to deliver a speech about her economic platform at nyu this afternoon. we will get a preview of what she is going to propose. betty: we will look at the new economics of the wonder drug for cancer and other diseases. are they getting so expensive that people could afford them -- few people could afford them? andlet: wealthy young he'rs teaching them how to buy art. scarlet: good afternoon, tgif. she has a new spring in her step. betty: i am betty liu. let's begin with how the markets are trading. it is a day for the bears. stocks are falling for a fourth day in a row. 84 pointsf by about right now. we've seen declines pretty much all week long as you can see.

the dow is down by about 2.4% so far as we close out the week. we have also seen the s&p down about 2%. declines in biotech overshadowed by amazon and visa in the rallies in their stocks as well. if you really want to get a sense of how earnings have impacted the markets, we have a terminal, a bloomberg terminal chart for you. it basically shows the markets peaked right when ibm released the results july 20. for both the s&p, the white line, the dow is the orange line. since that, we have had apple and caterpillar and 3m. gained as much as 4% since earning season began when alcoa reported. betty: we're just starting in the earnings season. thee we ended up after earnings season is over. in the oil market, not a great bulls, any in the oil

firmly in a bear market, particularly when it comes to wi crude which has fallen over 20% since its peak. below the is trading $50 -- let's pick up. guys, let's pick it up. barrel level is where brent fell below. a bear market forming. scarlet: it is been pretty ugly as the u.s. dollar continues to strengthen. we have seen the weakness in equities. you carried it over to treasuries and you get a little boost to prices. certainly on the lower end or the shorter end of the yield 68 basise two-year, points. over the last two weeks, you can see how the yield on the 10 year has come down to its current 2.26%. i mentioned commodities in the dollar relationship. look at the index, headed for

its highest level since march. bloomberg dollar spot index measures the was currency versus the basket of other currencies. heavily tilted toward the euro, but also against other currencies as well. we will keep a very careful eye on that as earnings season continues. betty: we will see how the dollar becomes a headwind for these global companies. let's get to the top stories at this hour. it is a deal that could create the nation's biggest health insurer. anthem is buying cigna. the cash and stock deal is worth more than $48 billion, 22% premium over cigna's closing price yesterday. the ceo joseph swedish says the merger will bring huge savings. >> we remain confident in achieving synergies approaching $2 billion within two years after the closing of the transaction. if the transaction were to close at the end of 2016, our targeted adjusted earnings per share for 2018 rises by over 20%.

betty: the agreement ends nearly a year of negotiations and extends a wave of consolidation in the health insurance industry. scarlet: the man who shot and killed two people inside a louisiana movie theater before killing himself has been identified as john russell houser. authorities say he was a 59-year-old drifter from alabama. police say he tried to flee the theater but turned back and fatally shot himself after encountering officers. louisiana governor bobby jindal rushed to the scene. >> these kinds of acts of violence happened in a movie theater when there is no good kind of evil this -- a good reason for families were out for a night of entertainment. the great thing about america is when any of us suffers, whether it is one family or one community, we also for. this is a time to come together. documents showt: he had called police in 2008 to

have guns removed from the family home. the senate majority leader wants to link funds to the nation's bill to with a big -- kill obamacare. racing against a deadline. the federal highway trust fund runs out of money in just seven days. mitch mcconnell says he will introduce mms that would fully repeal the residence helped a lot. a spokesman says he will call the senate into session on sunday to help -- sunday to vote on it. they will not give up. department istice being asked open a criminal investigation of hillary clinton's e-mail, dealing with whether sensitive information was mishandled. she's to personal e-mail account while secretary of state. to government inspectors generals of the account contained hundreds of potential classified messages and information. the state department has been reviewing them and releasing them. john kerry ruback did -- reacted today. >> in the state department we

have a team working extremely hard to get all of the required e-mails out to the public as fast as possible. i can't wait until that happens. i'm sure hillary can't, either. i'm sure it will be cleared up with the final releases as we get that done. shey: mrs. clinton has said did not e-mail any classified material. does earth have a twin? nasa says, yet. the kepler telescope found a planet a lot like our own that orbits the sun like star and has water in an atmosphere, about 1400 light-years away. we are not alone, scarlet. those are your top stories. hillary clinton will be speaking at new york university stern school of business to fine-tune economic and fiscal policy plans she outlined in june. specifically, she wants to tax short-term capital gains of

