s&p rise for the first time in six days. we will look at the stocks driving that market. pimm: then we will take a look at wall street taking on silicon valley and type of goldman sachs he came a powerhouse and technology investing backing companies like uber, dropbox and more. betty: we have seen killer but no expertss on artificial intelligence say the world needs to take action to make sure these robots do not become a real-life threat. pimm: good afternoon. betty: let's begin with a look at the markets. stocks are rebounding and we are close to our highs of the session. losingve had the longest

streak since january but are rising on better than forecasted earnings and we have lots of earnings to go through. andre talking about china how it stabilized one chinese plunged after lower sales, trading almost 20% lower from yesterday's close. it's the biggest loss since 2009 for the company. moving onto oil and gold -- we have seen a commodities route. . oil prices are rebounding and oil is trading near a four-month low. down 19%still trading near the bear market of 20% territory from its may peak. pimm: let's take it check of the treasury market. there is little bit of selng on bonds. the 10 year is 2.25%. this is over the past week and

we can see a decline in the yield meaning the prices were a bit up. the intraday is moving a little bit higher with selling in the 10 year coming as the federal reserve began to two day meeting to consider raising interest rates. let's take a look at the dollar and major currencies -- the euro is losing ground against the dollar. poundn is stable and the sterling is gaining against the dollar. the dollar-yen is a little bit afterecline economic reports from japan. let's get to some of the top stories. u.s. secretary of state john kerry is back on capitol hill today making a pitch for the iranian nuclear deal. such as he met with last week under the house foreign affairs committee are far from enthusiastic about the plan. he appeared with the secretaries of energy in the treasury and

the insists the deal would make sure iran does not build atomic weapons. the panel's chairman is skeptical. been surprised by most every major nuclear development in iran plus history. iran has cheated on every agreement they have signed. secretary, has iran earned at the right to be trusted? if they fail to comply with the terms of the agreement, our intel community, our energy department which is responsible for nuclear weaponry, are absolutely clear that we will quickly know it and we will be able to respond accordingly with every option available to us today. democratn the ranking on the committee wondered whether iran is just hitting the pause button on its nuclear weapons program. congress is expected to vote on the deal early in september but president obama is already saying he will veto a rejection vote.

another milestone for president obama on his instructor to africa -- he became the first sitting president to address the african union. he spoke to the continent leaders from the union headquarters in ethiopia's capital. he told them democracy is the only short path out of war and poverty and said they must not let dishonesty block prosperity. >> we have been a leading advocate working with the g7 to assist in making sure that businesses are investing here in africa. and making sure that capital flows are properly accounted for. that is the kind of partnership america offers. theing will unlock potential of africa more than ending the cancer of corruption. pimm: earlier today, president obama highlighted africa's hunger. issues by visiting a food processing plant

ethiopia's the last stop in his five day two-nation african visit. betty: the rise of home prices in 20 major markets cooled in may on the case schiller index print which of property values increase in may by 4.9% over last year. the year ended in april at 5%. consumerding of the confidence showed a drop off. that is down from a revised figure for june. the new reading fell well short of the average forecast from economists. a first for the nfl -- a female coach. lter is joining the arizona staff and will coach the linebackers during training camp. she played running back in the indoor football league, the first woman other than kickers to play in amends poorly she also has a masters in sports site cast -- in sports

psychology. pimm: 2015 has been a difficult year for investors. we started the year at all-time highs for the s&p 500 but the ups and downs have left us modeling in the middle, up about 1.5 in the s&p 500. betty: earnings season is underway impacting market highs and lows. butsurprise in the upside what will the second half of your look like? one ceo talked to bloomberg and he struck a note of caution. concern aboutome the strength of the u.s. dollar and how that affects exports and some other factors. it's not growing quite as fast as we were seeing earlier but it's still growing. we have had a good first half of the year domestically. we expect that to carry on but we have a little caution about

the u.s. economy. betty: for more on where we are headed post earnings, john sulf as is joining us from oppenheimer. we just had this story yesterday about how most of the gains we are seeing are coming in only two sectors. >> i've got to say that when we look at what's going on nowadays, it reminds us that sometimes it just ain't easy. betty: sometimes? >> it really has been that way in the whole recovery process. it has been earned. it has not been given. where we are today, we have to say markets are in transition in the u.s. we are in expansion mode while europe is still seeking its recovery. japan is in recovery mode as well. china is trying to figure out exactly what to do with its stock market. when we consider what is going on in terms of the other transitions, the more dramatic

