bloomberg markets day. scarlett: a decision is set for tonight. matt: with global uncertainty, where is a safe place to put your money? traders say the answer might be nowhere at all. scarlett: carnival ready to say hola to havana, getting ready to cuba.ruise customers to scarlett: good morning, everyone. i am scarlet fu. matt: i am matt miller. stocks are trading down across the board. the s&p 500 is off .33%. is down 67 points in 17,616.

scarlet: it is early, but look at safe havens -- treasuries and bones. the german 10-year yields and 65 basis points right now. matt: let's look at what else is on the bloomberg this morning -- the top stories we are following you. scarlet: we begin with euro area finance ministers meeting in brussels as we speak ahead of an emergency summit with european leaders to talk about greece. it will be prime minister alexis tsipras first meeting with counterparts since the referendum. hans nichols is in brussels. are the creditors in any kind of ?ood to compromise here it does not look like they have anything official to compromise. we know there was no written proposal submitted to the sidetors from the greek

and that is what everyone was waiting for. everyone was waiting for specifics. this,s has reported bloomberg has confirmed this as well -- no specifics means no private. difficult to see how you could get to a deal if there was not an actual piece of paper. showedemarkable greece up without something official institutions could evaluate. we also know alexis tsipras, the prime minister of greece, is planning to give a speech to the european private in salzburg on wednesday, tomorrow, so he may have another chance to publicly make his case, persuade the european union the way he persuaded his own voters. that will be a difficult challenge. we are expected to hear from the dutch finance minister and the president of the eurogroup in about 10 to 15 minutes. what he has to say will be very, very interesting. we will have to wait and see on the official readout of the meeting that appears to be over without much progress.

thanks very much. the negotiations over enron's nuclear program has been extended again. the state department says the current interim arrangement will be extended through july 10. the u.s. and other global powers want to stop iran from building nuclear powers in return they will agree to these economic sanctions. the u.s. trade deficit got bigger in may. the gap rose almost 3% to about $43 billion. exports fell by the most in three months. in aiggest declines came aircraft and industrial equipment. it is a sign that businesses are having problems selling to overseas customers. there is a hostile takeover offer today in the pharmaceutical business. horizon pharma has proposed to buy depo med. haszon says the management rejected the proposal. scarlet: gaining and leisure

properties raising offers to buy pinnacle casinos by 32%, giving the pinnacle assets and enterprise value of $5 billion. pinnacle owns 15 casinos and racetracks. those were your top stories this morning. we have a lot coming up in the next hour in the bloomberg market day, starting with ibm -- just one of the companies rewarding ceos for buying back shares rather than growing sales. it might be a case of misaligned incentives. carnival moves closer to selling cruise ships to cuba. the u.s. government has approved its request. trips could begin next year. the ceo will join us. matt: sweet. prices in hong kong and shanghai tumbled more than 1%, extending a bear market that has wiped out $3 trillion in profits. those stories and more coming up. while european leaders

meet to discuss the debt crisis, how concerned is the market? we will bring in marcolina, president of jm -- mark li na, -- lehman, president of jmp securities. we have heard some interesting thoughts, like maybe the market actually wants a great exit or has been planned -- greek exit what has been planning on that. what you think of the scenario? mark: the muted reaction of the market tells you that this was on investor minds going into the election of the weekend, and the muted reaction, though surprising to most, tells your likelihood of a greek exit is waiting to the stock market and priced into the stock market. matt: how long do you think it will be until we get some movement because i have been littleed to see such movement. the euro is finally moving down more than 1%, but still barely below $1.10. scarlet: still resilient.

