be watching after the bell. apple is set to report earnings. what to expect from sales of iphones and other products. scarlet: new york airport workers could go on strike tomorrow. we will tell you about the turbulence at laguardia. mark: mcdonald's going upscale for one night. you will not believe their plans for the big mac. this day just got real busy in a hurry. afternoon, i'm mark crumpton. bettyscarlet: let's get a look e markets. afternoon, i'm mark crumpton. the euro markets bouncing back from its slump against the dollar. 9.53 after to 10 weakness last week. the s&p and nasdaq pulling back

from record highs. only the second time the s&p has fallen in nine sessions. the dow getting dragged lower by ibm,oints thanks to utx, and verizon. days thisl early reporting season with only 16% of the s&p reporting, but here is where things stand. the upper half of this bart chart shows the companies reported. of those, sales has beat estimates by .9%. you can see the big dip in the first quarter, topping expectations. eps currently tops estimates by almost 5% compared with 6.7% in the first quarter. go function, if you want to check it out. we annotated it a bit, so you could see it. look take a look at

some of our top stories this hour. ibm is reporting falling revenue for the third quarter in a row. the ceo has been trying to overhaul ibm to be a seller of cloud computing technology and data analytics. she has cut costs but that has not been enough to offset declines. itunes and the company new music service unavailable for some earlier today. the interruption lasted for more than two hours. meanwhile, apple is releasing earnings today after the bell. investors will need to dig a little bit to see how many watches were sold. they will be included in the other products category. last week, some suggested that sales fell 90% since its debut. mark: seats on the board of governors of the federal reserve could be full if the u.s. senate gives their blessing.

the latest nominee is a university of michigan professor, kathleen dominquez. her knowledge of foreign exchange issues will be welcome when monetary policies are considered. former bank of hawaii's ceo is also awaiting confirmation. when all positions are filled, the board of governors has seven members. aarlet: there has been shakeup at toshiba over an accounting scandal. several top executives are out and the company will need to restate earnings for six years. toshiba announced after the closing bell in japan that the president and his two predecessors will resign over the company's flawed accounting practices in which it alleged top executives set unrealistic profit targets and delayed booking losses. the resignations are effective immediately. the chairman will replace tanaka. executive will also resign. humanity the teams will be announced in mid-august. toshiba has pledged to correct

its earnings by $1.2 billion. its share price rising 6%. scarlet: toshiba makes nuclear reactors, home appliances, and computer chips. the iran nuclear agreement is heating up in the u.s. and middle east. lawmakers must sign off on the deal. it calls for iran to abandon making atomic weapons, if it wants sanctions lifted. despite the historic agreement, iran supreme leader says that his country will not stop its proxy wars in yemen and lebanon. secretary of state john kerry says that is worrisome. interpret know how to it at this point in time, except to take it at face value, that that is his policy. i do know often comments are made publicly and things can evolve differently. policy, it is very disturbing, very troubling. meanwhile, the air right

in foreign minister defended the plan as it was presented to his parliament. he told lawmakers it was a world powers, and not iran, that caved in the talks. . the u.s., congress has 60 days to review the deal. president obama is thanking china for helping to negotiate it. the european union is pushing germany over the greek debt. this contradicts a position of angela merkel who had said over the weekend that debt relief is only one option to be considered later on. mark: staying in greece, the possibility of a greek exit from the euro could be back on the table next year. almost three fourths of there iss surveyed say a danger that greece could be forced out of the euro in 2016. --ost half say the day out mail a package that the greeks asked for will prove to be too

small. swift is taking on china, teaming up with the country's number two e-commerce company to sell a fashion line designed specifically for chinese shoppers. the items will be sold on jd.com . she has a concert scheduled in shanghai in november. much more coming up in the next hour. your summer travel plans just hit a major snag. more than 1000 airport workers in new york city vote to strike. we will be going live to laguardia. verizon reported earnings posty, but with its aol huf edition, what kind of company doesn't want to be tomorrow? scarlet: mcdonald's is rolling out a luxury three-course dinner to diners in one asian city. back to one of our top stories. apple is set to report quarterly earnings after the bell.

