we will talk with the ceo of mylan. >> it will ask the ceo of lending club what he plans to do to boost the stock price. shares are down more than 40% this year. ♪ betty: good afternoon. i'm betty liu. mark: i'm mark crumpton. welcome back to "bloomberg market day." the nasdaq 100 to its biggest decline in a month, emerging-market equities and currencies falling. the markets and investors are weighing the possibility of an interest rate increase next month. let's take a look at the boards. look at the s&p 500 index.

it is down a full percent this afternoon. it's lower now with stocks down fourth day in five sessions. we are also seeing big declines on this thursday in viacom and 21st century fox. viacom falling the most in almost seven years after posting third-quarter sales that missed estimates. fox's earnings also fell. domestic advertising down, and we are seeing that spill over to cbs, disney, and discovery. discover is up, 1.25%. lowest level in more than four months in new york. u.s. government data shows crude stockpiles remain above the 90 million barrel mark. that is the five-year seasonal average. goldman sachs predicting an extended glut and global curde. -- crude. betty: we are seeing gains in the longer term and of the yield curve. the outlook for inflation

dropped to the least in almost five months. we had economic numbers this morning, jobless claims falling to a four-decade low. in the currency markets we saw a weaker pound against the dollar, investors facing bets on when the bank of england will lag behind the fed in raising its rates. of theet a look at some top stories crossing our terminal at this hour. filing for u.s. unemployment benefits of ringer the lowest levels in four decades. by 3000 toims rose 270,000 last week. job market experts say firings are down and employers hold on to more workers. we get the july jobs report tomorrow morning. a consensus on interest rates from policymakers in london. >> at its meeting yesterday the mpc voted by a majority of 8-1 to maintain the bank rate at not .5%. the committee you -- voted

unanimously to maintain assets and reaffirmed its expectation that when the bank rate rises occur, they can be expected to be limited and gradual. its outlookank cut on inflation for the rest of the year, saying it is muted and the recent decline in energy prices will have an effect until at least the middle of 2016. mark: pershing square capital says it has built a $5.6 billion stake in a food company, mondelez. mondelez monfils -- diffused a fight with nelson peltz. incorporatees to the medical company's imaging management platform with its watson data analytics tool. the all-cash deal is subject to regulatory review and approval from urges. -- merges. betty: the german automaker

posted a 42% surge in july deliveries. sales rose to more than 29,000 vehicles. deliveries are up 15% from a year ago to nearly 150,000. elon musk says teslas facing onllenges of interior pieces the forthcoming model. deliveries are set to begin in late september. snags on tesla's first suv could slow output of the model s sedan. ceo says the company may deliver 50,000 to 55,000 of these companies this year. shares dropping on the news. they are still up about 21% so far this year. that is a look at the top stories at this hour. mark: coming up in the next half hour of the "bloomberg market to," why walmart's plan

boost its minimum wage and boost morale may have backfired for many workers. betty: the chairman and ceo of a cit group tells us why he thinks a bird that -- potential rate hike will not have a negative effect on the economy. mylan is feeling pretty healthy today. the world's third-biggest maker of generic drugs has said strong and the pen sales help try those earnings. reiterated itsny commitment to acquisition of her ago -- perrigo. the ceo has remain staunchly opposed to the takeover. mylan seems to have the right prescription. the ceo joins us in studio. good to see you again, talk to us about the strength behind the generics business. where did that come from? this quarter underscores how strong our fundamental businesses across all geographies. we had double digit growth in

the u.s., double digit growth throughout the rest of the world. while ourle to show legacy business was flat, we were still seeing growth in europe overall for the year. as we acquired and closed our transaction earlier this year, that contribution has proven very healthy. they had originally thought that would be a declining business. we have accelerated that to almost being flat, which proved it really shored up europe as well. betty: in your space right now m&a is hot. can we pull of the stock chart for mylan? you have been fending off this takeover bid from teva. and we canreholders, see here sold the stock down after that news. do you feel that pressure that you need to do some sort of a deal, whether it is perrigo or

