10% sense they last reported earnings. they continue to fall today. what has investors worried? matt: puerto rico defaults on it debt. we discussed the road ahead and hear from their sole member of congress. mark: once a luxury food, lobster hits the mainstream and you may not be able to afford it that much longer. good day. from bloomberg world headquarters in new york, i am mark crumpton, here with matt miller. let's look at the markets. apple is definitely waiting on the nasdaq. we see the dow and the s&p as well. of course, apple will weigh on

any index it is listed on. it is naturally a very heavy weight on the nasdaq. swingingones back-and-forth between gains and losses. the same is true of the s&p 500, down 3/10 of 1%. taking a look at treasuries, we see some selling on the treasuries market, the 10-year yield going up. the yield on the 30-year going up slightly, 2.88%. about oil.alk this is fascinating. we finally see a green arrow here. holding well under $50 -- actually, i am thinking of rent crude. 473ork crude is down at -- and rent -- it is just under $50 a barrel for brent crude. mark: time for our top stories.

shire is making an unsolicited to makensolicited offer a biotech company. shire says it represents a .remium of 35% but there is no deal on the horizon just now. shire says becks also --baxalta has declined to engage in substantive discussions over the new proposal. matt: and all cash deal to buy icc health care, representing a ipc's shareice of price yesterday. the man who has been overseeing george soros's

fortune will leave to form his own and hedge fund. bessent will have one of the ofgest hedge fund start severed. he will continue to advise the soros family. the fortuneves, will be overseen by someone he put in place. a matt: manufacturing held back by and i in the dollar dampened demand in exports and falling oil prices, which have cut into energy industry investment spending. mark: the stocks plunged in greece, but investors say it could have been worse. athensdropped 45% on the stock exchange. the benchmark fell 16% on monday. limits on on --

buying and selling limited the damage. bank shares were pushed toward the downward trading limit yesterday, 30%. chairman bill rhodes said the bailout will not work if greek banks knew not bounce back. they have to capitalize their major banks quickly and they have problems. they are nonperforming. unless you get them up in lending, there is no plan for this to succeed. the central bank says nearly 1.3 billion dollars has flowed back into the country's banks since they reopened two weeks ago. cvs narrowed its full-year forecast after retail sales slowed in the second quarter. this overshadowed a second-quarter profit report.

and remember those tv ads for viagra? health is dropping dysfunctionctile medication from his coverage. patients can get coverage for eli lilly's cialis instead if they have that issue. competitor will cover vi correct and cialis in 2016. mark: coming up in the next half hour of the bloomberg market day, investment guru with bad predictions for millenials. what he thinks the generation has it tough. ist: and donald trump keeping a significant lead on his republican contenders, but how long can that lead hold up? mark: and then lobsters. matt: yes.

lobsters making a weekly flight from nova scotia to china. coming atbig trip is a cost to u.s. consumers. mark: all of that and much more on the bloomberg market day. matt: pressure mounting on puerto rico after one of its agencies defaulted for the first time. years of borrowing means that the cash strapped ireland has been pushed to the brink. mark: officials are pushing for what may be the biggest restructuring ever in the municipal market. joining us, a senior u.s. analyst with eurasia group. he specializes in puerto rico. welcome back to bloomberg tv. it is good to see you again. glad to be here, mark. mark: my colleague betty liu and i were told about the politics in washington -- what i see

happening on the republican side of the aisle is relet ends, relet -- reluctance, reluctance to move my bill because they want to see more discipline on puerto rico. talk about this call for puerto rico to be able to file for chapter nine bankruptcy protection. right,ight -- guest: there is the question of the day, mark. there is a growing cognizance of the plight of puerto rico, but we are a long way from steps taken by lawmakers. there is still 80 sense of unease lingering on the hill by the actions taken by lawmakers in the face of the crisis in 2008 and 2009. republicans are concerned that dictateate marketplace a solution. the final point, at the moment, creditors, be they hedge fund

