u.s. auto sales shifting into high gear last month. scarlet: an apple is on the brink of a correction. we will look into the cake giant's recent slide. scarlet: good afternoon, everyone. let's look at the markets right now. a little bit of a decline but it's been a blinding load through -- the out through much the day. a half-hour early and we continue to grind lower throughout the day. when you look within the s&p 500, a pretty broad decline, nine out of the 10 groups falling.

you can see the extent to which there is not a lot of advances. sectors, upmallest just barely. energy stocks down by 2.1%. that the client is more than double the drop in the materials index, the second-worst performer. if you go inside the energy all 40 membersee within the s&p 500 that are energy-related companies are declining today. alix: and the lowest level since july 2012. oil is completely rolling over, down over 4%. brent oil breaking below $50 a barrel. that is pretty significant. iran is talking about ramping up its oil production. saudi arabia's pumping a lot so they continue to oversupply. bloomberge my terminal as to what is moving the tech market, and that is

apple. below right before 10:30 and continue to go lower. , it's 9%n why we care of the nasdaq. actually, 13% of the nasdaq. scarlet: and he has repercussions throughout all the indices. now look at the stories making headlines at this hour. president obama ending his gas , grading the state more time and options. was unveiled a short time ago at the white house. president obama: we are the first generation to feel the effect of climate change and the last generation that can do something about it. and that's why committed the united states to leading the

world on this challenge. because i believe there is such a thing as being too late. to --it's estimated estimated to cost a .5 billion dollars. a new son of the deep trouble in the coal industry. a company being heard by pledging cold prices and the ever-increasing use of natural gas as an alternative. alreadyal companies are in bankruptcy. alix: a major insurer turns down one takeover bid and except another one. witheaks up a merger plan or capital holdings. the company is looking to diversify outside of manufacturing. scarlet: u.s. auto self remaining strong in july. general motors sales rose 6.4%.

the best combined figures in almost eight years. 5%. of almost >> right now all the fundamentals are in place. market.uyers look like don't they're changing anytime soon so it looks like 2015 will be a really good year for the auto industry. had sales of in july. amy schumer is teaming up with senator chuck schumer to call for tighter gun control. he unveiled the land that would make it harder for violent criminals in the mentally ill to obtain guns. they cited the recent shooting at a louisiana movie theater that injured nine and killed three.

>> i hope people are able to decipher the difference -- i'm not saying him against the second amendment, i'm just saying him for these restrictions and common sense just to protect everybody. amy schumer is the senators cousin. i did not know that. former president jimmy carter has undergone a medical procedure to remove a small mass in his liver. he's expected to make a full recovery. today's operation in atlanta was described as an elective procedure. he was the nation's 39 president and is 90 years old. alix: a guilty verdict for the first person brought on charges of bring in benchmark interest rate. tom hayes was convicted on eight counts of conspiracy. the pound deliberated a week before delivering its verdict and concluded that he schemed with other traders to fix the libor registry.

prosecutors investigating billions of dollars of traits with deutsche bank. this is according to people with knowledge of the situation. it focused on so-called mirror trades that have allowed russian clients to move funds out of the country without properly alerting authorities. those are your top stories at this hour. alix: president obama has announces bold plan to tackle climate change. big investors are speculating on how quickly the u.s. will shift to renewable sources. biggest the second power producer could be affected. us president and ceo joins exclusively from the white house with more. thank you for joining us, sir. i wanted to start with your telling us how the president's new power plant affects your company. whereyou mention,

naturally the largest natural gas-fired power generation company in the united states. the only way to get here -- from -- we thinkr carbon we have the right fleet at the right time. it seems like the big winner of the clean power plan were as renewables. does it make you want to change her poor olio to diversify into that space? >> over the next several years, only two types of investment, one will be renewables. the other will be natural gas generation. we are actually the largest renewable generator in the state of california. we are also looking at other renewable investments. we think foremost there will be plenty of opportunity for us. >> what is the biggest challenge facing you from these final rules that are being proposed?

