welcome to the bloomberg market day. we get a preview of the new regulations for power plants. jeb bush and scott walker and other republican candidates joined to answer questions. look at whyll the billionaire investor is in trouble with his bondholders. pimm: good afternoon, i am pimm fox. betty: i am betty liu. let's take a look at how the markets are trading at midday. stocks are fluctuating. the dow is down about 68 points.

it is a bit lower from where we inrted in the early going the morning. however, the s&p is rebounding from some session lows and we saw the chinese market moves down again. nymex crude down 2.5%. -- irang coming out they aret to say ripping of production as fast as they can. to $1090 perdown ounce. pimm: let's see we can take a look at the fixed income markets and bonds and see what traders are doing their. re. a little bit of writing, 287 for 2.8730 year long -- two

for the 30 year. here is currencies? no. we will just say that the dollar is stronger against most bond by the way, just because we saw those equity indexes, use of the s&p and the the nasdaq higher, mainly because of that lexicon pharmaceuticals announcement. go to the top stories at this hour. president obama is said to bring his case against global warming to the american people. the plan is sure to generate a lot of backlash to the president previewed his plan by posting a video on twitter, and proposal calls for reducing emissions from power plants by a third in 15 years. the united discounts for 1/7 of the world admissions worried about half of that is from lance releasing carbon into the atmosphere.

fights in congress and courts are expected. mitch mcconnell is telling all 15 governors not to obey the new -- all 50 governors not to obey the new rule. he can see the announcement, at 2:15 p.m. today. john: secretary of state kerry is meeting foreign ministers today. he is trying to assure them that they are not wavering after the landmark agreement. >> it is clear that the united states and the united nations agree that the partnership will be shared and be indispensable to the security of this region. john kerry is an cutter after a trip to egypt where he restarted formal security talks after six years . of eightund guilty counts of conspiracy to rig the benchmark rate.

foundrors unanimously heaim guilty. pimm: a clear sign that a joe biden presidential campaign me a whim.more than the long time democratic operative was a fundraiser for biden during his 2008 white house run. but you democrats have come forward to challenge hillary clinton. the party's presumptive favorite for the nomination. them, senator bernie sanders, does not think that biden would bring anything new to the table. >> i'm very fond of joe, but i think the american people, who are seeing the medical class in this country disappearing, the campaign finance system which is wrapped, 5 billion years as a result of this disaster citizens decision,reme court

want to go beyond conventional establishment politics. pimm: the death of the vice president's son prompted a nonreporting of support for biden. is planning to introduce a bundle of television and wireless phone services. in his first appealing to customer since the acquisition of directv. it will include high definition television, local phone service with unlimited talks and texting, and 10 gigabytes of data. convert its own monthly wireless customers to satellite television customers . also wants to convince tv subscribers to add wireless service. in the coalle industry. love is the industry's

worst in decades. two other quote companies are already in bankruptcy. pharoah proves once again that he is among the all-time royalty of race ring. the triple crown winner thrilled a huge crowd in jersey, winning a major stakes race. after resting two months, he breezed to victory. now fans are wondering if or when he will run again. as connections may take him to saratoga at the end of this month. a freak of a horse. pimm: a very amazing athlete. betty: those are your top stories. hour, up in the next half tom hayes is sentenced after being found guilty of conspiracy. years he will get. pimm: we will also explain why anrles koch is calling for

end to corporate welfare for the biggest banks on wall street. now back to one of the top stories of the day. president obama's clean power play. the climate change initiative promises to a day century of political power generation to and and richard to the coal industry as you were just describing. it is facing its worst downturn in decades. president obama's plan is expected to go into debt in the next month or two. but it is likely to face and implementation challenge that could stall it. >> this is on very solid legal foundation. act provides epa with clear authority to set carbon pollution. an enormous amount of input from utilities, states and other stakeholders.