wealthier taxpayers at a higher rate but at a sliding scale to lower tax rates on longer-term gains. she would compel activist shareholders to emphasize long-term value and use taxes to incentivize executives to do the same. if that wasn't enough, she wants companies to disclose stock buybacks more quickly, not just at the end of every quarter, so investors can better tell when a buyback used shares. betty: what do investors in the 1% make of her specifics? our guest is joining us on the phone, chairman and ceo of the investment firm peebles corporation. very involved in politics. he is a prominent democrat, the supports candidates from either side of the aisle. he is a political donor. he is also the vice-chairman of the congressional black caucus foundation and joins us now on the phone. peter coy.s, peter, i want to start with you. scarlet just outline the four things killer clinton is going to outline. what do you think is going to pass muster?

on the agenda is capital gains tax. the capital gains tax is fraud. it goes up and down. exactlyts can't agree on how capital gains taxation levels affect the economy. it is a tough issue. hillary clinton, i think, may have found a sweet spot because -- betty: lowering it as you hold it longer? >> not saying we want to raise the top rate, she is saying, the top rate, we want to keep the top rate in place longer and then gradually fade it down to the level it is at now, encouraging long-term thinking. larry fink from black rock, world's biggest money manager, is one of the people who has been very outspoken about the need for short-term thinking. mckinsey, consulting firm, has a to combatect short-term thinking. these are not radical lefties. do have heard taking deposition

does not put her out on the fringe. betty: as you say -- >> there are people who disagree with it, but in the solid democratic mainstream. betty: do you think this will curb long-term thinking? >> i think it could have an effect. i think it will be a heavy lift to ever get it implemented. i think what we seeing is hillary clinton trying to appease the left, which is continuously pulling her politically because of bernie sanders'entry to the race but also maintaining the stance of being electable in the election. we all agree capital gains needs to be reformed. one thing that really needs to be addressed is rewarding job generating activity, like my business, the real estate taxesss, where we all pay at the highest rate at the ordinary income level rate and

not the capital gains rate, and we're the ones creating millions of jobs in the economy. i think hillary is in the right step, but she is going to get some pushback as this goes on in the discussion about how to use capital gains as a form of incentivizing capital investments. in real estate is a long-term investment in real estate development -- well, i think you will see is certainly be discussed in terms of home builders in that sector. scarlet: she is looking to encourage long-term thinking, peter, but what do these policies do by way of stimulating the economy, encouraging more growth? >> you can argue one of two ways. the argument that it encourages long-term growth is that if companies know that to think about the long-term, they will make investments that don't pay off in the short term. they may hurt profits the good have long-term potential. the argument on the other side, companies might retain -- my itnd money unwisely and

would be much better to have that capital redistributed to new fast-growing companies, but if you are kind of bound to hold your asset longer in order to avoid the lower tax, you might not reallocate your money to the new growing companies. betty: i mentioned before you are a democrat, but you have supported republicans as well. i know you are a fan of jeb bush . here is hillary clinton with her second economic policy speech. she is outlining exactly what she wants to do here on the economy in business. what about for the republicans, in particular, jeb bush, who hasn't really come out with a very firm proposal? are they losing that corner? >> look, i think what you sow with hillary clinton, her numbers -- her pulling numbers are in negative increasing

significantly. now recent polls have showed her losing to republican candidacy in a state like virginia, which is critical for pathway to victory. part of what you're seeing is these announcements, these are geared toward stopping the bleeding politically. these are all -- these are not economic announcements, but political announcements, a political speech geared toward stopping the bleeding. the republicans are going -- they have a very competitive environment, 16 of them. you will start to see these policies become discussed and go -- betty: what about jeb bush? look, he's in the top end of the field of republican candidates. , will be cutll 16 down to about half by the end of the year. then you will start to see more meaningful discussions on the political side in terms of policy. jeb has always been very

