reporting an unexpected tiny pistol quarterly profit. quarterlyt still profit. >> filler clinton's plan to urge investors to focus on long-term growth. it may mean higher taxes on capital gains. >> want to own one of babe ruth's hats? it can be yours for the low price of $300,000. we will tell you about it. >> good morning, i am olivia sterns. >> i am matt miller. new home sales. economy isn't so much fun. just only thought the housing industry was picking up and that was going to help drive the fed toward it interest-rate increase, we get this, the biggest drop in new home sales

in seven months. fall 6.8%. they were forecast to rise. no progress being made. the big drop was in the midwest. not sure exactly what happened. it wasn't a particularly case of bad weather or anything like that. the median price does go up a little bit, but overall, a disappointing report considering we saw the big increase, 3.2%, and existing home sales. we saw more housing starts, so this point, hard to tell exactly what is going on. a did see this -- this is more contemporaneous indicator, so maybe was just the end of the spring selling season. ofple go on vacation instead buying houses. olivia: it does look like stocks are moving. thank you michael mckee from the newsroom. let's show you what the market boards look like at this hour.

there it is, little unchanged. on the commodities market, commodities have gotten absolutely crushed lately. low andto a 13 year continues to move lower today. gold, you can see right now i just over $1000. move down one full person. oil getting a tiny little bit of a bounce, but staying, holding well under 50, under $49 in an official bear gold market. olivia: let's get you straight to the top headlines. it is a deal that may create the biggest health insurer in the u.s., anthem has agreed to buy cigna for $48 billion in cash and stocks. that represented 22% premium to cigna's closing price yesterday.

at the deal will face antitrust hurdles and investors do not seem optimistic that it will pass regulatory muster. cigna shares are falling in early trading this morning, falling well below the $188 per share offer price. in fact, a merger could leave us with just three major players in the industry versus the current size. amazon is serving notice that it can make money when it puts the brakes on investments. yesterday the online retail reporting a surprise second order profit as well as sales that beat best -- be estimates. cloud computer business is booming it turns out and it is also attracting new prime customers but they still won't say how many. amazon cfo says last week's prime days sales promotion could not have gone any better. >> we are thrilled with the results of crime day. it surpassed expectations. any metric we look at, it was a huge success.

customer saved millions. new members signed up in higher rates than we have ever seen. people bought more devices than on any other day. matt: american airlines is taking advantage of record profits. the world's largest airline says it will double a stock buyback program to $4 billion. shares are down more than 21% so far year to date. earlier today, american posted second-quarter earnings that beat estimates. here in new york, a power failure at laguardia airport has made traveling miserable or even more miserable than it already is. the outage in a terminal used i delta airlines. delta says flights have been delayed up to three hours. contractors working at the terminal accident only cut lector cables will stop a few minutes ago, laguardia said the power failure have been fixed. we will see how long it takes to get back on track at that world-class airport here in new york. olivia: i think it consistently ranks as the least pleasant -- it is embarrassing. and so are the roads, which if

it take to get from the airports to manhattan. still to come in the next hour of bloomberg market day, has gold finally hit bottom? we're well beloved $1100. we will be talking to an investor who sees opportunity in both the commodity itself and the gold miners. plus, hillary clinton wants to raise the capital gains tax, at least for investors focused only on the short term. she will announce plans today to incentivize focus on long-term value creation. matt: back to amazon surprisingly good quarter, $19 million -- $92 million in profits, $.19 a share of believe it was. analysts were expecting a loss will stop the profit margin tiny, about four tens of 1%. olivia: but it is something. matt: i'm more impressed with the stock. it absolutely took off today. ,livia: it took off so much

that amazon's market cap is now above walmart. amazon is now worth more than the world's largest retailer. spencer joins us now from san francisco. what do you think is the most significant part of these results? spencer: there are two main things happening, the primary one is the cloud, the amazon web services cloud computing division. 80%, whichs were up was pretty staggering. and more importantly than that is profitability. it is about a 20% profit -- profit margin and that really helps soften any concerns about price wars with google, microsoft, limiting that segments profitability. don't only is a growing quickly, it is also turning a nice profit. that was the main factor. the other one is simply that some of amazon's earlier investments in its core business of selling goods online are

