markets day. the u.s. dollar retreats, but oil is on the verge of slipping into a bear market. from commodities to computer glitches, nasdaq ceo bob greifeld has plenty on his plate to deal with. we will ask him about these issues and much more when he joins us in a few moments. --mark: luber gets the green light, but a debate as it becomes the green light over inequality. betty: good afternoon. i am betty liu. mark: i am mark crumpton. thank you for joining us. let's begin with a look at wall street on this thursday afternoon. sluggish international markets are damp rain earnings that u.s. industrial giants and you see the affected is having on markets.

down, ledindices are lower by the dow industrials, down .5%, nearly 100 points. you see the two-day dow industrials chart was showing a plunge there. the s&p 500, also the two-day chart, down. caterpillar cut its earnings forecast. reduce the top half of its composite revenue. oil touching a bear market here in new york. u.s. crude stockpiles unexpectedly increased. nymex crude right now down at $48.48 a-- 1.5% barrel. gold struggling to advance. a drop in u.s. jobless claims underscoring concerns that fed policy will raise interest rates soon. .25%.s trading up broad selloff there.

in the bond markets right now, treasuries are showing a mix -- well, little bit of a mixed picture. the two-year is pretty much unchanged at this point. 30-year,0- and the they are down. the short end of the curve has been underperforming a longer and. also, in the currency markets, while the dollar has been moving all week long inconsiderable fashion up -- that is why you see other commodities coming down -- the euro right now, a little stronger against the dollar. now to some top stories crossing the bloomberg terminal at this hour -- secretary of state john kerry is challenging critics of the iran nuclear deal. at a senate foreign relations committee hearing, john kerry rejected allegations that the u.s. failed to hold off for a better bargain and he insisted

the point of the deal is to limit iran's nuclear capacity. secretary john kerry: it is not a question of giving them what they want, but how do you hold their program back -- dismantle their weapons program -- not their whole program. let's understand what was really on the table here. we set out to dismantle their ability to be able to build a nuclear weapon. betty: senate foreign relations chairman bob corker disagreed, telling john kerry "you have been fleeced." one of the best-known names in financial journalism getting a new owner. pearson agreed to sell the fd to the nikkei. 27has a circulation of about thousand readers. digital prescriptions make up 27% of the total. selling it will allow peers and to focus on a slowdown in its education unit. encouraging news for the u.s. economy -- the fewest numbers of americans in more than 40 years

filed for unemployment benefits last year -- last week. jobless claims plunge to 258,000. they have been rising due to midyear auto factory shutdowns and school vacations. -- mcdonald's ceo steve easterbrook is predicting it will start growing again, but for now it is singing the blows -- singing the blues following a lackluster quarter, the seventh straight decline. in marchok took over and at the time he promised a turnaround. bank of america ceo brian moynihan is shaking up ranks. bruceaul donofrio -- thompson is out at the end of the month and he will be replaced by paul donofrio. bloomberg news is reporting the relationship between brian monahan and thompson had deteriorating, but mike male says itt -- mike mayo is not enough to cure what ails

bofa. mike: i do not believe they have enough oversight at the top of the firm. there are inconsistent metrics can there's is not one for-looking financial target. we, collectively, as investors need something to hold them accountable to. there is not enough to say this is what they are trying to achieve under this specific time frame. moynihan and thompson were said to be at odds on where to make investments to boost revenues. that is a look at the top stories we following this hour. the nasdaq omx, parents of the nasdaq exchange, reported earnings this morning. the company saw a revenue rise 3%, helped in part by new listings. before reporting the results, nasdaq announced an important agreement with the nyse, backing up daily auctions should either experienced an outage that prevents it from declaring closing prices. with us in our studio is bob