ofwe haven't seen the text the final rules. we have seen the outlines. it has come a long way since the draft. it appears to allow for a market making mechanism, unlike a lot of utilities it have a rate base, we make money when we sell power and by our gas. it's a very good thing for us and the free market in general. alix: can you quantify what these rules could actually mean for your company? plans have not been firing on all cylinders because of cold competition. do you have an earnings estimate you can share? to make ant correction. we are running our power plants a lot. for the first time since april 2015, power generation at natural gas-fired power plants exceeded coal power for the

first time in a generation. alix: does that mean all your plans are currently running at full capacity? >> they are running at full capacity during the day. with lower gas prices, we are running a lot more. scarlet: michael levy was saying earlier that there is flexibility of this plan that he is proposed for everyone. is there enough >> ability for you or do you want to see more flexibility? is forflexibility whatidual states to choose works best for individual states. we have a preferred approach for states that we operate in. states should be able make their own choices and we are confident that regardless of which way the state goes, natural gas generation will be the big story. alix: what is the biggest hurdle calpine right now?

the challenge the sector overall is facing, i want to be clear, we are in the middle of grabbing share and we are growing our production. scarlet: i know you recently acquired champion energy for $240 million in cash, marking your entry into retail power. what other kinds of acquisitions are you looking to make in terms of down the road, maybe not this quarter but in the next two quarters or the next year? and that into retail, was an important move for us to get close to our customers. we have been very active, over the last 4.5 years we've done about 7 billion dollars of mergers and acquisitions. about half of that has been out

now. about half its been coming back in. so we do actively manage our portfolio and will continue to do so. when we think there's opportunity out there, we will buy. i think for investors should expect continued portfolio management approach. alix: thank you so much. coming up, a big deal today in the auto industry. find out how they are mapping the future of the industry. ♪

scarlet: welcome back to bloomberg market day.

>> we had a mixed picture at the beginning of the session. it seems like commodities are largely to blame for the declines. let's look at the major averages. declines across the board. i mentioned commodities, let's look at oil prices. that seems to be having something to do with the decline as the commodities slump continues. oil at a six months low, down almost 4% right now. brent crude fell below $50 a barrel for the first time since january. take a look at my bloomberg terminal. looking at the net long by hedge funds and oil. you are seeing basically the lowest level we have seen and about i've years. exactly the same but close to what we were seeing in gold as well. really we are seeing commodities out of favor at this point in time. take a look at the energy stocks

as result here of some of the big cap shares are down. kinder morgan taking a big hit. smaller oil providers are also down. , andburton, for example some of the other energy movers that we have been watching today that are also lower. pretty broughtis within the energy shares today. also look at cold today, in part because what we heard from the president in terms of tighter regulations, and there we have those energy shares. halliburton with a little bit of a couple of things from the what we heard president, tighter regulation of the power industry and coal emissions. also we have had a bankruptcy .iling in this entry the coal industry has really been battered. tyson foods note,

cutting its full-year earnings forecast, higher cattle prices eroding margins there. even as we talked about everything down, i guess there's one thing that is not, unfortunately for tyson foods. alix: we have seen a divergence, and there's a lot more contract still long in brent. you might see some more downside . >> now for look at the top stories crossing the terminal at this hour. john kerry is meeting foreign ministers today, trying to provide assurances. >> it was crystal clear that the united states and the nations

agreed in the partnership we share. the white house has announced president obama will give a speech on wednesday on the nuclear deal reached with iran. officials and iran are going on a shopping spree for airplanes. the goal is to buy about 300 planes to replace its aging fleet. than -- lisa at van presenting such purchases. a ban preventing such purchases. investigators are trying to determine if a part of a wing belong to the malaysian airlines plane that disappeared last year. those are your top stories. let's turn to politics. vice president joe biden