matt: yeah. does that make sense? does that mean we have sensed everyone and the private investors are out of the markets where they will get hit? mark: it is funny. it feels like the poker game i played in high school where anybody -- nobody lost any money. i've yet to hear of anyone that lost money. nobody is exposed to it obviously that is not true. we will hear things over time. the countries that matter have probably contained the damage, written it down enough and that is why the market is reacting. look at the 10-year. it is down 25 basis points. everyone on your show to her three weeks ago was saying is going to 3% tomorrow and it is 2.20 percent today. the markets have not moved much because the u.s. investor does not get damaged by the potential of a great exit but there are --

greek exit but there are places where it impacts them a great deal. china and puerto rico are hanging over the market. you could argue it has not caused a massive retreat. mark mark: --on why not? mark: a couple of things -- it played out over time. though it did suppress to go with the election. the other thing, we know the size of the greek economy, the 50th biggest economy in the world, smaller than some of the states here in the united states. again, we are not here in ripple affects with portugal, italy, greece, spain, where you would have been fearful, and we have also seen countries that had similar pain after the contagion of 2008, 2009, that took care of problems, so this has not had the ripple effect some have feared and maybe that is the cause of the muted effect. matt: what do you think

investors should do right now? we have a story on the bloomberg saying there is nowhere to run, nowhere to hide with your money, but clearly people have money in treasuries, even if they have taken out a lot over the last couple of weeks. mark: i think you will see a reporting season that kicks off tonight that will be similar to what we saw after the fourth quarter of 2014 and the first quarter of 2015. i think you want to stick with the winners. you will see a blowout quarter from apple, facebook. you will see ipos coming out and life sciences and technology where you want to pay attention. i think you want to stick with the winners and the winners are domestic-focused, u.s.-centric company. obviously facebook is an international company. apple is an international company, what you want to stick with the winners because i have not seen slowdown with those companies. scarlet: in the first quarter sales dropped, but earnings eked out an increase. cells are likely to bounce back to growth while eps is projected

to fall. does that show improvement from the first quarter? mark: i think you have a continued effect from what is going on in the global markets. you continue to have companies trying to figure out what it means to have a strong dollar and how they will position themselves and i think they are getting there. you have continued strengthening in some of the markets in technology. again, here in the states, it i think you will find a -- i think you will find a solid second-quarter report. i think the markets will react positively and, again, focus on the states. this is the best house on the block. we have said that many times on this show. the u.s. market is where people will be focused when we talk about the kind of problems in china, greece, and some of the bond markets like puerto rico. you will be pleased with the report, especially a to .2 treasury, which will not go higher this year with all the things we mentioned. look as --scarlet: as we

ahead to the fomc minutes tomorrow, and you agree with chair yellen that valuations are quite high? mark: by historic measures, they are pretty high, not outlandishly high. they are part of the market where people are more optimistic than they should be. some of the fast growth markets, the ipos we have seen in recent days are fully valued, but i do not see this overall, overhanging fear of a 2000-like bubble like we saw 15 years ago. it does not seem like that. from when i talked to investors, the places they are finding value -- yeah, you can talk about biotech valuations and say what are we doing with these valuations but then you see another transaction for $3 billion today. that tells you the fundamental underpinnings of the market have not eroded and that will probably be seen the rest of the year. scarlet: mark lehmann, thank you. jmp securities, joining us from san antonio. matt: here is a question -- what

if greece leaves the euro? it is a question we ask every day. then, it sees its economy flourish. it might be europe's worst nightmare. scarlet: maybe that is the contagion. matt: that is right. ♪

scarlet: good morning and welcome back to the bloomberg market day. i am scarlet fu. matt: i am matt miller. let's get to julie hyman who is looking at three stocks on the move from analyst calls, but first, we are wondering what is going on in oil. scarlet: yesterday, today, now extending. julie: i have no answer. we can look at the chart.

you can see where down another 3% today. take a look at the leg lower in oil prices. indeed, it has been mysterious, the action -- now it is 51.014 wti. yesterday, the drop was 7%, and alix steel was talking to oil traders and they were scratching their heads. oil was trading off of the same elements everything was trading off of -- the situation in greece, concerns about a slowdown in china, and then, of course, the ongoing negotiations with iran. we had the deadline extended to july 10. we knew that early this morning. that does not account for this job -- sharp drop-off we had just now. at the same time, we should mention, if you look at the s&p 500, we had a similar leg downward. it was not as sharp. we're all .5%. -- off .5%. it has bounced off of the bottom. oil, a genetic move as we look