starting to bear fruit. the spending is in check and revenues are there, so those are turning profitable as well. ist: i understand this something amazon does once in a while to remind investors that when it wants -- olivia: that it can --matt: turn a profit like switching -- flipping a switch. 92 main dollars seems like a very small amount of money for a company with $23 billion in sales. spencer: they're still looking for the future, so i don't think they will break from that pattern of investing in growth. they are still investing in content. they want to offer video and not just movies you can get anywhere, but their own exclusive programming. they have music will stop they are offering not just today delivery, but same-day delivery in many big cities. they keep trying to raise the bar, raise the bar to make -- put themselves in front of any competitors. that has helped them accumulate this large prime members of

between 40 million to 50 million subscribers who pay $100 a year. widely panned on the internet. i'm sure you noticed people were stumped by the things amazon was offering deals on. olivia: prime day. matt: 60% off dishwashing gloves. but amazon seems -- august the, they're going to call it a huge success, but was it? when is the last time you saw anyone go nuts about anything on twitter other than their favorite sports team? there is a lot of kvetching on social media. the bottom line is, a lot of people tried prime for the first time and they had a lot of orders. so it was a success, despite all of the negative publicity. it was kind of like donald trump's presidential campaign. matt: it was fun negative publicity. olivia: i want to play a little

bit of sound from an interview i did with ill miller two weeks ago in sun valley. he is a big amazon investor. he speaks to jeff bezos regularly. he sort of gives them the leeway to not turn in a profit. he actually said he thought one was coming. >> just as a publicly that he needs to quit check in with wall street over several years to show they can make money. the stock had a bad year last year. on the third quarter and fourth quarter and the cfo, made some comments about needing to be mindful of using capital carefully. ways -- we desk and will see if i'm right. the stock is unwell. i think people are beginning to see this is the check-in period, so margins are going to be rising and that is always good for amazon. olivia: what do you think? is this the beginning of check in time or back to a loss in the third quarter? : the elephant in the

room is the fire phone. if you turn back a year ago, which was talking about, the end of the june quarter is when he started seeing the first indication the fire phone wasn't going to do so well and it really kicked in at the end of the third quarter when they took a huge write-down. that is when investors really punished amazon and sent a message like, hey, where are the profit? and analyst asked, hey, there is not even a mention of the fire phone this time around. does that mean you have given up on that? there was no clear answer. the company is not going to a knowledge defeat. that would be the one thing investors are watching for, a big investment in something that fails. that could take the wind out of their sails quickly. olivia: maybe drones. i've never even seen an amazon fire phone. matt: space is the final frontier. olivia: great place to leave this conversation. thank you, spencer, for breaking down amazon's results. here is a stat for you. jeff bezos who owns 84 million

shares of his company, that means he is worth more than $6 billion more than he was worth yesterday. matt: because of the leak. he made $6 million in a day. excellent. olivia: he could end the day as the fifth ridges person. matt: he does awesome stuff with that well. i mentioned a's. he is very active in that industry, but some private projects he has are amazing. have you seen the 10,000 year clock? olivia: no. matt: they dug a hole in a mountain and put it down into this cave. it plays a different chime in a different song -- olivia: that sounds cool. matt: this is cooler than "the washington post." google, 10,000 year clock. i'm telling you. olivia: don't go away.

coming up, gold prices down 10% over the past month. how we finally hit bottom. ♪

olivia: welcome back. i am olivia sterns. matt: i am at miller. let's get to julie hyman who is just going to cover health care for us right now. and it is a lot going on today. julie: i'm going to look at the deal we have been talking about in the managed care sector, insurance. we were talking about this earlier, wondering why in the world we are seeing cigna and anthem decline on a day when and them agrees to buy cigna for $48.4 billion, $188 in cash. you are seeing the stock traded at about $150. i was just talking over a

