks that are cheap underperform fast-growing stocks that are expensive. if they are fast-growing in and cheap they are cyclical. you actually don't want to buy cheap stocks. >> we can go all day on this.

it is almost like a growth value trap. with morganwith us stanley. i will get it out. >> is confusing there are two adams on set. >> i am loss. coming up, we will look at a bull market. i really want to look at this, the idea of ok, wiseguy, when does the bull market end. sell everything, sell, sell. you, go to catch by this afternoon. ♪

>> good morning, everyone. "bloomberg surveillance." we are having a lot of fun this morning. i reported question -- which magazines do you still subscribe to? i said "hockey news." let me mention "foreign affairs magazine." if you want to do something to the smart aleck kid in your family, spend $44 on "foreign affairs magazine." they have six or seven a year.

it is mint, mint, mint. >> how do you get the smart aleck kid to read it? >> that is a different thing. you tell me cannot have anything -- you can tell him he cannot have a thing until he read that. good morning, everyone. it is "bloomberg surveillance." we bring you smartest what are questions. our guest host of the hour, adam parker, chief u.s. equity strategist at morgan stanley. let's get to our top headlines will appear is our adam johnson. >> syrian fighters could pose a threat to commercial planes. extremist could get their hands on antiaircraft missiles. a policy change from the faa expanding u.s. airliners from syrian airspace. 24 more hours of peace promise for gaza. they are talking again today in cairo. egyptian officials say the two sides are far apart on multiple key issues. home,ile, right here at

america's breakfast beverage of choice is not orange juice anymore. the latest sales figures are the lowest on record. more people apparently waking up with exotic juices likee pomegranite and energy drinks. >> people like blueberry a sahi. i we see you drink espresso. >> what kind of orange drinks should you drink in america? lp?pulp vs. no pu >> or paper carton versus plastic. anita bryant. >> she was a doll. i want to talk about breakfast anymore anyway. mouseketeerhe a house coul along with the net for the cello -- annette funicello.

>> our phil mattingly is chief white house correspondent for bloomberg television, and the president took some time off for vacation. he did make it back to washington. he has got to put out a lot of different fires. how is he managing these different crises? >> it is difficult, scarlet. look, this has been -- i've heard from the inside the vacation from hell. there is no shortage of issues he is dealing with both domestically obvious it with ferguson, and iraq, which is a total mess right now they have been working on, but also in ukraine. kind of in afghanistan there is a new taliban offensive that has been reported there. there is a good saying on this one, which is the president never really goes on vacation, and that has certainly been underscored throughout the last week in the vineyard. he is heading back there tonight. >> he is heading back there tonight, he is in washington right now. he sent attorney general eric holder to head over to ferguson. why see delegating this to eric holder when perhaps some are

calling for him to show up in ferguson? a federalff, there is investigation going on. the justice department is conducting a parallel civil rights investigation with local authorities. eric holder have some jurisdiction down there. i think what the president sees here is eric holder has been a great lieutenant for this administration when it comes to race issues throughout the president's six years in office. the president has always kind of pushed to be this post-racial era where it is not all about race when he is talking just because he is the first black president. eric holder has been the opposite of that. he has been the representative from the administration at civil rights groups meetings. he has been the one talking about voting rights, talking about trying to reduce criminal sentences for lower-level drug offenses because they just really affect african-american males. there are a couple of reasons why eric holder is going down there. one of the crucial reasons is i have heard mold will times that every time eric holder's name has been mentioned in ferguson, it has been responded to with applause.

the administration feels he is a great representative to have down there and will not bring the mass attention that the president what. >> and possibly some progress in progress arguably some in iraq, at least on a surface yesterday, phil, as president obama had the press conference announcing late in the afternoon retaken.l have been bloomberg news as well is a number of other news agencies were effectively reporting early in the morning, so why would the president wait 10, 11, 12 hours to giving is that we already knew, which was that the dam had been confirmed. >> as much about logistics as anything else, you tweeted about this yesterday, and i chuckled because it was true. the president came out and this was his big statement on iraq and everyday there was like yeah, we know, we have been following this for the last couple of hours. when it came to his announcement yesterday, it was all about logistics. he had a meeting with attorney general eric holder about ferguson right before the press conference. he wanted to have that meeting