investors, longer-term mutual moreinvestors, they are organized than those seeking a solution to puerto rico at the moment. matt: a lot of creditors that we have talked to say they have tried to make deals that would work out fine. epa does not agree to that for political reasons. could that be the case that these leaders and puerto rico just want to push through this to get bigger cuts? technically be first default, in terms of only a partial coupon payment made. we think they are trying to push through as far as they can, as hard as they can to make it incumbent on investors to come to the table. we have 17 different buckets of debt and different investors and groups of investors and each one. the idea there is one group speaking on behalf of the investment community just is not there. i think the puerto rican officials are playing a

dangerous game right now. you say a dangerous game. i heard someone describe it -- if you look at the graphic on our screen, the gross public debt is an norma's. at what point when the saidials, the governor has this is unsustainable. we just cannot pay this. att is puerto rico's option this point if they cannot pay back this debt? are likely to you see further default from some of the -- if you call them peripheral buckets of debt and a genuine effort by the government to keep making coupon payments on general obligation bonds. that will leave them enough money to maintain basic levels of services. you know, keeping the trash being picked up in hospitals open, etc. they get to a point where cannot make payments on the core debt, as it were and if we get to a point where government

services are starting to break down, this becomes a lot more dire than it is right now. averagepeak to the puerto rican, they do not seem that bothered about what is going on. you know, services are still running. this is seen as a problem of the government and not the average person living. moreover, puerto ricans can come to the mainland whenever they want. i think puerto rico will have to make a meant on the debt, those that have legal protection surrounding them. -- make payments on the debt, those that have legal protection surrounding them. matt: the island seems like it short, at least under the age of 65 and if you look at the population, it just continues to fall. this morning saying lawyers, architects, doctors have fled the island to the point where now you have mostly

the elderly and poor living there. in fact more than 60% of the entire medication is on medicare and medicaid, so the government is very much responsible for the cost that most of these people bear. right, and that is the conundrum we are facing. because of the transfers, because of puerto rico being a commonwealth of the united states, they still get medicaid money and social security payments. the crisis that would be there otherwise is not. the way you make about the exit as to the mainland is interesting and pertinent. remit from the island to the mainland is the lowest in the entire caribbean basis. i think that that is because entire families come here. that is exacerbating the problem. you are looking at a dyer economic outlook -- you are looking at a dire economic outlook. mark: there are so few funds for

the island of puerto rico. they are now in a position to decide, i am going to pay this, but i am not going to pay that. how do you choose? i thinkthink -- corey: they are paying the ones that do not have legal protections around them, limiting the ability of investors to sue. i think we will get to the point where they default on those and this becomes an ugly court case and puerto rico will be on the losing end. boles, joining us from washington. thanks so much. matt: twitter may be a takeover target. the stop at its lowest price since the ipo. ♪

mark: welcome back to the bloomberg market day. i am mark crumpton here with matt miller. matt: let's look at the top stories crossing the bloomberg terminal at this hour. claiming mores than 460,000 square miles of sea 350f, extending more than not a miles from shore. russia, canada, and mark, and norway are trying to assert jurisdiction over parts of the arctic. to a believed to hold up quarter of the planet's undiscovered oil and gas. matt: firefighters in california stand their ground

against a growing wildfire. the blaze has grown to 97 square miles. at least 30,000 people have been required or devise to evacuate. and at least two dozen homes have been destroyed. coverage of the flight for the missing malaysia ticket370 is hurting sales. all of the passengers are presumed dead. confirm expected to wednesday whether a wing part located last week is from the doomed flight. -- it's shares plunged last year after disasters with flight 370 and a flight that crashed in ukraine. matt: let's look at apple shares. shares dropped to their lowest level since reaching an all-time

high in february. our: joining us to discuss, senior markets correspondent julie hyman. thanks so much. the richard reid yesterday -- apple went below the 200 day -- the retreat yesterday, apple went below the 200 day moving average. did.: you this is the second straight day we have gone below it. the green racket a line we are showing is the correction -- the green bracketed line we are showing is the correction in apple shares. i was looking back at the last couple times we have seen apple fall. below theime it went 200-day moving average was 471 timeago, which was the between the two governments and after that, it went down and snapped back. in 2012, we saw a more significant pullback in apple.

