toot september 2 soon? -- soon? discussionde-ranging on the u.s. economy. mark: stephen harper discusses the slowing economy and what he plans to do could spark growth. betty: good afternoon, i'm betty liu. mark: i mark crumpton. thank you percent with us. -- for staying with us. the dow jones industrial average is near its session high. up .5%. the dow jones industrial previous close 17,630.

same story taking place in the broader market. the s&p 500 is up nearly half a percent now at 21.02. twitter and yelp have been tumbling on this wednesday. tech stocks taking a beating. twitter down 14%. twitter shares falling -- the stock is down just over 9%. twitter's top executive saying growth will take some time. yelp is slumping this afternoon. shares down nearly 29% after it reduced its revenue forecast and is cutting national brand advertising. let's move on to oil and gold. oil is on the rise today after u.s. crude stockpiles unexpectedly decreased and production declined. 4923 crude is up 2.6% at -- $49.23. gold futures are slumping, now

at $1094.80. betty: a check on the bottom markets right now people you had housing data -- you are seen yields rise. waiting on the timing and pays for a rate hike. causing a gap between the two year yield and 30 year yield to narrow. finally, on the currency markets , commodity markets dominating for exchange trades -- foreign exchange trades. the top stories crossing the bloomberg terminal at this squaringn kerry is a off against critics of the obama administration's historic nuclear agreement with iran today. republicans say they are being asked to vote in a deal without documents negotiated by

international inspectors. says that is absolutely astounding. they have all the details that they need. >> congress will be fully briefed on this agreement. in a classified session. indeed, one of our key negotiators, the day-to-day lead negotiator was briefed on it. what thee aware of basics of it are. betty: the committee is looking at how the deal could affect iran's neighbors and the military balance of the middle east. the senate has an advanced version of a long-term highway funding bill. congress trying for a stopgap measure again to keep funds flowing for the next three months. the 65-35 vote will provide three years of highway funding and read new the charter of the

u.s. export import bank through september of 2019. the charter expired on the 30th of june. house leaders have said they will not consider the senate measure. -- is letting everyone in candidates with low poll numbers qualify. debatesre will be two on august 6 in cleland. one for the top 10 candidates and a second for the other six. qualify because they do not have 1% support in the polls. next fewer americans the victim signed contracts to buy homes last month, sending home .ales falling 1.8% in june the first drop this year. economists had forecast sales to rise. americans seemed to have

definite opinions about the future of the u.s. currency. jack lew says he has gotten more than a million responses on the topic, including what women should become the first female on u.s. paper money in more than a century. he set off a furor in june by announcing a redesign of the $10 bill that would replace the portrait of alexander hamilton with a woman. says he willady fight his four-game suspension over deflategate. he took to twitter today to make the case. "i did nothing wrong and no one in the patriots organization did, either. ther goodell upheld suspension yesterday singh brady tried to conceal relevant evidence by destroying his mobile phone. tried to conceal relevant evidence by destroying his mobile phone. >> the laws of science that underscore this entire situation , it is completely incomprehensible to me that the

league continues to take steps to disparage one of its all-time great players and a man for whom i have the utmost respect. betty: the league is asking to -- the players union says it will appeal. those are your top stories at this hour. mark: goldman sachs hosted its annual 10,000 small businesses event here in bloomberg headquarters. stephanie ruhle sat down with lloyd going fine -- lloyd blankfein and michael bloomberg. had a wide-ranging conversation on everything from investing to activist shareholders. they started with china. china has an incredible execution problem to get through. that took 150 years

to evolve. it's very hard to -- you would like to have businesses that aren't -- in china, if you fire anye people, there aren't employment insurance to cushion the blow. you want to create insurance companies but those pools of capital to invest in are not there because you don't have capital markets. -- if usedwrite off in the economy by building 80 airports at once, 40 of them may be in the wrong place. build an airport in the wrong place in the united states, service doesn't get paid, it gets taken over and they put up a shopping mall. in china, it stays there is an unused airport. that is the system, it has to be corrected, they know it and it will take time. i know that for a long time, that will be incredible

execution problem. it doesn't stop me from thinking that in the long term, it will think it will be a great century for china. we had aeat century, lot of bad years and china will have a lot of bad years. stephanie: is there such a thing as long-term investing anymore? he can be negative on the overall economy and it's not how he trades. bloomberg: you have to differentiate between investors buying stocks and people like lloyd blankfein that run companies and they have to have a longer-term. you how to raise your kids. minor more complex. -- mine are more complex. it seems like your problems are worse than the other persons and you cannot have that.