-- dramatic move as we move substantially below $80 a barrel. look extensively at what is going on. i want to be the stocks that were mentioned. tesla -- the stock being cut to a hold versus a by at deutsche bank and analysts say it currently reflects the opportunity in the global energy stored -- storage market. we are talking momentum stocks. shake shack fits the bill. it is being downgraded to an under-weight at morgan stanley. stanleyyst at morgan saying they are expensive, in part, because there is a liquidity of the shares -- there are not that many shares that are available to buy and to borrow if you want to short the stock, it is expensive. fitbit has also doubled in

shares of being initiated with an out-perform. matt: thanks for that. scarlet: one hiker is that an four are hurt after a partial ice cave inan washington state. the effort to recover the body protected yesterday to rescuers from further collapses. authorities say warm temperatures are causing chunks of the ice to fall. the mountainside park is now closed. pope francis setting a brisk pace during his south america trip. he has a full schedule in ecuador before headed to bolivia tomorrow. he has so much energy he slipped out to greet well-wishers. the pope, who only has one long did not realize that, showed no evidence from the high altitude. mayweather won a title

-- boxer floyd mayweather has been stripped of the title he won in the fight against manny pacquiao. somehow i think the money is more important to him. matt: he does not need the $200,000 to pay the wbo. sometimes he buys cars on a whim. he goes to the same dealer, buys the same color, pays in cash. just for the ride home? do not even think he drives, to be honest with you. scarlet: greece's future has never been more uncertain. scarlet: greece's future has never been more uncertain. economists say a greek exit amounts to economic suicide paid the greek finance minister says he knows how tough -- suicide. the greek finance minister says he knows how tough this will be.

>> i cannot tell you i am not anxious. i did not take over at the easiest time in greek history. matt: let's say greece leaves the eurozone and the economy thrives. that could be europe's worst nightmare. simon, it is the most fascinating idea i have contemplated today. if this were to happen, and i'm guessing it is a long shot, or he would take a long time, realistically, it would spur others to want to leave the euro as well. greecethe theory is if goes, it will be hit by a shock from financial markets, but if the new currency devalues and that supports competitiveness and other sources of growth come through and the economy starts to grow again, as it did as recently as last year, maybe if you are in spain, portugal,

italy, and you are feeling the pinch of the german-style the euro zone demands, it could be their worst enemy, as you say. scarlet: party economists writing about this, simon kennedy, because they see this as a resemble all come or more of an economic -- outcome -- they see this as more of an out, or an exercise? simon: it is more of an exercise. they are speculating how much of a challenge it would pose to the rest of the euro area. matt: i was surprised last night looking at spanish polls to see os has becomeodem -- the same popularity as the major parties, shared by this,

sort of, ponytail-led, super-left, podemos. is it likely that he would get a boost showing that greece does better? simon: certainly that would be the idea -- if the economy kicks in after an exit, those parties would have something to present to the vote. greece left and it is doing the same, maybe you should think about this. the other thinking goes the other way, the economic pain will send people fleeing from those kinds of parties. you about thisk opinion of the term that we "grekxit?"