bloomberg intelligence analyst and he says, indeed, it goes back to antitrust concerns. i said, that is an awful lot of concern that causes it to be trading at such a discount. it is not the only place we're seeing this discount. look at the other big deal pair we men watching and health insurance, i'm talking about humana and aetna. both of these stocks have been trading lower as well. take a look at my bloomberg terminal. jason is looking at humana and cigna, both he says trading at 20% to 21% discounts to their offer prices on antitrust concerns. you are seeing similar trade with both of these companies. with,r graphic i came up it is a way to create a monitor. these guys ranked by their annual sales. you see united health is a clear leader. you start to get a feel. if you have anthem combining with cigna, $74 billion sales,

to, $35 billion sales. humana combining with aetna, about $49 billion and $58 billion. you end up with three gigantic health insurers that are comparable in size in terms of their sales. and that then illustrates why there are some antitrust concerns. olivia: you have to wonder if that is good for consumers going from five big players consolidating to three. the point of portable care act to some degree was to introduce more options. -- the point of obama care act was designed degree was to introduce more options. matt: it is a cool screen. united health will still tower over even the other two if they combine. they will each be 110 and united health is still going to be 130. thank you, julie. olivia: a look at some top stories. matt: senate majority leader once to link funds for the

nation's highways with a bill to kill obamacare. mitch mcconnell announced the senate bill that would fund the u.s. highways for three years. the house already passed their version. they're racing against a deadline. the federal highway trust fund runs out of money in just seven days. mitch mcconnell says he will introduce in a memo to the crucial bill that would fully repeal the president's health care law. a spokesman says he will call the senate into session on sunday to vote on it. america'sy, holding highways hostage in order to appeal -- repeal obama care. olivia: the justice department is being asked to open a criminal investigation into hillary clinton's e-mail. it has to do with whether sensitive government information was mishandled. accountpersonal e-mail while she was secretary of state. two government inspector general said the account contains hundreds of potentially classified e-mails.

defense secretary ash carter is in northern iraq to me getting an update on the fight against islamic state from kurdish leaders. this is the second stop on his visit to iraq. earlier, he gave a pep talk and met with iraqi leaders. this is his first iraq trip since he took over as defense secretary five months ago. and those are your top stories at this hour. bonds getting squashed. prices of the precious metal are down again today, hitting a fresh five-year low. of $1900 in december 2011, gold has fallen by more than 40%. olivia: our next guest says it is time to buy gold and also minors -- miners. more than $500 million in assets under management, great to have you with us this morning. do you think gold has hit bottom? >> we have no crystal ball as to exact timing, but what i can say is that in a lot of ways, it is starting to resemble 1999 when

everybody, every article that came out was bearish, everybody started to talk, to say that nobody would ever -- that gold would have no role as a form of money or an asset with any value. you are starting to see the same thing happen again today. matt: shouldn't gold at least fall to precrisis levels? there's a reason it shot up to $1900, understandable, but now that we don't have to worry as much about the fed leaving , theing presses running issues in greece and china seem relatively contained, and obviously, you're not going to walk in the walmart and buy a jug of water with a piece of gold. so wide-out we see prices falling back to where they were in 2008, say? --it is not that it does that it is impossible, but i think since 2008, you have had a

massive increase in the amount of central-bank money supply. you have had a massive increase the amounts of paper outstanding, a massive increase of the amount of debt across the world. and all of that should augur well for alternative currency which is what we think gold really is, in some ways. bridgewater, i think he said a few months ago, anybody who doesn't own some gold understands neither economics or history. there is been a relationship that is been held for thousands of years. the chances that it completely disappeared in the last three are probably pretty low. olivia: keith, if you like old now, what you think is the better way to play it? do you want to buy a gold etf or to prefer the corporate orbuy some of the miners? >> we're not gold bugs. we're just genetically wired to be attracted to areas under a lot of stress and look for

bargains. what struck us about gold was a lot of qualities that were very similar to a very successful investment we had made in hewlett-packard. if you remember a couple of years ago, hewlett-packard was -- every article that came out said nobody would ever buy another pc or laptop. the company was going bankrupt, even though it had significant cash flows. and the world was just hopelessly negative. and the reason was, they had gone out and made a foolish acquisition. the acquisition resulted in major governance changes at the company, wholesale changes at the board and management. you have a similar dynamic happening here and barrett where year ago, actually couple of years ago, they made a foolish acquisition of put too much debt on the company. it resulted in basically a total cleaning of house of management. so management has changed, the board has changed, and you have