while analysts expect strong iphone sales, there are questions about the apple watch. mark: the company is tightlipped about the newest catch it, making it hard to figure out its performance so far. joining me now is emily chang. had ourrancisco, we apple reporter tim higgins. emily, what are we expecting after the bell? emily: a lot of questions and i don't know if they will all be answered. not a lot of information about the watch. there are some analyst reports out there suggesting that they sold 3 million in the last quarter. i don't think we will get that kind of clarity from apple. we may get some clues about how the watch is selling. one of the things that we will be talking about is a new survey out that 97% of people who bought the watch are satisfied with it, which is more positive than some thought. i have been wearing mine, i do not wear it as much as i did initially read i do not feel

like it gives me that much of value added, a little slow to tell the time, but it is fun for some things. i think it is all about the iphone still. i love my iphone 6. it has been the gift that keeps on giving. reliant onple is so it, but i wonder, tim, analysts point out that margin headwinds will be an issue with apple watch. this is really the case with whatever new product apple introduces, a margin headwind anytime the company rolls out something new. andou have the wrap up cost whatnot. apple will not release the unit sales of the watch, but sharp be able to back out some of the new revenues. they will put it in the other categories section honor statement today. a lot of people will be looking at trying to see how well the watch did. emily was just implying,

she has a watch, loves it, but is the honeymoon over for the watch, is that what is going on? is a normal adoption cycle for a new product, essentially a new category. people are not accustomed to having smart watches. when you look at the functionality, they are still developing apps. thenext 18 months will be time where we really will see if it comes into its own. the first few months, the early updates to the software later this fall will make it more functional. after that, we will start to see new apps that could potentially make it more useful. aboutt: i have to ask china. tim cook has made a big splash, going on a lot of pr tours. apple relies on china for 29% of sales overall. the iphone 6 was a big hit, but we saw from ibm, china is an area of concern as well. emily: obviously, the massive selloff in tech.

one of the interesting things happening is that the smart phone market is saturating, but at the same time, the replacement market is accelerating. people are buying new phones more quickly. maybe not as many people are buying their first phone, but they are buying their second or third more quickly. what we have been able to tell so far is that the iphone 6 and the six plus have been a hit with customers. revenue in china went up 70%, a big shopping quarter, the lunar new year, but it seems apple has not felt the china pinch. looking for clues about that and how well apple continues to do in china with all of this volatility. mark: you mentioned at the beginning, it does seem kind of close to the vest, tightlipped, but why? emily: it is apple, they are a secretive company. mark: we go through this every few months, but why is it necessary to be this close? they are very

conservative. they do not want to put anything out there until they know for sure. they do not want to talk too much about it until they know for sure. there has been limited supply. it is difficult to buy a watch still if you want one. that could be some of the reason. scarlet: limited supply by design? emily: i have asked the question. is it by design or not? a lot of the analysts on the other side say they are trying to produce these things as quick as possible, they really are. scarlet: speaking of conservatism, tim, apple is notorious for lowballing guidance. top the next quarter. knowing all this, why are analyst still behind the ball when it comes to earnings and sales estimates? >> traditionally that had been the case. they have been a little more aggressive and closer to the mark in recent quarters. but to your point, yes, in the

past, they have been very conservative. of course, one of the things we will be looking for this quarter is their guidance for the current quarter. if they are not as aggressive as analysts are saying for the final three months of the fiscal year, that could be bad for the company. scarlet: thank you so much, tim higgins. he will be covering the numbers for bloomberg news. emily chang will be very busy today. and do not forget to tune into t 4:30 p.m.west" a eastern time. mark: new york airport workers could go on strike wednesday -- thursday. we will go to laguardia, next. ♪

mark: welcome back to the bloomberg market day. i'm mark crumpton.