somewhere else, because your shareholders are looking for this? right now stock price -- we absolutely underwent some activity andeva what they did to the marketplace over these last couple of weeks. we believe it's temporary. today arer results raising our guidance for this year, shows the strength of that business and the value we continue to create for shareholders, and we believe our stock will come back to represent what that true value is. as you look at acquisition there is no question that m&a activity has been fierce across all of health care when you look at our payers, pharmacies as well as the pharmaceutical space, i would say this most recent with teva and allergan we see as a benefit to our business. a really positions the top four going to three. are the top three, we only true global generics company because teva is still

predominantly brand. epipen is going to go off patent, right? guest: still 85% of our global business is generics. we think that franchise will continue even if it stays generics. the ability of being a differentiator as the largest global generic company we believe positions us even more so to be that leading consolidator in our sector and be able to continue to garner assets that are going to complement our platform and continue to drive us being the global generic powerhouse. mark: you mentioned shareholders a moment ago. how do you convince shareholders that the perrigo plan is a better plan than accepting teva's bid? guest: teva was just not the right company. neverieve that -- teva put a real offer on the table. they were very disingenuous when

they kept telling our shareholders they were going to put a firm offer on the table and never did so. the trauma that i talk about in that marketplace is all of that noise getting out of our stock. and we have said that mylan a standalone basis, whether it is perrigo or other acquisitions -- we are not standing still. we like perrigo. there is a ton of opportunity. everything is for sale. shareholdersour that we can put what teva signaled, and expression of interest plus more. betty: would you raise your bid on perrigo? we have anwe believe extremely fair and compelling offer on the table and we believe his shareholders -- the benefit of the 2.5 under takeover rules is when we get through our vote on august 28 we are going to be able to take our proposal directly to the perrigo shareholder for a tender. mark: would you consider doing a

deal with a branded company? guest: yeah. we have said we believe bigger just for the sake of bigger has been demonstrated. that does not necessarily translate into value creation. bigger for the sake of creating a better company. there's many combinations out there. -- we have amany jv partnership with pfizer in japan. we have demonstrated their many different kinds of ways to partner or do deals. we have also said that there could be a combination that we believe mylan with somebody else could create a better company in the industry and we would absolutely before that. betty: i have heard you speak many times and you have spoken out about some of the controversial issues of companies headquarter in themselves overseas to save taxes, and that is exactly what mylan has done. we had david piatt on yesterday, the former allergan ceo, who is

in version deals. i want you to listen to what he said about that and respond. david: the core of it is what will be the future of innovation here in america and job creation in this country. when one looks at the tax code it is clear that american owned domiciled companies are at a severe disadvantage and i think that having agree fair and competitive playing field is what it's all about. that has been the strength of this country, one of the reasons for the dynamism of our economy over very long periods of time. betty: what do you say to that? guest: i could not agree more. i was up in congress two years before we did the inversion saying, we have an unlevel playing field. we were the last of our sector to invert. not doing thee

inversion just for tax. it happened to be an opportunity with the abbot transaction. say there's also other things, like the shareholder. our country has swung way too far to that pendulum. about the price. board of directors have a judiciary responsibility to act in the best interest of a company. a shareholder has their own individual best interests at play. i think that board of directors need to be given that opportunity to evaluate and take the time, and that activism just for the sake of activism to put not necessarily represent -- especially when a company has shown a proven track record, has delivered growth. we have delivered almost 30% agar over the last eight years. a well-run company delivers a lot of value for shareholders and we believe that is what mylan has done and we will

continue to do with our standalone strategy. betty: thank you so much. still ahead on the "bloomberg given aay," could have big jolt to the presidential race. ♪

betty: welcome back to the "bloomberg market day." mark: let's get straight to a check of the markets right now. but he just mentioned, a lot of red on the screen today.

want to talk about the media meltdown happening today as well as yesterday. take a look at this chart. this is the s&p 500 media index. over the past several years it has seen a gradual incline. as you can see right here, intraday, it is down by about 4 3/4 percent. in the last two days it is down by more than 10%. hat two-day period is its worst selloff since november 2008. this year has made it the biggest 15 committees by market companies by market cap. into those individual stocks, let's take a look at viacom first. this is the biggest loser, down 15.5%. this is its biggest fall since 2008. the stock had lost a third of