reportedly seriously considering putting his name on the 2015 democratic. comes after the new york times reported that joe biden son beau urged his father to run . joining us to discuss this is bloomberg's top politics managing editor, mark halperin. did this really happen? mark: nobody really knows. i think the vice president will decide with his family. the family is still consumed by the death of beau biden. the family is going to decide what they think makes sense. there are lots of things on the that he wouldding like to be president, he thinks he would be the best president. >> what has changed according to the article is that there a lot the viabilityver of hillary clinton a candidate. he would be coming in to provide

an alternative to what would be the presumed incumbent. mark: it's complicated. he is good friends with hillary clinton. that because of the controversies involving the clinton foundation, her private e-mail server, that not only issue vulnerable but that maybe she is not the right person to lead the country right now. if joe biden runs, he would like to have a reasonable chance that he could win. his wife, the same thing. don't run if there's no possible path to domination and the white house. they are thinking about that along with what he feels about an obligation to his son, who presidentm to run for . whether he can live up to what his son wanted, which is to run, but for him to win it. is 72.e is he too old?

>> he is in fantastic shape. tragicshown under circumstances, he stood for hours on end, greeting mourners in wilmington. he is in great physical shape and pretty good mental shape as well. i don't think his age, particularly since hillary clinton and bernie sanders, i relevant.k it will be >> a poll released late last betteris numbers were that clinton's. >> they are better, but just as she is more formidable in some ways, those numbers are good for him. you can look at the polls today and say this is where it's going to end up. if you rent, he would be trying to be her at a time when she does have extraordinary support within the party. decentbiden has pretty poll numbers, but once he got in

the race, things would look a little different. alix: good stuff, thanks. good to have you, mark halperin. tomorrow bloomberg politics is releasing a big bloomberg national poll. you do not want to miss that. ahead, the hot market for autos in july. we will break down the sales numbers, including a big change for the big three in detroit. we will be back. ♪

alix: several german auto manufacturers are placing big ed's own self driving cars. the automaker say this technology will be the basis for their self driving technology. for more on this in a similar deal to come is matt miller.

down the road this will be something they use for their self driving cars. why is there so much competition for this mass technology right now? unit nokia started this and then started rolling out other companies. taking out a lot of the independent players that were out there, and there's only one other left besides this unit. this is a technology that is not very easy to create. 10y will map you within centimeters of your spot on the planet earth. that is anywhere you are. it's pretty amazing, and it's more advanced than a lot of the other technology out there. they want to take on google with this. they want to take on the other independent player, i don't want to give it away yet, but there is one out there. om.y want to take on tomt

people are seeing that as the one player left that maybe someone else is going to take out. what's amazing is that these three automakers worked together. bmw are super and competitors in germany. i lived in germany for seven years. for one or the other. it's like saying the giants and the cowboys would work together to lay football against somebody. , is terribly unprecedented think that is the right word. are doing something that sergio marchionne has been calling for for a long time. automakers spend about $2 billion a week trying to develop new technology and they are all on the same track, doing their own thing. it's good for them to combine forces. but i don't think they invited sergio as part of the trio.

scarlet: who is the big winner? matt: winners across the board. to post sales of .6%. you can see 6.4%. ford with 5%. honda and nissan beating as well. everybody did very well and looks like the month was the mate -- maybe the strongest on record. >> i will see you at 4:00. hasng up, deutsche bank caught the attention of u.s. federal prosecutors yet again. we will tell you why. ♪

alix: let's get straight to a look at the top headlines this afternoon. houlihan loki seeking as much as $360 million in an initial outlook offering a selling 15

million shares. the firm is targeting a price of $22-20 four dollars a share according to a regulatory filing that came out today. sales of a heineken, describe -- despite increased competition in the beer business. they posted results for the first half of the year that beat estimates. a first half of the year which as you have seen is quite good and we didn't see any reason to change our outlook. we expect to grow in volume, revenue, and profit, despite that europe remains a difficult market. we see a majority of our developing market still going the right way. rose 6.7%. another sales plunge for sears. consecutive