let's start with the mercer for in the s&p 500. since it's worse days february 26. chesapeake energy. alreadya stock that has done very poorly this year, down more than 50%, down another 7.5% today after saying it will halt its dividend for the first time in 14 years. the victim of something energy prices, of course. the second-largest u.s. natural gas producer. we talk about oil prices, but we talk less about the slump we have seen in natural gas. analystsny says -- expect it will lose $3.18 billion this year. obviously, not a very sunny outlook. take a look at the bloomberg terminal. we have a graphic of chesapeake over the past year. at the same time, we have seen a

decrease in natural gas. the company had tried to diversify more into oil production, but we know what has happened with prices, so that has been worked out well either. both of these are definitely down together. a different story for consol energy. this is a stock that has been beat up this year. higher today after falling yesterday to its lowest since october 2004 because their biggest shareholder called on the company to spin off or sell its natural gas operations. cold, whichproduces also has fallen this year. most coal miners have been down sharply. southeastern management plans to meet with consol about their management of the gas unit. while we are talking about activism, qualcomm. some have been pushing for them

to break up the wall street journal. qualcomm is considering that, doing a strategic review. analysts at bernstein say it would not make sense to take apart these units, one of which makes chips, one holds patents. take a look at the terminal, you can see the two lines of business. this is the chip business, which is double that of the technology licensing business. a $4.4 billion business in revenue, to billion dollars in terms of what the pieces would look like. now let's take a look at our top stories. the federal highway bill set for procedural vote is afternoon. senate majority leader mitch mcconnell says congress has an agreement on the measure. the funding has been hung up by unrelated bills and differences between the house and senate. the legislation authorizes highway programs for the next six years and also includes three years of funding for the

highway trust fund. new poll, the vast majority of americans support the restored relationship with cuba. when embassiese were reopened in washington and havana yesterday. that signaled the restart of pulled up the mac ties after more than half a century. nearly three force of those surveyed by the associated press say it is good idea. on a plymouth rates fell last month in 21 states and were unchanged in 17 as widespread job growth and a shrinking workforce reduced the ranks of the unemployed. the u.s. labor department says on a flight rates rose in 12 states. nebraska has the nation's lowest jobless rate at 2.6%. west virginia has the highest at 7.4%. the overall unemployment rate is 5.3%. those are your top stories at this hour. scarlet: more than 1000 workers at city's airports will walk out their jobs- off

thursday night. mark: their union represent security officers, baggage handlers, and wheelchair attendants. scarlet: matt miller is on the ground in laguardia watching the story develop. what are the workers grievances? matt miller, can you hear us? technicalave a problem there. as the story goes, these workers will go on strike. the majority of them make $10 $.10 an hour, wages are obviously a concern for some of the workers at the airport. he says they believe the disruptions may be minimal, but if you need wheelchair access, other things that have to be going on at the airport, you could be in for a problem. scarlet: let's try again. can you hear me now? yes, i can.

there are a couple of issues here that we have to look at. number one, whether or not these workers for aviation safeguard are being given the right to organize. those going on strike say they are not the sei you. the union says they are not aviation safeguard. if they follow the proper procedures, they would be allowed to organize, but they have not follow the procedures. that is one of the issues at hand. another is how much they are paid. i spoke to a number of employees for aviation safeguard who say the only make $10.10 an hour, and they argue that is not a living wage for someone living in the new york metropolitan area. i don't think anyone would argue that they are wrong on that point. i am not sure how you can go about living on that amount of money unless you had a large family, and all of those people were making money and contributed to the household. that seems to be an issue they want to push through and i think

it is understandable. the third issue, which is maybe the least important, is how this will affect travelers tomorrow at jfk and thursday i laguardia. it should not be much of an issue because we are talking about workers who help you move around if you have a disability, those who help out in the baggage claim, those who help out in security lines. aviation safeguard has told me if there is anyone striking, they will be replaced with others from other locations. they have 40,000 workers and have enough to replace anyone going on strike. scarlet: you are in front of a united airlines counter. aside from united, what other airlines are affected? matt: united, british airways, and delta will be the ones affect it. it should be said, there are similar contracting companies. ahave spoken to