ones, the robotics on the factory floor we have been talking about, algorithms in the andce place -- commodities a revolution in technology and finding and processing and utilizing commodities -- everything is more efficient and for more places around the world. this inflationary forces at a time when the world is trying to reflate. pimm: would that mean that having cash on hand is a good thing? will things get less expensive in an uncertain stock market? why not wait for a big decline? >> there is not much of a place to put cash in. pimm: how about holding cash? >> disinflation has not been bad for stocks so far. we would think with the support of the central banks around the world -- pimm: are you recommending that investors go all in and not have a cash position that is meaningful? 5%-10% cashay a

position would be reasonable but i would not want to be larger than that. i think we have more upside to come but it's waiting for a catalyst right now. that: given these forces are counteracting what we see we are starting the first of the 2-day fed meeting, does that mean you are backing off on a fed rate hike? >> actually not, we think we will get a rate hike in september. historically, if we look at what go fed has done when you back 35-40 years ago, he did not doqurter up or down. --quarter up or down. we might see janet yellin in september throw the market a higher.ybe10 bips betty: not 25? >> 25 in total this year.

we are looking for a new band, not a new music band but a band 0.50 which is a statement by the fed based on the beige book and other data we are looking at. things are generally getting better. it is parallel to what happened in 2013 when the market is almost demanding from ben bernanke he an announcement at the beginning. pimm: someone gives you a call and says i've got some money i would like to to work and i've got a three year time horizon -- what do you tell them? >> we want to be exposed to cyclicals in the united states as well as in europe. ateurope, we will looking the euro stocks 600. we would look to hedge some of that with currency because the dollar still make it stronger before it gets weaker. we think most of its strength is

already there. pimm: can it go up against the euro? >> it might go in that direction once again. whether we get the parity or in 2010,e the crisis it has amazed us the support the euro has. it is a reserve currency. pimm: because the european central bank keeps buying with the euro? >> in part but there is also a need for that currency. if you look at europe in terms of the world ranked data, it is the union itself which is the second largest economy in the world, not china. you are staying the course even though we have seen this huge drop in chinese equities, commodities are tanking -- the list goes on. we have dodged a bullet in greece but there is more to come. what exactly would make you reposition yourself? iswhat really concerns me any kind of change of leadership at the fed.

i was glad that larry summers did not become the fed chair and it was janet yellen. ecb, had a change of the mario draghi is wonderful for this point in time. angela merkel key to the leadership of germany. those key components we think are very important. it has a lot to do with the personality of various germans. betty: so they are people changes. pimm: we will get people changes in the united states print what does a republican or democratic white house mean for an investor? >> we will have to see who the candidates are. historically, republicans get cross with me -- sometimes you offend all sides -- the democrats have been historically better for the stock market than the republicans have been. it may be that they just have better timing in terms of where we are economically. who knows what it is? ironically, most people would think it would be the republicans but the democrats have historically been better

for the stock market. betty: thank you for joining us. much more ahead in the next half tor -- delta has a new plan let its customers upgrade to a private jet and we will tell you how that works. the: we will also talk with directv board member about the future of the company now that at&t has taken over the satellite television service. ♪

pimm: welcome back to the bloomberg market day. that is a shot of the bay bridge in san francisco. betty: it's beautiful.

it's like that 70% of the time there? pimm: 90% of 70% of the time, something like that. betty: julie hyman has a look at some of the tech stocks starting with yelp. julie: it does not always look like that. half of the time you cannot see the bridge because of the fog. betty: don't ruin my view of san francisco. julie: live in the moment and enjoy where you are. let's look at the tech stocks -- yelp is coming out with earnings at the close and ahead of that, it was downgraded at deutsche bank way hold from a buy. they have reduced confidence in their business and strategic value. say that local online advertising has turned out to be harder to monetize than anticipated and the company needs to restructure its workforce -- its sales force. those shares are down a little more than 1%. earnings on thursday are coming to us from linked in and mkm

pegs it at a buy rating. the shares are moving up by about 2%. this is quite a gushing note about linkedin saying it is a unique and powerful asset that has been superbly managed to become an excellent business with open-ended potential for growth. that's a very positive. we want to look at blackberry. it is up 6% as morgan stanley upgraded the company only to an equal weight. it had been at the equivalent of a sell and it doesn't have to do with the fundamental business. it has to do with their cash position and the ability to further cut costs. the analysts say there is no evidence of a fundamental business turnaround but the flexibility with turnaround and opportunity for cuts can create value. even that number of hope is creating that pop in the stock. .