you have to keep going on and have confidence and invest in the future. if you take a look at how far ,hina has come in a short time we can talk about how far they have to go, but so does america. every problem that china has, we have a comparable one in america. aey approach it with different mentality and different system. they have brought 150 million people into the middle class. this'll have warned really people who live on a dollar a year -- they still have 400 people who live on a dollar a year. a big difference for their people. the poor in our country needed a lot of help, but they are better off than the poor in many places. that doesn't mean we should stop. there is always more to do. at goldman sachs, at bloomberg, at america, and china. blankfein: short-term and long-term, if i said would you invest in china for the next

year and get your answer to that question and then said you had to invest for 20 years, but you cannot touch it for 20 years, would you invest in china for the next 20 years? stephanie: possibly us. but now you're running into the , theym that ceos face cannot make decisions for the long term because they have an activist investor banging down their door saying what are you doing tomorrow. politicians cannot make decisions long-term because they have to get elected next year. bloomberg: activists have good records in terms of turning companies around. it has been very good. you have to stand up. just because some money comes in , it doesn't mean you have to do it. that's what leadership is all about. his board has confidence in him, they will let him go and ride with him through the tough times because he hasn't shown in the past that he can do it.

he is not going to make all the right decisions, but long-term, he can keep going. the life expectancy of ceos in america is 4-5 years. social media puts an instant referendum on everything. still, great companies like goldman sachs and a lot of the other big banks here have good times, bad times and regulators, irrational, good, bad, whatever. stephanie: there are some markets that goldman sachs can control? bloomberg: he can control how he approaches those markets, puts in place the right people and the right systems and which businesses to go in. it is not everything. he has to make those decisions. over a long time, look at the history of goldman sachs. they have made the right decisions on balance. a company that is still growing.

other big banks have done the same thing. blankfein: one of the major contributions the activists have forced people to engage their shareholders even more than they have in the past. you better have something to say. to the point that activists are trenches to delete short-term the short-term gain is a sacrifice of long-term success, you make your case to the shareholders and they make the case to the shareholders. it is a market. it is not a bad thing to have to do that. betty: that was lloyd blankfein with mike bloomberg. mark: a fascinating discussion, and that was just a snippet. hour, up in the next half how health advocates are trying to toughen u.s. dietary guidelines and why they are being outgunned by crude producers who spend millions of

on lobbying efforts. betty: disney and listing young villains to help fight the competition in the merchandise worst. -- wars. ♪

betty: welcome back to the bloomberg market day. i'm betty liu, here with mark crumpton. mark: let's go to julie hyman with a look at the markets right now. a lot of green. we start with two names searching in the defense space. julie: indeed. a lot of earnings driven movers today. northrop grumman trading at records today before the earnings report -- biggest

one-day gain in six years. up nearly 8%. both of them reporting earnings that beat estimates. oath of them raising their forecasts. we have seen not as strong defense spending, but they have both found ways to offset that. general dynamics has been selling more gulfstream jets. once in grumman, only the past 20 one quarters hasn't seen an increase in sales, but it's margins are moving as its increasing efficiency. a cool graphic from bloomberg intelligence. at defenseking spending and nondefense government spending. defense spending in the orange. a downturn over the past year. it is rebounding a little bit. the nondefense spending roughly the same trajectory. recessions.are past

this shows you what these two companies have had to deal with over the past year. this is the projected budget as well going forward into the next couple of years. another earnings mover is c.h. robinson worldwide. a logistics and shipping company. trading higher, the highest in five years after its earnings beat estimates. net income up by 16%. intermodal net revenue up -- different modes of transportation to get stuff where needs to go. rage resources is one we are watching. down by 5%. the energy company missing estimates. third-quarter production will pick up slightly. second quarter production came in above with the company had anticipated, but not helping the shares today. international paper in the losing column after its earnings beat estimates, but revenue is an estimates.