number of prime flight employees who also get only $10.10 an hour. i spoke to somebody working for aviation safeguard for 20 years full-time and still only get $10.10 an hour. it's used to be a cross airport, contracting companies paying their workers very little, and the workers are would argue, not allowing them to organize. the company will tell you that they can if they follow federal procedure. scarlet: matt miller, thank you. mark: the number one way [indiscernible] i don't think he is worried about embarrassing his kids. ♪

mark: for all of you parents out

there, some new research you may want to hear. a study has found 70% of us are stuck in a generational time work and you are acting far younger than your age. on average, most people over 40 feel 20% younger, meaning a 40 --year-old parent, like us, have a mental age of 32. the ways in which you are most likely to show your age and embarrass your children? mark: dancing. scarlet: president obama in business the demonstrated at the tree lighting ceremony this past december. his dance moves went viral. action.t the thumb apparently people stop learning new dance moves at the age of 26. when you are the leader of the free world and the commander of the u.s. military, i guess you are not embarrassed when you

get up there and do dance moves from 1985. scarlet: if you asked sasha and melia -- mark: it was touching because the president was here in the city's week with his daughters and says that he won to spend more time with him. he says it breaks his heart he goes on the week and they will talk to him for about 10 minutes and then just go. i was with my son last week on vacation and i tried putting my arm around his shoulder and he shrugged it off. then i reached for his hand, did not want to do anything with that. mark: my son told me this weekend, seriously, you have issues. scarlet: that is ok. see you tomorrow. much more coming up on the bloomberg market day. ♪

scarlet: welcome back to the bloomberg market day. we have some breaking news on greece. let's go during the innocence here with the details. ramy: positive details over the

past week. this headline crossing the bloomberg terminal. greece has been raised to its triple c positive from triple c minus by s&p. they have also upgraded their outlook to stable from negative. right now, looking at the markets, no reaction just yet, but we will be watching as the day progresses. real reaction, euro stronger against the dollar, near session highs, the first gain in five days. they bounce back from the weakness of the last four days. 1.0949. let's get to some top stories. the republican national field -- lookingblican field like the kentucky derby with 16 people in the race. john kasich made his bid official earlier today in columbus. he is promising to make national security a priority. >> in this case, national

security climbs to the very top of the heap, because we must be strong, and we must assume our role as leaders of the world. he served 18 years in congress before becoming governor four years ago but may not get into the first presidential debate next month in his own state. only the top 10 candidates in the polls eight stage and he is 12. you know who rex first? donald trump. -- arly poll says newspaper and i was that donald trump should quit the race. register called blowhole and says that he should drop out of the race. however trump is not backing down. he is virtually the head person in washington, the head of the group that runs -- somebody is doing a bad job.

it is massive corruption, massive incompetence. the people are really being treated like third country citizens. scarlet: the latest poll of likely primary voters put trunk with a double-digit lead over the rest of the candidates, but another survey -- but the survey was done before his comments about mccain. moving onto corporate news, nike has given mark parker a $30 million stock grant to get him to stay for five more years. 2006. been the ceo since cofounder phil knight endorsed him to succeed him as chairman next year when he retires. shares of nike are higher by 46% over the past year. citigroup has been ordered to pay $700 million to credit card customers over the illegal practices. fined $70as also million all tied to cities marketing of products such as credit score monitoring were rush processing of payments. customers were told they were