bank of america says the expectations going into this report are not very high given the uncertainty over a permanent ceo for the company and given the last earnings report which is not strong and given channel checks that are out there. bank of america says the consensus estimate for monthly active users is 314 million. the shares are actually higher going into the report. you can see where they have been. this is the last time we heard from twitter on the earnings front. it cut its forecast in the earnings came in lower than it is patent and shares had fallen more than 30% since then. in here is where the it announced the departure of dick costolo as ceo and the appointment of jack dorsey is the interim ceo so we have not seen much movement upward since that time. this is reflecting what bank of america's talking about, the negative sentiment going into the earnings report today so it should be interesting. lower expectations, we

will see where they come in but thank you so much. pimm: we are living in the moment right now. betty: that's good advice. look at someake a of the top technology stories at this hour. ebay is raising the white flag. the company is killing it same-day delivery service in the united states. it's an acknowledgment they won't try to match the amazon speedy delivery project. the same-day service had been available in san francisco, new york, and dallas, and chicago. betty: the latest microsoft operating system debuts tonight at midnight but it will not cause long lines. the company says it will be a free download for anyone who has the home or pro version of and some say it will be more like the ios system. if you have an android device, hackers can disable it by sending a text. that's a discovery from a researcher who says he found a big flaw in the google mobile up

writing system. google warns their software partners that there is a patch to fix that. that is a look at the top tech stories. will getonder if they together with the people who will fix those chrysler automobiles. betty: i was just thinking that. pimm: i'm living in the moment. still just ahead, forget about business class, your next airline upgrade could be your own private jet. we got details. ♪

betty: this is the bloomberg market day. private jets used to be the playthings of the rich and

famous but now delta airlines is unveiling a new program aimed to make the luxury more accessible to the average flyer. betty: the airline will start offering private jet upgrades for up to $800 for its frequent flyers. the logistics are complicated but thank of all that legroom. details is justin bachman who wrote this story. give us the facts -- jetelta operates a private which is a subsidiary and they will try to use that to make some money and get the high-value customers. betty: only the empty legs? be a paying will customer paying more, they will not make this available. pimm: what kind of agreement will they use question mark >> they have midsized jets, eight passengers, six passengers, medium sized that they will keep

it on the east coast for now. betty: who qualifies for this? looking at the customer who does a lot of business with delta. ,t's the elite skymiles member the person who is doing 100,000 miles per year. it's an e-mail invitation so you cannot just jump in. they will identify you first. pimm: is this a way to keep corporate customers? is this a perk you can offer to make sure you keep that account? >> yes, it's a nice perk but more than that, it's a story. someone goes on social media and the bull say how they flew to new york and suddenly, all your friends are jealous. maybe they will try delta. betty: maybe, is that the reason why they are doing this? >> a lot of it is that reason. you have the empty leg problem but -- betty: are they going to make money on this?

>> they will not make money on this but it differentiates the product. any other international carriers offering a similar service? >> delta says no but the most when an airline done.ufthansa has an upgrade it's a little bit different because it's not a private jet. betty: why does delta have his business on the other u.s. airlines don't? an airline for to but it's a nice side business. it's not really material to the finances they don't talk a lot about it. it's there and -- betty: you don't expect the others to follow suit? >> i don't think this will become a trend in the industry. pimm: will it take business away from competitors? -- if you are spending money at delta, you would say i've got something where my friend is flying at

united and they don't have it. it could definitely make the program more valuable than it is. betty: we will wait for an invitation. pimm:. i will be waiting a long time betty: thank you so much. and ithat does it for me will turn it over to you. betty: coming up next half hour, we are talking about the disney ceo saying he foresees liberating espn permits tv it as and offering standalone option. why would disney change this moneymaking model? stay with us for more. ♪

betty: i don't see the horizon there. it's a warm day in new york city and welcome back to the bloomberg market day.