greifeld, the ceo of nasdaq omx. bob, good to see you again. good to see bob: you again, betty. betty: the results were great, and in this challenging environment, that is something to be said for your company, but backyse-nasdaq agreement, each other up, was that a response to what we saw a few weeks ago? bob: it accelerated the discussions. fronts, buton many this was a place where we wanted to cooperate. wanted us to, the financial system has to know the closing price even though both of us have great backups within our facilities, that we can handle it for each other. sir, was this voluntary, or did a particular regulatory agency suggested was a good idea? for i do not want to speak

them, they are probably in favor, but this is a discussion that had been going on for quite a bit of time. betty: i remember when that happened -- not to drill down on this too much, a few weeks ago i was with several ceos at an event and the immediate question was is this a cyber attack. what was it for you? bob: that is always a concern. but we are concerned with first and foremost is contagion -- to make sure our systems are unaffected, that the market can process in a normal way. that is what the market should be proud of --things went along. mark: when that happened, and not to drill too much, because we do want to get to earnings, but when that happened, there seemed to be enough safeguards in place. was that the idea -- the idea that because of the financial crisis, the flash crash, that enough firewalls are in place now that you can still continue to do business and it will not be that disruptive? bob: i think so.

a lot of criticism of the equity market was turned on its face. we saw the benefits of the competitive environment that was established 10 years ago. it is the floors -- if the floors went down, trade would have to stop. it is an improved market structure. our agreement to back each other up brings for the resiliency to the equity market. investors should be encouraged by that. bob, last time i saw you, we were in florida, and you had launched a new product. bob: yes. betty: i know you have moved further along, and i want to talk of energy futures. bob: i'm glad to talk about that. betty: i know, that is what you want to talk about. you are competing with these new markets, 16 members. , hundreds of members. betty: 16 stm's. how do you compete with the more established players? chris ventresca first --bob:

first, we launched tomorrow. our customers have said to us that you have a monopolistic, duopoly is to set up in the trading of gas and oil. there price per contract could be eight to 10 times what we would charge in the equity options world and that as a result of having not enough competition and a vertical silo. we are responding to customer needs and the customers are joining with us, partnering with us in this effort. i would have to say the interest has gone viral. when we started with a small group of people to partner with, we have seen many inbound calls. now we have natural producers joining us in addition to the market makers, the global investment banks. it is price, but you are competing on, aren't you question market is much cheaper to be on your platform. thanit is going to be less half, so understand that we will clear in a horizontal than her. the customer has control over their open interest in their future.

mark: sir, you declined in the equity options volume for the industry. is it anything nasdaq and the rest of the industry can do to turn that around? equitiesities --bob: had a strong quarter, equity futures, not so much, and we are talking on her capture rate. i think we've been in a growth phase and how we see it in a down cycle. the trendline overall is still very strong. you aboutave to ask china. you are watching as the rest of the world was going on about the stock market and regulars came out with jacobian measures, dance against shortselling -- bands against shortselling. bob: my personal feeling is the chinese are, the indices had gone up over a multiple-year period of time, and you should not have panicked.

anytime you put those controls in place, even though they might have a short-term benefit, you pay long-term price. betty: you do not think they should have done this. bob: i do not think so. you or me as investors or anyone coming into the chinese market have to think twice. if you cannot trade, get out of your position, you will be reluctant to do it. i think the penalty phase for these controls happen over a long time. them to list on the exchange. it will not make it harder? bob: it should make it easier. sayy: exactly, they might if this is how it is in asia, i am coming here. bob: i think it makes us more attractive. betty: what about the declines in big tech shares? apple took a big hit, ibm, others -- yes, there is not a bubble, so to speak, when you look at benchmarks in the market, but there is some frosting is in the tech sector. bob: the first thing i have to

say is i love my apple watch. betty: what do you use it for? bob: you can tell my heart rate and see if it is elevated based on this interview. betty: that means we are not asking hard enough questions. [laughter] bob: i guess not. apple has been a tremendous performer. i thought the quarter was strong. i'm not the business of stock analyst, but it is something we have not seen a corporate history before. betty: does it feel we are at a tipping point bob:? i will give you the broader point --does it feel it feel like we're at a tipping point? bob: i will give you the broader point -- we are at ap in the mid-20's. were atthe.com days, we 128. the best stock -- the best stat that i like is the cash