pro-business and he is used tax policies in the state of florida to incentivize investment. i would expect that to come from him to where you will see tax policies incentivize investments. i think what was previously discussed, if it starts constraining capital because now investors are going to have to lock in their investment long-term as opposed to being able to move it into other places where capital is needed, i think that could be a real problem and i think, hopefully, we will see something from jeb that doesn't have that double-edged to it. scarlet: whatever jeb bush proposes and hillary clinton is proposing that reflects a lot of who their economic advisers are. who are the biggest influencers with airing in their years? -- whispering in their ears? >> the center for american that, i'veeople like just been talking to them today, center for budget and priorities, economic policies, the roosevelt institute are all

advising hillary clinton. jeb bush hasn't disclosed everybody with his advising him, but people like glenn hubbard have been influential. it is a classic alignment. the democrat think tank. republican advisers. there is a clash we see them public between the candidates, and then there is these armies beneath them that are clashing silently in the night. betty: they are. they will be the bad guys, right? let the candidates kind of keep themselves clean. speaking of which, peter, the spillage, the leakage -- >> i just heard about that. betty: right? the fed released by accident the staff forecast preparing for the june said meeting. i don't think there was anything groundbreaking -- >> and there's nothing illegal about it. we had a 2012 case were some

information leaked out of a meeting at the federal open market committee and got to medley global advisors and was published and there's an ongoing investigation about that. something really wrong happened there. this is just a dumb mistake. everyone got it simultaneously, so it is not the same concern. betty: luckily, there wasn't anything crazy. the jobless rate is one in up around 5.34%. >> nah. scarlet: nothing like interest rates will definitely go up in september. betty: are the jobless rate will talk to 4% or something -- will drop to 4% or something. peter, thank you for joining us. he will be watching hillary clinton's speech and writing up a piece for us secure a bloomberg. don peebles, thank you so well. the vice chair of the congressional black caucus. scarlet: much more coming up today. we will bring you live coverage of hillary clinton's economic

speech this afternoon at nyu. betty: while we're waiting to here what she has to say about cap against taxes another investing issues, so be sooner -- be sure to tune in this afternoon on bloomberg television. ♪

welcome back. i'm scarlet fu with betty liu. betty: it looks like a beautiful day. we're going to get a check on the markets with julie hyman. julie, we are pretty much sitting here at the lows of our session. julie: far from the roof. when our floor detector -- director said we were going to the roof. no, he was literally saying

we're going to look at the view from the roof. we are seeing stocks fall to the lows of the session today. we are seen in irving -- earnings driven market over the past several sessions. once again, you can blame most of the decline on disappointing earnings reports. i want to look at a few examples. worst performer in the s&p 500 today, falling the most in a single day since 2008. i was looking at the one-day volume, which is already about five times the three-month average. a lot of volume and a huge to klein, even accelerating as the day goes on. huge decline, even exhilarating as the day goes on, now 18%. disappointing sales of its ms drugs, particularly teixeira. it seems as though novartis is taking some market share from the company. big declines. where also looking at trip advisor. the company's earnings missing

estimates, the company also cutting forecast. it is taking a big tumble as well. tripadvisor, looks like talking about international pricing, --s taking ahead, feeling it's taking a hit, feeling the u.s. dollar. european travelers are taking shorter trips, trips that occur in europe perhaps a not going further abroad, and that is taking its toll at tripadvisor. capital one financial is another we are watching. shares down 12%. double digit declines series is pretty incredible on the back of the's earnings. the company gets more than half the revenue from credit cards and increased its amount that it is setting aside to cover credit losses. if you take a look inside my bloomberg terminal, you see what i'm talking about. so-called loan-loss provision, the estimate is way down here. this is where the company announced it up here. about $60 billion set aside to cover the potential cost of losses.

the company saying is increasing the number of loans it is giving through its credit card versus its competitors. questions why it is doing that, how it is able to increase by such a higher percentage. perhaps it is underwriting standards are looser according to the analysts here and that could be why we are seeing this big loan-loss provisioning. betty: i would say a big red flag. scarlet: thank you, julie hyman with the latest on some earnings losers. basically, not amazon stocks. betty: coming up in the next half an hour, jacob and all is getting oscar buzz in the new movie "southpaw" in what appears to be a first for the hollywood, financed by, to control by china's richest person. scarlet: will take a look at what is behind the rising cost of cancer drugs and how insurance companies are reacting. that a much more straight ahead. ♪

betty: i am betty liu with scarlet fu. movie "southpaw" about a boxer hits tough times opens across america today and stars jake jenna hall -- jake gyllenhaal. betty: bloomberg in attainment reporter has the story from l.a. new $42 billion man. jake gyllenhaal got ripped for this movie. tell us about the backer. >> he is china's richest man. he owns amc, the second-biggest in the u.s. he is a big real estate mogul in china. he is increasingly getting involved in hollywood.