pretrials when there actually were not. citi says it stop the practices in 2013. coming up in the next hour on the bloomberg market day, the new housing moore's. millenials complaining about rising rents have only grandma to blame. and there is no dollar menu at this particular mcdonald's. fast food turning into five-star dining for one night only. weed wars. the battle to advertise marijuana on television. a look at the very first commercial for pop. all that and more coming up on the bloomberg market day. one company we are monitoring today is verizon. second-quarter profits topped wall street estimates but shares are falling after verizon cut its sales forecast for the full year. theia sterns spot with equity managing director at drexel hamilton. she asked what stood out the most in verizon's earnings. >> i thought the results were

quite good but verizon is managing this conservatively. they are trying to deliver the balance sheet after last year, to buy the vodafone assets, and also focusing more on content as the regulatory environment disfavors network builders, and favors content companies, so the big event for verizon this summer will be there so-called over the top video offering that they will optimize for mobile. that brings us to the broader conversation of how the business model is changing, which come back to winning the wireless wars. real stiff price competition between t-mobile and sprint. it has not really been between verizon and at&t, but verizon is signing up a lot of new customers and protecting their profitability. >> i would say neither at&t are fighting this war.

verizon is sticking to its gain, network quality and then putting more traffic and driving high revenue percept carver on the network, rather than slugging it out at the low end to get every last customer out there, even those that may not be all that profitable. talking about wireless customers, you are talking about over the top television. what does verizon want to be? maximize their network investment. they probably have the best quality network of any carrier thethere, the fios line and 4g lte network. they used to compete head-to-head with at&t. who is the direct competition for the new verizon? >> at&t is very much a competitor but you also bring in companies like google, netflix, comcast, as all of these companies compete for the

consumer dollar, and the consumer starts to think about their access to the internet, whether wireless or wireline, and their purchasing of content as a single bucket. there will be with you spend -- to divide up their spending. be at&t andsed to verizon, at&t going the way of directv, verizon going a different path. >> at&t will have a unified content bundle. whether you are on uverse, wireless, or any other platform, it will be unified content. verizon is going a different route, but they are building a content bundle themselves with aol and a number of other deals they have announced. olivia: speaking of content, should verizon cell the huffington post? >> i don't think it would be all that material for them. interesting content. i think they ought to keep it and see how well it fares,

putting that content on a wireless device. olivia: strongest stock in the sector? >> at&t. they have the balance sheet wherewithal to invest for growth. what they are doing with directv. mexico is a huge new entry for them. they will have stronger growth over the next five years, certainly than verizon, and in a better position given their network, than sprint and t-mobile. olivia: why are you bullish on a tie up with directv? >> they can do a lot with it. they can merge the content, single content bundle, they will expand the wireless network to sell broadband to directv customers in rural areas. now they have a unified quad pla y. at&t will be able to give that to you on a national basis. olivia: and it is cheaper. scarlet: that was the telecom analyst at drexel. coming up, mcdonald's is going

upscale, but for only one night. big plans for the big mac. details are next. ♪

scarlet: welcome back to the bloomberg market day. a new wave of renters is heading up the urban housing market, baby boomers, and they are competing with millenials for property. 65 ormber of renters older will reach 12 million by 2030, more than double the level in 2010. alix steel is with me now. the federal reserve of kansas city study the trends and has some big numbers on it. predict that our rent vacancies -- rental

are near 21-year lows and the median price across the country is $1367. that is up 14% from four years ago. one crazy example in this article, you had a 28-year-old man who -- living in the same community as his 90-year-old grandmother. raising the question, is there actually in the rentals and properties to go around for you and your grandmother? scarlet: in between all of this is gen x. a lot of them lost their homes in the housing bubble crash, so they remain in rentals, and you have a lot of demand. those who are homeowners are trying to figure out how their kids will be able to move out of home, or are taking in their own parents who are aging as well. this will be a generational demographic conflict to come in years to come. if you look at housing