generating. that the debt exist 15 years ago. companies when i generating cash . they had high market valuations with low cash. valuation multiples increase, but nowhere near where we were back in the day. about darke to ask fools. even with a high-speed trading controversy, does that give you pause? we have institutional actors that want to operate in dark pools. our customers have dark. they are relatively low market share. they increased regulatory burden. we are saying we can do this as an outsourced solution for you, so the cost for us to run two not different from running one or three. it represents an economic

benefit to us and more important a great return to the customers where they can stay in the business, offering a differentiated service to the customers, but not have the regulatory burden. betty: bob, thanks much. great to see you. bob: appreciate your time. betty: i will have to get your apple watch. --k: scarlet -- who was it emily had one on yesterday. betty: bob greifeld, ceo of the nasdaq. still ahead, a big day for company. amazon and starbucks report after the close. mark: can the pump -- companies continue their run this year? bloomberg market day continues in just a moment. ♪

betty: welcome back to the bloomberg market day. mark: the stuff that goes on during the commercial. [laughter] betty: you do not want to know. mark: let's get to the market. ramy: i want to take you to gm. gm shares are revving, up 4.2% right now. that is because they reported q2 that income of $1.1 billion, and that blew past estimates because of more sales of light trucks. it doubled its profit north america and had a surprise showing out of china. it is the best day for the stock in five months. southwestks -- airlines, not just five months, in six months, it is the best day. southwest and $608 million, up 31% year on year. at one point, the stock was up

10%, which would have been its best day in six years. for caterpillar, the flipside -- the worst day since january. shares down by 3.5%. this is the maker of construction machines. they cut their full-year sales forecast by $1 billion to $49 billion. they are now at their lowest level since october, 2011, nearly a four-year low. finally, dunkin' brands also seeing its worst day of the year. it is now trading down by about 4.2%. interesting thing about this, and dunkin' brands beat it estimate for revenue and are in for sure, but new york regulars agreed to boost fast food wages in the city, which could lead to price increases that could come as early as 2018 here and across state three years later. we have an informed

somebody had a birthday yesterday and did not tell us. ramy: that would be me. betty: and is why you were not here. mind, --ope you do not betty: he has started a trend. ramy: i am an old man. mark: if you are an old man, what am i? thank you. betty: chrysler's ferrari you had will be spun off and list on the nyse. the sale is part of the ceo's plan to cut debt and invent -- invest in seattle-chrysler other brands. another institution falls victim to skyrocketing rent. this time it is hogs and heifers the meatpacking district bar,

the proposed rent jumped from 6200 a month. was $3000.pened, it the owner said they can afford to pay 40,000 month barely by cutting staff and eliminate christmas bonuses. i have never been. law -- have never even walked past it. betty: look at you. all right, ok. that is a look at your top stories. betty: --mark: not too soon. big winp, uber gets a in the big apple, but will the victory form the blueprint to win political battles elsewhere. betty: a july to forget for holders of distressed debt. bonds have lost nearly 8% this month and it is poised to get even worse. ♪

welcome back to the bloomberg market day. i am mark crumpton here with very little. its biggesthas won political battle yet, with near c-suite mayor matt -- with new york city mayor bill de blasio dropping the capping of the number of cars on the street. betty: --mark: the number has tripled in the last year and a half. david, how do they reach this deal? david: there have been rumors this would happen. his momentum that there would be a vote on this legislation today. as the week went on, people said let's let cooler heads prevail. i have been talking to people that were part of the discussions. both sides felt burned.