a new chairman, john thornton, who is formally president of goldman sachs, who buys on a mission is not a gold bug. he has focused on putting the company back in the position where the important metrics are shareholder return and return on investment. olivia: i don't interrupt, but i want to pull up a chart that we have as shows over the past 10 years, the performance of the gold versus the s&p. i take everything you're saying with a grain of salt, i hear you're saying that new management, but people are constantly telling us there is a case to buy barric yet the stock doesn't seem to go north. >> the stock is at a 25-year low. and it is because the company lost its way. barric built what was the permanent gold-mining company in the world. world-classay has mining assets. the average reserve grade of barrick's core properties is

double the industry. they have very rich properties, a lot of option alley within the company. and if thornton can manage -- and the company generates cash. even at current prices. matt: very interesting. thank you for coming on with us, kaith trauner. olivia: still ahead, much more including you like chuck taylors? wear: i were jordan's -- jordans. ♪

olivia: there is a new chuck taylor all-star in town. after more than 98 years, congress is actually unveiling a new and improved version in their borrowing some of the company shoot technologies from the anthony nike. -- and they are borrowing some of the new shoe technology from nike. their beautiful

photographs. i can't see much difference. nike says the inside is where the difference is, more comfortable, has more padding. rubber insole.m that is cool. this is incredible this iconic company that has never changed their look, that everybody from jfk to miley cyrus has worn them is now -- matt: even miley cyrus, well, then i'm getting a pair myself. do you have a pair? olivia: yeah, i do. when i walked to the airport, i start to think, my feet hurt a little. jordans.ear air on monday. you don't go away, much more after the break. ♪

welcome back. i'm olivia sterns. top stories crossing the terminal. surprise drop in new home sales

fell 6.8% in the month of june 2 seven month low. economists have predicted they would rise. two days ago the national association of realtors said existing home sales rose to the highest level in more than eight years. the japanese media company that is buying the financial times is pledging to respect its culture. the ceo says the purchase of the london-based ft fits in with a strategy of improving its overseas coverage. he agreed to sell the financial for $1.3 billion earlier this week. the so-called troika is returning to athens for the first time in six months. the country's three main areators -- creditors sending representatives back to greece today. it will be there to negotiate the terms of a third bailout with prime ministers suppress. -- prime minister alexis tsipras. thee will be an encore for dinosaurs of "jurassic world."

has taken in $1.5 billion worldwide and the third highest grossing film in history. universal pictures planning to bring out a sequel in three years from now. return and so will be executive producer steven spielberg. if you're wondering, the two movies that i made even more money than "jurassic role" are "avatar" and "titanic." those are some of your top stories. message forton is a wall street, focus on long-term growth and not "the tyranny of today's earnings report." she is giving a speech this afternoon in new york city and will offer proposals to encourage long-term thinking including higher capital gains taxes for investments that are held less than one year. sternis outside nyu school of business work and him will speak this afternoon. david, lay out some of secretary clinton's proposals. understanding is it

will be google parts diagnosis and prescriptions. we will hear some comments from secretary clinton, some observations about the way the financial sector works in this day and age and some proposals to change that. from what we know right now, not the concrete. capital gains rates, chief among them. top four things we are expecting to hear, capital gains rates number one. shareholder activism, another -- the role of executive pay and the fourth, stock buybacks. capital gains, moving what she calls a more progressive system, a tiered system. we expect she will redefine what a long-term investment is. the incentive basis to would be if you hold onto a stock longer than that, your rate will be lower. shareholder activism, she is saying activism can be a healthy part of investing. on the other hand, it might be something that leads to more short-term games.