double-digit decline. to good news, sears expects adjust its laws for its fourth straight earnings of -- quarter of earnings improvement. shares of barnes & noble education slid when trading began this morning. earlierd with the ceo on bloomberg market day. >> our strategy is to grow that poor business -- core business of providing management services and educational services to bookstores and also students and faculty outside of our foot rent as we get into the digital functionality that we have built in our platform. barnes & noble said it would break the company apart in february after scrapping plans digital notebook

business. prosecutors are investigating billions of dollars in trades that deutsche bank made on behalf of russian clients as recently as this year, according to people with knowledge of the situation. the justice department's criminal probe focused on so-called mirror trades that allowed clients to move funds out of the country without properly alerting authorities. it's one of many investigations into deutsche bank. how many criminal investigations is deutsche bank currently under? number looks like about three. they are being approached by the department of justice over possible violations of u.s. sanctions laws as well as being looked at for possible rigging of foreign-exchange rates. in this case, what do they supposedly do wrong? >> this looks like it could be relatively serious.

basically it could be that money is being moved from what is called a mirror trade, where they do a transaction in russia in rubles and do a similar transaction in london in dollars. it could be a way for russian clients to circumvent u.s. sanctions laws that have become very stringent over the last several months between the u.s. and russia. alix: why? cracking downj is on stuff across the board. why would this happen now? >> that's a great question. trades, when the the bank is also doing an internal investigation to get to the bottom of as well. it's kind of unnerving that even though we go through all of these settlements, we are up to every week talking about a new settlement for a different issue or civilent criminal violation by different back, that this is still happening in

quite large numbers at the banks. alix: our new york applications implicated at all? >> the new york state banking regulator, department of financial services is looking into that specifically. alix: what would a possible fine be for something like this? >> they could be guilty for violating u.s. sanction laws or compliance and control issues, depending on how the trades and the money around us trade was moved around. those can come up with some pretty big lines. alix: have we heard any reaction from deutsche bank on something like this? taking the allegations seriously. they are just saying we are paying attention to it. the biggests problem for deutsche bank, out of all these potential cases? it's hard tocases,

tell which one is the worst until they are resolved. you don't know if they will get a guilty plea or just a fine, but when you have a bank that is trying to resolve a number of major issues at one time, it becomes very problematic and very expensive for the bank. we've seen it happen with jpmorgan, bank of america, and many other banks where they put a lot of money into their legal reserve to deal with the stuff. it can be expensive and very problematic for them legally. alix: thank you so much. , theer big story today stock market reopening in athens for the first time in five weeks and shares plunged the most in decades. ons nichols is at the athens stock exchange and files this report. >> at the close of the athens stock exchange on this monday, after stocks were down 23% in aggregate, they creep back up a attle bit, ending the day

16% in negative territory. it was the bank losses that led the declines. most drop to that 30% trigger where trading was halted. looking forward towards tuesday, the ceo of the athens exchange indicated we might enter into positive territory either tuesday or later in the week. still there needs to be pricing adjustments as the restriction on buyers could have distorted some of the information. alix: former u.s. ambassador to greece tom miller spoke about the plunge in the state of the market. >> when you have exchange closed for this many we with all that is happening, there is just a to getpent-up eagerness money out of the market. i expect once the markets are open on a regular basis, things will even out. >> i mentioned in the open that you have recently returned from greece. as a matter fact, you got back

yesterday. you spoke to a lot of working-class people on the ground there. what did they tell you about how their life is right now in greece? >> it varies a lot. those who are using credit cards and whose earnings are not , that to bank accounts is, they are linked to credit cards, they are coping ok. those who are used to -- and this is largely older people -- you are more used to using cash, they are hurting because the credit controls are severely limiting the amount of money you can withdraw. , i have aess people close friend who is a small business person who imports a lot. he is hurting a lot because there are controls on transfers of money overseas. so it does vary. some people are surviving quite well, others are hurting. the tourism industry is holding up quite well.