before he could actually come out. when it came to iraq, while this was not new news and terms of the president breaking this, from the administration's perspective, while it is a short-term victory, it is the primary proof that kurdish forces in concert with iraqis defense forces can go on the offensive and can push back the islamic state. that is something that has been completely missing from the equation over the last 3, 4 weeks, so i think while it was not exactly breaking news right at the tip, the president was trying to make it point right now that hey, this is good news going forward, and we want to seize on this because there is a lot more work that has to be done. >> all right, phil mattingly, thank you so much for providing us with that perspective. phil mattingly, our chief white house correspondent. >> the phrase to watch his mission creek. i came up with the president yesterday. whether it is iraq or ukraine, ferguson, mission creep. >> dick durbin has made clear

if there is mission creek, he will pull support for the president. >> coming up on "surveillance," we hear from former microsoft ceo steve balmer. will his $2 billion bet on the nba playoff? this is "bloomberg surveillance." we are on bloomberg television, streaming on your tablet, your smartphone, and bloomberg.com. ♪

>> this is "bloomberg surveillance." i am scarlet fu here with tom keene adam johnson. let's are with comedy news -- comp any news. the increase follows a report assessing air asia wanted a stake in skymark. 20% in tokyo trading. again helped even after air asia said it is not interested in the japanese carrier. target is adding late-night hours at more than half of its 1800 u.s. stores. the reseller wants to increase traffic and revive it staggering sales. the earnings report is due out tomorrow and it is expected to show weak results. and julian geiger back in the aero post out seat. postale's seat. that is the latest company news. ♪

>> good morning, everyone. this matters now to our guest host, adam parker, chief u.s. equity strategist at morgan stanley. what does the end of a bull market look like, particularly in this unique character of the present bull market? this is a great idea. we talk about the emotion, the froth of able market. what is different this time versus other bull market? >> number one, corporate behavior is pretty constrained. capital see a lot of spending, a lot of hiring, a lot of inventory. >> in m&a, everything goes up on an m&a transaction. >> what is different from when we learn things, m&a is probably less risky than capex. m&aave not seen a lot of with big companies in the u.s. only yet, so i think there are legs to that. >> i know we are going to jackson hole here, and i know you have got a bull call, but one year, two-year, three years,

is the central bank still links to the equity market, that the end of the bull market is different because of janet yellen or for that matter mario draghi? rally equity market support the first move on the front end, and usually it is because earnings are strong enough to offset that retraction. everybody i talked to said they expect to be a little dip after the fed rate of the front end but after that things will continue to grow. i think the cycle could last quite a long time. maybe even out until 2020 or something. >> in late august, you have the beverage of your choice, and they say you are the wise guy in the big city with a big fancy suit. how much should i make in equities? data, you0 years of have got about 8% total return. >> can i believe that now, or is there a new disinflation, the new 8% and 6%? >> i think if you look up a long, 10, 20 years, it could be less than 8%. but 6% or 7% seems reasonable. >> how can bonds compete with that? >> they probably cannot if you

are at the end of a 30-year cycle. if you overweight equities relative to bonds, i did not see how you can overweight bonds in a three-year 25-year period. >> the bigger yield in europe with less dividend growth, chief probability measure, do i want to buy france or dividend growth in the u.s.? u.s. the data show in the equity market, you want to buy dividend growth over level. as that 10-year starts backing up in the next 18 months, the high yield level once will underperform. but the guys can grow the dividends. >> what is your best actor for dividend growth, not so much for preachy asian? >> i think health care has a lot of options. i really do. >> is the moonshot on health all linked to the affordable care act, or is there something else going on? r&dne, rmb pop line --

eline, two, and the medical. >> scarlet, with adam parker here, i demand a data check. >> all right, right now it is a bit of a risk come adam johnson him as we await economic data. we have got housing starts. two critical pieces here, and of course the start of the jackson hole, whether we call it symposium -- >> do not expect any change, but they get together and talk about the latest economic papers. i want to point out with regards to housing data, housing starts have been negative the past two months. we are looking for a rebound this time around for ages them. >> that comes out at 8:30 comment of course cpi is of great concern because the u.s., the fed wants to generate some inflation. we certainly are not getting that in europe where deflation seems to be the watchword. >> that was the story, one per 6% -- 1.6% down from 1.9%.