-- missing estimates. industrial packaging, the biggest segment, coming in with a decline year-over-year. that is a problem for the company as well. it all comes down to earnings. betty: it does indeed. it is a game today. -- gain today. mark: let's look at the top stories we are following. a federal judge in los angeles has dismissed the lawsuit claiming herbalife's impairments game. herbalife is a-- pyramid scheme. he found that the ceo reducing his stake in the company by 12% over nearly a year did not raise suspicions. the judges throughout a version

of the complaint in march. chevron will eliminate 1500 jobs, little over 2% of its workforce. oil producers have accounted for of the job cuts since oil started plunging last year. service providers and drillers have been the hardest hit. betty: remnants of winter are still around in buffalo. 10 feet high snow piles are still melting in vacant lots. -- dorews placed the snow we not have video of it now? a blizzard dumps seven feet of snow over the city. we don't want to be alarming people that there are snowplows in buffalo. it is still there, apparently. bloomberg: i'm afraid.

--are half an hour into that thanks. appreciate that. betty: much more ahead on the bloomberg market day. companies spending in washington. mark: a fresh look at the debate on diet after the break. ♪

mark: well-connected back to the bloomberg market day. i'm mark crumpton, here with betty liu. betty: current trends show 70 million americans are obese and the epidemic may be getting worse. mark: food companies like coca-cola are lobbying health advocates in the debate on diet.

allen joins us from washington. what is at stake here you go allen: a lot of things are at stake. part of it is the shape of the food we will be eating over the next fears. the government dietary guidelines advisory panel following on work that the fda and others have been doing, trying to tighten up limits on recommendations -- more skepticism toward meet. -- dietary process comes out it has a lot of influence and thethe programs consumer debate as far as what you should be eating and should not be eating. people pay attention. -- whatou mentioned could they be asking people in america to cut back on? alan: you see a recommendation from the panel that people should have no more than 10% of their

calories coming from and sugars. stuff put in during processing. that is about 13% of consumption right now. that's a lot of calories that end up to obesity overtime. the food and drug administration expanded labeling that would be based on that 10% limit. you can look at a soda and realize this 20 ounce soda gives me more than all the sugar i should be eating an entire day. mark: talk to us about school lunches. how does this affect the guidelines and how explicit with a link which be? alan: the guidelines set the foundation. what federal policy is toward food. you look at school lunches, the recommendations that guide what cafeterias should be serving -- if you have more explicit targets, that means less leeway for those schools which can mean money for companies that make sugary beverages or things that

run afoul of a more strict guideline betty:. betty:how much are these food companies spending first the health advocates? -- versus the health advocates? can't figure out exactly how me dollars are spent. if you look at the number of organizations lobbying, food industry and farmers, those organizations are seven to one over and bar mental advocates. -- environmental advocates. they spent $15 million in the second quarter on lobbying. the public health advocates, and attrition advocates spent $1 million. you see a real out gunning of the public health advocates by the food industry. this happens every five years. mark: we have about 30 seconds left. what about the public --

alan:" this is one thing the members of the committee are hopeful as the government makes its final determinations this year. you see more activism in the community. a lot more consumer awareness. alan joining us from washington. betty: i am signing off. up in the next half hour, canada stance on the brink of recession for the country gets hammered by the drop in commodities. we will have an exclusive interview with canadian prime minister stephen harper, next as bloomberg market day continues just in moment. ♪

mark: welcome back to the bloomberg market day. thank you first thing with us. -- for staying with us.

