never heard of is doing business with nearly every major republican presidential candidate. betty: the new trend of buying cyber insurance to protect against hack attacks. a business that could grow to $10 billion by the end of the decade. betty: halliburton's takeover of baker hughes is in jeopardy. the government may block the transaction, sending shares plunging. good afternoon, i'm betty liu. mark: i am mark crumpton. thank you for joining us on the bloomberg market day. worldtocks around the leading wall street lower following disappointing second-quarter results from apple and microsoft. be on tech companies, some

positive signs on financial results. boeing rising after reporting cash flow surged in the second quarter. intuitive rallying after the company's profit topped estimates. gold futures retreating for a 10th day, the longest run of losses since 1996. gold is down a full percent trading at $1092 and $.50. oil is trading lower, down 1.8% today. crude oil facing some pressure because u.s. stockpiles are increasing. betty: 2.5 million barrels come in fact. given the clients we have seen in stocks, a mixed session here for the bond market. you see the yields continue to come down. the two-year yield is holding

steady here at 0.7, up slightly. in currencies, janet yellen is breaking up the six-year long party. arecommodity currencies taking a huge hit because they are anticipating the fed rate hike. dollars declining. now to some top stories crossing the bloomberg terminal at this hour. we have not seen a housing market like this since 2007. sales of previously owned homes rose to an eight-year high. increasing 8%, beating economist estimates. the median price is now at its highest ever, $236,000, up 6.5% from a year ago.

shares of apple falling today 5% after the company posted record third-quarter profit. earlier, gene munster said investors are focusing too much on sales. >> expectations were for 49 million iphones. they did 48. it seems like a nonevent. , that means even though it is just a slight miss, this idea that there may not be big upside in the future is why the stock is down today. this is just an overreaction. betty: apple also reported the largest ever cash pile. it has $203 billion. the country's biggest home-improvement chain is getting bigger. buying interline brands -- inner

being chargedople in connection with that damaging cyber attack against j.p. morgan last year. investigators say the hackers prowled the banks networks for two months without being detected. households had information stolen. today by chipotle up the most in a year. the mexican restaurant chain posted second quarter profit that beat estimates, helped by higher prices. chipotle raised prices 6% last year to offset the higher costs of ingredients like beef and dairy. net income increased 26% to 545 a share -- 5.45 a share. abbott laboratories reporting second quarter profit the top analyst estimates. maker of nutritional beverages saw a surging demand for its brand name generic drugs

-- profit was $.52 a share. revenue increased 2.5%. american drivers put a record number of miles on their cars in may. that means there could be another driving records at this summer. give credit when improving economy and cheaper gas. havethan 4 million people gotten jobs since last year, which means more daily commutes. double 07 is back. -- 007 is back. >> why should i talk to you? >> i'm your best chance of staying alive. betty: daniel craig returns for spectre. the first full-length trailer was released today. bob will be driving his aston meartin. it it comes out in the u.s. on november 6.

i did not know you can fly like that in a helicopter. that's a look at the top stories at this hour. mark: looking forward to that. it's going to be fun. let's go to a developing story. halliburton's $35 billion takeover of baker hughes has run into a roadblock. federal antitrust officials are concerned that the deal could hurt competition in the oilfield services industry. steel. us now is alix what else do we know at this point? x: there are two issues that could be at play. his halliburton offering the right assets up for sale? are there the right buyers? she leaned toward the argument that the buyers were not up to snuff. the doj takes it seriously and puts buyers through the ringer. if you have these assets and

they are leaving halliburton and baker hughes and smaller players by them, our clients going to go to the smaller guys for these services or will they keep going to the big guys? clients, not have the those buyers and assets won't be able to make the kind of money and offer the competition the industry needs to see. betty: what could be done? halliburton would have time to go back and reassess the assets and offer more were different kind. they could either look at the buyers they do have, work with them closely and then go back and convince the doj these buyers are really good, let me tell you why. the third option would be to find new buyers. , thinkssets being sold of things like cementing assets, certain drilling assets. they are quite expensive if you look at them, anywhere from 2.5 and $3 billion valuations.