ironic, but you need a little inflation because of stagnant growth. >> let's look at the data check. the yield on the 10-year lower, euro weakness of the dollar, $1.3351. >> this is "bloomberg surveillance." on bloomberg television, streaming on your tablet, your smartphone, and bloomberg.com. johnson. with tom keene and of course scarlet fu. let's get you to the top headlines right now. the russian aid convoy, while it might reach yo ukraine rebels soon, they're close to a deal that they will let the trucks go through. ukraine's are blaming the rebels for dozens of civilians trying to escape the battle zone yesterday were killed instead. at least 31 people are under arrest after police and protesters battled last night in ferguson, missouri. officials say some of them are actually from new york and california. officers report facing gunfire. violence has flared almost every

night since the police officer fatally shot an unarmed black teen 10 days ago. willic militants in iraq face more u.s. airstrikes. president obama said the attacks have right important territorial gains. ever met forces retook the mosul dam. those for the moment are the top headlines. >> all right, you know, ceo, former microsoft ceo steve ballmer made a big bet on the l.a. clippers when he bought -- >> let's define gigantic as in $2 billion. >> it change the values of all the other basketball franchises. he sat down with trish regan, our "street smart" anchor. >> i like the deal i did. i would not have made if i did not like the deal. i was the high bidder, obviously, we know that from the process. i think -- this is exciting to

me. i think the brand is tremendous. i think the opportunity is fantastic. i think the nba will be an appreciating asset. i think there is little chance for anything but sort of up goes the nba. market.a unique i think it is a phenomenal opportunity. believe me, when you look at tech companies with no earnings and huge valuations and a lot of downsides -- the clippers look like a really well about you to team to me. really well valued. are market cap of $150 billion that do not make any money. interesting. >> yeah. >> the clippers do make money, but what if you think from all of those new age tech companies out there? >> if you have eyeballs, if you have fans come if you have participation, in theory you can bank on that. and the clippers do not really have a tv deal, but it is coming renegotiation within the next year, year-and-a-half, so you may be wondering why he was

willing to pay so much. >> i was just under struck about how naïve this very affluent, very successful guy is about winning and losing in sports. >> why naïve? think -- you spent a lot of money, but you get injuries -- >> things are out of his control. >> right. what i will say is i was listening to mr. ballmer talk about the team. he talked about grace and we have got to try really hard. they are general terms you say about anything, like he does not know anything about basketball. >> steve ballmer, look at the kansas city royals. they are rocking the house. >> and they suffered for a couple of decades. he said he is the kind of guy who will sit on the court. i wanted to find out what he had to say about microsoft. trish regan spoke to him about microsoft's mobile future. >> i do think there is some fundamental things the company has got to do for its future.

the sort of put that under umbra love mobile first, cloud first. that, we will acquire new skills, cloud technology, hardware sales, hardware tohnology, new places go, and he will describe how he wants to get there. like that is a pretty big to do list for his successor, satya nadella. >> he has been great about the seachange is going on, and one of the things he looked at with mr. ballmer blowing up the door. >> the stock rallied when he left. sorry to say. to be honest. >> the challenges microsoft faces along with dell and humor -- and hewlett-packard is google, amazon, and apple have trained their eyes, they're no longer focusing on consumer products, it is now business spending, and that it -- that eats into what their market share is. >> can we review that they have $23 billion in free cash flow? >> nasa.

>> that is a terrible chore. >> it is incredible. >> coming back, we will get to our twitter question of the day. before we leave, we want to ask you -- which magazines do you still subscribe to? tweet us @bsurveillance. i say "vanity fair." >> yeah. ♪

>> good morning, everyone.

"bloomberg surveillance." later this morning, 9:00 a.m. on bloomberg television, the ceo of scarlet fu's favor company, lego, they have never picked up all of the labels at the -- legos at the fu household. what a success it has been. icebulous store down by the rink at rockefeller center. that will be a non-:00 a.m. this morning. looking forward to that. this is "bloomberg surveillance." we welcome all of you worldwide. i am tom keene. with me scarlet fu and adam johnson. >> legos were the star of the show, golf the other. tiger woods and rory ourroy in new jersey, and very own erik schatzker was there. you obviously pulled the long straw on that one. what was it like sitting next to those two guys? >> intimidating quite honestly to think about how well they play golf. and after watching rory mcilroy

