francisco. tonight, the presidential debate. nine of the contenders wonder if donald trump will call them a loser. john talks about his acquisition of one west end the future of financial regulation. why john stewart is signing off. his last daily show tonight, and even the president is sad. matt: good morning. i'm matt miller. and i'm pimm fox. let's take a look at how stocks are trading. s&p 500 lower by a little more

than nine points. we are trading near the lows of the day right now. many investors looking to tomorrow morning's report from the labor department about payrolls. matt: i have been pulling up the , the biggest losers, the companies pulling it down. media.m: yesterday, there were reports of slowing growth at disney. biggest losers we have fox, comcast, disney, viacom, time warner. tmt -- telecom, media, technology -- pimm: i think at&t is down today as well. ,att: it's basically all tmt

and i think if you count the .iotech companies pimm: let's move on. let's take a look at some of the stories crossing the terminal at this hour. the bank of england is leaving its benchmark rate unchanged. only one policymaker voted to increase rates. carney sees no threat from inflation. carney: as the economy progresses, and if it progresses broadly in line with the forecast, the decision about when to move interest rates is going to come into sharper relief. u.s., tomorrow's payroll report will be read as a guide as to whether the federal reserve will raise rates in september. also in economic news in the united states, jobless claims are at the lowest level in 40 years. 270,000 by the

week that ended august 1. say this is typically consistent with an improving job market. matt: ibm is expanding its reach in the medical world. the company agreed to by merge health care. ibm wants to tear its tools with merge's imaging systems. to approvestill need the deal, but this will mean that watson can see. viacom posted a wider than decline --venue bigger than forecast revenue decline in the third quarter. sales fell to just over $3 billion, less than analysts expected. it is the third straight quarterly decline in u.s. ad sales.

cable, comcast, time warner, fox, and disney are all slumping as we said. james murdoch says the tv streaming side looks bright. >> we are very encouraged by hulu. surpassany is soon to 10 million paid customers with hulu plus. it has velocity it hasn't had in years. matt: the company took a $55 million charge to cut costs at its radio and television stations. bill ackman is showing a big appetite for the snack business. it holds a $5.6 billion stake in monda leaves. mondelez. they refused a shareholder fight last year by putting him on the board. pimm: coming up in the next hour

of the bloomberg market day, tonight is the last episode of jon stewart's "daily show." theiror people who like news with humor. oil is falling in canada, australia, and mexico, hurting their currencies. what does this mean for oil ?ependent con -- economies we will have an interview with john fain, who talks about the transformation of wall street. are: millions of viewers expected to tune into the first republican debate tonight on fox news. 10 candidates will take the stage in cleveland at 9:00 p.m. eastern. pimm: the star will be donald trump. a bloomberg politics reporter will be there and he joins us now. if you are going to write the headline for tomorrow today,

what would it be? reporter: it's hard to know. that is the million-dollar question. the two big things people are looking out for our first, what will donald trump do? the dilemma is does he bring the traditional bluster and bravado the debate or tone it down and try to look presidential? meanwhile, nine other contenders will be trying to get their message out, and it has been very difficult for them in a field where donald trump has been dominating the news and the headlines. they are not going to have a lot of time. matt: what indications has about his intended behavior? a littleis unpredictable. no one should go in thinking they know exactly what he is going to do. he has signaled that he is going

to attack candidates who punch him, and he is known to punch back hard when that happens. he has also been saying that he does not intend to go on the attack in this debate. he doesn't intend to try to punch other candidates. difference is there between the various candidates on important positions? huge -- a reporter: not a huge difference on key positions. everyone is going to say they national defense. everyone is going to go after obama care. will be more ideological. some of them will be more inclined to throw red meat. some will be inclined to talk about social issues. some will not. i don't think you will see a whole lot of major policy differences.