it is our hope, rather than spending time and money on legal fights, what we will see now is a constructive effort to get to work and design state plans. betty: journeys on the phone is robert f kennedy junior, and .ashington reporter robert, you have been a long time proponent of environmental protection in the united states. we have not made much progress. the president is playing out these terms, some climate change proponents say these terms are not even tough enough. he is lauding this as progress commitment these are just middling of the road changes. money is a -- what do you say? it is a lot better than we

had even hope to be. it forces the states to adopt --es that will acquire pimm: i just want to break it because we having trouble with your audio or it i would like to go to our own munro. i would hope you could explain a little bit about this. what exactly is in the proposal? is the happened today white house, through the environmental detection agency, issued a final version of a rule that was first imposed a year ago. as is often the case with these it makes a number of changes to the proposal. the key ones here are states carrying the compliance burden. in connection to years from 2020 2022.

another change on the other side of the coin is the epa has sharpened pencil quite a bit and come up with ultimate compliance standards to be achieved by 30 that are much more stringent than the ones last year. pimm: tell us about the coal industry and what this will do to an already battered business. >> it has been in decline for many years. due to factors that are almost completely independent of the clean power plant in the coal industry has been struggling with an aging fleet, agent power lance, it has regulatory burdens that has been in place for many years governing emissions of nitrogen and sulfur and particulates. coal has been in decline for

many years and it will continue to decline. what this rule does is it modifies standard for carbon dioxide for the first time. he is in the unfortunate position of being a very heavy emitter of carbon dioxide when it is burned. the handwriting on the walls never pay for coal, but it has not been for many years. mitch mcconnell is asking all of the governors to not comply with these, and about 25 said they are not going to be particular. you have west virginia and wyoming, who say that they are going to sue so they do not have to comply with these roles. how likely are any of these even going to be implemented? >> more than 20 states are drawn into the lawsuit. the preliminary role lawsuit

that was started earlier this year as was just to be premature . the stains are wise enough to the way the system is working is on the one hand, work actively against an limitation of the -- theut the other hand only states that has created a plan is oklahoma. we see evidence of implementation activities taking place at this time. pimm: paris, in december. there is going to be a big meeting there. relate was why today's announcement has an effect on what is going to be accomplished in paris in december. administration very much

wants to be in the initiative seat with regard to the upcoming paris talks. the u.s. is the second-largest global emitter of carbon dioxide and what this means that the u.s. and china, as in many other areas are turned competitors, if you will have with regard to the relative emissions and their influence in the world. what the obama white house is trying to do is put the u.s. house house in order, if you will regard to having our domestic agenda for conflict reduction in place, before taking up the role. reflective of the american side, as least as much. we want to thank you very much, stephen munro of the burden energy finance, joining us from washington to have force

watch the complete remarks on the clean power play in. -- the new clean power play in. still ahead on the bloomberg market day, crude oil is dropping below $50 a barrel for the first time since january. ♪

pimm: welcome back to the bloomberg market day. betty: this unit markets with

julie hyman. whale making some new lows. julie: the lowest since january for crude. you can see down 4%. the declines have been accelerating to below $50 a barrel for the first time since january. $49.40 is where we are at now. we are have had already this big commodity selloff in the fundamentals are not changing significantly. on inad news for piled terms of the seeking oil markets with the chinese manufacturing data coming out overnight. worse than estimated. to putying it is ready out more oil once the sanctions are lifted.

of course, we're seeing a lot of commodity selling across the complex, not just oil, but the metals selling as well. ofant to turn to a couple stocks we're watching today. both of these companies are reporting earnings this week numberskors is out with on thursday, coach comes out tomorrow. piper jaffray's erin murphy is cutting our price target on michael kors to $38. it is $39 right now. she's basing that cut on inventory that is building up that retailers like macy's and dillards. as for coachable we seeing that being downgraded to neutral from overweight. handbag survey that jpmorgan conducted indicated a lack of awareness. take a look at my bloomberg

terminal. these companies, michael kors has been holding up very well, even as coach has been experiencing a multiyear decline. ofs is a three-year chart comparable sales brady can see that the momentum is really decelerating at michael kors. saturation in the market, too much exposure and outlets for example. this is michael kors, which has been holding up better from this peak. it is down about 60%, and now from its ipo it is down more than 20%. coaches falling more, it declines about 40%, but nonetheless it is interest ting the trajectory of these, now both lower in this market and betty. betty: for a while it seems that there was nothing that could stop those companies. thank you so much.