the head of the international monetary fund says the world economy is recovering but still fragile. christine lagarde also made another call for greece's creditors to reduce the company's debt burden. -- country's debt burden. fly, they program to significant that restructuring should take place -- debt restructuring should take place. confidencexpressed the imf can work with the left-wing government of the greek prime minister. set aer up in arab red record after the bakery chain reported that sales rebounded -- panera bread set a record. panera has been redesigning its restaurants, putting a bigger focus on natural ingredients. expenses climbed and profit fell at mastercard, the second-largest payments network.

earnings is still matched estimates. stronger dollar has heard mastercard overseas where the company generates most of its hurtnue -- kurt mastercard. the head of soccer in europe says he will seek the presidency of the sport's world governing body. fifa chief sepp blatter is stepping down in october. those are your top stories at this hour. it is decision date for the u.s. federal reserve. while the central bank is not expected to raise rates today, we may learn more about the timing of potential future rate increases. we will bring you the announcement live at the top of the hour. the chief u.s. economist at hsbc securities joins me from his firm's offices in new york.

thank you for your time. reading a note from the 24th of fromsays no july fireworks the fomc. are we going to get any guidance ? >> no, not likely. the fed wants to keep a low profile on this one. people are wondering whether they might drop some hints and send a signal that a rate hike is coming in september. i doubt that very much. minutes fromthe april, the committee already decided they would not send signals from one meeting to the next. they will wait on a meeting by meeting basis to look at the data and decide what's going on. they will play this one on the negative side. mark: economists seem to agree with you. they see no chance of an interest rate rise this week. if that is the case, what will

investors be looking for? >> they will have to look at data just like the fed will. goodabor market is looking . the unemployment rate is falling and job gains are pretty decent. the fence challenge is on inflation. inflation is low, falling below their target. they have to be certain that inflation will stabilize and start to rise before they can raise interest rates. looking athould be the inflation data. mark: earlier this month, janet yellen was testifying before congress, she said while most labor measures are in her words trending in the right direction, a low participation rate indicates too many people are not searching for a job but would likely do so if the labor market was stronger. what is it going to take to get the labor market even more momentum? >> more jobs, obviously. it will take more demand. a pickup in the demand for goods and services and the people who

produce them. the growth is lackluster. we saw a recent decline in retail sales. exports are falling. lessening,erity is but it is still there. we are not seeing the robust demand that will lead to a fast pickup in the labor market. we are getting better but we are not at the point that they would like to be where they feel confident that it's time to raise rates. mark: let's talk about inflation. do expect the fed will put more emphasis on inflation? >> not particularly. they try to give an assessment of the labor market and the inflation situation. they will be balanced, they will reflect the fact that the labor market is improving. they will note that inflation remains low, commodity prices and energy prices are falling.

they will put emphasis on both. one is good, the other is not so good. mark: when we look at these statements from the federal reserve, we are always parsing words looking for something to read between the lines. is there anything in the language of the monetary policy statement that you will specifically be looking for? kevin: of course. one thing i have said in the past is the risks for the economy are nearly -- some of the members of the committee feel there are downside risks present. they say things are just balanced. the upside and downside risks are even. that would be a positive note. a subtle change, but one that would indicate they are more consonant is confident in the situation and that would raise the odds of a september move. that is one thing to look for.

shiftsre other possible as they talk about consumer spending being healthy or job gains being strong. they will feel they're getting closer to where they want to be. mark: at this point, the data the fed is going to be looking at between now and september, that will be key to when we see liftoff? >> not only will the data be key, the minutes of this meeting will also be very interesting. these in between meetings, the ones in between the press conferences, they reveal very little when the policy statement has released. the minutes of the meeting can reveal a lot. in april, the committee -- the they had taken june off the table and the majority of the members said they did not think the data would be sufficient in june two warned a rate hike. -- two warned a rate hike -- to

warrant a rate hike. mark: in a note you put out earlier this month, you noted that things were getting collocated and he said after several years of unconventional measures, the epilepsy is intent on "normalizing monetary policy." -- the fomc is intent on "normalizing monetary policy." sheet is notlance normal. they would like to go back to the situation before the crisis where they can move the fed funds rate up and down as conditions warranted. they are holding it at zero because they are afraid that going forward, is adverse to -- itp its take place adverse developments take place, they don't have any room to lower interest rates. that is called the zero lower bound problem. that suggests they should wait longer and make sure the economy has strengthened a lot before