susan it, discussions started again, and the point of agreement was on the issue of competition to you could not have the city, the mayor for the council here stopping uncompetitive practices and that was where there was common ground. who was behind this -- --betty: who was behind this? david: two people. a year ago and he raised a campaign with millions of dollars, television ads, mailing that went out, traction on twitter with celebrities like wide youn tweeting want to return to the days were manhattan in midtown and uptown get a ride? tweetingshton kutcher democracy wins. i was watching tv this

weekend these commercials were pretty powerful. it was basically mayor bill de blasio --uber is creating jobs -- do not take away my job. i found that a fascinating strategy, which, as you mentioned, looked exactly like a political campaign. david: and cost as much as they would. mayor de blasio, who was not in new york for most of the week, he was in italy, at the vatican, meeting with the pope, he is attracting criticism for not being here. the ball was placed in the hands of the deputy mayor. betty: speaking about being overseas, will uber use this for fights in other cities around the world #-- world? david: i think we are from this is how much money and manpower uber has at its disposal. it is a huge company with a big valuation.

what he did master of -- masterfully here is take it away at the local level, figure out what they need to do. whether that will work in paris and london, we'll have to see, but they have the manpower to do it. mark: they took the fight to their opposition. they were very proactive. david gura, thank you. betty: i am signing off on that note. mark: thanks for the interview. he was very proud of his apple watch. coming up, feeling the pain -- we will discuss how the commodities crashes upending the distressed debt market. market day continues in just a moment. ♪

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mark: welcome back to the bloomberg market day. thank you for staying with us. let's look at some of the top stories. the obama administration's sales pitch for the iran nuclear deal is turning into a showdown on capitol hill. secretary of state john kerry is appearing before the senate foreign relations committee, joined by the treasury secretary and energy secretary. lawmakers on both sides of the aisle told them that it is a tough sell. toit took you two years negotiate this agreement. it took you two months in vienna to get to the final details. we are on day four of our review of 60 days weird i have not reached a conclusion. >> from my perspective, mr. secretary, i am sorry -- not unlike a hotel guest that leaves

only with a hotel bathroom on his back, i believe you have been policed. mark: the u.s. and five world powers and struck that accord with iran. it would ease sanctions and exchange for iran's promise not to build nuclear weapons. congress is expected to vote on that plan in september. it is a deal that would create the largest health insurer in the united states. bloomberg news is reporting that anthem is near an agreement to 48 billionor dollars. the announcement would come later this week. earlier this month, there was another big takeover in the health insurance industry. aetna agreed to by humana. president obama is leaving washington tonight to begin a two hyphenation africa trip, heading first to kenya. then he will be the first sitting u.s. president to visit ethiopia. yesterday, he signed a bill that lets some african company's sale goods in the u.s. duty-free.

difference secretary ashton carter is on an unannounced trip to iraq. he landed early this morning in baghdad. a spokesman says he will hear the iraqi army's plans to retake ramadi, which fell to islamic state forces in may. secretary carter wants a progress report on the government's efforts to settle sectarian conflicts. it is his first visit to iraq since he became the u.s. defense secretary earlier this year. those are your top stories. coming up in the next half hour, contract talks kickoff between ford and united auto workers. can ford lower fuel and labor costs, which are now the highest in the industry? and we will hear from the ceo of union pacific. shares of the railroad are down after the company reported drops in revenue and profit. it has been one painful month for investors seeking to profit from companies in distress. more than 7 billion of the distressed debt market has been

wiped out amid the worst commodities slumped in 13 years. distressed bonds have lost 8% this month as oil and coal prices slip, bringing this year's loss to 12%. laura keller covers distressed debt, and she joins me in studio. who is feeling the pain of most right now? laura: these are a lot of freshman buyers. they have other credit businesses. blackstone group has a large one capital.o fortress buys a lot of distress debt, as well. mark: tell us how this has been shaking out over the past couple of months. lot fromis is coming a commodities. there are a lot of sectors in distress right now that are not helping investors who primarily due investments in this area. but we are seeing iron ore, coal, and oil prices keep falling as we go -- keep falling, and all of the bonds