these are the top stories -- iraq and turkey are turning up the heat on the islamic state as iraqi war plans are targeting militant positions in the and bar province. the defense ministry says the bombing destroyed hideouts and munitions storage and iraqi troops have captured a university captured -- campus on sunday. turkey is now working with the u.s. to push islamic ate forces out of a wide zone in northern syria. turkey change strategy and joined the fight after a militant attack killed a soldier and the nato secretary-general says the alliance stands with turkey. >> all allies stand in solidarity with turkey. we strongly condemn the terrorist attacks. we express our condolences to the turkish government and to andfamilies of the victims other attacks against police and military officers. from thepresentatives

nato 28 member states are holding an emergency meeting in brussels to gauge the threat posed to turkey by the islamic state. bloomberg does the math on donald trump -- they find out he is worth much less than he claims. is presidential campaign staff billion wealth is $10 but the bloomberg billion or index pinpoint is worth at about $2.9 billion. most of his fortune is in real estate. the bloomberg index does not value the trump brand beyond cash attached to his likeness -- licensing deals. honeywell is spending more than $5 billion on gas electric and water meters. they agreed to bite melrose industries unit. the deal will expand the company's offerings and create a new platform for more acquisitions. there is likely to be a changing of the guard at procter & gamble soon. lackley may retire as ceo this week.

it will clear the way for david taylor to take over. he interrupted his retirement in 2013 to lead a turnaround. bp is reporting its lowest clearly profit in at least 10 years. the slumping price of oil is not the only reason. the british energy company says it was hurt by the end of the trading boom and a $600 million write-down caused by the fighting in libya. though he died nearly 35 years ago, the writing of dr. seuss and doors. a book by the beloved children's author is in stores today and it's called "what pet should i get?" it was saved by his widow. hour, we next half will look at the privacy concerns raised by facebook use of facial recognition tools. the software remembers what you look like see you can be tagged and other photos across the service to what about your privacy? we will look at how david einhorn is being punished for

asing the wrong call on gold it dropped more than 7% this year. late last week, the federal communications committee finally signed off on the at&t $66 billion purchase of directv giving the combined company the global and broadband hefted needed to make at&t the largest pay-tv provider by far with over 26 million subscribers. with me in the studio is a former board member of directv who helped make that deal happen. he is the cofounder and partner of venture investment firm dcn. it's been a long time. great to have you back. >> good to see you again. betty: you had to keep quiet because of this deal. how did it all go? was there any time during the fcc review where there was

concern? >> i would say the biggest frustration or uncertainty in the whole process -- i'm sure everybody else would say the same thing -- was related to the government involvement. there was not really that much concern about the doj but the fcc was anybody's guess. signaled theyey were going to be supportive as we got closer to the end. betty: particularly after the comcast/time warner elimination? yes, and through a good education by the combination of at&t and directv people, i think it helped create away that consumers could see benefits. for example, at&t has committed to wire up 12.5 million andtional broadband homes they have not specified the number. it was not broken down but they will add some additional

broadband coverage in lower toome areas in order increase their broadband footprint. that was widely regarded as something they wanted to see happen, the fcc. betty: i know you join the board because of your broadband expertise and recognition of how powerful that is and the growth. you have been on the board for many years. what did you learn from this? >> i have been on the board for years -- for four years. greatest ceo ihe have ever worked for and i've worked for a lot of them. it was one of the greatest boards i have ever been involved with. what i have seen so far is that it appears to be an unusually good strategic fit between two companies. they needed what we brought which is the world-class content distribution system and we needed desperately with a broad which was the broadband

coverage. i think there is a terrific fit here and surprisingly good synergies. not all mergers or acquisitions of this size have that good a fit on paper but i argue that i think it will not only begun on paper but i think it will be good in practice. aswill be good for consumers the at&t management takes over and begins to really learn how to deliver and integrate the directv offerings. betty: will this be one of the last big media mergers? >> i don't think it is. this past year, we had time warner cable and comcast tried to come together but they did not succeed. sprint and t-mobile is the same and now you have charter and time warner back at it again. also charter is buying bright house for $10 billion. there is another attempt to create a media giant that can

compete with direct tv and at&t. one of the big thing that at&t will bring to the table which many of the cable companies don't have is the pervasive mobile footprint. subshas 132 million mobile in the u.s. and mexico and i think they will really leverage that. tohink the future of this summarize everything is it's all about mobile and it's about video and that's where the world is going. betty: you saw the comments ofterday from bob iger disney who said perhaps in five years that we will see espn unbundled and offered as a standalone. what do you think that yo? >> it has been started. i'm not sure how rampant this will be or whether it will explode. betty: would that be the trigger?