its value through this year, through wednesday. to justd dropped 11% over $3 billion versus an billion. 3.2 5 sinces its biggest fall 2009. fox says we should expect the fiscal 2015 forecast will fall below the previous guidance of mid-$7 billion market, and disney down by nearly 5%, down for the second day in a row. the media meltdown started with disney reporting disappointing earnings earlier this week. yesterday it already did fall 9%. bloombergk into the terminal here, i want to show you this. investors will want to take note about what is happening with stock price. right now it is approaching its 200 day moving average right here. you can see this drop off of the past few days, that 200 dma is $103.48. it crosses that line, we very

mel watt expect -- we very well might expect to share price could fall even further. mark: thank you so much. all right. betty: on to look at our top stories crossing the terminal at this hour. the 10 top rated republican presidential candidates will face the glare of national television cameras for the first time tonight and nine of them are probably making plans to deal with a political elephant in the room. not really an elephant. donald trump. trump is dominating the polls. one republican strategist said his rivals have make sure he does not still the spotlight. amount ofgot a set time, six and a half, 7, 8 minutes to convey to the audience something about you, your policy, and why you want to be the next president of the united states and why they should vote for you.

after waste time going trump, that is going to burn up a lot of those minutes. if he goes after you, i do not think you can allow that to stand. you have to demonstrate to voters that you are a candidate who will fight back. seven other candidates who did not pull high enough to make prime time will appear on a forum here at 5:00 p.m. starbucks ceo is not going to run for president of the united states. schultz saying, despite the encouragement of others, i have no intention of entering the presidential fray. i'm not done serving at starbucks. end quote. betty: serving my skinny latte? mark: if you have been that successful, why would you want the headache of what president george w. bush called the swap -- swamp? he said he got tired of being in

the swap. betty: you have a sense of public service. you can see that in howard schultz and the different comments he has made. it does feel like he's -- mark: when you are the ceo and you do not have to convince 427 other lawmakers in the house, 99 other lawmakers in the senate to do something, i said do this, i'm the ceo, hire people. betty: come on. to be the leader of the free world? come on. that has got its appeal. mark: it has its drawbacks. nowy: look at the president with all the gray hair. much more ahead on "bloomberg market day." a policy intended to boost worker morale at walmart seem to be having the opposite effect. mark: we will discuss why after the break.

for some senior workers who did not get a raise, the policies having the opposite effect. what exactly is this all about? guest: the company raise the minimum. 500,000 employees ended up getting a boost in their pay to about nine dollars. unfortunately walmart has a lot more than 500 housing employees and they have 1.3 million per you have hundreds of employees who did not get a raise. the ones who are most upset are the ones who have been at the company 10, 15 years who are now making at or around what this new minimum is. you have been at the company 10

years, you make $12 an hour and next year someone starting will make $10 an hour. those are the employees who say that is not fair. on top of that there is this perception on employees -- employees perceive that their hours are getting cut and there are other benefits who will be taken away from them in order to compensate for the rays given to these newer workers. betty: i can't disagree with those concerns. they sound pretty legitimate. what does walmart say about this? guest: this is not just a walmart phenomenon. what typically happens when minimum wages go up, economists have down, is that people are making around one dollars or two dollars more than the new minimum and also get a raise to walmart did not do this in this case. they say they understood this would happen, that there was going to be some animosity among

employees. they said they have done things to try to benefit all the employees. a new training system to help people get promotion. to try and do things to encourage people to move up within the company, maybe you're making $12 an hour as a cashier and you don't like, they are trying to do things to help people to move up to department manager or assistant manager. mark: if walmart does not adjust his pay for the veteran workers, what are we talking about here? how will morale be for those who have been there for a decade or more? guest: morales not good in the stores. there are a lot of comments on social media. the whole reason they did this was to try and improve morale. they have a customer service problem.

they believe happy workers will make happy customers and a have upset a lot of workers. there is that issue that is not necessarily going to get economists have found that workers are more likely to quit over what they feel is unfair pay or pay discrepancy within their company. shannon, thank you. betty: i'm signing off now. mark? mark: we will hear from john thane, chairman and ceo of cit next about where the potential crisis is for hedge funds. we will also hear from the ceo of lending tree. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20.

it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. mark: welcome back to the "bloomberg market day."