tied to these companies are not doing well. mark: what are these couple's doing? how can they stop the bleeding? laura: i am not sure that they can. is aommodity producer price taker. it is an investor trying to figure out which bond is priced in a good way in they can get return on their investment. cane is not much companies do. mark: you mentioned the investors. are they taking a that? laura: some of them are. we have not identified a lot of specific hedge funds. in general, some of them are down this month. some of them are down your today, as well. it could get worse, especially if you cannot find sectors doing well for you at the back epub of the year. mark: do we have any sense that if the fed does move on interest rates, because people have it could happen in september -- will that change this story? the secondaryy in

markets, so they are not as much thinking about the yield. and we're talking about commodities, and companies are looking to see if they have a flow, notough cash really thinking about refinancing opportunities. mark: what are people telling you? is there a sense of panic? laura: certain funds are starting to worry about this here they will have to care more about certain investments, make sure they get more return to make up for the things that are not going as well for them. retail not doing well. all these things are having a lot of problems. mark: you mentioned oil to we have seen a fall in oil today. they say it is approaching a bear market because it was under $50 a barrel. we can look at the nymex crude chart for one year, it is down 53%. how is this shakeup in oil shaking up in the distressed debt market? laura: there is underlying price

expectations, whether it is oil, iron or, or coal. especially with oil and coal, the price never materialized and so the underlying value of what you paid is not right anymore. i think you have seen that a lot. level andet to that that price continues in that company is not going to recover, maybe you paid too much for that bond. mark: anybody in the sector who seems to be insulated from this? laura: it is pretty much everybody. will thinkinvestors about different structures. is missed pricing, i will buy that versus something else. overall, those are far and few between opportunities. mark: she covers the distressed debt market, thanks so much, laura. still ahead, more on commodities with edward morse, global head of commodities research at

citigroup. that is coming up at 4:00 p.m. new york time. estate with us -- stay with us. ♪

welcome back to the bloomberg market day. i am mark crumpton. let's check the markets with ramy inocencio. a lot of rd. -- a lot of red. ramy: we are hitting the lows of the day across the board. s&p 500 is down .5%. pure thes down .6% nasdaq down by about .4% for negative data outweighing the positive. we heard about consumer confidence hitting a five-week

low, the jobless claims fell to the lowest in four decades, back to november 1973 here it checked out the function here. all sectors of the s&p are now in loss mode. utilities and materials are leading the way. utilities include gas and electricity. financials not too far behind, down about .8%. looking at the dollar, near a three-month high, but we are seeing a little bit of a positive in the rally today, now trading lower by about .5%. this is the second time in seven sessions it is actually lower, now at the lowest level in more than a week. oil is trading lower, expending -- extending a two-day decline. it is now trading at about $48.21 a barrel, the lowest level since march 31. $49.14r, if it closes at

today, it will officially be in a bear market. that means it will have fallen since june 10 looking at gold, it has been on a 10-day losing streak, its longest since 1996. it is trying to snaps that today. we are just barely above the green. we are hitting lows not seen since march 2010. if this goes into negative territory, we will see and 11-day consecutive loss. concerned a fed rate rice will decrease appetite for gold. morgan stanley says, in a worst-case scenario, bullion might go well below this, to $800 an ounce to copper is also hitting lows of the day, trading down 1.8%, around $237 and change. part of the reason, chinese demand is expected to grow at its slowest pace in two decades. that is digging deeper into concerns over copper. it is at its lowest since july

