worries of a slowing economy, they wonder how long government intervention will work. consolidation,re not just for the insurers. more drug company news to tell you about and the hot v-neck. >> the incredibly expensive egg. prices on eggs pushed to record highs because of an avian flu outbreak. ♪ olivia: good morning, i'm olivia sterns. matt: and i'm matt miller. we saw an eight map drop in china overnight. europe in markets are down 2%. here in the u.s. we are not faring too badly relative to those moves.

the s&p 500 is down half of 1%. a 125 point drop. 5059, the market is pricing in the events in china overnight. olivia: same story all year, the market moving sideways. some of the top stories we are watching at this hour crossing the bloomberg terminal, another big takeover in the health care industry. hassraeli drug manufacturer agreed to purchase allergan and its generic drug company. teva with jew it's hostile offer for another drug -- withdrew its hostile offer for another drug maker. financial, $2.2 billion in

cash, they are the parent of standard & poor's owned by new mountain capital, members of management. matt: orders for durable goods came in higher than expected last night. the first time in three months there had been a rise in orders. the paris air show was during that time. 13 corporations are investing at least $140 billion to reduce their carbon footprints. including apple, goldman sachs, and berkshire hathaway. they have pledged to cut in missions and water use and will agree to help environmentally focused companies. so, doing good. pitchers-- pictures -- make their living baffling adders yesterday at the baseball hall of fame.

martinez is the second dominican player to enter the hall of aim. only the second dominican player , very interesting. matt: -- olivia: ever been up there? it's fabulous. matt: you have been to the baseball hall of fame? olivia: many times. matt: multiple times? that a fan? olivia: mom. matt: are right. hello, monique. olivia: coming up in the next hour, twitter has earnings out this week. investors want to know more about acquisitions and user growth. record highs, up 25% in just the past human. we will talk to the ceo of one of the world is egg producers. it is that sound? matt: i like that sound. have fallen prices

below $1100 for the first time in five years. we will hear from one analyst who says that we still be far from a bottom. matt: the worst day for chinese stocks in eight years. the shanghai composite ones by 3% showingndex after private manufacturing design. ofvia: shattering a sense calm that had fallen over chinese markets ever since the government intervened to crack up stocks. speaking on "surveillance," early this morning -- >> they have a real problem on the hands. they don't know what to do. this is a serious medical problem. they have written to hire markets in says that this shows how things are working. >> is this a discrete thing with a wall around it, around the >> --? i don't buy that

that. >> ambassador, you say that their legitimate rest on 7% growth. what about their intervention in no equity market? richard: one in china seriously believes that there is anything close to that. what this shows is that talk markets have become fairly broad market. a lot of chinese people are investing and they are worried greaters is going to political tightening. this is the nightmare scenario of the chinese leadership. the markets fall, you start to have push back. that's what they are worried about. pim greg joins us on the phone -- tim greg joins us from hong kong. the government here took unprecedented, extraordinary steps to stabilize the market in china last month. what shattered the calm? bit of a bizarre

question that remains unanswered today. economic newst of out late last week in terms of a flash pmi that was disappointing. there was this morning and industrial profit number four june the was a little disappointing. but nothing earth shattering. from our perspective, part of this plays back into a technical aspect of the market. the market rally over the last couple of weeks was a bit of a renewed frenzy with smaller cap stock. not necessarily all of them being said or did in larger cap state organizations. a little bit of this was waiting for the question of when it would happen. the smaller cap stocks, the ones that weren't's ended, at least a thousand of them are. these are largely state-supported today.