compensation. more observational than anything else. stop buybacks, -- stock buybacks, companies are not reinvesting the money back into the businesses. here she will try to suggest that should be different, appealing to people in new york and in the financial services sector. then making a plea we should be reporting dosing's more often, reporting buybacks. right now it is done quarterly. the u.k., hong kong, they do it on a daily basis. that is what we expect to hear from secretary clinton today. olivia: thank you, breaking down those proposals we expect to hear from hillary clinton later on this afternoon. for more on her plane and reaction to it on wall street, let's bring in faabio. great to see you, as always. let clicked through these proposals david nicely outlined, starting with the tiered cap gains tax. do you think this will work, that this would incentivize less

short-term thinking? >> yes and no. in general, what we have seen is there has been a movement of assets towards mutual funds, for example, that have a lower level of turnover. sensitive toare the capital gains tax rates. what you have seen is the money slowing down and in general, turnover decline. nevertheless, will we talk about these evils short-term us, there defined as people holding up her under a year. the average turnover of a montauk, grandpa mutual fund is 61%. so 61% of all of the assets are sold annually. what you're saying is the u.s. mutual fund industry are people who should be taxed more quickly. if they are held in your ira, the taxes don't apply. but in the general case, how is it one determines magically at 366 days you have now become a good person or maybe she will

extend that to a year and a half or whatever? it hasn't been shown to impact economic activity. it has shown to change where people allocate their assets. you tax people enough, you hurt returns, therefore, shareholders hold it for longer, mutual fund holders holder for longer. olivia: it might be good for the likes of some of the longer-term institutional investors, institutions already taking more of a three to five plus year -- already playing the short capital gains, so it won't help them in any way. all it is is punitive, but with no particular incentive towards growth. the package is similar to the big divide politically between the two parties. focusedcandidates are on growth. this is more about redistribution and the notion somehow short-term capital is -- what she likes to call quarterly capitalism, is somehow harming the little guy. olivia: there is an argument to be made. there was a conference earlier on shareholder activism.

there is an argument to make that in the current environment, there is incentivized short-termism and a lot of corporations are doing share buybacks. paying out dividends. >> without getting inside academic baseball, there is a simple theory, basically, if you have cash on hand, that cash -- and you are a corporation -- you should hold it and invest it yourself. if you have better uses for then your investors. if the investors have better uses for it, given back to them. worth still is sitting on cash with nothing to do with it and no particular plan for going forward. at that point, you as a corporate manager should feel some sense of obligation to give it back to the investors and they can do with it what they want. it is not clear to me a share buyback, is -- olivia: the issue arises whether the board has a better idea what to do with the cash or an

activist from the outside has a better idea. do you think this message we are hearing clinton push about shareholder activism, i believe she is calling them hit and run activists, do you think it will gain a lot of traction? >> i think it is populist noise, to some large degree. there are 8000 large hedge funds and 71 activist funds. mean,140 billion -- i this is not what is causing america's productivity to be altered. this is not what is causing american competitiveness to be where it is. these are 71 men and women beating on people. in general, have there been occasional pump and dump type short-term things? some. but for everyone you can name, their dozens of judgment corporate boards that needed to have things pushed in ways their own internal board was not willing to do, and that is what the activists do. do you think there is any sort of mechanism that could

incentivize more long-termism l la, what larry fink is talking about? >> one, compensate managers over a minimum of a three year cycle. the second, stagger boards. if you really want to go down this road, make it so the boards are not as subject to short-term pressures from shareholders. then you will also lose good shareholders, the white hat shareholders won't have their voice heard, either. third, most controversially, get rid of quarterly earnings reports. allow them, but don't allow the forward-looking guidance that forms the beat, they did not beat, they beat, they did not beat, which is what it is about. if you remove that -- olivia: that is never going to happen. >> giving 10 years to boards, is that healthy? olivia: restructure compensation, restructure boards. fabio, thank you so much.