matt: typically, these politicians, much like wall clusternalysts's, 10 to around -- tend to cluster around the center. what i hear is that people appreciate donald trump's ability to say whatever he likes. he doesn't have to cluster around the center. is that the case or is it only stylistically that he varies? i think donald trump is a bit of an exception because he has been willing to move outside party orthodoxy and criticize his rivals. the biggest issue he has been criticizing them on is the fact that they have to raise a lot of money from donors. his message is i'm rich, i don't need to raise money, and that's where i am not -- and i am not beholden to donors. that's one big issue where he is different.

big issues though, he is right where the rest of the candidates are. he wants to repeal obamacare. he is right where the rest of in field is on immigration, substance, if not in rhetoric and style. for the most part, i think he matches the rest of the pack in policy, and that's a conscious decision on his part. i wonder about his comment on donors. if he doesn't want to be president, that rings true, but if he does want to go forward and be president of the united states, doesn't he need to spend amount of money on a campaign? what may cost a chunk of his actual holdings? that's right, and he

says he will take what it that she will spend what it takes to win this. -- he says heors will spend what it takes to win. republican donors do not like him. they held an event where they invited many of the candidates and froze him out. raising money from wealthy republican donors is not in the cards for him, so he has to make up for that. pimm: we look forward to those debates. matt: still ahead, john stuart jon said you -- joh adieu to the daily show. we will take a look at how he has affected politics and the news, coming up next. ♪

matt: welcome back. i'm matt miller. i'm pimm fox. let's go right to julie hyman, looking at stocks falling on disappointing earnings news. julie: let's start with the worst performer on the s&p 500 today, green mountain coffee, down 29 percent. you think that would be the worst performance in a single day. it's not. e in may of 2012 when it lost half its value. delay in rolling out its new cold machine, which is an issue. sales at the company are down 1.4%. ist you're looking at here

what this all means for coca-cola. coca-cola is green mountain new shareholder. machine that a new likely won't come out until next year. it also has a big stake in monster beverage. it has done a little bit better this far with monster beverage. it is up a little since that deal was done. in terms of how those two stocks are doing today, coca-cola is down a little bit. monster beverage taking a hit of about 3%. we have to point out the accelerating declines in the media stocks we were watching earlier. talking about viacom coming out today and missing estimates with numbers. it is now down 21.5%. this ends the day down by much, that would be a record drop for viacom. have this is something you

been watching today. our producer was telling me at the break that sumner redstone is down about a quarter of a billion dollars because of this today. matt: that doesn't move me anymore. you know why? because you have told me now on a number of occasions about the personal wealth of big shareholders of these companies changing with the daily moves. day, onos the other amazon, made $6 billion. sergio and larry made like $8 billion apiece. comedy central hosts jon stewart. julie: right. we knew he was going away. that's not a surprise, per se.

sales are down. that's really the cracks of the issue with many of these media companies. was theedstone said it center of an exciting time in media. not exciting in a very good way. i think a lot of these media companies yesterday and today that are getting hit are releasing worse outlooks because losing people, keith n stewart. joh and now they have to wake up and smell the coffee. pimm: not green mount and. as we've said, it is the end of ewart. for jon st his jokes and rants have been a huge success for comedy central

and had a major effect on u.s. politics. matt: polls show that his show is the primary source of news for gen xers and millenials. for more, i am joined by the director for the u.s. center of politics. ewart has done is turned his comedy program into the main source of news for the kids, right? and the kids are now in their 30's. some studies what have said. i think that is overly critical of gen xers. i have talked to 20,000 young people over several decades, certainly over the whole time jon stewart has been on. i wouldn't say it is their main source of news. it is the source of fake news that they enjoy the most.

sometimes, they like background knowledge. it is true.sume i have had students come up to wart saidy jon ste this. is it accurate? there is a grain of truth, but of course, it's entertainment. pimm: he has said that laziness on the part of the mainstream press has helped them lose an audience. do you agree? guest: in part. the news media has been buffeted by so many forces, and you are all familiar with them. i would say, on the whole, what is left of the news media is perhaps a little more hesitant to challenge those in power. obviously, somebody and john is ant's position hesitant at all. that is what makes him so fun to watch. -- isn't hesitant at all.