now a look at the top stories on bloomberg terminal this afternoon. the dutch maker navigation software is exploring options that could lead to a sale. while the dutch firm is speaking to possible advisors there no formal process underway. there were two celestial events over the weekend. first there was a rare blue moon tool which is not blue, but indicates a second full moon during the same month. on sunday, in the wee hours morning, something unique. the international space station made a pit stop in front of the moon. and with 82 hundredths of a second. this is a picture of the , butnational space station it is orbiting about 300 miles above the surface of the moon. that is about 240,000 miles from

the earth. has about six occupants of the moment. the distance from the space station to the surface of the moon is about the distance from new york just past t washington dc. betty: very cool. much more ahead on the bloomberg market day. trader convicted for libra rates has been sentenced in the united kingdom. ♪

betty: as we have been reporting, the former ubs citigroup trader who was the first to stand trial in the recent manipulation case was sentenced today to 14 years in prison in the u.k.. pimm: he was originally charged

the united states in 2012 where he based after six years in prison. he was found guilty of conspiring to regulate the london blank to boost the value of his positions. we were just comparing the sentence of mr. hayes with the sentence that was imposed on which was 11 years. they are serious. not know within sentencing guidelines are in the u.k. court, but or teen years years for reading the interest rates, it was a big deal and it went on for a long time. it does seem like it is a long time, a very harsh penalty. betty: what was the expectation? >> not 14 years.

i think the point is u.k. courts are really driving the message to wall street on this one that individuals can be held accountable for at least over here. in the united states we have seen much less individual accountability for these big bang cases. we have seen a lot of wall street banks played guilty, a massive fines. we have not had -- we have had a charged, andple nobody sentence this way at this point. it is interesting to see because we typically do not see a lot of individual activity in these big cases the banks take the hit. -- and here we have somebody going to jail for 14 years. we are going to have to wait and see what charges ordered to be brought against other libor traders.

libor --turning other >> it is interesting to see what u.k.ns with u.s. and the on this. the u.s. came down very hard. it is interesting to see what happens here. betty: thank you. i will see later this afternoon. let more ahead in the next half hour or . 14 of the 17 candidates for republican nomination for president. ♪

betty: a beautiful day in new york, again. it is the first trading day of

august. here we are, heading into the second half of the year. let's take a look at stories making headlines this hour. remain strong in july, thanks to insatiable demand for suvs and larger vehicles. were strong ins july, the best of sales performance for the company since july of 2006. the fundamentals are in place. if you look at interest rates, they are very low. they had the lowest since last all. 0% offers out there. the fundamentals do not look like they are changing anytime soon. 2016 can be a real good year for the auto industry. betty: july sales were up 7.7%, well ahead of an analyst estimates.

american households kept spending in june, capping a stronger quarterly performance in a biggest part of the economy. purchases followed in advance of seven cents of 1% in may. cool from the highest level in five months. fitful progress in the industry. to 53.5 inropped june. readings greater than 50 indicated expansion. order backlogs slumped. rose bytion spending the smallest amount in five below in 20 was estimates. even with the slowdown, construction spending advanced with seasonally adjusted annual rates. just above $1 trillion. and amy schumer is teaming up with chuck schumer to call for

tighter gun control. they are unveiling a three-part plan that would make it harder for violent animals and the mentally ill to obtain guns. they cited the recent shooting in a louisiana movie theater that killed two women, starring the schumer. >> i hope people are able to decipher the difference between -- i have not against the second amendment, i'm just for these restrictions and common sense to protect everybody. betty: amy is the senator's cousin. that is a look at the top stories of this hour. in the next half hour, universal music getting into movies. movie about the late singer amy winehouse. in the latest jobs report will be out on friday. the unemployment rate will remain unchanged, what does that mean for the fed?

we will a preview of the jobs report. strategist.s. equity .rom morgan stanley hostp.m. eastern, we will the voter's first presidential forum, which features 14 of the big difference is tonight format is not a debate, it is just two and a donald trump will not be there. and in theal off review made it unlikely he would area.at what is a mean that he is not there tonight? >> finally a lot of the

republican candidates have not been able to break through, who have been in this trunk all will be able to have the chance to say i am candidate asked, here is what i stand for, as is how a differentiate myself. they will get a chance to introduce themselves to the american people who are just starting to pay attention to this debate. betty: who is likely to shine ? >> i looking at the people in like johnge, kasich. he spending a lot of time and effort there will have heard of him, but baking to get to know him. betty: who has the most to lose tonight? atyou're going to look someone like jeb bush or marco rubio. those are the presumptive front runners right behind mr. trump. they will have a cap those hoops moments that the former governor had when he was on the stage. harm.