ons has been frustrating falling oil prices. as they're the kind of deep pockets that will pay up for that? mark: halliburton is not the industry leader. his halliburton and baker hughes -- what does this mean for halliburton's fortunes? alix they will be: a $72 billion company. they will be the number two player, for sure. pricing higher is what you need to see here. oil services, drilling costs across the board down 30%. they want to recoup some of that from the big players that will wind up cutting their drilling services. i was speaking with andrew cars -- he was looking at halliburton from emergence perspective. it has been holding onto certain assets.

their margins are 5% versus -- they could fix that really easily and their margins could go up to 9%. they could do something quickly that would help their company. betty: thank you so much, alix steel. mark: let's go straight to julie hyman with a look at the markets right now. julie: i wanted to pick up on some of what alix was talking about. if you look at the major averages right now and see these declines across the board, some of that has to do with energy, some has to do with earnings we got today. if you look at the s&p 500 energy index, it has turned sharply lower after we got those headlines that there was going to be more regulatory scrutiny for this deal. i wanted to look at the other energy movers. one big stock that is bucking the downtrend today is exxon mobil.

it was by rated at goldman sachs and has been added to its conviction list. it is even more of a buy from that company. free cash flow driving premium dividend growth in general. analysts like the dividend growers with an energy. an inflection and production growth is one of the other things the analysts are mentioning. that is bucking the downtrend. and rest of the energy complex is largely down. fmce is a company called estimates. second quarter earnings fell 15% quarter over quarter because of a continued decline in the north american land drilling market. if you look at the other oil movers today, we are seeing --lines

mark: julie hyman, thank you. , for companies worried about a cyber apocalypse, aig has a new insurance policy for that. the growing business of offering hacker insurance. betty: a look at how the slowdown could affect corporate earnings. we will be back. ♪

betty: welcome back to the bloomberg market day. i am betty liu, here with mark crumpton. mark: our next story fixes to mclean, virginia, a half-hour outside of downtown washington. betty: that is where you will 's singlen bridge bank location. betty: nine republican presidential campaigns love to park their cashier. why? phil mattingly joins us from washington to explain. how could a virginia bank with one branch become the gop's bank of choice? by happenstance. this bank was started in 2007, designed to be a community bank. the financial crisis hit and john mccain was good friends with the chairman of the bank. chain bridge happened to have a clean balance sheet. the mccain campaign don't --

-- that0 million started the process. they have become the goto bank for republicans, largely because they tailor their services to what campaigns need. betty: what is it about this bank that is so attractive? size is offputting to some outside groups but is the most beneficial thing about it. a campaign walks up to a bank and says look, i will be 50 credit cards come a credit line of a couple million dollars, i need to be able to wire $10 million to iowa in 10 hours. i have no credit history. that is problematic when you're going to one of the major banks. with chain bridge, they sit and have good relationships. when i talked to peter fitzgerald, he made clear, we know these people and trust

these people and understand how campaigns work. we will give the green light right away. mark: where do the democrats stashed their cash? betty: not as concentrated as chain bridge. hillary clinton and martin o'malley are putting their money in amalgamated bank. one of the largest union backed banks. bernie sanders also puts his money at union backed bank. they also use smaller banks. , complex mazene re federal election laws -- you need a small tailored service. that's what you've seen these campaigns move away from the biggest banks out there. betty: getting back to the republican candidates, president obama made his appearance on john stewart's daily show last

night, one of the big guests that he is having before he goes. this is what he said about donald trump. president obama: i'm sure the republicans are enjoying-- john: anything that makes them look less crazy. betty: . away?o you think he fades or does he fade away for the republicans? phil: it does look like anytime soon. i was waiting to get a look into -- the newest polling we've gotten only surveyed in that last way for hours, there has been a shift in those numbers, but not enough of one to take donald trump from being the front runner. this is the biggest concern among republican consultants. if his numbers do not fall off