so fun toat makes him watch. his recent show analyzing donald trump was better than almost anything i have seen on donald trump. is hilarious he and i will miss them, for sure. he is very good at challenging donald trump and george bush. he doesn't seem as much to challenge president obama, with out at thee, hangs white house, or president clinton. is it not a bit one-sided? pimm: well -- i will let larry respond to that. he is surely firmly in favor of the democrats and making more fun of republicans. generally, that's true. he skews last, skews democratic. so does his audience. his audience is one of the best samples of democrats and liberals on television, so in a

sense, he is playing to his audience. you know, he's a comic. the same rules don't apply to him as applied to real news people, as io always points out. , so you have to take it with a grain of salt. amm: he says that he is comedian but his comedy is informed by his politics. it has also spawned a variety of stars. what is their legacy, whether it is stephen colbert or john oliver? colbert had tremendous impact, and oliver still does. some of his other alumni are in influential places in the media. he has quite a legacy there as well, and i am sure he takes pride in that. from what i and her's hand, -- from what i understand, he has oh is encouraged those who work for him to go out on their own , andccomplish great things

that is what people should do. matt: people take this fake news program as a source of real news fairly often, and now we have a fake presidential candidate that people are overwhelmingly favoring in the polls. what do you expect from tonight's donald trump show? guest: i am sure he prefers not to attack and bash other candidates to the degree he has been doing on twitter or in interviews when no one is there to answer. it is in his interest to appear a little more sedate and even presidential in the debate. he will attacked, attack back, and maybe he will not be able to resist launching an attack or two. to the degree he does, i think it's going to look that lay. -- look badly. thetes i think are best for candidate when they are cold

mediums. that is, you have to appear cool, kong, collected, presidential. calm, collected, presidential. trading belows $40 a barrel. what does this mean for the economy that depends on oil? that's next.

♪ inm: crude oil has dropped price to its lowest level in more than four months. it is now trading below $45 a barrel. i wanted to bring this up only because you have a confluence of events. you have the federal reserve trying to determine whether to

raise interest rates by the end of the year, oil falling at the , currencies and mexico, australia, canada taking a hit because of the fall in the and just today there was the report that the saudi kingdom issued a $4 oneion bond issue, which no has the details about, but while moneyon't need the necessarily now, they might if oil stays at this level for a considerable time. -- peoplele can say say they can bring oil out of the ground for $10 a barrel. they can go lower. their strategy is to pump as much as they can and drive everybody else out of business, so to speak, to discourage other people from putting new wells in the ground. for: that is not good countries like venezuela, where 80% of their earnings are from

oil. it's not good for places like canada. this continued drop in the price if it has anyer effect on thinking about inflation. saudi's arenly, the not concerned with what going on in venezuela or canada. i don't care. it is what janet yellen of the federal reserve will look at. the jobs picture looks great. there is no real inflation to speak of. hidden there is a third, mande when you look at the dollar. -- mandate when you look at the dollar. pimm: ahead on the bloomberg market day, an exclusive conversation with john payne. -- john seine. . -- john thain ♪

♪ ♪ ♪ get excited for the 1989 world tour

with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. pimm: welcome back. let's take a look at some of the top headlines. in its first day as a publicly

traded company, planet fitness opened down nearly 10% in the first few minutes of trading this morning. the stock has recovered much of that. it is at 1% now. priced yesterday at the top end of the range. the chief executive of planet fitness told us in the last hour that he sees lots of opportunity for expansion thanks to e-commerce killing off so many big-box stores. >> e-commerce compression has really helped our market grow. all of these big boxes are franchise isd our taking advantage of the real estate. the stock is listed on the new york stock exchange under the symbol plnt. is learning that

bank of america is reviewing a paulson fund, fearing that large positions might be difficult to sell. telling financial advisors to withdraw about 80 million dollars from paulson's advantage funds because of ill liquid investments and elevated volatility. there was a surprising jump in germany's june factory orders, up 2%. low levels of unemployment and europe's economic recovery are helping german businesses. today marks one of the grimmest milestones for mankind. 70 years ago, an american plane dropped the first atomic bomb. a second bomb three days later helped push japan to surrender in world war ii. ceremonies in japan today honored the more than 200,000 people who died in the attack. japanese leaders issued new calls to ban world wide nuclear weapons. those are your top headlines.