matt: we have not yet -- i have on my terminal right now the chart as well. i have the 50 day moving average and think, and green, we have the 200-day moving average. maybe we can pull that up. we have not reached the point where the pink line crosses the green line. julie: what happens? out: if you can't figure it -- julie: it's bad news. matt: what are technical traders telling you about the stock now? becausehere is concern it does not seem to be fundamental really, right? the last times we have seen apple sell off there have been more fundamental concerns about product. there are concerns about the apple watch. these are the same concerns about what is going to be the next big thing for apple.

it seems for now the watch is not it. there is also concern about apple's importance overall in the major averages. harold from standard & poor's sent me some fun stuff earlier. he is going back to the record for apple in february, february 23, and since then, the s&p i said february 21, it was actually february 23. that graphic is wrong. it is the 23rd. so, it it shows you the the i.t.e of apple in index. if you take it out, it is up. you were talking about an enormous weight. s&p, four point 6% of the doubt. almost everybody holds apple in their portfolio somewhere. of the dow jones.

almost everybody holds apple in their portfolio somewhere. mark: speaking of holding apple itsim cook got 17.5% of revenue china. now we are seeing that drop in china. julie: exactly. it is weighing on it to some extent, although the apple bowls are shrugging off the china tech -- the apple bulls are shrugging off the china tech, saying it will not have that much impact on sales. if you are a regular person in china holdings stock and the value is less, will that have an impact on your buying decisions? matt: let me take you to twitter for a moment. i know you were watching this very closely yesterday as it fell below the ipo price. there is a story on the terminal -- maybe it is a takeover target now. julie: alex sherman, who wrote the story, is very careful to point out there is no indication the company is shopping around.

is takingion anyone nibbles here, trying to figure out if twitter is for sale. when you think about the potential buyers of twitter, google, facebook, it would be an enormous acquisition. not really.gh, if you bought it all right. $19 billion, the same as whatsapp. that is the same that facebook paid for whatsapp. julie: they would be paying a premium. matt: a premium, right, but i would say it is probably worth more than whatsapp if you look at the earnings power -- well, who am i to know. otherwise i would be on the good coast other than over here. mark: oh, wow. julie: our coast is ok. matt: it's ok. julie: we don't need you. go where you will. matt: keep it here. mark crumpton and i will be back

in two. without julie. ♪

donald trump continues to dominate the field of republican candidates for president. in the latest bloomberg politics national poll, trump was backed by 21% of registered voters who identify as republican, followed by former florida governor jeb bush at 10% and current wisconsin governor scott walker arkansas governor mike huckabee at 7%, and florida senator marco rubio at 6%. allow onstages to the 10 candidates who fair the best in the national polls. poll, theomberg

undecided -- rand paul, ben carson, chris christie, ted cruz, and john kasich would make the cut alongside the new yorker donald trump. think mr. trump will be in the debate. i do not think he cares to -- matt: will make the cut, we are saying. mark: i find this interesting. if you are in announced candidate for the presidency of the united states, i don't think it should matter if you get 1% of the vote. if you have campaign staff, people on the ground, you should in the debates. why silence a vote because of a poll? matt: then we would have 17 people in the debate. mark: we have almost 70 now. matt: i feel like that is too much. have we ever had a candidate like donald trump, an outsider with no real experience in come in andfice

take a genuinely substantial share of the popular -- mark: we were discussing this earlier during a commercial break and the only person i can think of right now is ben carson, because dr. carson is obviously going to be taking part in these debates as well and he is a ne neurosurgeon. matt: that is now. the only one i can think of any history as ross perot who did not run as a democrat or republican. mark: yes, he did. donald trump will beyond. i will be watching on bloomberg politics. i will see you tomorrow. matt: stay with us for more on the bloomberg market day. ♪

corey: -- matt: welcome back to the bloomberg market day. i am matt miller.