starts, you have multifamily starts rising 30% in june and this exceeds this kind of trend. so how much will this save residential construction and add to gdp? it is different than we have seen before. is this a structural or cyclical change, and if it is both, what does that do to the overall economy? i'm not sure that anyone does the answer to that. long wait predict list for any desirable property. it isthat is where already, you cannot get a place unless you have cash. scarlet: maybe you start paying for the right to apply for something. don't give anyone any ideas. taking a look at how commodity prices have settled, oil tanking below $50 briefly yesterday. today is doing a bit better. alix: today is pretty much flat. trading near a three-month low. it did not go into the 40's, but

still relatively low. the issue is consistency oversupply. three things happening in the market right now. you have floating storage in iran moving to different countries in order to be sold. one tanker has unloaded and two more on the move to asia in anticipation of the sanctions being lifted. you also have the current rig count here in the u.s. which goldman sachs still sees as growth continues. havehird one, which we been talking about for weeks, a buildup in product supply. the desolate market. we are getting those numbers out tomorrow. if you have too much product, refiners will not work as hard, use as much crude. ever read so many crack reports on this. scarlet: at the same time, another story that caught your attention having to do with wall

street bank rolling shale drillers, but now they are starting to get impatient. the amountu look at of capital sale producers have issued, $44 billion through bonds and share sales in the first half of the year. ubs puts that at the most since 2007. those are starting to come home to roost. nonperforming oil and gas loans to 66 million dollars. jpmorgan setting aside money to cover possible cost -- losses on oil and gas loans. off,s are coming companies, how are they going to make money? that will be a huge issue in october when we have a redetermination when banks go into the loans and say, i will not lend you the money like last year. many people wonder why we fixate on these round numbers. a lot of people have stopgap orders around that level where

hedges, on or off. guys ended of these up hedging when oil was $90, but now they are rolling over because we are getting to the month where they sold it. what are they going to do, put a hedge on $50? that raises the issue of their cash. we are seeing this trickle down into some companies like chesapeake. they eliminated their dividend today. it is all about preserving liquidity, case and point. scarlet: certainly, use of cash needs to be conservative at a lot of these companies. stick with me because this is a great story. mcdonald's is going upscale for one night, and only in japan. will try7, the chain to boost its image by ditching its fast food menu and disposal packaging. meals are served with proper cutlery, wine glasses, and diners will be treated to -- beef, chicken, and fish

patties, along with mcdonald's sauces. leeks,ce is made from onions, and potatoes. scarlet: but the fries are really good. not everyone can enjoy these meals, you have to get in line, so to speak. 10 groups of just 20 lottery winners who are already picked this morning. we will wait to have to see their pictures on instagram and twitter. alix: this is what mcdonald's is doing to get customers back? we are talking about it on tv. that says how they need to position themselves in order to grow market share when they are sort of tapped out. scarlet: maybe just, when better hamburgers like shake shack. alix steel will be back to take us through the market close. meanwhile, our top stories.

is plungingologies today after analyst cut their profit forecast. weak in theand is space that makes aerospace parts and elevators. itscompany agreed to sell course key helicopter unit last week to lockheed martin. a new internet marketplace with a lofty goal is launching today. plans to challenge amazon and cosco, starting at with an array of 10 million items. future shop, but the company promises a refund if you don't save that much. an initial investigation into the explosion of that space x rocket last month. elon musk says a strut in a liquid oxygen tank broke. that was made by a supplier and not spacex. he also says employees have grown complacent since most of them have only known successful launches. those are your top stories. the fight between new york city and uber just got a lot messier.

credit unions are also joining in as taxi medallions keep plummeting. someone representing the taxi spoke to betty liu. >> the legislation proposed will do nothing to address the crisis unfolding in industry as we speak. you put up the graphic about the data. those numbers only tell part of the story. it is what happens next that everyone really should be talking about. betty: correct me if i'm wrong, the legislation being proposed is to limit the growth of these ride-sharing cars on the street. op-ed, about 2000 are added every month. so you if you slow the growth down, that will bring down the price of these medallions. >> as a practical matter, and there is a lot of irony to it, uber is attacking the mayor