the table after what he said about john mccain, he has tapped into something and this candidacy israel. sixth, there is no chance that donald trump is not on that stage. -- this candidacy is real. if the numbers have not fallen officers then, after he made his comments about john mccain, there is a possibility his poll numbers may stay up. he will be on the stage during that debate. betty: how he performs on that stage could make or break him. santorum will be speaking on "with all due respect" today. don't miss that interview. we will be back. ♪

mark: welcome back to the

bloomberg market day. i'm mark crumpton, here with betty liu. betty: a look at the top stories at this hour. newly released video shows the arrest of a black woman in a cost marshall texas case. sandra bland was pulled over for failing to signal a lane change. she was found dead in a jail cell three days later. hang herself she but the family disputes it was a suicide. workers at the airport going ahead with a strike tonight. they will walk off their jobs at jfk. the workers want their pay raise to 50 now is an hour. transportation officials say they are trying to prevent travel delays. -- $15 an hour. betty: federal officials say there could be another driving records at this summer. to an improving

economy and cheaper gasoline. 4 million people have gotten jobs as last year, meaning more daily commute. software engineers proved they could seize control of a moving car. he demonstrated their software for wired magazine. they were able to disable the accelerator and breaks and even to the radio even though they were 10 miles away. a bill just introduced in congress aims to keep internet connected cars from getting hacked. that's a look at the top stories we are following at this hour. betty: i can't tell you how scary that story is. , cyberg of hacking attack insurance has been around for over a decade, covering things like call centers and credit monitoring. aig is introducing a new cyber apocalypse plan that offers coverage for property and bodily damage up to $100 million. they have not sold a policy at

but the company predict the market could balloon to $10 million in annual premiums by 2020. $100 million? >> it is not even enough, right? companies are asking for up to $1 million in the midst. what happens if an energy company gets hacked? -- $1 billion limits. betty: do you really want to be entering this? -- ensuring this? >> you have to have a good balance sheet and you have to -- they're all talking to customers, but nobody has written a policy because you have to specialize the products. before we were talking

about cyber breach, now we are talking about actual physical world damage. >> right. say if a power plant gets hacked into, what happens if you cannot access any of the utilities you need every day or what happens if the entire northeast is blacked out for several weeks? lloyd's of london today study with cambridge thing that would cost $1 trillion. -- saying that would cause $1 trillion in damage. betty: who would be buying this? >> it would be a company like an energy company. a bank, for example. banks know they are getting hacked. where theeeing threats are coming from. for an energy company, it's kind of no. they are not as prepared. -- it's kind of new.

we know where the threats are coming up, we can get the costs down later on. mark: cyber insurance has been around for a few decades now. what makes this different? >> cyber insurance before, they would pay for it the credit union sues you and they need to recover these costs. that.er business interruption. now, what happens if lives are lost? if a building burns down? car -- >> is controlled from 10 miles away. >> what happens when you take the cyber world and bring it into the physical space? they are making this wide enough to go into a lot of different policies. what happens if a pipeline bursts and there is environmental damage? let's find out how we can ensure the damage caused by that.

thankfully, none of those things have happened yet. catastrophic -- thank you so much. , i have to leave you on such a sour note. mark: as depressing as it is newsworthy or i will miss you. my bloombergack while i'm on for the next half hour. there is a construction boom going on in saudi arabia. we will tell you who is profiting from the trend, next. ♪

mark: welcome back to the "bloomberg market day." a company ofto buy

41 $3 billion. julie hyman has more details. julie: this is a scoop our reporter got. coyote logistics is based in chicago. transport management services. it is backed by warburg. firm invested back in 2007. if the deal goes through, $1.8 billion, the third-largest deal this year. like many industries, they have been going through a wave of consolidation. fedex agreed to by a dutch company. those were both large deals. this would be the third-largest. if it does indeed happen. it has been a big year for m&a,