lifting rates. that was one of the points i wanted to make. this is an interesting consideration for the fed. it is not normal right now. they would like to get into normal but they may have to wait longer to do that. mark: you get a sense the markets are bracing in this right hike -- rate hike -- pricing in this rate hike? kevin: if they are pricing in income of the role be such a violent reaction. we've already heard that they expect to raise the funds rate later this year. that is quite a strong message. will it be september or december? as we get closer to that, they will drop a few more hints. it should already be built into market prices. from hsbcn logan joining us from his firm's office in new york.

thank you for your time. bloomberg television will have live coverage of the fed's policy statement at the top of the hour. only.s. economy is not the one in focus today. canada stands on the brink of recession. the economic data for may comes out on friday. it's expected to show yet another bump of economic contraction. the primary driver, slumping commodities prices. prime minister stephen harper has a lot on his plate. he sat down with co for exclusive interview. he asked him if president obama will reject the keystone xl pipeline when congress is on recess in august. prime minister harper: that is clearly possible. the decision has not been rendered for so long, even after the objective analyses said the project is better from an economic standpoint and energy standpoint and environmental

standpoint, it is preferable to rail, even after all those things, the decision has not been rendered. -- afterhe politics the american people have been clear on both sides that they support the project. politics thatiar whether this project goes ahead or not in this demonstration, it will ultimately go ahead under a subsequent demonstration. the president and i have spoken about this matter. i have raised the issue, he knows my viewpoint and i know his thinking on the matter as well. we have talked about this. theo: are you and to bidding a rejection during the -- >> i'm not going to speculate right now. beenitive decision has not rendered for a long time.

>> do you think it would be appropriate to reject something project forrtant canada in the middle of election? prime minister harper: i'm not going to speculate on those kinds of matters. you have to accept something -- we always get upset when americans are perceived to be meddling in our affairs. this is ultimately an american decision. i've been clear about what i think is the best interest of north america. the studies of the u.s. government itself confirm everything the government of canada has been saying. the administration ultimately has the right to make their own decision did >> trade agreements have been a big proponent of your administration. we are in the middle of negotiations as we speak. how is that going? are we expecting a deal anytime

soon? prime minister harper: i'm not going to speculate. discussions are well advanced. to make sure is this country is part of an ambitious asia-pacific international trade network. we are going to fight for all the various interests of our industries, including supply management. we want to make sure we are part of that. one of the things this government has done is the way we have transformed the global trade network this country has access to and we came to office, trade agreements were only five , we nows in the world have trade agreements concluded with 44 countries. all of europe, big chunk of the , couple ofouth korea

other agreements in the middle east. this is a big opportunity for the canadian economy. given we are a trading nation and given the global economy is the way of the future, we cannot be left out of this kind of trade arrangement. >> should vary farmers be concerned -- dairy farmers be concerned? prime minister harper: the government is at the table making sure protect the interest as best we can with every canadian industry. we have made commitments to sustain our supply demand system and we are working to achieve that. >> a lot of analysts have --zled over the phenomenon there seems to be a disconnect. is that something you -- prime minister harper: it is maybe slower than people would have hoped. these things don't happen overnight. the bank of canada will tell you the lag times on dollar and monetary policy changes are

still significant. they are not instantaneous. we have worked strongly with our exporters and manufacturers to do the things that they believe we need to do to keep them competitive. confident that that industry has made a long-term transition. we are seeing some growth there and i'm confident we will see more as we go forward. canadian prime ministers stephen harper speaking with bloomberg's theo. coming up in the next half hour, step aside, cinderella. the latest heroes from doe isney are the villains. the fed's latest announcement coming up at the top of the hour and 15 minutes. -- in 15 minutes. ♪

mark: thank you for staying with us. let's take a look at some top tech stories on this wednesday. shares of field are plunging today, down 28%. the customer view website has cut its revenue forecast. it will stop selling national brand advertising. the company says local advertising will drive wrote. -- growth.