stephen einhorn was not sorry to see -- david einhorn was not sorry to see july and. the greenhorn capital fund dropped 9%. here are he was on the conference call earlier today. >> the market has become truly unfavorable for our overall investment strategy. we do not expect to do well when investors shun value stocks for momentum stocks. we have experienced this a few times before and each time the results have been painful. we do expect the environment will improve and we will recover. it was the worst month for the company's portfolio since 2008. coach said third-quarter earnings beat analyst estimates. they are revealing products for notger consumers that do have to be discounted to sell. they are refreshing their stores

and partnering with new designers to retake market share from competitors like kate spade. add an extension in subscriber gains to the third quarter -- the total users for sprint at 50 million. their closest competitor and has 58.9 million. the numbersprint to four spot among wireless carriers. disney is reporting earnings after the bell. investors might want to know about the future online availability of espn, whether it will remain on services like tv. tv's sling and also investors may be preparing for another expected blockbuster release in december. after neighboring

accused the farm of substituting balls. -- substituting bulbs. those are just some of the top stories we are following for you at this hour. coming up in the next half hour --the bloomberg market day lobsters are being exported to china in droves and another healthy snack companies scheduled to go public tomorrow. the skinny on what to expect from this ipo. plus, he helped smooth the way for uber to operate in new york and has his sights set on helping other startups navigate bernie regulations. all of that and much more coming up on bloomberg market day. last week, with youth, health, and a dictation you would think

that millenials have it made, but there is one thing they are never likely to have much off, and that is money. one person thinks that it may be time to pity them. he spoke with erik schatzker and stephanie ruhle this morning. only 15% of the 18 to 34-year-old bracket have gone to college. but you look at what they make and every succeeding generation has made more than the one before and am now. this group is making about $34,000, down from $37,000 people of a similar age made back in 2000. the, the numbers in terms of earnings beat for themselves, but that's only the beginning of their problems. ago, iie: two years spoke with stan druckenmiller talking about college reform and they need to care about it and i do know what to

say that it fell on deaf ears, but it definitely was not a priority. they just did not care. >> they will have to live with the burden of social security and medicaid. they will pay for my social security and medicare and not have the money to pay for the room. that is far out there. it's probably hard for them to completely process. there's other stuff happening in the here and now. student debt. college tuition has gone out to 234%ompared to -- gone up -- i want to pull this chart up. millenials mired in debt. that is massive. >> it shows how much goes tuition has gone up, but you have the other chart, their debt levels, 71% of millenials graduate with debt, versus 46% 20 years ago. average debt is $35,000. how do we fix that?

in order to fix it, you have to figure out who is to blame for the increased -- >> who is to blame, broadly speaking, is my generation. the baby boomers. we followed the greatest generation. i think we may be the most selfish generation in that we have not been willing to pay for anything. we have run up big budget deficits and that is part of why college tuition has gone up, cannot why millenials buy houses. you have entitlements programs sitting out there. we have not funded entitlements for my generation. i think you can mostly blame the policymakers in charge for the last 20 years who have failed to policies that would solve this. of course, we have a financial crisis, technological changes -- stephanie: hold on. is that because -- you say this is taking place of poor policies over the last 20 years, or is

that because these millenials are two years old, nine years old, and they do not vote and their parents are not thinking about it? >> that is true, but every other generation is that, the kids are coming, we got to make sure we take care of them. we have to make sure we leave them fiscally sound policy, a strong economy, and that is not happening. we have left them a really weak situation. steve, what you say to people who look at the data you throughand say 2009 2013 is the time after the worst economic crisis this country has 50 years, so income levels will be depressed and then they pull up a chart showing unemployment between 25 to 34-year-olds, which some people might called millenials versus the national on appointment rate, and is pretty much the same.