thank you for staying with us. let's get straight to the top headlines at this hour. viacom is the latest media company singing the blues and the owner of mtv, comedy central posted a third-quarter revenue decline wider than expected although it's still met earnings estimates. sales fell 11% to just over $3 billion. analysts expected $3.2 billion. the results marked viacom's fourth straight decline in u.s. advertising sales. the company is struggling with falling viewership, ratings, and questions about the health of the cable tv industry. big loop moves to incorporate the medical company's imaging management platform with its watson data analytics tool. the all-cash deal is subject to regulatory review and approval from shareholders. --lier here on bloomberg that phrasing was not correct.

the company says the september that was referenced dealt with the strategic process announced in 2012 and is completely unrelated to today's announcement. in other news, the "the new york that" is reporting profits he estimates after slashing expenses faster than revenues. to about $383.5% million just short of estimates. down 5.5 percent, dragged down by declines in print is more readers get news online. thes the first day of publicly traded company for planet fitness, the discount gym chain raised $260 million in the offering. the sealed told bloomberg news reporter leslie picker that the pressures put on big box stores by e-commerce has provided planet fitness with real estate opportunities. >> during this whole process of retail is a years,

big block -- all the big boxes are freeing up. that has helped fuel growth. mark: planet fitness is holding $500 million debt on its balance sheet due to its expansion plans. adidas' golf business is in the rough. tailor-made unit held back second quarter as net income missed estimates. adidas slashed its forecast for tailor-made this year after a 26% revenue drop. the company ceo was trying to streamline the company's shoes fornd focus on running, soccer, and other sports. coming up in the next half-hour comedy "bloomberg market day," banking is no longer a hot sector for a hard-earned mba grad. we will tell you where students today would rather work. estimates,b's latest

but the stock has been under pressure this year falling more than 40%. i speak with the cup and he's ceo. one of the financial crisis, cit group has acquired one west for $3.4 billion. the chief executive john thane has had a front row seat to wall street's transformation. mr. thane spoke to "market makers" anchors this morning about why he is not focused on the fed rate hike. >> the fed -- they are going to hike at some point. i do not think it will impact the economy. i do not think it will surprise everyone. betty: last week i sat down with mike burke and got the same answer with the same expression of no. do you think we are putting too much pressure on these data points, saying this? should we be so concerned? 21 basis points, 50 basis

points -- come on. if anything they should have already raised rates some. i do not think it will negatively impact the economy. for banks, it would be -- all of this money has served the public would it into the system, keep spreads narrow, making it difficult for guys like you to originate new credit, right? >> that is true. we tend to hold a lot of cash so we earn zero on that cash. we will make more money in a higher rate short-term environment. creditsan originate new tanks in part to the cheaper funding you have through the one west deposit, that is a great thing, but people want to see growth faster. they wonder to themselves how do you do it. you have said you are not really interested in buying more banks. i think some people wonder why. who better than john thane and the cit group to do an original

group rollout? our bank is twice as big now as it was before we started right we have to make sure we are good at managing that twice as big structure. that is going to be the first thing. are not thinking about what you are going to buy next? guest: no. but we do have opportunities to grow. about a year and a half ago we looked at the maritimes ace and that is a space where all the banks have lost a lot of money, asset prices, values, our ships are down. had started lending against ships, lending to people who own ships. that is a business where we have been growing debt portfolio and it is a space that most of the banks have left. there is not very much competition right now. stephanie: do you think banks could get back into that space? guest: they could, but they need the expertise.

shipping prices today are very depressed. erik: what about buying portfolios of assets like the stuff g.e. is selling or businesses spinning off as part of the dismantling of ge capital? it is an interesting area for us. if you look at the most recent piece traded, they traded at a price that would make no sense to us. erik: but what does that mean? and other financial institutions grow if the real money buyers are paying such high prices? guest: it means we have to grow our business organically. we have to originate loans. there is opportunity there. it means you can't grow too much faster than gdp. one of the negatives we see right now is the fact that the u.s. economy is not growing as robustly as it should. if we get 2.5% gdp growth, it means we cannot grow too much

faster than that. stephanie: when you see the price tags that equity giants pay today, can they do that because they have so much money, it does not matter? guest: they have to put the money to work. they are just putting money to work. erik: in principle should they be willing to pay higher prices than you should be willing to pay? it is hard to understand how some of the prices get paid. when we look at returns we need to get for our shareholders we cannot just buy some of those prices -- justify some of those prices. stephanie: they are locked up, erik? k: john, one of the things you highlighted is the sluggish pace of mergers and acquisitions in the middle market. dealse seen some enormous