he is building a huge with a call a movie metropolis in eastern china. he backs "southpaw." oscar-winning producer harvey weinstein. he paid entirely for the budget, which is really unusual and the competitors -- betty: how much? >> the budget was about $25 million. it is not a huge amount of money in the scale of things, but to fully finance the project or the production budget of a film, especially a film like this which is gritty and violent and has oscar buzz, is very unusual. we have seen competitorslike alibaba or china film group are trying to get more involved. for example, alibaba announced it will be invested in a mission impossible 5 movie coming out next week. they are much lower rating producers. how did they choose

this script? he spent a lot of time thinking about this. 2012arted talking before even before he made the amc acquisition. it is just a story that really resonated. this of boxing, but there is us start -- strong storyline about a guy from the bottom has build himself back up. they loved the story, apparently. you so much. we have to leave it there. i think i just saw $.50 in that movie. scarlet: if it is going to be a chinese sponsored movie, it has to have a sad ending. betty: we will be back. ♪

♪ ♪ ♪

get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. betty: welcome back. top headlines crossing the terminal.

federal investigators are once again raising questions about airline prices. transportation looking into whether kerry is raised fares -- whether carriers raise fares. investigators are asking for information from delta, american, united, southwest, and jetblue. tilde is denying the price gouging allegations. -- delta is denying the price gouging allegations. justice department prosecutors are starting a money-laundering investigation of citigroup's mexico unit known as banamex. the government suspects customers illegally moved money through the bank. subpoenas are already going out. a texas appeals court dismissed one of two felony indictments against rick perry. the former governor is cleared of corsica public official but still faces an abuse of power count. rick perry vetoed funding for prosecutors who investigated political corruption. nearly a century after the getting checks are

redesign. congress is getting or introducing a new version of its iconic sneakers. the chuck taylor all-star two uses a more durable kind of canvas and has more padding. they go on sale on tuesday. high tops. that is what we call them in my day. those are the top headlines at this hour. coming up in the next half hour, citigroup is reaching out to wealthy young heirs. it not about their investment accounts. the bank is teaching them how to buy art. we will tell you exactly why they're doing that. hillary clinton talks about the economic platform at 1:30 p.m. eastern time. we will bring that for you live as soon as she begins speaking. cancer patients are battling more than a deadly disease. they're up against drug prices so expensive that some are forced to drain their finances to receive treatment. drugs can easily cost $10,000 a month. the newest x terminal drug may cause patients -- x terminal

drug may cost patients as much as $1 million a year for that drug. doctors are sounding the alarm on colleges from hospitals around the country are calling for new regulations to rein in the runaway costs. your to diagnose what is going guest has been treating cancer patients for 26 years at memorial sloan-kettering cancer center. also, cynthia who is been covering this problem. there's a story that just came out a few days ago about 100 oncologists around the country want to start a grassroots movement. they want the people to speak up, no to congress and say the cost of these drugs is just too high. let me start with you, doctor. you have given many speeches about this. yourself have taken some action as well when the high cost. what exactly can be done? >> there are a lot of things we could do, but the first thing is

we have to have people be aware of the problem. i don't think people understand we're talking about drug cost in the tens or $20,000 per month range and that these costs are affecting the individuals. it is not realistic to believe, well, we have insurance, it will be covered. a, insurance doesn't cover all of it. become if it did, everybody's insurance rates would become unmanageable. we want people to understand the problem. then we need to understand that some of the laws that exist allow this problem to perpetuate. betty: laws like what? and froma is for a bit considering what the price or cost might be when they decide to approve a drug. once they approve it, medicare is obligated by law to buy it -- betty: to matter how much it costs. >> in there for a bit and from the negotiating price. that means medicare has to pay any prices the drug, and he chooses to set. it is not even a dysfunctional