started it.roup gr-imbo, a state of info -- limbo. why some ceos might not have their companies best interest at heart when they announced share buybacks and other uses of their cash. we will discuss. ♪

payments andd stock buybacks are reaching record highs in corporate america. they reward shareholders who want them, but often this proportionally boost ceo pay. alex brink of explains why many officers might be too

incentivized to focus on short-term returns. alex: buybacks are reaching record highs, and keeping investors happier might mean bigger paychecks. three quarters of the ceos have pays based on earnings-per-share and total shareholder return. both get a boost when companies buy back their stock or pay a dividend. that means leaders of the likes of ibm, disney, cisco have an added incentive to dole out cash to investors. at a time when activist investors are clamoring for more payouts, it raises the question, are those ceos getting paid for how well they run the business, or for their ability to do short-term results? take ibm, a company that spent to billion on share buybacks meet earnings per share goals -- instead of investing that money in the business. meanwhile, almost 40% of the ceo was based onycheck

one of these metrics. or disney, which satisfy disgruntled stakeholders when it changed ceo bob geiger's pay to include both earnings per share and shareholder return. rule tort of a new return to show, but some investors are not buying it. urgingink wrote a letter ceos to resist shareholder payouts if it compromises long-term opportunities. with stockholders still enjoying a bull market, investors might not be as secured about ceo pay the gets a dividend -- both from buybacks or dividends, but the market turns, tensions could rise. scarlet: copies buying back their own chairs have become such a big source in the market, when they don't, share prices languish and fluctuate. demandctivist investors

these kinds of things, maybe because they are focused on the short-term as well, but it is not really a new trend. scarlet: it is not a new trend. you are right. matt: i wrote my senior thinness -- thesis on this in college and that was a long time ago. outlet: but they pay options to employees, so they need to buy back shares took excess supply. matt: and a lot of companies have billions, tens of billions, hundreds of billions of dollars their balance sheet and they need to do something with that money. scarlet: and carl icahn keeps knocking on the door. matt, you are out. matt: that is it for me. scarlet: much more, including the carnival ceo on cuba. ♪

back to thecome bloomberg market day. i am scarlet. commodities have taken a big leg

led by oil prices. oil and copper taking the brunt of it with the bloombergs commodity and asked -- index dropping to the lowest since 2000. you're on the phone trying to figure out why oil prices dropped so much while everything else was not. x: there does not seem to be a consensus as to why the selloff is happening right now. china stocks have been getting hit hard. you have the potential greece exit in terms of what will that do in terms of weaker demand in europe. you have a stronger dollar. none of that is new, but somehow this is trickling down to commodities. i want to look at oil intraday. we had a huge drop around 10:00 a.m., starting to move lower. -day -- two-day

chart. we have breached the average and it has accelerated movement to the downside. scarlet: there are a lot of technical factors that might be driving this, the water people saying in terms of actual -- but what are people saying terms of actual levels crude oil could stop? but: i asked the question, i could not get an answer, because nobody knows. the question now is really about demand. china is the story there. which is why you might see copper move. topper is at a six-year low. matt: that is what i wanted to bring in. copper is moving lower. it has not seen the magnitude of change oil has over the last two days. it does not strike you -- strike me as reasonable that commodities are plunging on their own. alix: you have had both commodities been week. oil has not responded in kind because oil has been a supply

story much more than a demand story whereas copper and iran or have been both -- and iran or have been both -- iron ore have been both. europe is 13% of the buyer of copper. it is much smaller, but not nothing. you have two big countries doing with severe issues that could impact demand going for it. also coming in terms of oil, we have started see signs on the outside of weakening demand from china. some nerdy information -- saudi arabia yesterday lowered the official selling price to asia. they do that when demand is not good because they want people to buy their oil. they raise demand when it is strong. scarlet: that might be the small move that could be the catalyst for a larger, rippling effect. let's talk about the bloomberg commodities index, which is at its lowest since 2002, a 13-year low. alix: unbelievable.