hit some shots against the jimmy fallon of all people -- and jimmy is not that bad, right? i am thinking to myself i am just about as bad as jimmy fallon, and rory mcilroy into balls onto the green. pretty remarkable. look, he just won the pga champions tour then the dark, so why not at liberty? >> what did he tell you? >> we were talking about the future of golf. the numbers of golf are atrociously bad. the game lost 400,000 players last year, 6 million since 2000. here is what tiger woods says golf needs to do to attract a younger fan base -- >> participation is hard, and it is neat to see other top athletes like say a michael jordan play golf, to see tony romo and a bunch of other different celebrities come even steph curry has got a hell of a game. all of these other athletes play

the game of golf and play really well. that is when you can make golf cool. >> tiger went on to say that he does not agree with the approach being advocated by the usga right now that you need to turn it into a nine-whole game, make it more relaxing, etc., what they do in japan -- some people wonder whether golf needs another star. sincehas not won a major 2008. here is what rory says as to whether golf needs another tiger. >> i do not think the game is another tiger. it definitely needs a few guys that are winning, you know, or competing in majors all the time. dominate in some way. i would love to see that guy. , there is only going to be one tiger woods. that is for sure. but i am trying to develop my

own sort of role in this game, and i'm happy with that. >> everybody wants to know is tiger going to be back on schedule in december. adam, tiger is back is still a problem. he has not been able to begin these explosive workouts that he needs to do to get back in fighting form. >> rory mcilroy certainly very gracious was of "market makers," 10:00. >> a reporter question of the day, everyone -- which magazines do you still subscribe to? tweet us @bsurveillance. ♪

>> good morning, everyone. this is important -- tomorrow on the program if you are confused about equities, bonds, currencies, commodities and what it means for your world, one of our most popular guest will be ish us tomorrow, david woo with merrill lynch, and charged of global rates, look for that on bloomberg television, 6:00 a.m. david woo -- really looking forward to speaking to him. >> this is "bloomberg surveillance." i am scarlet fu here with tom keene and adam johnson. let's get you started with some company news from the files of "bloomberg west." microsoft cloud computing service on a major outage

yesterday. the instruction lasted about five hours. it is a great part of ceo satya nadella's plan. it is the worst glitch in more than a year. roku is ready to take over your living room. the "wall street journal" says the first roku television comes next month. it will include apps including netflix, hulu plus, and hbo go. and verizon is back on top once again. the company has regained the wireless crown that it lost to at&t about a year ago according to a new study. to reliefded capacity network congestion in major cities also that is this morning's company news from the files of "lumber wes." t-mobile really threw everyone for a loop. people are not held to those two-year contract anymore. >> yeah, ceo john ledger in his bright pink shirt saying hey, come to us, and we will give you a new deal. he brought a lot of people in.

i'm sticking with at&t, in spite of the fact that i do occasionally drop a call. it has been -- i've been with them for 10 years. it works. andhen you are her fathered into great plans, you do not want to give it up. >> especially when the iphone 6 comes out in a couple of months allotted not want to jeopardize my chance to trade this one in for the new one. >> good point. iraqi forces have pushed back militants. they have seized control of mosul dam. joining us right now is bloomberg's willem marx. what is going on at the dam? you told us it was a key part of infrastructure. what is going on right now? >> i am now a few miles further down the road from where i was an hour ago. we were turned back by forces from going down to the site of the dam. journalists other got through their earlier today, but they are saying it is not very safe at the moment, and

working through some of the explosives that were left behind by the fighters. we are actually a few miles away right now. what are you hearing from local people about security there, as you were on the ground, speaking with locals, observing everything around you -- what are they telling you? >> well, right now, the village we are in is at the base of a mountain about 16 kilometers to the south of here, the islamic state fighters are still base, i should say. the locals here are incredibly -- 7000 inhabitants normally. the majority of them are in the turkish border region. some are trying to seek asylum elsewhere. there are currently about 100 men here. no women, they are all armed, they say they are looking after their property, they're worried about looters, and they are prepared to face the islamic state, but only if they are able to get into the mountain to

defend themselves. they're very concerned about security. >> having just flown with the week,rce in an f-16 last i'm keenly aware of the firepower that they hold. our people responding on the ground to those airstrikes that have been happening over the past 36 hours? well, here in this village, adam, they have been incredibly positive about the involvement here. many of them have decided to knew thatafter they u.s. airstrikes were happening in this region. with the most part, the response i've had from people in erbil yesterday is that this was a good thing. ministers i have been talking to say it has been crucial to bolstering security around erbil. willem, over the past month, you have been in ukraine, you