microsoft's windows 10 was released at midnight. has a past, the release spark a surge of computer buying. that is unlikely to happen this time. the microsoft vice president says this launch is still important and that security is the key feature. >> today, people are using the internet with aggressive and clever forms of code to do everything from getting consumer compromises to corporate data security and windows and has a range of security features from our new browser that will help consumers protect their data. consumers get benefits. mark: microsoft is offering windows 10 as an update for existing pcs. that has removed one reason for people to rush out and buy a new pc. amazon is proposing rules of the road for the air. the family wants the government to declare drone zones so to go

ahead with airborne package deliveries. the company wants the federal aviation administration to loosen its drone flight rules. those are your top stories at this hour. disney has a long history of minting money on characters like snow white and cinderella. now, the company is getting a little evil. children of the some of disney's legendary lowlifes like relative will. does cruella deville. this seems like reality tv gone haywire. scarlet: a brilliant idea. a live-action movie, two hours long. maleficent jafar of aladdin. they live in exile. the are invited by

offspring of beauty and bell to attend a prep school with -- mark: too much information for me to consume at this point. it seems like a very cool twist. we are talking big bucks here. scarlet: absolutely. princesses were $3 billion to disney and its licensing partners. disney is defending the lucrative princess segment of its market. a global think tank put this idea together. spinoffs likey of toys and dolls, hollowing costumes, soundtrack albums. -- hollowing costumes. -- halloween costumes.

the culture has changed over time. the way we watch tv shows and the characters we grew up with, they are all flawed men and women. madmen,, breaking bad, there is an appeal toward it wants characters. -- more nuanced characters. i will be speaking with the -- they've come up with this program where you can cash it your airline miles to pay for college tuition in canada. and it is bad day. -- said they. d day. they will release their latest statement at the top of the hour. analysis.age and coming up in eight minutes.

stay with us. ♪

mark: welcome back to the bloomberg market day. let's get a check of the markets on this wednesday. julie hyman is standing by. we are looking at the markets right before the top of the hour. julie: it is the countdown. an exciting fed decision. mark: the no decision. julie: there's always a little suspense. there will be more suspense after this meeting. -- thet one world there last one when there will be so much suspense. thent to take a look at

asset classes going into the fed statement. we will be checking on them after the statement comes out. take a look at what's going on in the bond market today. seeing the second straight day of yields moving higher on the 10-year note. this in isolation , it would seem to indicate that traders think the fed will offer some sort of hand that bb rates are going to move up -- hint that maybe rates are going to move up. let's look at the u.s. dollar, trading near a four-month high today. we will see if that changes after the fed statement comes out. --ave a look at the training trading range of the u.s. dollar, the narrowest it has been all year. this is the level of the volatility, the size of the range in the dollar. it's like the earlier this year.

-- it spiked up earlier this year. we are not getting a lot of clear hints about what the fed is going to do. uncertainty about the fed. we will see what we get there. mark: we will get word in a few minutes. , we are awaiting the latest announcements from the u.s. federal reserve. we are going to get a decision on interest rates as many people have been telling bloomberg they do not expect the fed to move this time around. increase willme come at the september meeting. we will get the story in three minutes. ♪

mark: it is 11:00 a.m. and 10 for cisco, 2:00 a.m. in hong kong and 2:00 p.m. in

washington, d c. -- 11:00 a.m. in san francisco, 2:00 a.m. in hong kong and 2:00 p.m. in washington, d.c. good afternoon from bloomberg world headquarters in new york, i mark crumpton, here with scarlet fu. scarlet: happy fed day. mark: let's go to michael mckee in washington with the fed decision. michael: there is no change in monetary policy, but the fed has upgraded its assessment of the economy, which many on wall street may take as a sign a rate move is near. the policy makers risks to the economic outlook as nearly balanced. gains ande solid job declining unemployment. a range of indicators suggest the underutilization of labor resources ha