scarlet: not just metals, copper, gold, you have other commodities taking a hit. alix: what perplexes me is you would think gold would be spiking. that is a place you go. scarlet: a safe haven. it is not appeared it is down, at its lowest level this year. look at that slide. that is not what you see for gold when you are looking for some kind of safety. scarlet: well, there is no real sign of inflation. yes, inflation is picking up a little bit in europe, for instance, but in the united states it is still not at the 2% target the federal reserve is looking for. alix: if you look at the aussie dollar -- it is a good proxy for china. australia sells the most to china. if you look at china imports, they get the most their stuff from australia and the aussie dollar is continuing to fall. that means they are having a lot

of struggles and that points to china. a lot of these factors wind up meaning a weaker china is serious. it is not speculation, not just the sliding stock market. this is a lot of issues in terms of will it be able to regain demand. in terms of oil, there is a separate issue -- iran. the deadline was pushed back to july 10 and there is a huge in terms of will we or when we cad a. -- a deal. scarlet: you have the ozzie dollar weakening -- aussie dollar weakening. alix steel, trying to figure out oil. some combination of china weakness is helping to accelerate the losses. thank you. we have more coming up with the top headlines. in addition to the selloff in commodities, we go back to china -- the chinese government tried to pop up the falling stock market. in the meantime, foreigners are

headed for the exits, selling shanghai shares at a record pace. is happening in china, it is an economy fueling large parts of the world and that is why you have rippling in the energy markets. the nikkei suffered as well. when you have significant events like that, they tend to trigger interest in getting in and out of positions. scarlet: the shanghai composite lost more than 25% since its seven-year high in mid-june. ship maker amg says second quarter sales declined more than forecast, the reason, week demand for personal computers. fell 8% in the first quarter. another bad sign for the pc committee. -- iron monkey will

replacing ceo, goldberg. also joining the board, sheryl sandberg, who wants to realize her late husband vision of building a lasting company. in genetic testing startup is trying to raise $23 million. they popularized a $99 dna test. they want to develop their own drugs. they said they would start doing research and early-stage drug a drug testing. -- carnival cruise is the first to be allowed to go to cuba. , joins usrnold donald from the new york stock exchange. the treasury and commerce department ok'd the request.

the next episode get the ok from cuba. can you tell us what the approval process is like from cuba's government and when you are likely to get it? arnold: good morning, we are excited. it is a privilege to receive the licenses from the treasury department and commerce department. we are excited. the same time, we are working with the cubans to get what we need from them so that we can actually honor our intent which of 2016 aboutmay 700 guest every other week into two but. -- and to cuba. scarlet: you mentioned one of the newest brands you have heard talk about how it is -- brands you have. talk about how it is a good fit. from anthe brand a vote odessa tybalt all from an original intent to have allainable, system -- eve

from an original intent -- evolved from the original intent to have a sustainable, committed social transformation track record. with cuba, of course, it is a little different. it is cultural exchange, cuban -- immersing in cuban society. it is the first time in 60 years where a ship will go from the u.s. carrying passengers to cuba and then to return and repeat the process. we feel privileged to have received the u.s. licenses and are excited about working with the cubans to ensure that we do everything possible so that we can sail in may of 2016. scarlet: and mr. donald, you are done due diligence, marketing research -- what do the studies indicate when it comes to what travelers want to get out of a trip to cuba, and how does it break down when it

comes to baby boomers, for instance, versus, say, millennial? arnold: in the u.s. there is so much pent-up demand and curiosity about cuba, so we are very much looking for to honoring what travelers are seeking, which is basically immersion in the cuban culture -- just experience it. the arts, the food, the environmental work that is going on in cuba, the other cultural exchange aspect in education and religion -- that is what people are seeking, whether it is millennial's were people that are older and have traveled on regular tours. this type of cultural exchange, excursion -- there is high demand, especially for cuba, but we also know there is real demand for our dominican republic itineraries as well. can you mr. donald, tell me about the existing infrastructure in havana to accommodate large cruise ships? what kind of additional investment will be needed for you to make this happen? fathom is this stage,