in pharma, for example. but that is not where you are playing, right? why hasn't there been more on the russell 2000? guest: when we talk to middle market companies and companies who run them, they are still very concerned about the economy and the lack of gdp growth. they are worried about their health care costs which are up, their taxes which we still in this country have one of the highest corporate tax rates, and they are worried about the cost of regulation. are not being very aggressive in terms of being willing to borrow more money and expand. mark: that was john thane, chairman and ceo of cit group. you can watch the rest of that interview on bloomberg.com. still ahead on the "bloomberg it seems wall street is not what it used to be. we will tell you why more and more harvard mbas say they do not want a career in investment banks. ♪

mark: let's get straight to a check of the markets. good afternoon. at our majorook markets, they are all down today and pretty much at their session lows. the s&p 500 is down by nearly 9/10 of 1%. the nasdaq down by 1.6%. take a look at the function. the s&p 500, some sectors are almost all in the red, aside

from energy. --rgy is up i 1.3% rate can consumer discretionary and health care are the major losers , as they have been for most of the day. inside consumer discretionary, media is the biggest drag with disappointing earnings coming from lower ad sales. let's talk about some of the s&p leaders for today. there is some upside. chesapeake is the s&p's acus daynard today -- biggest gainer today. it has beento date the worst performing, down about 60%. on chesapeakenews actually getting a boost in demand from president obama's clean power plant. this is the world's largest offshore rig owner. second-quarter profit beat estimates by more than double, $1.11 versus an expected $.51 there. it is still the third best stock

performer of the day, up by 11.5 %. its first-quarter earnings beat analysts' estimatses. the luxury lifestyle brand saw its international businesses outperform its core market in north america. revenue in europe through about 17%. .n japan it jumped by 33% taking a look at the commodities before headed back to market, oil is hitting its lowest level right now in more than four months. goldman sachs says the world is seeing too much supply on the order of about 2 million barrels a day. right now it is trading about $44.48 a barrel. looking over to gold, and gold is actually seeing a five-year low. the safe haven commodity is down by nearly 8% year to date. today it is up i a little bit, a third of a percent good tomorrow plus u.s. employment will be a factor.

thank you so much. let's take a look at the market close in europe. >> we are seeing stocks rebounding today. i will show you the detail first. these are the main stocks we have been watching. since the financial crisis, the earnings for the second order were a beat and it also raised his capital target. that has risen the most in more than a year today after its second-quarter profit was a week as well. the national bank of greece along with other greek banks really taken a punishing. that is the detail. i will show you the biggest picture across the benchmarks. you can see gains for the most part are -- part. italy has been leading the

rally. the outlier is the athens stock exchange increase, losing for a third day. it has fallen about 4% and not as much as he losses on monday. look at the banks. tracking greek banks has dropped to a record. finally a want to show you how the stoxx 600, actually benchmarked in europe, is shaping up more than 1%. gaining for a six-day out of seven and is benchmark has risen about 17% this year. back to you. mark: goldman sachs analysts have put a price tag on the efforts made by china's government to prop up the recent $2.4 trillion stock market route. china's government has spent as much as 900 billion yuan in the past two months to prop of

the country's ailing stock market. that is according to goldman sachs analyst's, who say the injection amounts to almost half the funds allocated by the chinese government and 2.2% of the country's flee -- free flow market capitalization. the government yet to disclose a figure on its intervention. mark: harvard mba grads used work about that -- brag about her 21 hour workdays on wall street. mba grads are increasingly going with00 to 5:00 tech jobs lots of perks and an emphasis on quality of life. reporter: i'm not sure that 9:00 to 5:00 is the way to characterize it right this is part and parcel with netflix and microsoft providing more generous maternity and paternity