alexi prime minister, citrus, is having a tough time in his own party. there's talk that he may be forced call new elections. how his partye of has handled this, and what is in store for them possibly? >> i think it's very possible there would be new elections in the fall, in september or october. citrus has used this as kind of dissidentsinst the in his party, saying if we go to new elections, you might not be on the ticket. in the polls he is running very strong. he is running stronger than the results from the last elections. that is because a lot of greeks feel that even though he went for a referendum and then reversed himself once the referendum passed, a lot of greeks feel he is standing up for the little guy, for them.

so he retains his popularity and the more traditional parties are still struggling. >> so the result is, there could be an election and you could have syriza swept into power again, according to the polls. and they might not have to have a coalition partner next time. ines it seems that things greece have called down significantly from where they were the few times that you and i have spoken in the spring and earlier this summer. negotiators from the european union and the international monetary fund want faster cuts in early retirement plans that were set up by the government and stricter conditions for the payment program. the crisis is far from over, isn't it? absolutely right, mark. negotiations have restarted in the going to be difficult and drawn out.

the basic issue separating the sides are still there. anyone who expects this is going to go easy, that the crisis is over, just doesn't know what they are talking about. this is going to be a long, drawn out process. each side is going to be twice -- quite tenacious. the imf is insisting there be some movement on the tremendously large debt burden that greece has. up, digital payments is where visa wants to be. giantut where the credit is on the issue. ♪

alix: welcome back. time now for a look at the markets. let's go over to julie hyman. some big earnings related movers today. >> some of them on the earnings .hemselves let's look at the major averages first of all. the selloff we are seeing, it is abating a little bit coming into the close. the dallas down as much as 190 points, now down only 116. let's look at earnings at sears. the company coming out with comparable sales, down 10.6% last order. 13.9% drop at sears, 6.9% fall at kmart. the company spun off its real estate holdings into a real

estate investment trust. it said its adjusted loss before taxes and amortization shrunk. it is going to see a little improvement in that number but the core retail business is still struggling. speaking of retell, we have a couple of anticipated earnings to mention. michael coursed down 8% and coach down 2%. one analyst says inventories building up at retailers including macy's and dillards. she says watches remain under pressure in the united dates. companies like fossil are down also today. , aparable sales for kors decrease of 13.9%. sameecrease could be the

in the decrease at sears stores. coach downgraded to neutral at j.p. morgan. a surveyhere said showed all the product changes that coach has made over the last 12 months, consumers are not really aware of those changes or not enough. take a look at my bloomberg terminal at the top sales trends we've seen for these two handbag makers. , it has not seen a lot of strength. we have seen a deceleration of that. coach, these are all negative numbers as it struggles as is trying to execute its turnaround. if you look at the stock price of the two companies, some interesting action there. the ipo is down about 20%. coach is down about double that

during the same time. of course the drop from ko rs'highs has been even more dramatic, something like 60%. both of them are now struggling. i understand you have some breaking news. news,we do have breaking puerto rico has failed to make the full august 1 debt payment. to 58efers to most likely million dollars of principle as well as interest that is due on saturday on the public finance corp. bonds. there had been concerns that it would default if it did make that payment. did failed that they to make that debt payment. again it was 58 million dollars of principal and interest due on the public finance bonds. that was not paid, according to the puerto rico agency. in general they're trying to

renegotiate $72 billion debt load and there is a lot of concern as to how that is going to happen. we will keep you updated on any more details. girding like they are for a restructuring plan and we will give you any updates on that. now a look at some of the top stories making headlines at this hour. ,om-tom is exploring options according to people familiar with the matter. the firm is speaking with possible advisors. there is no formal process underway and they may decide to focus on investment. three german automakers are technology they say will be the basis for self driving cars. , and daimler will each acquire an equal share of the unit. the deal is expected to close early next year.