using a ship that is being redeployed and carries about 700 guestd. . ship -- guests a ship of that size, we will need to do additional work, but we can see that ship being readily accommodated at a number of ports. over time, once the embargo is lifted, and we see this as the first up not just for us, but the industry overall, larger steps will be taken. develop -- development will have to occur. working withrd to them and others in the industry to do just that. scarlet: norwegian cruise line said they are looking to enter the cuban market. carnival ceo arnold donald, to i-4 turning us. arnold: thank you very much. scarlet: global stocks are sinking -- is there such a thing as a safe haven for your money? it used to be government bonds. is it still? we will discuss. ♪

scarlet:scarlet: welcome back. we are an hour into the u.s. trading day, we will get to the market check in a moment. off by 1.7%. let's get you the top stories crossing the terminal at this hour. two americans and a briton were gored at the first day of the running of the bulls in spain. eight others sustained injuries. bowls -- along side though bowls. it is part of the annual festival. nike scoring another the over its archrival adidas -- the world's largest sporting goods company has signed a deal to

provide uniforms and equip into the university of michigan teams. the deal might be worth $10 million a you. a public service announcement -- do not give callers your passwords, especially if you are a cfo. a cfo got scammed from a -- by a caller according to be from the bank appeared the cfo gave security codes to cancel suspicious payments. $1.2ad, the caller stole million. the cfo has been fired and he is now being sued. let's get you caught up on the latest as we continue to see this risk-off selling taking place. we begin in europe where mark martin is in europe. europe ares in falling for a fourth consecutive day, the longest streak of losses for a month. the stock 600 now at its lowest february with investors awaiting euro area leaders to meet in brussels. it seems euro area finance

ministers cannot agree on giving greece a bridging loan to stave off a financial collapse. for the record books, by the stoxx 600 is -- not in collapse. no signs upon it in -- panic in the bond market. in italy, spain, france, germany. german yields at their lowest since the end of last month. the euro, though, is declining for a second consecutive day. at one stage a survey it was down by as much as 1.3%. by .5% at the end of the day. now it is at its lowest level since may, the 27. 1.1% lower. it is about those needed -- leaders meeting in two and a

half hours. scarlet: you are talking about -- julie: you are talking about the risk off. we falling to the lows of the session. pretty steep across the board. stocks falling for the third straight day, the longest losing streak for the dow we have seen in a month. the dow hitting the lowest level in about five months time. -- upgradeed to up that not that we are accelerating declines. the s&p hit lows at its highest level since march 11 and the us and -- and the nasdaq was at a low as well. we will update you as the declines accelerate. the rear areas of green on the screen are utilities and consumer staples, groups that are more defensive in nature and more rate-sensitive as we see interest rates come down. where we see the most pain -- it has to do with what you heard alex still talking about a few moments ago -- materials and

energy, two of the biggest drags on the major averages. look how it is playing out in specific stocks. copper stocks -- freeport down 8%. southern copper down 4.5%. it is being felt in energy stocks. oil sells off-- sharply for the second day in a row, range resources, uso, and cap the oil and gas all selling off. movement point out the in natural gas. it has been following with the rest of the commodity complex, right now down about 1.2%. that is more bad news for the coal stocks. they trade within the s&p energy index and they have been plunging of late in part because the competition from lower natural gas prices. if you look at these coal stocks, they are falling sharply. look at alpha resources, pretty much a penny stock. consol energy, still in the s&p, down another 5%.

selling in energy is not just limited to oil stocks, scarlet. scarlet: thank you. overnight in asia, another big fella in china -- the major indexes -- selloff in china. they all extend a bear market that began about a month ago. another big story out of the region has been samsung's struggle to take customers from so well and you saw that move as well on the korean stock exchange. all right, let's go back to the overall view here, which is crisis in greece, a bear market in china, a slowdown in the u.s. -- bad news if it were not grim enough. there is plenty of uncertainty, so what does an investor do? usually the answer is to pour money into safe havens like treasuries and gold. that is not happening. lisa abramowitz joins us with wide.