30 basis points difference. insure, but if you go back history i think you'll see that millenials are still doing worse than others in the past. remember, the employee cost 2.4% the last quarter. increasehe smallest in history. if you start off at a low income level, you never really catch up. you never make up all of your loss, so by the end of your career, you have had substantially lower earnings and people of your own age you started their careers 30 or 20 years earlier. steve ratner talking with erik schatzker and stephanie ruhle. coming up on the bloomberg market day, feeling the pinch. why lobster prices are about to soar. ♪

matt: welcome back to the bloomberg market day. i am matt miller. watch out for lobster prices. your favorite crustacean is going to get more and more expensive and shows no signs of slowing down and you will never believe why, especially after the news you have been hearing the last couple weeks. 6000 norm -- north american lobsters are headed to china. it used to get the catch from australia, but that began slowing and they shifted to north america. metric tons of lobster. the shipments are up 12% in 2015. for more, we bring in lobster lover alix steel.

alix: do you like lobster? matt: who doesn't? it's nature's perfect food. alix: here is the deal. you have demand that is not theirfulfilled by supplier, basically australia. there are not enough lobsters in australia to go to china. matt: not smart, by the way, of the australians. .lix: they are overfishing you can say that as well. if you look at alibaba.com, you lobstera live canadian for six dollars to $10 a pound. an australian southern rock to $30 per pound. a glut of lobsters in maine, which meant the prices went lower. there was more financial incentive -- the best they are lobsters in the world, as we know. alix: yes.

no shy that demand will slow down. matt: i see. how about the fact that their stock market just grass? ?lix: but $10 a pound why not buy it for the u.s. when is that much cheaper. ?att: what are we looking at i remember buying fresh maine lobster for $20 per pound. it's a lot more now. it depends where you are buying it. at the restaurant or in the store, a lot of what you are paying for is gas, transportation, not the actual commodity cost. if you are buying it straight from the fisherman, that could be a different story. wholesale canadian claw and knuckle meat is up 32% from a year ago. of $22an all-time high for 75. alix: i use the -- matt: i use the lobster as a transportation bugle for the butter. alix: let's be totally honest.

who doesn't do that? matt: usually you come on here and talk about commodities with me. alix: and we are doing it again. matt: i cannot believe that brent crude fell below $50. that is the first time since 2009. alix: there are two stories and oil -- matt: this is nymex. just to make it clear. you know this, but nymex is priced five dollars, four dollars less than brett crude. it is a different deal, but nymex has been below $50 often for a long time. have both been getting crushed. short-term is hard because iran is talking up their ability to ramp up, a million barrels in a month when sanctions are lifted. that is completely optimistic from who i have been talking to, but that is waiting on the market. you have refinery margins, which less that they may run

crude. also boston producers are raising output because they are desperately trying to make as much money as they can to cover loans in october. that is the short term picture which is why traders are so bearish. matt: short-term, supply rises -- long-term, 4 million barrels a day from projects have been delayed and 2016 prices are undervalued and they should be higher because we are going to see supply cut in, and you see the north sea and asia and producers and we will be looking at the deepwater drillers and that is not easy to turn on and off like shale. matt: who is saying this? alix: energy aspects. matt: the long-term supply-side will be hurt a little bit. alix: it will respond to lower oil prices and we will see higher prices in the future. they think 2016. the prices now are undervalued. matt: interesting stuff.

i always worry about the demand side, but i do not see where the demand would come from -- gasoline demand in china was up 11% in the first half of the year. so, residual growth there. by the way, the chinese are paying more for their tires, i guess? to talk about rubber. we do not talk about that. rubber in tokyo entered a bear market. what is left for their tires then? alix: that chart shows the higher price just today, but we market, down bear 20%. it is the latest casualty, basically too much supply, not enough demand. we will see a surplus according to the international rugby or -- rubber study group. seeing as bigot of a demand growth, up 1.2% this

year. versus 7% last year. the latest casualty of what china is doing for the commodity market and i did not really know rubber was that milky, white stuff. matt: absolutely. alix: interesting stuff. matt: i am looking of the international rubber study group. i always wonder when we have a group like that -- it runs this? alix: they have 300,000 tons this year. matt: and the number of publications -- they have a q and a on their website. alix: thanks, matt. top: i will see you at the of the hour. let's look at the top stories. adidas has its eyes on the biggest basketball free agent. they are offering james harden a deal. his deal with nike expired. nike has two match the deal or he can walk.