to haveit is important a conversation, to be accessible, and this is a very unique set of this is not a debate, this is a forum. this will be simulcast not just southpan but in carolina and iowa for the first three states, the new hampshire primary, the iowa caucuses, and the other states that are across the country that hear what they have to say. betty: donald trump, let's bring in the poll numbers. the most recent numbers have an over 20% in terms of voter favor. how long you think that will last? >> we are in the summer. once we give really been paying attention. but everyone says he has 20%, and i say that means beans to me.

even moved to the formal debate, and everyone is going to say they want more substance and they want to know the specifics are. it is where you are going to find a great weekend and who will establish themselves and move further away from the pack. also not at the weekends fast for the koch brothers. this is the tweets that he cannot out that got the most attention. all theood luck to republican candidates who travel through california to beg for money except from the co-brothers. if there is anything i admire about donald trump, a tax him, he comes right back. the new hampshire union leader is not going to endorse him. he says, i will not show up. the koch brothers, i will not show because they do not need their money. it is a very short strategy, but something only he could aloft.

the other candidates really need to find a way to distinguish themselves. betty: can he afford to not show up? >> he can play that game, because the first real debate is going to take place is a coming thursday. all top 10 republican candidates -- they need to prepare for this debate. i have to tell you, having with -- troubled with governor romney when he was getting ready for debate, this is serious stuff. betty: will people start taking him seriously? >> i do not sample. if you look at his website, he does not have serious issue interest up there. celebrityore like a -- he is a celebrity. betty: clearly people wanting

him seriously. the koch brothers, i thought it was interesting. they have five republican , and ted cruz got the most standing ovations kochding jed coke -- brothers. how important is it to be anointed by the koch brothers money? >> in the event is the opportunity to beat with wealthy donors as well. people who can find the networks, b super pac people who can be countries to their campaign. it is a smart move for these people right now are trying to have the organization to stay in place for the first three's ages . summerhe former mother months to get deeper into the spring.

jeb bush is a front runner other than donald trump, but i think my work likewise he not doing better in the polls? you put the name bush and clinton out there, there are a lot of the old saying can we not do better than another bush or clinton? there's a certain fatigue elements. betty: it is not running his fund-raising. father'sther and his networks and the governor's networks himself, that is going to help him. is what governor bush is out in california. this is why he is of a new hampshire. i am my ownsay bullish. i am not my brother, and my father, i have one is fully .lorida, and here's my record

biden has been on the political scene since he was in his 30's. he is a mess there is the center of the senate foreign relations committee. i think it would be good for him distinguish his record is the former secretary of state. betty: good to see you. batista daring .ondholders to season option ♪

they: welcome back to bloomberg market day. let's go to julie hyman for our top toys. have a big commodities affect today. we had chinese manufacturing out overnight. it came in worse an estimated. that is an effect on sentiment as well. nothing's going more deeply into the red pair to take a look at the imap of my bloomberg terminal. he can see where it is situati ed. all this comes back to what we're seeing in the commodity market. if you thought august was going to be different from july, you would have been wrong. we are looking at both wti, this is but dollars a barrel.

by wti has been lowered the -- ready to release oil into the markets once sanctions left. take a look at gold prices today. the selloff is continuing down 4/10 of 1%. the fundamentals really do not .hange except for the coed inre seeing a five-year low bloomberg gas and oil and obviously if you produce any of these things, oil, metals, you're feeling some pain as prices continue to go lower. popper is worth mentioning as well today. right now i'm about three quarters of 1% that china data.