saying he is doing the bidding of big taxi, but this legislation does not help them. the crisis unfolding in the industry is a direct result because of their business model in new york city. the fact of the matter is, has been the law for almost 80 years in new york, that you cannot pick up street health unless you have a medallion. that is what angers the valley of the medallion. without that, the medallion is worth it -- worthless. there is nothing about the legislation that enforces new york state law. you are suing the city, saying enforce this street hail law. >> we do not need any new legislation to solve the crisis unfolding, just enforcement of existing law. it is the failure to do that that has caused the medallion to plunge. it is the usurping of the business by uber that has caused leaders to decline, fares to decline, and if we don't do something very soon, it is what

is going to put these credit unions out of business. betty: on the flip side, of course, is the consumer and uber who says, this proves our business model works. and you know what, it works really well. i am sure you have seen their the deay where you have blasio option, what would happen if there were no uber. and listen to this ad. it pulls at the heartstrings for a lot of people here in new york. and get to the airport from sunset park in brooklyn, and while taxis often refuse people in minority neighborhoods, uber is there taking people to and from communities inside of manhattan, but mayor de blasio is pushing his agenda. essentially, read between the lines, taxi drivers discriminate. right, it does pull

at the heartstrings, and companies like to say that this is about a petition, or this is .bout innovation the reality is, ultimately it's about the rule of law. even competition, for its ability to thrive, depends on respect for the law. in new york state, uber does not respect the law. that was taught hagan speaking with betty liu. coming up, a tv commercial for marijuana. the controversial ad was supposed to air last night until the network pulled it. but you can see it right here, next. ♪

scarlet: first marijuana commercial was supposed to air tonight in colorado but abc attorneys pulled it. let's take a look at the

commercial causing all the drama. >> do you lead an adventurous life, always finding new ways to relax? to enjoythe best ways and recreate discreetly this summer. recreate responsibly. scarlet: what is interesting is you see nothing that indicates that this is marijuana or you do not even have any words. recreate, which is always a buzzword. you point out exactly what they are supposed to do, state law says in colorado that u are not supposed to say any keywords, marijuana, show any products or any oils or extracts , and that is but they had to do. it is so strict, they need to regulate what is going on, similar to what the alcohol industry has to do. when you think of an alcoholic ad, you have people holding a can of beer, but they never put it to their lips.

in addition, cigarettes, we know the icon with joe camel. you never see someone inhale. scarlet: people have a great time holding the products. we talk about how this commercial was pulled but it was originally expected to air. this is because of gray area between federal and state laws. this was supposed to air monday night at around 10:30 p.m. on abc local affiliate in colorado, only in colorado. that was moved to tonight, but then that was basically taken off the table because of the legality issues. pot is federally illegal, but in colorado, according to amendment 64, is legal, but they said you could also air ads on tv. abc, saidhe owner of hold on, we need to walk back on this. we need to make sure we are not sued or lose our broadcast

rights in the denver area. scarlet: let's let the lawyers have some time with it. are printthere advertisement ads that have been aired nationally without issue. the first timeot that we have seen things in print or broadcast, but it is the first time seeing it on tv. this is a look at the first "new york times" ad by a company called leafly who calls itself the yelp for strains. if i have inflammation, take the strain. if i have a headache, this strain. this is the first time ever for recreational marijuana. scarlet: it is all about the platform. we are back with the bloomberg market day after this. ♪

scarlet: alix: this is noon in san francisco. we are "bloomberg market day." you whatwe will tell

to watch for as apple, microsoft, and yahoo! split how much isx: donald trump really worth? scarlet: and the middle east, we will tell you about the big plans for the bank in saudi arabia. ♪ scarlet: good afternoon. i'm scarlet fu, here with alix steel. the dow is down over 1%, more than the essence the, more than double the s&p. a brutal day across the board. european stocks rolled over a bit, putting additional pressure on stocks and deteriorating since then. scarlet: a 228 point swing from peak to trough.