market, it is a nonmarket. betty: it sounds like a dictatorship in a sense they set the price. cynthia, how to get like this? drugs ort for cancer an overall problem? there hasscenario been some innovations recently and they been able to bring out new drugs at ever higher price tags and it is just been going on quietly and there really hasn't been much noise about it because it is happening slowly and quietly. existing cancer drugs are going up in price as well. drugs have tripled in price in the last ever of years just off the back of the fact that insurers are paying for them and people are absorbing the co-pays. that is part of what is driving at. there are a lot of new drugs coming. betty: the firm's cynical companies say they have to charge this much because, what? is the cost oft r&d. it is tricky to measure because there is talk now about whether there should be transparency and how much it cost to develop a

given drug. so much of pharmaceutical r&d is unsuccessful. how do you measure what when and to developing a given drug versus how much is spent overall and how much does it work? that is one way to look at it, but it is a really hard thing to measure. betty: but why isn't it a fair market -- argument from the drug companies? >> we see zero correlation between the degree of innovation, the degree of benefits the drug offers, and the price that is charged. what the companies have essentially created is a situation where they're going to be paid simply further efforts without any consideration, did those efforts really succeed? are we a college and what we wanted? harm -- how much are we paying? betty: wouldn't the drug companies counter it is all experimental, so you need supply and a lot of money and yes, the success rate might not be great, but if you land on that one drug that could cure a certain type of cancer, that makes it all worth it? >> we have to be very careful

because we're virtually never talking about two hours. most of these drugs offer very modest amount of benefit. one of the things that happens, we start out with high hopes that a strategy is going to be really useful in and find out, well, it is really a small benefit. we kind of do a fallback position to get the drug through the hurdle of getting it approved so it can be sold. sometimes that is on the basis of survival benefit measured in days to weeks. then the cost of any thousands of dollars per month is just simply unreasonable, but we're stuck with it. if we had any kind of understanding of what the metrics are, what the targets are, and what we are willing and not willing to pay him a then we could make some economical decisions. as it is now, we're simply agreeing the price will be based on what the price was yesterday and going up tomorrow without any understanding of what we're getting. betty: there is a certain amount of lack of transparency, then. cynthia mention this grassroots

movement to get medicare to set the prices, get them some negotiating power. what else could be done in congress or elsewhere? >> one of the other issues, people don't know whether bills are going to be in positions even when they want to talk about drugs and affordability, they have no idea what the co-pays are going to be. someone could be facing a $25,000 co-pay and no -- have no idea because the co-pays are set to the insurers and often the bills come later. i have spoken to patients who somego through therapy or sort of diagnostic measure and then only months later get a bill for $30,000 to $50,000. i think there also could be more upfront discussion over what these costs are in more awareness that physicians could even be working with the patients and in people know what they are in poor. right now, people really don't. at eco-doctor, you're one of the more prominent voices on this. you made some news about a year or so ago where you refused,

right, to make available an experiment treatment for cancer drug because you said it was too much, something like $11,000? >> time flies, it was three years ago. a drug came out, it was more than double the cost of a very similar drug already on the market. when we looked at it, we said there is really zero benefit. for double the cost and no toefit, we don't need this provide outstanding care to our patient. were not going to do it. we wrote about it. others decided they weren't going to do it. within less than a month, the cost was dropped by half. that shows you these prices are, as all prices are, liquid and open for discussion. ad what we've had now is situation that has forbidden any discussion on many different levels. we have tried to have this ideal as a society that everything in health care is above consideration of cost. that is unrealistic. certainly, the people were selling the product consider cost carefully.

there needs to be a to a consideration. there needs to be a discussion back-and-forth, a market, if you will, where buyers and sellers can decide how much is this worth? what am i willing to pay for it? where am i willing to say no? betty: what about other countries? >> it is an interesting dynamic. the u.s. is where the pharma companies make the bulk of their money and the other countries just don't accept the prices that they're are able to charge in the u.s. there is proof there are other systems and, yes, there are different accessibility is, but there does exist markets where people -- there is much more price consideration. >> i think the accurate way to look at it, every other market other than the united states, there's more price consideration. if you look, for instance, in western europe, the majority of countries get their drugs at less than half of the price on average of what we pay in the united states. betty: thank you so much for alsong me, doctor, and

sent it kuntz who writes for health care for us here at bloomberg. thank you as well for joining me. still ahead, much more including a nightmare week for commuters, including myself, from new jersey into the city. power problems we do link the delays and problems could persist for years to come. it is a black eye for chris christie and for our infrastructure. we will be back. ♪