to london. reporter: it has been a little bit of a volatile week for european stocks, a tug-of-war between better than expected earnings on the upside with a bit of a drag from commodities and greek stocks on the athens stock exchange, which reopened this week. down after00 is gains yesterday. if you look at the industry group, the biggest drag today really has come from oil and gas companies, and it has come from basic materials, minors in particular. most industry groups therefore down on the stoxx 600 as well. happeningk at what is across national equity benchmarks, it is pretty much losses across the board at the close. lossese 100 flat after earlier, of course. it has been a super thursday, a

bit of an unexpected dovish start from the central bank with only one policymaker out of nine voting for a rate increase. the bank of england did, of course, cut its near-term inflation forecast. seeing losses pretty much across the board. the outlier, again, athens stock exchange. in a different way, it is gaining. not enough to make up for the route we saw over the past three are, but still, greek banks doing a lot better. they have been the biggest losers over the last three days. grease up about 27%. as muchseeing losses of as 30% a day. greek stocks in general, even though we are seeing these gains today, have lost more than 89% of their value since 2007. pimm: thanks very much.

coming up on the bloomberg market day, cities around the country are considering body cameras for police officers. while more than one third of agencies already use the technology, demand remains strong. and tesla is facing challenges with its first suv, the model x. deliveries are set to begin late last -- late next month. investors won't believe it until they see it. a fox public debate in cleveland -- presidential debate in cleveland. we will hear what the donald has to say. all data and much more on the bloomberg market day. one of the biggest acquisitions since the financial crisis, cit group finalized its acquisition of one west. had a front row seat to the transformation while he was employed at goldman sachs and merrill lynch.

new regulations make deals such as this more challenging. john: every bank, no matter how big, has to have a state-of-the-art compliant system is compliance -- compliance system. >> how can you afford that if you are a midsized bank? john: that's why there should be more consolidation in the midsize banking sector. >> why isn't there? john: well, it takes a year to get a deal done. that's one. >> regulatory hurdles are a big obstacle. john: and up until recently, they have not permitted much consolidation. i think we will start to see more. talking about the market cap. elizabeth warren doesn't like to big positionsng

out there in terms of market cap. but 100 million dollars, if that is where the threshold gets reset, is a lot different than $2 trillion, which is where jpmorgan sits. that brings me to a question. the cit was unwound. you came in after that. what about jpmorgan, citigroup, bank of america? could you ever unwind a jpmorgan? john: it's a question of how. there is an idea of too big to fail. that's not true. you cannot allow jpmorgan, city, morgan saks, -- morgan stanley -- or goldmanchs sachs to go bankrupt in an uncontrolled way. could you unwind them over if you could stabilize them? sure. but it would take a long time. eric: taxpayer money would have

to be put to work. john: you have to stabilize them. there is no question you'd have to have the cash and the liquidity to make them stable. eric: do these big banks have a by virtuevantage of this implicit tax support? john: no question the biggest banks are still too big to fail. everyone knows that, and that gives them an advantage in the marketplace. eric: is it a disadvantage to you? john: we don't compete with those banks. we are in the middle market space. wewhat about the fact that are seeing hedge funds, private equity firms, independent lending now in your space. john: that is a cause for concern. some of theng is most leveraged lending is being pushed out of the bank space into these funds. if you wanted to worry about the next crisis, you would worry about that space.