yieldve treasuries on the up, but it has been a bit surprising. lisa: it has been surprising that it has not been more because too much bad news has come out. you have the a trillion dollars stock market having a particularly horrible couple of weeks and the government being unable to do anything, on top of greece, what is going on in puerto rico, on top of less exciting news about the u.s. economy. comeou are seeing yields down somewhat for the 10-year u.s. treasury, but they cannot go down that are if you think the fed is going to hike. if you go back to 2010-2011, the last time you had these eurozone crisis talks heating up, use of the 10-year u.s. treasury fall from 3.6% to almost 2% and the same kind of move on the german 1.5ear bond, going down

percentage points. how can you see that if you have the german yields at 10.6 now. you cannot go -- maybe you can, i do not know, -1%. it has happened before. scarlet: a lot of people saying the german bond market is selling -- setting the pace for global monde markets. bob singe put out a note saying that the market is setting the pace. the question is where is the safe haven then if you are not finding it in the treasury market and german bonds? his cash a safe haven -- is cash a safe haven? ? lisa: this is a question many are asking. with yields at such low levels there has become a growing amount of volatility during times of stress because these bonds are not providing the same kind of avon. there is not the same kind of room for yields to go down that there once was. and, if there is any sign of growth or recovery, those eels

bounce right back because -- yields are going to bounce right act because we are nearing the point where you are not getting a rate of return on the bonds if the economy continues to celery. you see -- accelerate. you are seen flirting with the nine-year yield. recessioncause of a in greece it unless you think the same thing will happen in germany and the u.s., it does not make the same kind of sense. scarlet: talking about using up ammunition to for the last global crisis, they do not have ammunition for the next one. we'll be checking with you as the selloff continues in risky assets. world stocks around the declining to it will take you inside of the markets. next.eagan will join us the s&p 500 losing 1%, just coming off of its lows. the dow industrials down 150.3

now. third straight day of losses. we will be back. ♪

scarlet: welcome back to the bloomberg market day. i am scarlet fu we have seen a global selloff accelerate in the so we brought in stocks editor, editor at large, mike reagan to tell us what is going on. can we pinpointed to a catalyst? catalyst --the same greece is a concern. there was speculation that the right -- resignation of the finance minister might help progress along and people are realizing there will not be progress. also, the key technical level on the s&p 500 was broken. that is a long-term trendline that for most of this bull market has stayed firm and has not been broken, but the range of the s&p 500 has been so narrow this year that it really has been, sort of, a flatline,

that any sort of selling like this will make it vulnerable to be broken like this and that is a trendline a lot of people watch in terms of the markets momentum. scarlet: this is a seven-year old bull market and a lot of people have made money and a looking for a reason to get out. mike: they might be making an excuse to get out for a while. earnings season is coming up. alcoa tomorrow. the earnings season is not great at a drop is projected, whether or not analysts lowered the bar too far and we actually have growth, it is not going to be blockbuster growth. the extinct technical thing is companies cannot buy back stock going into earnings periods like this. is not purchase available until a few weeks from now when the earnings season is more behind us than ahead of us. jmp securities: the reactionsaid

has been muted. what is the asset class setting the pace -- comedies, the german bond, the 10-year? i would look at the euro/dollar exchange rate. that has ripple affects in the commodities. the dollar is strong today. the euro is down below $1.10. the commodities are getting crushed. oil is down 10%. across the board commodities are down. energy and raw material stocks are the biggest losers. i would keep an eye on the euro/dollar. scarlet: mike reagan, think is much. we'll be back with much more in the next hour of the bloomberg market day including a look at what is going on inside china. ♪

welcome to the bloomberg market day. the great fall of china. prices on the shanghai

exchanges cannot find a bottom but some companies believe they have a solution. freeze trading. ♪ scarlet: good morning, everyone. are 90 minutes into the trading day here. let's see how they are trading right now there let's look at the stocks right now. the dow jones industrial average down .9%. the s&p 500 lower by 17 points right now right under that moving average. the nasdaq also down more than one and a quarter percent. scarlet: looking at the s&p 500, we have got material the most.