--ty: welcome back time welcome back, i'm betty liu. big stories, including the markets themselves which continue to hover at lowe's. to thenitely low

sessions. commodities continue to fall. that is dragging things down. s&p down the same amount. nasdaq falling a little less because of amazon. if you take a look at my terminal and the imap, the various sectors on the move, we can see some green, consumer services because amazon and starbucks fall into that particular group. telecom also holding up a little bit better. earnings from at&t. lasik materials are down. help -- basic materials are down. let's look at the materials stocks first of all. copper and gold, right there and in him, copper and gold, those are basically the two things you do not want to be involved with right now given what prices have and doing recently. the company came out with earnings yesterday morning until about 9% yesterday, down another 7% today. we are seeing the chemical

producers also falling today. acrossseeing declines the chemical companies. if you look at the oil and gas companies, energy companies, big declines. remember, go phillips recently canceled a project as oil continues to decline. services have really been hit the hardest in terms of the percentage losses recently. if the exploration and production company's are not making as much money because oil is going down, they're not going to be spending as much money on services. speaking of oil and gold, let's see how they have performed not just today, but on the week, oil falling by about 5.5%. it is the fifth or fourth straight week, excuse me, oil has fallen. that is the longest losing streak on a weekly basis in about nine months.

similarly for gold, we're seeing a pullback for the week, the fifth straight week old has fallen, down by about your percent on the week. this point, it is amazing we have not sort of reached the floor, if you will, for this commodities selloff that continues. betty: everybody who is bullish on gold has egg on their face after seeing what has happened. julie: until there is a rebound. betty: thank you so much, julie hyman. thisook at the top stories afternoon. american airlines is doubling its stock buyback program to $4 billion. the original plan was started six months ago. american is taking advantage of record profits and sagging share prices. the company posted second-quarter earnings today that topped wall street forecasts. federal regulators investigating the giant liquor makers. they want to know if the company had it sales results by shipping excess inventory to distribute is. smirnoff and johnnie walker of

the two top brands. nfl fans are pumped up for tom brady, despite deflategate. his jersey is now the league's best seller. the patriots quarterback is facing a suspension because the nfl says he knew game balls were tampered with ahead of the games. those are the top headlines at this hour. if there ever was a week to remind americans of this nation's crumbling infrastructure, this was it -- at least in the northeast. there were huge delays on amtrak and new jersey transit trains into manhattan, four out of five days this work week. this was primarily due to power problems in the 105-year-old tunnels they carry trains under the hudson river into new york penn station. some delays were as long as three hours. the problem is not limited to the rails. new york laguardia airports, flights delayed more than two hours after a power failure at the delta terminal after contractors cut wires a mistake. want to tie acans

bill funding highways to a measure repealing obama care. are we in a crisis when it comes to transportation in the country? i say, y-e-s. >> you need to get a little more fired up. betty: can you imagine a guy this morning, click? mark: i write new jersey transit and take it every day here into the city and there have been delays -- betty: were you late? mark: not as late as on monday. monday it got a little bit ridiculous. you see the frustration of the passengers and the train crews. for safety sake, that the pullover. amtrak owns the land and owns the rails. that means the local commuter trains, new jersey transit, we the to stand down and let express or let some of the other regional trains go through. this all ties back to the debate and infrastructure funding possibly the creation of an

infrastructure bank, but that seems to have stalled. that is not going anywhere. to now to tie the funding repeal of obama care, you can just hear people saying, here we go again, because you know that isn't going to happen. betty: and this also reflects a more local story, but one that made headlines with chris christie in new jersey, remember? we are both new jersey residents. he vetoed the title back in 2010 -- final back in 2010. markel and he was concerned because he thought the state was going to be left holding the bag. that he did not get enough guarantees the federal government would come through with the funding. he vetoed it. betty: the critics say he vetoed it because he did not want funded with tax hikes in his state, which would be a black mark against him running for president. and here we are. mark: this will have legs because this nation's bridges, its schools, its roads are