china had been shoring up the shares and had decided to stay out of the game today. you never know the day by day aspects. talking about the stocks that had been suspended, most of them had come back to life over the course of the past week or two. there were about 52% from where thathad autumn doubt in july 8 period of time. there was a frenzy that had built up. say that it was not a good thing, necessarily, to today's selloff with smaller caps coming back down. with a pullback in the market, shanghai and the shenzhen exchanges across all sectors. there was a very interesting dynamic from a global

perspective that the hong kong listed shares did not fall off as much. creating business for the mainland shares and hong kong lag, reversing a little bit today. from an investor perspective that is notable. of response type are we expecting from the government? will regulators do something else? what could they do to the market again? tim: well, there is a lot of firepower within the chinese arsenal. frankly we don't know how much they had to there. theress to support marketplace and all estimations are that there is a lot left from a chinese aspect of area

that said, from a chinese this is monday. we will see what happens tomorrow in the market and we will he if there is any additional the comes out over the course of the week. does china try to educate its own domestic investors at all with what goes on in the stock market? it seems like when we saw the market come down a lot, they filed back in. doesn't china warn investors of the concept of getting this is aged? tim: great question. in the end, the chinese stock market for the last 15 years has been a speculative fervor that comes and goes on the whims of individual investors that come and go.

those bank deposits speculate in the stock market. what needs to happen is a transition to assist in a book, ins to show investor based, fundamentally driven investment philosophy. we could go through a lot of urbans as it relates to retirement systems, health care insurance and other things, but there need to be more options from a reformed perspective for individual savings as opposed to set -- as opposed to speculation. what we hope is that more measures come through and that china does not act down on the roof or measures that they put in place because of the frenzied rally correction that is occurring. in fact, that's our biggest and makers balkt these

on reform and creating more option sustainable from an investor active olivia: thank you so much, tim craighead, and for that great question there on the chinese equity stock. drop in the an 8.5% benchmark index since 2007. matt: coming up, another big deal in health care spite -- space. $40 billion. ♪

olivia: good morning.

welcome back to the "bloomberg market day." matt: let's go to our senior market correspondent, julie hyman, or look at the market. another day of sales today, jules. although, somebody's buying. olivia: it's monday. matt: you can't sell a stock if no one is willing to buy it. julie: it's just a question of the price they are willing to buy it. today people are buying at lower prices, it seems. we have not seen that since january. the selloff is really coming hand-in-hand with the commodities that we've seen, for example. often big, disappointing earnings were boards. i want to talk about the role that in dust bills play in the selloffs. a downgrade in the machinery actor overall, goldman says we are going to continue to see some weakening market demand in the emerging markets.

they already have a lot of machinery with infrastructure invest slowing off the peak levels. -- investment slowing off the peak levels. them,uck maker is one of a longer path is given to ms. cycle earnings. still in a slump here, even though they are trying to recover, those shares are down 2.2%. those downgrades also coming hit downace, taking a by 4%. part of this has deal with spending on cranes. goldman sachs already has sell ratings on a trio of other machinery. joint global is known as a big maker of mining and whitman. knowing what's happening to the price of metals the mind in west work, they are down by 5% today.

a big hit across the various machinery stocks. i want to talk to you about a company called roper technologies. another industrial engineering machine technology company, cutting due to exposure to energy clients. it makes sense to anybody who is companiesneeds -- that serve commodities. olivia: interesting. industrials will -- were also the biggest lag or in the chinese selloff area thank you so much, julie hyman area top stories this morning, the search in the atlantis for two teenagers is expanding today. 214-year-old boys have been missing since friday. there capsized boat was found yesterday. the coast guard says that they could be anywhere in an area the size of rain. a plan to revive the export import is heading for the house, attaching a huge highways will.

the republicans opposed the bill, which helps foreign companies purchase u.s. product. on friday.s out are the rich getting richer? new figures from bloomberg say yes. the worth of the world's top 400 billionaires rose by $495 billion so far this year. will gates still tops the list, even though he has dropped. the top gainer this year, maybe you guessed it, jeff azo's. increasing by nearly $20 billion in 20 in -- 2015. that's right, more money to fund his 10,000 dollars per year crock. olivia: it is cooler than we thought. also, the drones matt: important -- drones. matt: important for all of us.