that is where the more risky pieces are going. >> these automated lenders who are lending to small businesses in the middle market space, who are doing a based on outer rhythms in less then two minutes, when i hear these stories -- algorithms in less than two minutes, when i hear the stories, i fear we are facing another subprime situation. john: we haven't seen what happens when you go through a negative part of the credit cycle. these online guys are pushing all the risk to someone else. what happens when we get to a bad part of the credit cycle? in dusseldorfys "ho are holding cbo squared drupal and were completely screwed seven years ago. -- and quadrupled and were

completely screwed seven years ago. abouti wouldn't hear more the shadow banking industry. had he think this will unfold? ifn: it's hard to tell, but you look at the mezzanine pieces, they are all in the unregulated parts of the market, which are hedge funds. if hedge funds lose money, they will shut down. but if you look at who is invested in hedge funds, its pension plans, retirement funds, the niagara falls firefighters and teachers association. john: yes, that's why we should be worried about them. >> it's not some guy who is going to sell his yard. the guy with the yacht still has a two and 20. john: that is what i am trying to get into, the mechanics of it. eric: i want to walk through this a little so people understand, these hedge funds are going to come under pressure

, presumably, if they start to lose money on big leveraged positions. on loans, they are going to have to sell some other stuff to remain liquid, to remain solvent. so, the crisis is going to -- we are going to see the crisis show up in public markets because they need to raise this money? john: you will see a person terms of asset prices. people will experience losses. they have to generate cash. that means they have to sell assets. air: property. john: exactly right. the second thing is, these are publicly traded companies. shareholders are the ones who will suffer. pimm: that was cit group chief on marketjohn thain makers. still ahead, after numerous fatal incidents, a surge in the police body cameras.

the company cashing in on the trend, next. ♪

pimm: welcome back to the bloomberg market day. i'm pimm fox. fannie mae will pay nearly $4.5 the u.s. treasury after posting a second-quarter profit. the government took control of the financial lender during the financial crisis. fannie mae will increase its payments to more than $142 billion. a deed us is in the rough and hiring a bank -- adidas is in the rough and hiring a bank to options.

the company will focus on its athletic shoe line. how about hitching a ride with the russians to the international space station? statessting the united money. nasa says it needs about a half $1 billion to send six astronauts -- $82 million each spacethe international station. the united states currently does not have suitable rockets for the launch. those are your top headlines. nearly one third of all police agencies in the united states have a new piece of equipment, body cameras. supporters say this will increase trust and transparency between the police and the public and reduce the use of force. for context, last year, more than 100 people in the united states died in police shootings. is the founder and chief executive of the company that makes the product, and he joins us now. tell us how you created the company.

seattle police officer for 13 years, and i saw a need to put a camera on a cop so that cops could protect themselves from liability. there are all kinds of complaints and he said-she said in police work. i thought a camera could solve that. evu so we could do just that. pimm: what are some characteristics on these cameras that you might not have on a mobile phone? steve: they are different from consumer cameras because you have to have security, a software platform that can prevent the video from being edited, deleted, or altered in any way. to the videoppens once it is taken? it has to be stored, sorted, edited. has to be -- how does that all happen? steve: some store locally.

others are choosing a cloud-based solution. we are happy that we partnered with microsoft and we offer the microsoft government cloud, a very robust, compliant cloud. the bostonyesterday, city council took up the issue of body cameras for its police department. i believe the stockton police department just ordered using her cameras. whatdo these cost, and effect is that have on the overall budget of a police department? steve: it depends on the service you want. obviously, there is a cost for the camera and a cost to store the videos. you're looking at about $1000 per officer. pimm: what do the cameras run? about the cameras are $1000, and if you look at storage, there is a cost to that. the president has awarded

federal grants for police departments to adopt these cameras. what is some pushback you have received, either from police agencies or from the public? steve: i have personally met with a lot of police unions, police officers, and community members. all must everybody is supportive of the body camera. it's the ultimate win-win. customers want the devices. the community they serve once the devices. there is very little push back. wants to takebody their time. they don't want to jump into fast and do something wrong. only one third of the agencies in the united states currently have them. steve: it takes time to pick out what they want to use, test the product, get the department policy strong. pimm: is there a consistent policy? what are the policies involved? steve: every region and police