crumbling and everybody knows it. the only time it comes up is, unfortunately, when there is some sort of tragedy or a bridge falls down or a school bus maybe goes off the road because it hits a pothole that is in desperate need of repair. neither one of i us knows where the solutions are coming from, but something obviously has to be done. betty: empathetic how we as in the highway transportation bill renewed on a short-term basis. 36 plus times in the last several years? mark: hillary clinton, she will be speaking at the nyu stern school of business. we expecting to hear the democratic presidential candidate of the front runner, outline some of her economic policies. just wondering whether or not she will get specifics or this will be appeasement approach and we will hear more as the campaign goes along, coming up the next hour. betty: as he mention, hillary quinton speech is going to be

happening in about 45 minutes from now. -- hillary clinton speech is going to be happening in about 45 minutes from now. lessons are very real. a look at the new tools big banks are using to support wealthy young heirs. ♪

betty: welcome back, and betty liu. time now for this weeks he can

to the good life. how do well to managers court the next generation of the rich? by teaching them how to buy art. that is one of the methods that big answer using the reverse a drain on family wealth. peggy collins recently attended an event organized by citigroup for wealthy young heirs and joins us from l.a.. tell us about this. the money was all fake, right? the money was fake, the art was actually -- you know, real, but they got a good lesson in how to bed. tell me what you saw. >> it was actually, they try to simulate an auction as best they could. the twentysomethings were split into teams and each got a mock catalog of about a dozen are pieces. they ranged from paintings the polaroid prints to earrings that have been auctioned in the past. $100,000, fake, and they got to bid on it. some teams held back on their

money and bought multiple pieces. one team went all in on a print of kate moss' face and spent $95,000 on that. afterwards, the experts from christie's told the teams about how those items actually sold. they could see if they spent wisely. betty: that kate moss ease that they were all feverishly bidding for, actually had not been sold for real? >> the last time it was auctioned in 2013, did not sell. it was part of a number of pieces by the artist, many of which did so. at that time, it did not. what the kids got to see was sometimes there is an agreement between the auction house in the cellar and if it doesn't hit that price, then the piece doesn't sell. so it was a lesson they learned. betty: that was a big lesson. why does citigroup want to do this? i get they want to access these heirs and teach them lessons,

but what is the long-term out of this? isthe long-term really something that many of the private banks around the world are dealing with. there is about to be the most record amount of wealth transferred the world has ever seen over the coming decades. what banks have seen in the past is generally when parents transfer their wealth tickets, the kids move to another wealth advisor. what these private banks are trying to do is engage with a twentysomething, thirtysomethings now so they stay clients in the future. betty: how much are we talking about that they possess right now? >> we're about to see $36 trillion transfer in u.s. households alone over the next several decades. an additional amount is expected to go to philanthropies. you're talking about a lot. on average, billionaires around the world are over age 60 and have at least one child. betty: so they clearly will have to dust descendents who will spend the money on this. when you are there, what were

you surprised most by, not just in them getting something wrong, but what were you surprised about, peggy? >> i was surprised how engaged they were. all of the millennials there were in dress -- well dressed and got really excited to the auction. sometimes two people at the same table who were teammates got so into the auction, there were almost bidding against themselves. the christie's experts had to say, whoa, don't bid against yourselves. they were really interested in how to value art, who owned it in the past, what was the condition of the piece. betty: peggy collins, thank you so much. we have much more on the bloomberg market day, including hillary clinton's speech. ♪

10:00 a.m. in san francisco, 1:00 p.m. in new york, and 1:00 a.m. in hong

kong. mark: hillary clinton is expected to speak. we will bring you her remarks here in new york at 1:30 p.m. betty: president obama visits kenya and ethiopia this weekend. what he hopes to accomplish. mark: amazon has been pushing regulators for permission to use delivery drones and now they are teaming up with google, verizon, and others to create a special air traffic control system for drones. betty: good afternoon. i am betty liu. mark: i am mark crumpton. thank you for joining us. let's begin with a look at the markets. stocks are falling for a fourth day in a row led by disappointing results from several companies and declines in