16, 2009. that is a six-year low. it is the fifth straight day of losses. it is the longest losing streak in the past 10 months. goldman sachs says it could even fall further, by another 16% by the end of 2016. mark: thank you for that market update. now let's look at today's market close in europe. >> we are seeing a third of declines for european stocks. stoxx 600, europe's equity benchmark. it is on a little bit of a losing streak after a nine-day rally, its longest winning streak since april 2014. it has been a tug. we had corporate earnings beating estimates, pulling the benchmark higher at the beginning of the day. in the end, it has been dragged down i oil and gas companies and commodity producers. these are the industry groups on

the stoxx 600. credit, earnings beat estimates, gaining two.s unilever second quarter sales beat. oil and gas comprising about dragging down the stoxx 600 today. if we look at the national equity benchmark, does not look quite so dismal. we can see a mixed picture here today. down, dax down. the athens stock exchange and still closed, closed since june 26. of course, we had the vote lesson that in the greek parliament, where lawmakers approved a package of measures its newece needs for bailout. we were expecting the athens a stock exchange to open perhaps today, and the best case scenario, but we have now heard the decision for when to open greek markets has been diverted to next week. be a in china, there may civil trading rule to trounce of

the state run market, by when the stock market opens, sale at the close, repeat. let's get more. trading tactics go, that is as easy as a give the returns of, buying at the open and selling at the close is a great way to make money in china. that is thanks to a pattern , purchasingted shares in the afternoon to show people the markets have stabilized. looking at the shanghai composite, the rule generates a 23% or john tierney impaired that with 8% for a buy and hold approach. there is a catch. the country bands against same day trading -- the country bans against same day trading to an mark: shares of under armour are on the rise today to the sporting-goods maker posted second-quarter profit that beat estimates. otherpersian dishes and

new products boosted sales to the company has been led by high-profile endorsements, like golfer jordan spieth. says prices could rise when the minimum wage increases are passed. a panel in new york is advising a tape used to $15 an hour for to governorrkers andrew cuomo backs the plan. former congressman who resigned after he was caught sending x- rated text messages has a new job -- public relations. really. the new york post says anthony weiner has been hired to work with a crisis pr firm with close ties to hillary clinton. it is not a big surprise. his wife is one of mr. clinton -- mrs. clinton's top advisers. that is a look at the top stories. where are all the taurus in singapore? -- where are all the tourists in singapore? hotel room rates have dropped while straight months,

the city present biggest hotel is charging an average rate of $377 per night, the lowest since 2012. they have reported year-over-year declines of visitors of 14 and the past 15 months. one theory is that the stronger singapore dollar, which has gained against other asian currencies, is part of the reason. scarlet fu joins me with more. singapore is a good destination. scarlet: went to get there, what do you do? it is fairly boring. it is antiseptic. yes, it is clean. you cannot buy gum. it is not very interesting. you go there and you need a lot, and you go shopping. that gets old. we have a chart of hotel occupancy rates in singapore. you can see that it really has been stuck in this mid-80% range since the middle of 2014 at yes,

he got a big bump of any third quarter of 2014, but it has come back down to about 84%. it is lower than the average of 86% over the past five years. mark: one of those countries that relies heavily on tourism, what are they going to do? scarlet: that is why they have been expanding their casinos and trying to lure chinese tourists to but you know what is going on in china. people are very weary of being seen spending conspicuously in singapore. i know when he go to singapore, because we have family there, we stay with family and do the usual thing, which includes eating. go to one of the outdoor food stalls where you can eat interesting cuisine. there we are to that is very popular, but you can only do that so many times. that is the think people see singapore as a launching off point to visit other cities

amalek places in indonesia or thailand. mark: is the government trying to take action to rectify this? scarlet: always they have brought in lots of different developments at universal studios has a theme park in singapore. not as big as orlando or california and not as exciting. but they're always looking for ways to beef up tourism. the skyline is beautiful. it is a great city overall. the nighttime shot looks just big hong kong, but it is a asian city and you're are pretty familiar with that look overall. what is coming up? coco we are going to be speaking with a take entrepreneur about uber. he actually ran for mayor against bill de blasio. he is going to get his take on this battle between uber and new york city. it looks like new york city is coming out ahead. mark: we spoke to david gura