department is different in the u.s., but the policies are very similar. when you turn on the camera, when you turn off the camera, most policies i see dictate that you will turn on the camera when you engage in police activity. pimm: do you believe if all police officers wore these body cameras that the number of shot by police officers and abuse of force -- do you think that would decrease? steve: all i can do is speak to the statistics out there. the oakland police department use oforted that their force is down by over 70%. that's an amazing number. pimm: thank you for sharing your story with us. still ahead on the bloomberg market day, tesla is tanking. the electric carmaker is tumbling after cutting its full-year sales forecast. could a partnership with uber be the company's saving grace? ♪

pimm: tesla shares are falling today as production snags stalled delivery of tesla's model x. says there are production problems with the sedan. one investor asked a different question. would a tesla-uber partnership make any sense? my cohost in the next half hour, betty liu, is here with more. betty: that led to one of the most awkward moments in the conference call. generally, a conference call with elon musk's awkward because he answers questions very long, he takes long pauses, but this was a very awkward moment. i will just read to you what happened. morgan stanley analyst adam jonas, who covers tesla, asked him what a tesla-uber

partnership make sense because tesla wants to dominate the autonomous automobile market. the cars they would be able to make by 2020. that led to elon musk saying, after a very long, long silence, that's an insightful question. you don't haveid to answer it. elon musk said i don't think i should answer it. it let everybody to think maybe more than just chatter among tesla fans about this. could there be a sensible partnership here? makes thesetesla autonomous cars, he wants to buy them, the ceo of uber. he says they would make a great product for his service. impact, any autonomous vehicle would be -- in fact, any autonomous vehicle would be good for uber.

before we get to autonomous cars, they have to get the model x rate, the suv, which is scared -- which is geared toward people like me, the soccer mom. i need to make sure it works well and fits my lifestyle. pimm: you will have to wait and see when they start production. it is now time for today's options in. let's go right to julie hyman. julie: we are coming up to the top of the hour. let's take a look at how stocks are trading at the moment. media shares have been leading declines for the second day in a row. insight, joe is an investor for equity investments. good to see you. this decline on earnings. there does seem to be some nervousness as we head into what is normally a pretty quiet

month. im curious what your view is on in overall s&p positioning the market. : the jobs report is going to be an important number as we start to way when exactly the timing of the rate rising will be. will it be this year or next year? this morning, some people got excited saying we have lower rates for longer. that has been there mantra for a long time. we will see how the whole field changes tomorrow with the jobs report. things you arehe looking at, if i am correct -- actually, this is what you are looking at a month ago. we will talk about today then. alibaba is going to be coming out with its numbers. ahead of that, you pretty bullish on the shares. joe: of course, it has the leader, the hot ipo.

troubles going on in china. i am optimistic that a slowing china does not necessarily mean the stock itself has to struggle. anothero get into chinese retail company. it's going to be a bellwether for how alibaba does. i'm looking at next week's calls , looking to buy those just as a trade, not an investment. certainly, a very small percentage of my portfolio would go into this kind of investment. just looking for a little pop to the upside. regain some momentum. julie: earnings are out on wednesday, i should mention. why do you think alibaba might not fall victim to general slowing growth in china? joe: they might, but they may also be able to gains in market share just in terms of customers turning to online retail as

brick-and-mortar, kind of like amazon did in the u.s. inie: what about volatility general selloff? joe: investing in china right now is too skittish for me. are two tumultuous. the regulations -- it doesn't seem like the markets are fully ready there. i'm comfortable with alibaba being traded on the new york stock exchange. it's a very american stock. i am comfortable with a company like that. an i am comfortable with the chinese economy. at least is growing 5%-6%. julie: thank you so much. stay with us. we will be right back. ♪

pim: good day.

betty: can anyone stand up to the donald? im: ibm is adding to its health care business. will the deal make ibm shareholders feel any better? they: and a unique approach for renters and potential homebuyers are betty: let's begin with how the markets are trading at the moment. we are approaching the lows of the session for the s&p and the dow. the dow is hitting