they will probably be one of the last to do it unless they find a way to be really sure that it's in their own self-interest to do that. as tostribution game -- the whole shift of distribution and tv goes more and more over the internet, the case for some of the traditional distribution companies of cable and satellite becomes less and less. i think there is a really good fit for both the internet -- the internet will not be a big part of the at&t content distribution aftergy for a little bit they get the merger integrated. i think it's inevitable. you have toe in the water comcast stream and hbo and cbs and the directv

service for latinos. those will all -- betty: they are on the edge. valley, a bigicon media giant and the startups. there's a story about how goldman sachs has been funding -- not startups anymore -- you're talking about $1 billion value companies like uber and dropbox and others -- goldman sachs being the funding source, is that a good thing for venture capitalists like you? >> i don't think it's bad. i think -- you can argue that the valley in 2000, except maybe the valley always needs good entrepreneurs and a vital ecosystem and it needs as much capital as it can get.

there is some new things that are happening in the valley right now with these unicorns that you bring up. the traditional approach to building a company and taking a public are not addressing these needs. they are raising huge amounts of capital from private investors including people like goldman tohs and then they also need get the employees at these companies some liquidity. betty: where is the exit? one of's the point and the things that goldman sachs is doing in others, they are quietly helping boards and ceos of some of these higher profile liquidity.rrange for in some cases, they might buy them for their own account or, in other cases, they might be acting as a broker provide liquidity for the company. it's an important service that these companies need because they've got to take care of their employees. betty: if they are not going to

ipo - >> this is a good way to step in. there is also a side benefit although most of the investment banks would deny it. when these companies are teamssful and their members, in accident regenerates additional private wealth management business for them also. that is not giving credit. there are many, high net worth individuals they need to service. very true. great to see you. thank you so much. much more ahead on the bloomberg market day. one one of the biggest debates is heating up and could artificial intelligence research spawned a real-life terminator? ♪

tom: betty: welcome back. one of the big stories today is that we are at the head of the session. mixed earlier, we saw a picture for the major averages and the nasdaq was falling that things have turned around since then. all three major averages are rising to the highs of the session. there is a feedback loop with commodities which might be for the picture. take a look at my terminal at theimap of the different sectors. the ralliesg broadening as the day goes on. telecom is the only group that is down and anything associated with commodities is now rebounding. oil and gas and materials and health care -- a notably broad-based rally today.

in terms of some of the winners we are seeing in the s&p 500, a lot has to do with earnings but not all. reportedmcmoran earnings but tumbled after that. it has not doing well as copper prices have treated lower but the company now says it will do a sweeping operational review because commodities have been down so sharply. that stock is rallying and southwestern energy is doing better today. it's up by 7%. the company have been falling after its earnings and then turned around after it provided forecast for 2016 and ubs came in ahead of estimates, changing not justt does pricing on weight but also on dimensions of packages and overall shipping volumes rose. i mentioned the turnaround we have seen in commodities notably oil prices. if you look at it on an intraday basis, it's an incredible

switch. we now see oil prices higher by about 1.5%. not seem like there was any one particular catalyst. they had been rising in tandem with stocks. you kind of get a feedback loop going on. for treasuries today, the 10 year yield is higher for the first time in a week with prices a little bit lower. we have seen a little bit of a turnaround today and mixed economic data we get out today. the case schiller home prices showing a slower pace of growth and also consumer confidence came in considerably weaker than have been estimated. betty: thank you. musk is waving the red flag about artificial intelligence. he's got hundreds of experts including stephen hawking and steve wozniak backing him up. the group is taking aim at