billion for the bringing theess, drug m&a business to $80 billion. not really part of the health industry being conducted to valuation. 180 billion dollars in acquisitions for drugmakers alone. obvious he then you have health care and you say -- what's next? everything is moving. every single sub sector. we have seen it with drugmakers, with her beaters, with health insurers. really, right across the piece the wholesome light chain is moving. managed to did teva purchase allegan when they were pursuing another company aggressively? ed: they had the world thinking

they were going after them. priced ineen this those shares this morning, which tanked on the news. wasyone thought that teva working on this and they were in an openly public fight. they are running this parallel process where the news of it started to leak on friday. there was another story in the journal on saturday in there. then they killed off that deal and said they would go with this one. matt: they are looking at botox for reason, by the way. one of their big money makers. it as: i still think of what it wasn't him a few months ago. a roll up shop of generic drug businesses, but then they bought

it because people pay for it out of their pocket and it is a growth industry. the deal this mean for ? ed: with mylan shares coming down, they are down this morning. that makes it look even worse area the upside is that they've said they don't want to do the deal because of the execution risk. but now that has gone away and is off the table. matt: look at that one your chart. they had a decent run up, mylan, but not a great last the month. knew thatvestors something was not going well here. if you are engaged in a oh takeover, one would continue to drive up the price until the

deal is sealed and no one saw that over the last three-month. ed: that's right. this brings us to the heart of why this teva allegan deal -- allergan deal is a smart deal. at their pitted throats from the beginning. it was so hostile, the market said that this is such a clash it doesn't look necessary. that said, in the end usually money talks. it has gone up in the last few weeks. matt: do dogs hate lions? ed: i would think that they would fight if you put them in a cage together. i've never test at it. matt: it is a big cat. cats and dogs. olivia: ed, from our bloomberg acquisitions team. that is a real merger. matt: still ahead on "market a," fiat eisler will pay a record penalty for failing to notify customers problems.

it could make it harder for them to find a merger partner. olivia: not an acquisition partner. ♪

olivia: fiat chrysler will pay a record fine for not acting quickly enough on safety defect. it will also buy back over half of a million vehicles. mostly pickup trucks. the company agreed to hire an independent monitor to watch over its recall policy. matt miller always tells me not to overreact about a recall because they happen every day, but that sounds like a lot of money. no? matt: it is. for fiat chrysler, that is a lot of money and something that the team will react to. for this company they have in especially delinquent in executing recalls. of all in actually having a recall and then in keeping them they were 22 or 23 recalls that they did not finish.

they have been telling fiat to get their game together for a long time in the company has not reacted, so they are clamping down with not only a fine, but they will call an independent monitor, inspector general, like some sort of what we are doing to make sure that they are doing things that they are supposed to do. olivia: stepping up their oversight response, paying out of pocket, what can you tell me about that terrifying hacking story? separate from what would wear -- from what they were been fined for, but they set maybe only 4000, 5000 cars were able to be affected and they risk wanted very swiftly because they knew that this fine was coming and they wanted to go that they are now acting a lot faster.

recalling $1.4 million for this. to fix the possibility of them being hacked. no one had been injured in the attack. by the way, ford and gm, they don't know if their cars have been hacked. they say that it is less likely. that the chief that got hacked the gm, that they are looking into it as well. olivia: the chances of your car getting hacked? matt: more and more probable as we move forward technologically. it was great to be here. thank you so much. while. c with a little all right, don't go away. much more on the open bloomberg market day." -- "bloomberg market day." ♪

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call 800-501-6000 to switch today. perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. tovia: welcome back "bloomberg market day." president obama is focusing on security and human rights today during his historic trip to ethiopia.

he is the first sitting president to visit africa's second most populous country. for ethiopiarry but al shabab is a bigger threat. 's contribution as reduced areas under al-shabaab control. the incidents in mogadishu remind us that terrorist groups like al-shabaab offer nothing but destruction and have to be stopped. olivia: ethiopia is the second stop on his trip to africa. somehow donald trump is still leading the republican presidential pack. new surveys show him ahead of jeb bush and scott walker nationally. the numbers will come into play soon. 10 of the 16 candidates will qualify for a televised debate. fox will use polls to choose.