about that earlier, and that was fascinating. david plouffe was instrumental in getting barack obama elected president, and he did wage what seemed to be like a political shame city almost officials and shame mayor de blasio and shame mayor de blasio interchanging course. scarlet: perhaps officials were slow to realize just how popular it is, uber. they were taken by surprise by how quickly the landscape changed and were found trying to catch up to the reality of the situation. mark: now uber looks to take over europe. scarlet: they are a long way off from that. mark: coming up, ford interest legal contract talks with the united auto workers union. the automaker already has the highest labor costs. can it win concessions? ♪

to theelcome back bloomberg market day. ford kicks of contract negotiations with the united automobile workers today. for ford, these talks are keep your the automaker has the highest u.s. labor costs in the industry. ford did not seek bankruptcy protection in 2009 and was unable to hire workers at a lower pay rate, like gm and chrysler. bloomberg news reporter joins us from detroit. on bloomberg.com and on the terminal, the headline says -- to enroll as the most generous automaker. have they been too generous? what it is a legacy -- >> it is a legacy of bankruptcy. in two thousand nine, the government gave a pat on hiring these lower-cost workers, so they can hire as many lower-cost workers as they want come up at ford can only hire 28% of the

workforce at the lower cost. then they have to pay the higher $28 an hour rate. so ford has much higher labor costs, especially than chrysler. almost half its workforce is made up of these lower-cost workers. mark: aside what you mentioned about chrysler, what other opportunities does that give gm and fiat chrysler? how much more of an advantage do they have over 40? >> ford is moving its small car production out of the united states here day cannot make money. the margins are so thin on small cars, and they are selling poorly now with gas prices so low. they will move that production probably to mexico. meanwhile, gm is still here making smokers in michigan, because they can pay their work is $15 to $19 an hour. ford cannot do it. mark: ford wants to take the lead and set the tone for contract talks with the united auto workers union. what does the union want? the union would like to

get rid of this lower pay entirely and have everyone making $28 an hour. they feel it is their time to get paid back after helping them through the recession. all the companies say that'll make them more competitive again. they will have to find a place in the middle they will have to give raises to the lower paid workers and probably small raises to the higher paid workers, too. point, is the union thinking, ok, it has been over a decade since we went through that economic calamity, so since things have calmed down, does the union thick automakers are in a better position to pay them? keith: absolutely. their view is it is payback time. those senior workers, the guys making $20 an hour, have not had a raise in a decade. mark: ford did not seek big lots the protection in 2009 -- did

not seek bankruptcy protection. so they ended up with detroit's most extensive labor contract. as ford over the intervening years as it has seen the economy improve and it has a detroit, if you will, get a heartbeat back in terms of being the home of the automakers, what is in this for ford? keith: they were on a roll coming out of that period when they did not take the thing did not take -- the bankruptcy money. but that has gone away. they need to be on par with domestic competitors and with the toyota. that is what they are trying to get to with these talks. it will be tough. mark: is the union feel like it conceded and of? back in 2007, the union agreed to a two-tiered system. does it believe that time has passed? keith gullett that is what they

think. they think that was a special circumstance to keep these companies alive. now these covenants are thriving. the president of the uaw says he wants no more tiers, let's all get back to one wage. that is sort of funny mental to their philosophy. everyone should receive the same pay for the same work. mark: any in-fighting in the union? keith: we are not seeing that. it is a new group insofar, we do not see any of that. it has been smooth sailing. mark: thank you so much. coming up, we will be hitting the rails with the union pacific ceo. in shares have taken a beating today after the railroad dig lord -- reported declining profit. ♪

mark: it is 11:00 a.m. in san francisco. >> this is "bloomberg market day. uber beats back a plan

from mayor bill de blasio to stop its growth. >> southwest airlines takes off after earnings that beat analyst estimates. will be hearing from the ceo. mark: if you think a billion dollars is chump change made to be due to put it towards an island in the maldives. but there is a catch. ♪ mark: welcome. i'm here with scarlet fu. scarlet: u.s. stocks on a three-day losing streak and that is not happened since late. june in industry groups lower. currencies you have a resumption of the stronger dollar trend against the euro and versus the . whs