leave. the fight for young talent is fierce and silicon valley has changed all of that. you have regulatory changes across global wall street brought on by the financial crisis, making it less fun and less lucrative for people to pursue careers. mark: they have their eyes zeroed in on silicon valley. just seven years, 13% of harvard business school grads went to investment banking and trading jobs in 2007. last year that fell to 5%. the blue jars -- bars show tech jobs. you see a sizable uptick in those pursuing jobs in technology. mark: the business schools are seeing this too, right? scarlet: changing their curriculum to account for this. it is based on where the school is based. in colombia you are going to see generally more people pursuing

banking than they otherwise would at stanford. mark: is this part of an offshoot that we are moving so far away now from the 2008 financial crisis? we saw a lot of young kids pouring into finance at that time. maybe they thought they could be part of the solution. maybe they thought, i can get a big pay day on wall street. isn't there money anymore. regulators have changed the way the people do business on wall street and that has trickled down. silicon valley has the sheen of making the world a better place comic into bidding something, building something. on wall street at this point you are picking up the crumbs. you no longer have the prospect of really making it big in terms of salaries. and silicon valley you might be the next billionaire. who knows? mark: we should not feel sorry for the top investment next because they are still getting some of the best rides coming out of harvard greatscarlet: no doubt.

we will be speaking with his excellency. the chairman of dp world, one of the owners of the biggest ports. he will be talking about what the expansion means for his company in global trade overall. thank you so much. mark: lending club reported earnings late yesterday and it saw strength in new loans briefly boosting the stock. the shares stumbled lower, now trading slightly below their ipo price. i will speak to the ceo next. ♪

mark: welcome back to the "bloomberg market day." thank you for staying with us. lending club, the alternative online financing company,

reported earnings late wednesday. long origination was up 90%, nearly $2 billion. operating revenue rose 98% and it continued to line up investors in new states. the stock rose only briefly and still trades under its $15 december ipo price. lending club's chairman and ceo joins me now from washington. welcome to the broadcast. what can you do to turn things around? i'm focusing on managing the company, not managing the stock trade the company is doing great. 98% year-over-year revenue growth. we also reported increased efficiency.

we are very focused on long-term value. been public for a year now. how has that changed your company? what we have seen so far has really increased awareness. the ipo itself and being in the news more over the last two quarters has really helped. it builds awareness and credibility. seeing that with customers being more likely to trust us with their personal information as we go through the process. that is part of why we are seeing increased efficiency. we are also seeing large companies eating more willing to partner with us.

we are seeing our ability to attract top talent. it has been good. mark: earlier today on bloomberg television we interviewed john thain, the ceo of cit group. he told us the next financial crisis is probably going to originate from online lenders such as yourself great i would like to play a bit of what he had to say. the most leveraged lending is being pushed out of the bank space into the hedge funds. if you wanted to worry about the next crisis, you would worry about that space. that is where the more leverage, the more risky pieces are going. mark: are you and other online lenders taking on the most credit risk? renaud: not at all. i think i agree on some of the bec's and hedge funds.

it's actually a perfect match between assets and liabilities, 1:1. there is a lot that is risked in our system. it's also very diversified. instead of what you saw with highly dependent on the securitization market, lending is just the opposite of that. it's a marketplace with tens of thousands of investors, hundreds of thousands of dollars. very distributed, very diversified trad. mark: you have partnerships with some of the traditional banks. are those partnerships key to lending club's growth? renaud: i don't know if it's key to our growth.

we still have a lot of direct to consumer acquisitions. banksnk an alliance with can really yield benefits for the banks, for lending club, and more importantly for consumers and small business owners who benefit from these partnerships. what goeshink about into the cost of credit, it is the addition of the cost of operations and the cost of capitals. lending club provides a low cost of operations. the banks provide the low cost of capital. together we bring more -- mark: the chairman and ceo of lending club joining us from washington. stay with us. "bloomberg market day" continues in just a moment. ♪

after spending billions, egypt finally opened its suez canal expansion and it will have

big ramifications for the global shipping industry. betty: the billionaire investor takes a large stake in snack maker mongelez. could it mean more food industry m&a? mark: we will hear from the ceo. mark: good day from bloomberg headquarters in new york. im mark crumpton here with scarlet fu. scarlet: u.s. stocks resuming their decline, the dow did not rebound yesterday. a sixth straight day, the longest losing streak since mid-october. , disneyocks leading down again. look at treasuries. as stocks fall, treasuries are getting a bit higher. prices mean lower yields.