469 days left until the election in 2016. the owner of burger king posted second quarter earnings that beat analysts estimates. burger king brought back their classic chicken fries. best buy will become the first national retail chain to sell the apple watch besides apple itself. one and 100 best buy stores will begin selling the watch a week from friday. the website will also sell it. those are your top stories at this hour. prices atome, egg record highs up 25% in the past few months. you can blame an outbreak of the avian flu. we would talk with the ceo of one of the world's biggest egg producers. still waiting for a ruling on his appeal of the four-game suspension. and until training camp starts this week. wednesday.s start

we should get a decision any day. gold prices keep on falling but have finally found a floor around $1100 an ounce? we will speak to a commodities analysts who says the metal could fall another 25%. text is giving the market a boost. nasdaq is up 7% this year. amazon and google have been killing it lately. these companies account for 37% of the index's total games so far this year or $664 billion in market value. for a closer look at today's impact on the stock market, let us bring in bill. he joins us now from washington. you recently downgraded your outlook for tech hardware. why? >> i would point to the weakness in china.

it comes down to demand. it is not a downgrade of tech overall because as you pointed out in particular we have seen some internet names like google and amazon show strength. it is the hardware weakness, a lot of which comes out of china, the biggest market for pcs and handsets, that's as ripples through the supply chain to semiconductors. olivia: is this commercial hardware or consumer hardware? wen we do retell stories, say one of the categories people are spending money on is tech. bill: china is more important for retail. pcs, handsets, smartphones. the enterprise side is fairly muted as well. if you look at ibm's numbers, we low revenue growth for emc. negative for ibm. you have to remember it is a

relative game. positioned than energy and materials and commodities which are in the eye of the storm. ach is better positioned on relative basis but i am more conscious about the semi conductor which in attack that .onductor -- conductor portion olivia: tell me about what you saw when you were in china. what did you see in china that made you change your tone? bill: we met with 20 companies across the whole tech ecosystem to try to put the pieces together. certainly from the pc and handsets side, the telecom carriers and hardware makers negative growth year on year in quarter one. and not much better in q2.

don't see grounds for strong acceleration the rest of the year. for tech seasonally the second half tends to be a little better. i think it will be very modest this year, whether we were talking with carriers or hardware makers or internet companies where you pick up advertising, no real signs of improvement there. olivia: we have tech earnings come out this week.with report are you looking out for most closely ? what among those numbers are you looking for in the overall industry? two ino a particular-- particular, facebook and samsung. i am wanting a broader threw two facebook.

was it more of an idiosyncratic story? hints at cost control and dividends. or is there a broader strength? samsung is the 10,000 pound gorilla around consumer devices and semiconductors. samsung has to be very important. .t has been a strong apple week i think people are looking for signs that samsung is trying to stabilize but they are so big in the supply chain that everyone should be watching samson very closely that samsung -- samsung very closely. samsung is going through governance issues. i think that is a big issue, particularly for global investors.

samsung is a very powerful franchise. before people want to buy that know ithey want to will act in the best interest. governance issues are equally important for investors as opposed to short-term market reaction around earnings. olivia: we should get you back on friday to see how this lays plays out. thank you very much. eggavian flu outbreak sends prices flowing and it could cost you as businesses as much as $3 billion. how is the egg industry coping? we will talk with a ceo. ♪

olivia: welcome back. we are one hour into the trading day in the u.s.. it is time to get you caught up with the action around the world. i want to head to europe. 600.ke a look at the stoxx down about 1.8%, heading for its biggest five-day drop this year. this started with asia, specifically china where we have seen the biggest selloff in chinese equities since 2007. that is on concerns about slowing growth in the world's second-biggest economy. europesee the impact in with the commodity selloff continuing. if you look at the stoxx 600, every group is down. losses gas leading the closely followed by basic

materials. they are being beaten by consumer goods currently. i want to highlight these. short-sellers have been targeting italian luxury goods companies. the average across luxury companies in terms of short interest is 1.3%. it is far higher for italian luxury stocks partly because of their valuations but also because of concerns about asia and china and the slowing luxury demand there. if we take a look at the equity benchmarks, leading the losses -- you see declines across the board. surprising perhaps given the german confidence unexpectedly rebounded in july. concerns about china overriding everything.