i went to get over to breaking news in the newsroom on chrysler. is recallingrysler millions of vehicles due to a hacking issue. areuple of software hackers able to hack into a jeep and take control. at the time, yet chrysler says it was offering a software patch but now our right recalling 1.4 million vehicles. the affected vehicles include dodge viper, dodge ram, jeep grand cherokee, and cherokee suv 's. strangle. as well as some darts charger sedans as well as challenger sports coupes. you can get the full list on fiat chrysler's website. interesting the company has gone from this software patch to a recall of these vehicles. as far as i know of, and would have to consult with matt miller, this is the first recall

related to a hacking risk when you're talking about an automotive recall. olivia, a lot of vehicles are affected. olivia: the first i've heard of a hacking defense. we will speak to matt miller after the break. don't go away, more bloomberg market day coming up in a minute. ♪

olivia: welcome back. we are one hour into the trading session here in the u.s. i want to get back to breaking news, fiat chrysler has recalled about 1.4 million vehicles for a hacking defense. this news coming out just a few minutes ago and matt miller is back with me. i know you like to remind me that there are lots of recalls every day, but hacking? have you ever heard of that?

matt: i have not. i think julie is correct in saying this is the first recall exclusively to fix a software problem that is open to hacking. there are thousands of recalls every day. you would have to comb through them and it would take at least a half-hour to do that. but i will after i get off with you. still, this is interesting because they did not have to do a recall. he did not look like they did. now looks like they're doing it to shield themselves from liability. because of what happened with the wired reporters, nobody was hurt, but it exposed a weakness in the systems. usby are offering a u.s. -- device in order to override or close this system's weakness. no one has been hurt yet because of any of this, no one has complained, actually, to chrysler until the wired article came out. so they are taking afford a

step, a progressive step to try and give this in the bud before anything bad happens. this, youred guys did will probably have other people trying to do it, right? olivia: perhaps, but i think it is -- the stock is moving a little bit. matt: the stock is moving on this. olivia: this is what everyone was afraid of, when you think of the future of driverless cars. matt: people should still be afraid because autonomous cars are very software heavy vehicles and there will be faxing the future. i can't imagine this is the first and last hack of a driving car. i'm sure it is happen before. olivia: it raises lots of new questions. matt: i will make the point i make every time, a recall is not necessarily a bad thing for the consumer. for chrysler, it will be kind of expensive, which may be why the stock is coming out a tiny bit. for consumer, it is great. you get to take your car in and get it fixed. any problem, for free.

yet,a: and we have no idea it could be something as supple as some of you could change or radio remotely. systemhe next soware that could take your car over and drive, change the radio, so your air conditioning at a different level, they could turn off the motor. most likely, they can affect the steering as well. this usb -- i'm sorry, we will stop. olivia: so legitimately terrifying. thank you, matt miller, on this new hacking defense recall coming out for fiat chrysler. other top stories we are naming the man who killed two people in a lafayette theater last night. police say john russell houser opened fire during a movie. at least nine were wounded before he killed himself. police are now searching for a motel room where it is believed the suspect stayed. firefighters in northern california are finally getting the upper hand today against ablaze that scorched nearly 11 square miles.

dry conditions and gusty winds made the wildfire hard to control. never valley residents who were forced to evacuate are being told -- napa valley residents were forced to evacuate are being told they can return home. this orbits the sun like a star, it may have water, and an atmosphere. it is about 1400 light-years away. the planet was discovered by the kepler space telescope. the mission is to find goldilocks planets, those that are not too hot or not to cold to maintain water and potentially foster life. those are your top stories. now it is time to get you caught up on all of the market action around the world. for that, we start in europe. we go to london. drop in chinese manufacturing definitely having repercussions on european markets will stop it is incerbated the selloff commodities.

if you look at the stock 600, the biggest downward drag has been commodity producers in oil and gas companies, both down more than 1% at the moment. pretty much every industry group declining on europe's equity benchmark right now. i will show you the chart. you can see through the afternoon, that selloff has really gained momentum. it is down almost 7/10 of a percent right now. it is headed for a fourth day of decline, heading for a weekly drop as well. this comes after its longest rally, longest winning streak since april 2014. this week as been about corporate earnings as well. we have seen a number of stocks rally off the back of better-than-expected earnings, but that commodities route really having an impact on stocks in europe. yes, concerns over china. europe is not off the hook. we have eurozone manufacturing as well. slightly short of expectations. let me just show you what happened here. this drop came after german