continue to slide as well. on story has not changed this first trading day of august. so much.ank you greece's market reopens today after five weeks greek stocks were taking a plunge in the biggest selloff in decades. at the close of the athens stock and shane strowmatt of the stocks were down 23% in aggregate, they create a little, ending the day as it percent in native. o'm looking forward to tuesday. we might see a single stock enter positive territory. if not tuesday, later in the week and they may be some

pricing adjustments as the restriction on buyers could have distorted some of the information. betty: the search volatility in shanghai says that they are ready to prop up the economy and the stock market once again. we have war from hong kong. >> just how much money are they falling into their market? petro china shares, traders could care less about the company's 11 billion barrels of oil reserves and sales that exceed draft or can gdp. the top 95 percent of the country's trading in the russell 2000 index. that is the site hosting intervention is leading to price distortion in the fleet mainland market at least 4%, half of trading days in july include a record 9.6% lunch last monday. america, drama is

never behind. the default has nonstop company from pumping oil. creditors have little option but to see if the ship, with one bankruptcy lawyers say that the pirates get the vessel themselves. the cost of that instituting the collateral are very high. mark crumpton is here with me as well, looking at the story. let's start with you on this. exactly what is going on with this ship? >> the ship is out in brazilian waters, using about 10,000 bottles a day. but the average tequila is not paying anything for this.

this is money that should be -- we need to find out why they are defaulted. ship, there was talk about having the ship seized. who would have to prove that before that action was taken? >> this is a catch 22. in theory you can see the vote, the vessel, but in practical terms it is all but impossible. is proficient with several rules abided to by the regulators. he would need to get approval that you can remove this vessel and shut the field. add to that, i am to remove and $100 million but will not hold its weight. the company that has been using

this should pay for that. even if you get it and you take it out, what do you do with it? oilcurrent situation in the market is if you try to sell it you're not going to get the value of the collector. that is a catch-22 that the loneliness. betty: we were talking about the demise of batista, another chapter in this saga. mark: that is very shakespearean. starting to see how much money is this man has lost. according to one story on bloomberg.com -- >> $30 billion. mark: even faster than what his commodities and energy empire collapsed. this is a breathtaking loss of money. i was mentioning to one of the producers today, it is interesting that we now described him as former billionaire. betty: exactly.

formerly this man had at one i wanted to be the world's richest man. world fastest declining billionaire. i might ask, this loss of money, this loss of his wealth, what has been meant for the overall economy? brazil has its own problems. but the context is very interesting because did the lines of our kids have been two years ago, and the sun went with .hem when the wave movie review was the first one to realize that we were naked and as we can see, and he said before this segment, how bad can hundreds markets had enjoyed today. brazil is me,.

only one of the problems. processs are shaping where they were. betty: thank you so much. i will see with the top of the next hour. much more ahead on the bloomberg market day. we will you all record labels are finding new ways to boost flagging sales. ♪

betty: universal music is finding a new groove in communities. the record label is making a push into rock documentaries that are hitting a chord with audience is. amy winehouse has grossed over $11 million since it opened last month. how will the big screen help record labels overcome shooting ie sales?

how is that movie helping the record sales? is theyrsal strategy want to get more of what fans want, fans of music. when your body film it comes off because of the writer or director. but amy, we were the one who new strategy.ch they went to do more in terms of short form contact and longform content. betty: has anybody done this before? walked the line for my johnny cash phil, and the ulster willing felt about ray charles, it really was inspired by the success of documentaries. no other studios are doing this in the same way the universal has in a couple of years.

they have a lot coming out. they have done a documentary with nirvana which has already seen its sales growth. every beatles documentary coming up next year, dr. dre, with who you might see in the news today, has dropped his first double 16 years. he has a label with label as well. the assets that they have. compton,raight out of that is the compilation of songs? already a and wa is a songs from the past. dr. dre, who the family is based , he is his abandonment ready to release a new album, which is linked to the film.

betty: all of this because music sales have done so poorly, right? record labels have not been able to make the damage to sales is heavily from online piracy. helping recoup some of the expense. betty: thank you. much more ahead on the bloomberg market day. we are back on the market and will get more insight on earnings, the fed, and friday's job report. that will be next. ♪ . .

it is 10:00 and san francisco and 1:00 a.m. in hong kong. mark: and this is the bloomberg market day.

to unveilobama is set new regulations aimed at curbing climate change. we will look at how the sweeping changes could impact the business community. have: corporate earnings been largely to the upside. we will look at how the strong dollar and fridays job report will impact companies. was a hot market for autos in july. we will rake down the sales which include -- we will break down the sales which include big gains for the big three automakers. betty: good afternoon. with thank you for staying us on bloomberg market day. is it just me or did this year so by fast? we are already in august. marketook at the stock on this first trading day of augu