julie: fit straight day of declines for the major averages. we have not seen along the miss a lot since january. the situation in china weighing on stocks here in the u.s. as well. take a look at the various sectors. you do not see much green here. utilities and telecoms and that is pretty much it. health care a big weight here. technology feeling the pinch. it is interesting because the health care selloff is occurring even as we have the big deal, the $40.5 billion deal in the drug industry that is sending both of those stocks higher. mylan is being left out in the cold.

it is down by 13%. we are seeing health care lower despite these two stocks doing very well. elsewhere among different asset classes, take a look at the u.s. dollar today. the dx why down about three quarters of 1%. also want to mention what is going on with oil and gold. we have a little to have a rebound in gold prices today, even as oil continues its selloff. olivia: thank you so much. copper dropping to its lowest level in six years. in asia, the shanghai composite plunging, falling the most since february 2006. it sent the emerging markets in next to a two-year low. we have more from hong kong. >> this a lot in china's equities was across the board monday with the biggest one-day

fall since every 20007 -- since february 2007. investors are concerned the rapid rally is sparked by government intervention and is unsustainable. commodity prices contributed to the selloff. banks led the decline. markets around the region were lower for a fourth session. now let us check this morning's top stories. police in maryland say they are holding a minute a connection with a fatal stabbing at a church. it happened last night at a korean prayer center. and man was pronounced dead at the scene and his wife is hospitalized. she is in serious condition. the suspect himself called 911 and waited for officers to arrive. the new head of the boy scouts of america could make a major announcement today.

the organization is voting to end its long-standing ban on gay leaders. the former defense secretary has called the ban unsustainable. troops sponsored by churches are exempt from the policy. it is one giant leap for the neil armstrong spacesuit. the campaign to save it raised $540,000. it will go to a to display at the smithsonian. those are your top stories at this hour. hittry farmers have been hard by the worst avian flu outbreak in u.s. history. it is having a devastating impact on the chicken and egg industries. 50 million chickens, turkeys, and. have been destroyed -- and ducks have been destroyed. businesses, that could be as high as $3 billion. for a closer look at the industry impact, i want to bring

in charlie langtry, the ceo of eggland's best. also my coanchor pimm fox is here also. thank you for joining us this morning. 35 million birds destroyed or slaughtered. how long until the industry gets back to normal production? you talked intended for next words and you will get 10 different experts. some say 18 months. some say two years. some say after next easter. they are moving as fast as they can and as diligently as they can to get back and have more birds. but to lose that many birds that quickly is tough to recover from. pimm: is this a regional issue? charles: is regionally-based but it is a national perspective. eggs tend to travel. if you look at them overall, even a higher prices, they are a cheap source of protein.

maybe the cheapest. pimm: we talking to all $.57 we are talking to ollars $.57 right now. . where they hire in california -- why are they hire in california? charles: there are certain rules in how much space and it is cost producers in california a lot more to produce that product. who is paying? the consumers. charles: what is your -- olivia: what is your outlook and when you think production will stabilize? charles: prices shot up and have come back down quite a bit. just recently in the last week or two got back up. it will stabilize a little bit. when you head into november, december, january, prices may go up again.

depending on how fast they can repopulate, it might be after easter. most people are predicting around the 18 month cycle. olivia: you don't have any farms in iowa. how is your business impacte? charles: to have the eggs and get the eggs, our prices have gone up but we are a premium brand. we taste better and we are better nutritionally. but the difference between eggland's best eggs and ordinary eggs as become less. pimm: what is the price for a dozen? charles: it can go from $2.99 to $4.99. the increasedut cost of food manufacturers, restaurants, companies, and industries that use egg and i egg products? charles: they will go also.