guys. thank you so much. let's take a look at some of the top stories crossing the terminal at this hour. the jury that convicted james holmes is back in court trying to decide how he should be punished. he was found guilty of killing 12 people and wounding 70 others in a colorado movie theater three years ago. the penalty phase could last a month. he is not expected to testify. he faces life in prison without parole or execution. five years after dodd-frank was signed, republicans may try to change it. richard shelby of alabama says he wants to soft and the rules for regional and midsized banks. republicans may add the proposal to an unrelated government spending bill. shall be as chairman of the senate banking committee. earlier, christopher dodd praised to the measure that he co-authored. greater transparency, the

consumer protection bureau is doing a very good job. too big to fail is over with. we believe that to either case. have done a good job with this and time will tell. dodd says it is frustrating the rules aren't in place. bill simmonslist is headed to hbo according to the new york times. tv will be the exclusive home for him. his contract begins in october and a talk show will debut in 2016. he is among several recent departures from yes p.m. where 30helped create the 30 for series. alibaba sells chinese shoppers everything from boots to books and medicines.

chinese sperm banks offered to pay $800 for their donations. signed up.000 chinese media report the country has more than 50 million infertile couples. those are your top stories at this hour. coming up, the "bloomberg market good night to some 24 hour walmarts. they are scaling back some of its around-the-clock stores, giving them time to restock the shelves as it tries to boost sales and satisfaction. and we'll hear from the ceo of jet.com, the startup looking to take on amazon and reinvent the wholesale shopping club. at the height of the so-called arab spring, saudi arabia announced the billions of dollars would be spent on affordable housing for the rapidly growing population. well the government upon generosity may help the

kingdom's citizens, it is helping wealthy businessman. breaking ground on a housing development outside the saudi arabian capital, this person knows the industry means big business. this is among dozens of developments cropping up in the desert. a multibillion-dollar effort to build half a million new homes. >> it is for the people who get a houser by or without the help of the government. >> historically limitless oil revenues have left the population with limited housing stock. in 2011, the political violence wracked neighbors like egypt, and saudi leaders grew concerned overcrowding and low home

ownership rates. >> people without a house have nothing to worry about. if you have a house and your children and family are there, you will be a better citizen. >> low-cost suburbs may solve the problem. some say a cookie-cutter approach to homebuilding may not create long-term cohesive communities. >> what we see is more and more construction. not really architecture. onthis architect draws traditional methods that have grown increasingly rare. >> we are repeating the mistakes of others. >> places like to buy? >> dubai is a good example of what not to do. the neighborhood is important. some developers may skimp on

construction, public agencies are paying huge premiums for land that was once given away for free. to some peopleen as a gift. this is a big problem we have to find a solution for. peopledo you encourage to only and to develop the land for housing? >> it depends if they really ort to make 100% profit, they want to be a participant. he is participating by building homes for his fellow citizens. with the government now his largest client, he may also be building himself a small fortune. talk about the scale of this project across saudi arabia. >> when it was announced, they

talked about projects across the country. we have seen a dozen cities. half a million new homes. some are apartments, some are houses. often outside of the major cities. that is a challenge. mark: is it successful? beenm: there has infighting between different ministries across saudi arabia. and a challenge about finding gland they can develop. obviously the private contractors are happy to have the houses sold in advance. a lot of people are saying, where are these half a million homes? only a fraction of those have been finished. you: i said to you, when think of the need for affordable housing, saudi arabia does not come to mind. willem: and yet there is a huge

percent of population renting, living with their parents. age 30, a huge proportion of the in theion do want homes government recognizes people who have homes tend to be more part of their community and less likely to create a problem. mark: what does this mean for investors, those looking to get involved in construction? willem: there are some companies involved. there are sensitivities around mecca and medina. when you are building this many homes, that is an opportunity for any kind of construction firm that has the contacts. you need to know the right people. , those ofever folks us in the media, reference saudi arabia, we say oil rich saudi arabia. with the price of oil falling, how is that affecting the economy? willem: when you look at energy, billion aillion, $100