killer robots like the ones you see in "the terminator." arms raceof a global with weapons using artificial intelligence and call for a ban on offensive autonomous weapons beyond meaningful human control. it did not take long for twitter to weigh in including investor mark endres and defeated -- -- mark and recent m --ark andries sen - will the machines ever arise up? mark crumpton is joining me now. rk: i thought they were talking about members of congress as autonomous weapons. because athe parallel drone is something that is operated by man. the autonomous weapons

apparently you program them and they go find what they are looking for and i guess it's a seek and destroy mission. it's kind of like the movies were all of a sudden, you think these weapons are going to get a mind of their own and they are just going to ignore human commands and do their own damage. that's what it sounds like what their concern is. betty: hollywood has been contemplating this world for a long time. bot" and about "i, ro countless other films. it is scary and it takes the futurists to bring this to the public attention. andreessen tweet? is there a concern that there will be a bad chip in one of

these autonomous weapons? all of a sudden, the programming will go haywire and they don't do with their intended to do but start acting on their own? very science fiction but if you have folks like stephen hawking and elon musk saying this is a possibility, it might be something we should pay more attention to. also includes using your face in face recognition software that companies like facebook are developing and how that is raising privacy concerns. on the one hand, extra security but on the other hand, what are you giving up? mark: it's almo like the finger recognition. do you take a piece of tape and get somebody's thumbprint and put that thumbprint on top of biometric device? all of a sudden, you can login under their name? betty: i did not know you can do

that. mark: you need to watch more mission impossible. export import bank -- it is a subject that makes people yawn. sometimes it makes you yawn. but there are serious implications for business, big business, companies like boeing and serious applications for small businesses. are they getting enough of a chunk of the pie. neededexport import bank or has it outlived its usefulness to mark betty: republicans say yes. this was president roosevelt's baby back in the time of world war ii. the democratic congresswoman from ohio wants to save the bank and will join us next hour to talk about it. betty: she's got a lot of critics to her position. betty and i will be here

-- not robots. up, a majorg headache for big time investors including david einhorn we will tell you about the havoc at his hedge fund next. ♪

betty: welcome back. david einhorn's greenlight capital may have lost its midas touch. it lost 3.3% in the first half of their much of that due to its large bet on gold. haves of greenlight slumped 16% this year as gold prices tanked. his affinity for gold is well known. he said back in april that monetary policy and regulations

have combined like a failed chemistry experiment to create a potentially destructive force that should not exist outside of fiction. now is simone foxman. fair, he is down 3.3% this year but over the long term, his track record is still fantastic. this year has not been all gold. numberave been a of other bets that of gone sour for him. month, gold is like 10% of his investment portfolio which is a large position. ats something we will see the end of this month and we get new numbers. betty: it doesn't sound like he is backing off from this position. >> not that we can tell, he has been quiet on the matter and we will probably get more information in early august on

his earnings call. betty: remind us again why he says to buy gold. >> this is the latest incarnation of this monetary for societygative and the economy in the world. it's going to turn into a huge problem later -- there have been a number of incarnations of this. people were betting against treasuries for a while and that did not work so well. there are people who were hurt by that last year. he has been consistently pro-gold and is only really ramped up those views as far as we can tell. hisy: has this changed position to investors and what kind of return he can deliver? >> yes, he believes that monetary easing is part of the reason that he is not getting as high a return on a consistent basis.

he told investors earlier this year that record prices of stocks and consistently low interest rates were going to stop him from getting the 20% he s for year after year. he is backing off of that target. with more has to do hedge funds now than there used to be in 1996 when he started, that could be part of it. betty: thank you so much. much more ahead on "the bloomberg market day perko how much is donald trump really worth? we crushed the numbers and come up with a lower number. we will be back. ♪

betty: 10:00 in san francisco, 1:00 p.m. in new york and 1:00 a.m. san francisco. mark: unobscured government

agency at the center one of the nastiest fights in washington. talking to a congressman about whether the house of representatives will bring that import, export fight back to life. he really much is worth? really less than 3 billion. we will bring you those numbers in a moment. mark: a long-lost book from the late, great dr. seuss hits bookstores today. should i get is already number one on amazon's list. we will look at that. betty: that afternoon. i am betty liu. mark: i am mark crumpton. a look at the markets on this tuesday. stocks rebounding from their longest losing stak