had to weave your way in and out of troops. as you are in iraq right now in mosul and around the dam, how safe do you feel? >> pretty safe. it is more about the bureaucracy. and downsplit up lines, so one group will not be agreeing very well with another. we had an interesting a couple of hours ago at one of the checkpoints. a few x u.s. army humvees came through the checkpoint manned by iraqi soldiers, actually one of the islamic state flags, the kurdish went absolutely ballistic, and they started really having a bit of a serious fight. some shots were fired, and eventually after about 20 minutes, things, down, and iraq he army troops were moved off. it was a very tense moment, i have to say, and that is the kind of thing i worry about, between the kurdish and the iraqi army. they do not seem to be getting on all that well. >> thank god you are safe. i have to ask you about your

conversation with the kurdish finance minister. what was the biggest take away from your conversation with him? most said it is the difficult prices the government has ever faced. they have been spending money --d over fist was on the both on the refugees but also excess salary for these fighters. they have developed large numbers of troops, supply them with rock winery and ammunition. them $40 million to $70 million over the last couple of months, and they are not getting usual oil revenue shares. they are having to sell their oil internationally at cut rates, and they are not getting that sale through very easily. >> all right, willem marx, thank you so much. willem is on the ground outside erbil in iraq. >> one great story that, scarlet, was home depot, over 3% right now. something rare happened, very , just atid strasser

the top of his research notes, adam, i was wrong, which is so great to see. he lowball home depot, they delivered the goods, he is surprised at management, has a constructive view. he is still neutral on the stock because the valuation, the chart of home depot is truly one of the best charts in the universe. it is so refreshing -- >> yeah, good for him for being honest. reporthe home depot dated the 20th consecutive quarter home depot has beaten lows on sales. sales growth, i should point out. >> and home depot shares are moving higher in the premarket along with lowe's. let's get to the agenda right now where we focus on stories shaping the day. tom, why don't you get us started with your lookahead? housing.ooking at you heard from michelle meyer earlier. to meet is the massive mystery of it.

you mentioned rent or buy is one way to go, but to me, it was so artificial in the recover we saw over the last 24 muska may was institutional money come it with the rich getting richer, etc. michelle was actually somewhat constructive, but to me, it is just a huge american mystery right now. >> yeah, it is a mystery, as is what is happening on the inflation front. we have got signs of slowing inflation in the u.k. today. you want to see inflation because of growth. we have slowing inflation in u.k., and we will find out what happened here last month when we at 8:30, and it could be the same narrative -- 2.1% the previous month, and we're looking for a slight deceleration to 2%. that is not that bad, but that is part of the narrative. >> you had earlier at the very top of "bloomberg surveillance," the idea of the united kingdom coming up with lower inflation as well this morning. i would go on the other side -- deutsche bank, incredibly optimistic about higher inflation in health care costs.

>> we will see. been calling for growth. they have been going against the pessimists. is it growing or not? >> taking the opposite side from pessimism, on my agenda, google 10 years ago today debuted as a publicly traded company, yesterday, the nasdaq reached its highest level in 14 years full stop nasdaq 5000 anytime soon it, anyone? quite hard to believe that was 10 years ago today. >> yeah, the resurgence of equity in any case is my agenda. let's get to our twitter question of the day. we asked everyone, speaking of blast from the past -- which magazines do you still subscribe to? physical magazines. here are some of the answers -- "bloomberg businessweek." shameless plug. how about this one -- i subscribed to "national geographic" for nearly 20 years. >> with all of the binders

line-up -- >> you never look at it. >> what do you do with the? >> and finally "golf digest," basically since i get it free from my coke rewards. bloomberg "surveillance" continues on radio, "in the loop " on bloomberg television is up next. ♪

>> good morning. it is tuesday, august 19. we are live. you are "in the loop." i am matt miller.

we have a great show for you this morning. announcing a massive mining spinoff, separating aluminum, coal, and silver divisions. we will bring you all the details in just a moment. clippers los angeles owner, steve ballmer, speaking out like only he can. we sat down with an exclusive interview. you do not want to miss it. would you not like to own your very own life-size lego house? at your age, i hope the answer is no. for the woman who has everything else, it is a possibility. we will take you to denmark to speak with a ceo about the company's new sold-out line for girls. first, a look at our top headlines this morning. bhp preparing for the biggest spinoff in mining history. bhp is separating its aluminum, coal, and silver assets, creating a company value of $6 ll