year are given back to citizens, which is dramatic. when you think about the industries that have grown up around oil, like construction, that relies heavily on these kinds of funds from the government being dispersed if they are not available, if they are spending money in yemen. that is a challenge. thanks so much. appreciate it. it is going to get harder to find a walmart open 24 hours. they will close some stores overnight to keep produce fresh and shelves better stocked. will it boost sales? ♪

mark: welcome back to the " let'serg market day, get to a check of the markets with julie hyman who is standing by with details. julie: it has been a big earnings day. a lot of companies out with her numbers. let's take a look at the major averages. declining across the board because a lot of those records were worse than estimated. you can see the nasdaq is underperforming and i wanted to dig into why. it has a lot to do with earnings. take a look. we've got apple. the big reason is the company's iphone shipments came in below estimates. in things likeng windows. facebook had been trading at a record in recent days and is pulling back. along with the

broader tech sector. take a look at -- the company reporting some a study released related to one of its alzheimer's experiments. it is coming in shy of what investors has estimated in terms of hopes for the treatment. 's earnings missing estimates and texas instruments is not out yet but is reporting after the close of trading. if you look at other semi conductor earnings, they might not bode well for t.i. revenues will decline sequentially in this quarter 7% to 12%. analog devices falling along with it and arm holdings also missing in terms of its earnings. within the pain felt chips today. apple not helping because a lot of these chipmakers supply apple

for the chips for its devices. i wanted to take a look at the philadelphia semi conductor index. and you can see they track semiy closely with the conductors tracking closely to the broader nasdaq. here we see a divergence with the stocks continuing to fall even as the nasdaq has made highs. it will be interesting as we go through the earnings season, if we can continue to see that kind of performance. from the nasdaq. if we can see these earnings weak. my's.thank you so let's take a look at some of the stories we are following. halliburton's takeover of baker hughes has run into a roadblock. the justice department's antitrust lawyers are concerned it would lead to less

competition in the industry. there has been no final decision whether to stop the takeover. halliburton has proposed selling assets to other companies. shares of caesars entertainment has been down 19% from the open. the casino operator is in court over plans to restructure $20 billion. caesar does not have support from the two thirds of creditors it needs to go ahead with the plan. amazon is expanding its home services program to 15 cities. it is a challenger to user review sites like yelp. customers can find it -- can use it to install home theaters or give guitar lessons. opened in new york, los angeles, san francisco, and seattle. chicago and atlanta are among the new cities. walmart says it will close some of its 24-hour supercenters for a few hours each night.

toy want to use the time better stocked shelves and organize stores for the shopping rush. the move will affect about 40 stores including those and fill it up you, new jersey, and marilyn. -- and maryland. locations had their hours reduced and more stories will go through the process later. shannon broke the story and joins me in studio. did this come as a surprise? the employees and customers. i was there yesterday. they were surprised and some middle are busy in the of the night. you might not think, but people have different schedules. so it did come as a surprise to employers. and some investors. walmart really kind of defines this 24 hour on demand, whatever you want whenever you want it. the company says they are doing

this to focus on making sure their stores are well stocked and staffed and organized. in theve been struggling u.s. stores, customers complaining the lines are too long. items are missing. it is a dirty environment. they are trying to improve the experience. back in by cutting these overnight hours, they are on those prime hours in the daytime and early evening. mark: what about those folks working overnight? shannon: that is the question. bottom line.rt's do those customers find somewhere else to go, walgreens, or cvs? there are not a lot of actions -- options. or do they go during the day? this could be a good move financially for walmart where