two rare celestial events over the weekend. first we had the rare blue moon which is not exactly blue, but indicates a second full moon during the month. on sunday, in the wee hours of the morning, something even more unique, the international space .tation made a pit stop those are your top stories. paypal maybe the biggest player in digital payments, but visa is atting its money, leading $100 million funding round. dimly chain me now from san francisco. chang joins mely now from san francisco. what did they tell you about why visa is making this investment? partnered with two credit card companies, visa and american express.

they're hoping to get better security when it comes to digital payments. it's something that visa is very concerned about and something that strikes has made it its mission to secure digital payments around the globe. take a listen to what he had to say to me. x trying to move credit card tobers off servers, trying get them to transmit the car directly from the consumer to strike so the credit card numbers are not in many different places. it's a process called of crediton, removal card numbers from the visibility of the transactions. that's something stripe is trying very hard due to keep the numbers detected. you've also reported that where all to go public. is strike now on the same? >> not at this point. i did talk to patrick a lot about this.

market,this is a huge only two or 3% of consumers transactions are happening online. that number can grow exponentially, and they want to take advantage of that. they think the opportunity is simply enormous. they are private company but they plan to be a private independent company. you so much, emily chang. watch the full interview coming up on bloomberg west at 4:30 p.m. eastern. still ahead, apple is on the brink of a correction. did you know that? what is behind the recent slide? ♪

alix: let's take a look at apple. they narrowly avoid falling into a collection last month.

joining me to discuss what i think is really cool is julie hyman and mike reagan. i talk about moving averages all the time. why is it important for a stock like apple? that's beena trend in place for a long time, rising trend or apple. say the times people drop has gotten out of hand, let's go in and buy. it looks like that might've happened on day. obviously today is a different story. if it is thatnder a resistance level, if it's going to be hard for the stock to climb back above that. believe inople don't these moving averages that strongly and believe it's ultimately the fundamentals that are driving apple.

>> it's been 471 days since apple went below the 200 day moving average. after the last time it went under, and then went above it in more than 471 days. we saw a pretty long rally in apple shares until around february of this year. form february to now, we are down now more than 10%, which would fit the technical definition of a correction. i talk about it like everyone else does, but does it give us any sign about what it's going to do next? i think you have to look at the full picture rather than that thing in isolation. it's 13% of the nasdaq. it does have power to move the indices lower. so in. could be significant for the broader market and you do have only a handful of stocks that are moving anything. >> one thing to look at with

apple, when you look at the china story. betweene correlation apple and the shanghai composite. -- not a superup strong correlation but it has been rising in the last few months. that is noticeable. that means there is some sort of connection there. obviously the apple watch is turning out to be probably a disappointment. i read another review today, someone saying it's a great but people don't need it. those two fundamental issues are probably more important than the technicals right now. 40% of allems that new york stock exchange traded stocks are above their 200 day moving average. but not 50%. that implies to me that the sentiment might be bearish versus polish.

julie: we're going into august, which tends to be a model along period right now i don't know if youan use those as much as normally would because you're looking at a lower volume market. right now we still have earnings coming out but were going through a time of less news driving the market. point.xcellent thanks a much for joining me. much more ahead. we will talk to the rue of valuations. he literally wrote the book. what does he think of the $50 billion uber valuation? we will discuss. ♪

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alix: we are moments away from the closing bell. scarlet: i'm scarlet fu in for joe weisenthal.

[closing bell ringing] all three major indices closing down, crude falling below $50 a barrel for the first time since january. scarlet: but the question is, "what'd you miss?" but are we missing the bigger story? to killer charts that you can't miss. game --d the evaluation with uber worth $50 billion, we ask experts where do you get these numbers anyway? overall, you are looking at seven out of 10 industry groups in the s&p lower, and it's all about energy. down over 2% because oil prices were off by another quarter percent on this continued