the animals that died, produced more eggs that went into ingredients. then people tend to just like xpply and demand, those eggs travel. olivia: we will pay more for mayonnaise. charles: yes. ingredients are costing them more. olivia: there are regular outbreaks of these kind of lose but this is the worst one in u.s. history. do you expect it to come back strong? charles: we hope not but we just don't know. it is a crapshoot. there is the mississippi fly zone in the atlantic fly zone where these wild birds go. we hope it does not. by a security measures have been biosecurity measures have been taken. there is a vaccine that they are

working on the has had positive results. we hope we can stop quickly. you can just do your best. they are from every standpoint to do your best and keep on going. ktree,: charles lan the ceo of eggland's best. thanks to pimm. still ahead we talk about football. nfl training camp kicks off this week and the patriots training camp kicks off wednesday. still tom brady does not know if he will be able to play in the first four games. our espn analyst will give us insight next. ♪

olivia: welcome back. on wednesday, the new england patriots will kick off the football training camp. flategate the de

is not solved and somehow roger goodell is presiding over the hearing of the appeal. we are awaiting a decision. let us bring in andrew brandt. great to have you here this morning. 's tom brady going to play the first four games of the season? andrew: i don't think he will play at the beginning of the season. that doesn't mean there will be a reduction in his four-game suspension. it is hard for me to see a total exoneration of tom brady from four games to zero. we have a deadline with the patriots cap starting on wednesday. we would think we would here today or tomorrow about his appeal, whether it goes from four games to three or two or one. i don't think four games to zero. comes down to this.

in the june 23 hearing, what it tom brady and his attorneys put forward in front of the commissioners that they haven't before. this was a six-month investigation by the wells report. thed on the investigation, nfl gave him a four-game suspension. what did he going to the hearing and show the nfl they missed? what were those communications between the equipment guys that inferred tom brady was involved in maybe he wasn't? where was all that? if there was exonerating information, i think this thing is reduced. not exonerated, but reduced a game or two. olivia: what you think about the commissioner himself hearing the appeal? obviously tom brady wanted someone more independent but goodell decided he will do it himself. andrew: this was something agreed to in the collective bargaining agreement, several collective-bargaining agreements.

to complain about this now seems a little bit outdated. they had a chance to bring in an independent arbitrator for the appeals but that went by the wayside in 2011. we have had cases like the ray rice appeal where the commissioner recused himself had another person sit in. this was too big. a handle that and will continue to handle it. the thing is will we have an appeal if he does not get the decision he wants based on goodell not being impartial? that is down the road. olivia: you think there's pressure on the commissioner at this point because this is one of many blemishes. you mentioned ray rice. is there pressure on goodell to appear like he is not doing any favors for football's golden boy? andrew: what is the job of the commissioner? who does you report to? the reports -- he reports to the owners. this came from the colts.

maybe the ravens who played them the week before. maybe the other teams that think the patriots go to the edge if not over the edge. constituents his to the owners who are baltimore are indianapolis or other teams saying you have to come down hard on these guys because they cheated. you may not think it is a major cheating violation but they cheated. that is what he is answering to. we will see if he upholds this. olivia: we are hoping for a decision sometime soon. we will leave it there. thank you so much, andrew. for the first time ever, tom brady jerseys are the top selling in the league. not hurting his popularity. ♪ ♪

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(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. olivia: 11:00 in new york city, 11:00 p.m. in shanghai. pimm: welcome to the "bloomberg market day." gold?s down with

the prices at a five-year low. what is next for the precious metal? olivia: property in new york scott's communities is going down in value. pimm: vice president joe biden says new york's laguardia airport is third world and he is doing something about it. a big announcement set for this afternoon. ♪ olivia: good morning, i'm olivia sterns. pimm: i am pimm fox. we are 90 minutes into the trading day, let's look at how markets are faring right now. u.s. stocks are falling, taking their cues from europe and china. dow don't industrial down by .5% rate s&p 500 lower by 4/10 of a percent.