they could hang on to those sales and consolidate them in different hours. then they don't have that overnight, overhead from the overnight hours. a good movebe financially. they said they are rolling this out initially in two dozen stores in the spring, 40 stores now. walmart has thousands of stores nationwide. if successful, we could see this becoming the norm. for these employees who are working at the stores, are they going to go someplace else? will stay lot of them on doing stocking, organizing overnight shifts. they will keep that shift. if you are a cashier, you are no longer needed from midnight to 6:00 a.m. they can relocate. if they don't want to, those employees are going to lose their jobs. mark: was walmart concerned about theft? shannon: when employees said she

thought that made be a reason. walmart said that was not a primary reason. that could be a benefit to where they see a reduction of theft. that was not a primary consideration. officials believe this is going to reignite growth? the new ceo has been doing a lot of different things to try to reignite growth. this is a company that is growing 1%. they need momentum. they talk about online. the real money is in the u.s. stores. he has been raising wages, streamline management, investing in renovating new stores to get customers back. pettypiece, thanks so much. the ceo gives us an

insider's take on how he developed a major online platform for selling sports and concert tickets. that is coming up in small to big.

mark: welcome back to "bloomberg market day." i'm mark crumpton. vikingsesota sponsorship deal with radisson is ending 10 months after the the company suspended its association with the team. that was due to the prosecution of adrian peterson, who was indicted for hitting his four-year-old son. the latest decision by the hotel operator follows the decision to restructure his contract. government's pursuit of the all-time home run king appears to be over.

the justice department is dropping the last piece of its longest case against barry bonds who was convicted of obstruction of justice in connection with a case that centered on performance-enhancing drugs. and was overturned in april the u.s. says it will not ask for a review. a record crowd at the rose bowl in pasadena, california. the massive turnout last night was actually for soccer. loselona 2-1 victory over angeles galaxy was seen by 93,000 fans, the biggest crowd for a club soccer game in u.s. history. barcelona is on a preseason tour as it prepares to defend its title. those are your top stories. speaking of selling out crowds, online platform for purchasing tickets that allows consumers to compare deals.

in this edition of small to big, the founder and ceo explains became acome -- how it player in the secondary ticket market. started in 2009. my cofounder and i have been and so we would be turning to various sites to buy tickets and feeling like there was not an app that made it easy to know where the best deals were. we started seatgeek to accomplish that. we split up the development process. i did a lot of the backend coding. the first version allowed us to raise financing. 2012, it was a bit of a controversial decision. 250average order value was

dollars. consumers were willing to spend. half of our business comes on mobile. it is the same on desktop, which has surprised us. pulls tickets from hundreds of companies. these companies don't usually have a mobile presence. they see us as a way to get users and transactions. i like to think about seatgeek as a company that operated on the outside of the entertainment world. we focused on building a great product. we want to be a household name. need to develop a relationship with the entertainment industry. we brought on some athletes and nas, eli manning, the owner of the boston celtics. they have helped us think about how we can be a valuable tool. larger events really shine a spotlight on what we provide. the mayweather fight is where we

had several million dollars in sales for a single event. concert presents has started to go. the grateful dead concerts were huge for us. the highest grossing concert series we've ever had on seatgeek. the feature that has really been a home run is something i call seatgeek checkouts, this ability to add their credit card and buy a set of tickets. all of the listings are purchasable in this manner. there is this magic of a credit card is stored on your phone and we want that to be the standard for the industry. d'souze.s "bloomberg market day" continues in a moment. ♪ ♪

(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring

(don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. mark: 2:00 p.m. in new york. >> this is the "bloomberg market day." mark: the startup looking to take on amazon.

we will hear from the ceo and cofounder of jet.com. doddnd we will hear from b about his namesake bill. is taking a gamble with an online class in poker theory. we will tell you about it. welcome to "bloomberg market day ." i'm mark crumpton. talk about m.i.t. online gambling. first we want to get you a look at the markets right now. the s&p 500 posting the first back-to-back decline into a half weeks. the nasdaq is clearly the worst performer. tech