they like harden's look and style and his game as well. he was the runner-up in the m.v.p. vote this year. and for astronauts, a trip to the moon is like most business travel. you file an expense report. that is what astronaut buzz aldrin did after his historic trip 45 years ago, more than 45 years ago. $200.35 --bursed $3.35. itinerary.ludes his everybody loves buzz aldrin. this is awesome. another way to catch the perfect way. australian daredevil bobby madison has tricked out a motorbike so he can serve. here he is in french polynesia modifiedhighly

motorcycle. it took two years to develop and train to learn how to ride. it is sick, sick video. highly recommend checking it out. those are your top stories this afternoon from the bloomberg. debt crisis has obviously escalated. the caribbean island stopped paying into a fund that pays its general obligation bonds and one of its agencies defaulted for the first time. betty liu and mark crumpton boake to congress most -- congressman pedro para lucy. he has been puerto rico's member of commerce -- member of congress since 2009. years we were having operating deficits on financing. but that is not be brought or the maturity of the debt. here is that. you balance your budget, you leave with the new means. pedro has been,

compensating from the lacquer of federal funding in programs like medicaid, for example. the burden that puerto rico has to have an efficient health system in place is amazing when you compare to the burden of any state in the mainland. one of the reasons this territorial status we have, we are shortchanged in federal programs on a massive scale. betty: representative pierluisi, back in washington though, getting back to what is going on on the island -- back in washington, in your dialogues with lawmakers, have you had any this with treasury, jack lew and his colleagues, to see what they might do to help puerto rico? well,entative pierluisi: yes. what i would say firsthand, we

have never asked for a bailout. we know better. we know there is no environment in thever, either federal government or congress, for a bailout for the puerto rico parliament. betty: right, but what have you asked for? so, what have you asked for? i haventative pierluisi: ousted for access to chapter nine of the bankruptcy code -- i have asked for access to chapter nine of the bankruptcy code. what that does, it allows cities, counties, entities like , consumer authority to reorganize themselves under the purview or supervision of a federal bankruptcy charge. that is a tool we should have available. because about $20 billion of debt were to rico has incurred was issued or evolved on the

issues of government entities like the ones i just mentioned that are having financial difficulty. they should be. they should have that. it should be a legal, orderly andess to negotiate adjusted that levels. we cannot have that. we should have that. matt: pedro pierluisi, congressman from puerto rico. coming up on the bloomberg market day -- pop is looking to price its ipo. we will look at that company. ♪

matt: amplify, the maker of skinny pop popcorn is expected to price its after the closing bell. 240s expected to raise million dollars. joining me to discuss the ipo is bloomberg's ipo reporter leslie picker. i've been thinking about this. popcornno way to make less healthy. the only thing you can do after is make it more unhealthy. it's just warned that is popped. leslie: what skinny pop does for you is they put it in a nice little package that you can grab and go. matt: i see. got it. and they make other things. leslie: they make chips, but all of their sales came from skinny pop. that is one of the risks for this company. they are a one hit wonder, at least in a provable sense. skinny pop is where they get the

bulk of their 100 million-plus in revenue. matt: is that because the chips do not taste very good? leslie:: i have not tasted the chips. matt: you haven't? if they do not taste very good -- matt: i think it should be part of your due diligence researching the company. each and every flavor. annie 's makes macaroni and cheese, but apparently healthier macaroni and cheese? leslie: it is this health and wellness cycle. tomorrow,anet fitness amplify tonight. it's a reflection of what we are seeing in a broader consumer basis. , surveysy millenials have shown they really care

about the food they put in their bodies, they really care about staying in shape, living longer, being healthier. matt: more power to them, because they will need a lot of years to pay off all of that student debt. picker, thank you for joining us. we will have much more on the stock tomorrow with the ceo of amplified. i keep thinking skinny pop, skinny pop, skinny pop. much more market day ahead. stay with us on bloomberg television. ♪ ♪

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>> alibaba. e-commerce come -- company hired -- as president had just how large is their footprint in tech? >> we will dig into what to expect in the world's largest entertainment company. ♪ matt: good afternoon. i am matt miller. short when i am next year. let's get straight to what the markets are doing right now. i want to point out it is below it 100 -- one the -- the 100 day and 50 day average. to watch there