manufacturing unexpectedly called this months -- europe's biggest economy, causing concern. this is about dollar strength, but also concerns over europe. what: if you look at stocks are doing in the u.s., we're seeing declines for the fourth day in a row. also stocks trading your the lowest in about two weeks time. the s&p and down, -- the s&p and dow. it is quite earnings driven. take a look at the different sectors we watch within the s&p 500 and you can see it doesn't -- it looks a little mixed. overall, the s&p 500 is down. basic materials down the most on a percentage basis. let's take these groups one by one. let's start with what is going on with health care today. earnings reports from biogen and abby disappointing. both of the biggest selling

drugs fell short of analyst estimates. biogen is cutting its forecast. you can see that enormous 16% drop, the biggest one-day decline since 2008. cigna agreeing to be bought by anthem, but the shares are lower arehey are -- there antitrust concerns. that is being counterbalanced for the consumer services group and to some extent. amazon and starbucks. both trading at records today. both out with earnings. amazon surprising analysts with a profit as a kept expense growth in check. starbucks, in particular, its u.s. sales on a comparable basis, beating estimates. i want to mention what is going on with commodities because women watching them so closely. oil prices for the week down more than 5%, the fourth straight weekly decline. gold, the fifth straight weekly decline, down 4.5% at this commodity slump continues. olivia: thank you so much, julie

hyman. still ahead, want to own a hat worn by the legendary babe ruth? it is a for auction next week. it will cost you a lot more than a pretty penny. ♪

welcome back. i am olivia sterns. with goal losing its luster, you may want to park your money in alternative investment like sports memorabilia. not just a simple autograph from your favorite player. on fridays, we like to take a look at the good life and in today's segment, we're going to look at some six-figure sports number billion items. also with us, scarlet fu. she was so excited that she had get in here early. you have some cool stuff. >> we have to start off with

babe ruth, the most popular player of all time. 1932 yankeesis his cap. the great thing about this is, that was the year the yankees won the world series, his last world series victory. it is one of only five known babe ruth caps. this current bidding a golden options.com is about i believe uctions.com, is estimated at $300,000. millions of people want these types of recollected. you think of the millions of sports collectors and everybody wants babe ruth with only a handful of caps. this is probably one of the nicest ones. olivia: there is actual leather inside. ruth's sweat.

scarlet: did he wear it? >> yes. he did not sign it, but there is a tax. scarlet: and it is in good shape. >> it comes directly from back in 1932 from his manager joe mccarthy and it comes with profit on top way back to 1932 -- pop in on's only back to 1932 with authentication letter. adam,e the most historic i think, and history of the world series. that is a 1905 world series game used bat by mathewson. feel how heavy it is. it is a must 50 ounces compared to a 30 ounce bad today. this is a dead ball-era bat. the 1905 world series where he won three out of the four games the giants won.

it is also signed by several of his teammates and dated by his manager john mcgraw october 1905. it is a rare find. nobody knew it existed. our estimate is $500,000. it could go to one lane dollars. scarlet: who owned it before hand? >> yearly 100 years, and a close family member of the mathewsons. this was sitting in the midwest for 100 years. scarlet: someone's basement. >> this next one is extremely popular, right now the highest priced item in our auction. until ave right now a week from today. this is the mickey mantle rookie card. our estimate was $250,000. with a week to go, our bidding is currently at $300,000. so with the buyers premium, that

is a 360,000, so this is way above our estimate. scarlet: did anyone else make baseball cards at the time? >> there were to do. topps ended up buying out bowman three years later. scarlet: they don't make hats like this anymore. >> i agree, when you think about something like this, players use hundreds of bat, it is -- olivia: this is babe ruth sweat. scarlet: put it on. olivia: my loud to? -- am i allowed to? scarlet fu will be back with us for the next hour. don't go anywhere. we will be back. ♪

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olivia: it is 11:00 a.m. in new it :00 a.m. in san francisco, and 11:00 p.m. in

hong kong. betty: and a new merger in the health care industry as anthem plans to buy cigna for $48 billion. clinton looks into long-term investing. and new mutations to create rarer new drugs that could save the lives of millions. ♪ olivia: good morning every one and welcome back. i am olivia sterns. scarlet: and i am scarlet fu. eance earning seizing