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. you can see there is the 10 year yield. raising concern about disinflation, leading to questions of whether the federal reserve will and can raise interest rates come september. let's move on to the energy complex. nymex off by 1.6%. gold slightly higher. copper also lower. come inside my bloomberg terminal. i want to show you the breakdown of commodity returns today. soft commodities leading the decline. gotten down by more than 2%. if you change the time period to five days, you can see the damage that has been done over the last couple of days. out of 26 commodities, only five are positive. gold is barely so, hanging onto a gain of 1/10 of 1%. mark is a big winner, up by

almost 7%. meanwhile the gasoline, the energy complex, gasoline by off -- off by 6.5%. you get the idea. mark: the idea is that oil is still dragging things lower. the stake and look at the top stories we are following at this hour. in just a few hours, in cleveland, ohio the top 10 republican presidential candidates will face the glare of national television cameras for the first time. and nine of them are probably making plans to deal with the political elephant in the room, donald trump. mr. trump is dominating the polls, heading into the fox debate, and one republican strategist tells us that trump's rivals have to make sure he does not steal the spotlight. amount ofe a set time, six and a half, seven, eight minutes to convey to the audience something about you, your policy, and why you ought to be the next president of the united states and why they should vote for you.

after waste time going trump, that will burn up a lot of those minutes. at the same time if he goes after you, you can't allow that to stand. the debate among the top-tier candidates starts at 9:00 cleveland time. the seven other candidates who did not pull high enough to -- for the primetime debate will appear in a forum three hours earlier. scarlet: the democratic national committee says plans are made in advance of the iowa caucuses in february. mark: the starbucks ceo will not be joining that debate. howard schultz is staying out of the race for the white house. friends and political leaders have apparently been encouraging mr. schultz to challenge democratic presidential candidate hillary clinton. he wants to keep his current job, saying quote, despite the encouragement of others, i have no intention of entering the presidential fray. i am not done serving at starbucks. ". murkowskienator lisa

of alaska, one of congress's biggest supporters of lifting the decades old van on u.s. oil experts spoke with alix steel. >> the benefit to the united states if we lift this outdated policy is jobs. it is increased economic gain to this country by way of increased production that allows for a stronger economy, greater jobs, but also from an energy security perspective, this is a benefit that is without parallel in my mind. scarlet: that was a sneak preview. see more of alix steel's interview at 3:00 p.m. on "bloomberg market day." mark: the u.s. senate will begin debate on the iranian nuclear deal just nine days before congress must vote on it. president obama said in an address at american university this week that rejecting the deal would only benefit iran.

the republican-controlled congress is expected to vote it down, but the president can veto it. it is not known yet whether democrats will stick with the president sustain his veto. scarlet: filing for u.s. unemployment benefits hovering near the lowest level in four decades. that is a sign the strong labor market will bolster u.s. growth. jobless claims dropped to 270,000 last week. firings are down as employers hold on to more workers. we get the july jobs report tomorrow morning at 8:30 a.m. mark: comedian jon stewart signing off tonight as the host of "the daily show," but the trend he started is going strong. a new audience that wants news with a comedic spin. as a sign of the show's impact, the museum in washington says it "dailyeserve stuart's show" set. these are your top stories at this hour. activist investor bill

ackman has his sights set on snackfood maker monfils -- mongelez. a new oxford study shows 47% of u.s. jobs are at risk of being made redundant to robots over the next 20 years. the transition could impact men more than women. we will explain. scarlet: students shouldered with high debt are getting some relief from uncle sam. it is coming at the eighth and said taxpayers. -- exepsne of taxpayers. mark: egypt unveils a new and improved the suez canal following a massive expansion. egyptian officials rolled out the red carpet for foreign dignitaries at a lavish inauguration ceremony complete with fighter jets and trumpet players. scarlet: the government is hoping the $8.5 billion project will revive egypt's economy and triple the waterway's revenues.

i want to bring in the chairman of the ports operator dp world, his excellency, who is in las vegas. welcome to "bloomberg market day ." i want to start by asking what you think the expansion of the suez canal signals to you about the health of the global economy. guest: this is positive news for us. this will bring growth to egypt. as it stands today, they don't have two way traffic in the canal. this will allow two-way traffic. that means vessels will be able to travel six hours faster. this will also push the opportunities for building more ports and will encourage dp investments. ofk: at this point the value the project has some people

concerned. some critics of the project say it would require major growth in global trade. this that seem likely at this point? guest: i believe it is. worldwide is coming out of a crisis. we operate 65 terminals and we see the numbers are growing throughout the world. they expect in egypt that by 2023 the number will double. you say it's good news, and we gave the projection. egypt looking for the number of ships passing through the canal to double and revenue to triple over the next eight years. what do you think of those forecasts? do you agree with that trajectory? guest: i believe the number will increase. trade and howsee the growth in worldwide, the canal connects with two east and vice versa.

cargoody who is taking from europe and the united states will pass through the canal. ,he limited access in the canal costs the shipowners a lot. speedtalk to us about the with which this project was completed grade -- completed. initially i believe there was a time frame of three years. this got completed in a little over a year. were you surprised by that? guest: we were very surprised. that shows the determination of the government in egypt that they mean business and they were able to move that fast. egypt is not used in moving fast. this is a sign that this government, the new government means business. scarlet: i want to broaden this out a bit here and get your thoughts on the state of double-shifting. -- global shipping.

i want to discuss the relationship between the clash in commodity prices, whether it is energy prices or gold prices, and a demand for global shipping, how that fits together. guest: there are many factors that cause the slump in the rates. one of them is the energy costs are lower. another factor is that all the major shipping lines have introduced -- they are building 20,000. they are retiring seven and eight and 10,000 vessels which may be bought by the small liners spirit you have more capacity in the market. i believe eventually it will be absorbed. the market and the shipping industry goes in its ups and downs. he will not take long, in my opinion. mark: one of the stories that has been dominating the headlines of weight -- of late is iran and the agreement of the

world powers have reached with iran. how will iran play into this? guest: about three weeks ago before sanctions were lifted -- we were particularly interested in looking at the ports and iran. major products from iran would be required to come from uae because of the abundance of product. i visited iran and looked at the port facility because we are managing the ports, and the chinese are interested in bringing cargo by rail. days china to europe in 42 will be 12 to 14 days. the first train arrived rotterdam a week ago carrying 80 containers.

my visit was to see the preparation in the ports in iran. i believe it is going to be big potential for the region. scarlet: thank you for joining us today. mark: still ahead on the "bloomberg market day," bill ackman and showing a big appetite for snacks. ♪

mark: welcome back to the "bloomberg market day." scarlet: let's take a look at the markets. energy stocks are defined by losses. reporter: looking at the s&p 500, the rest of the s&p is down. the s&p down by nearly 1%, the nasdaq is down by 1.7%. there is the silver lining to this in the past hour or so. we are seeing all of these major markets off of their lows. talking about stocks related to new energy, they are taking a little bit of a hit. pointing earnings, specifically for this stock right here, it's down by nearly 22%. this is the world's biggest renewable energy developer and

recorded and 11 straight quarterly loss, this loss of $263 million. the company has been focused on some acquisitions to feed its solar and wind network. the market does not recognize the long-term benefit of what it is doing. tesla is tanking. tesla is down by 9.2%. here it is all about the seat in tesla's upcoming model x. iniveries are starting september, but elon musk says the company is facing a couple challenges with the second road seat in the back and that could slow down production of the current model s from an estimated 55,000 cars to a little bit higher than 55,000 or so. tesla here is at its lowest since november 2013. i want to end on a positive note. we look to transocean. this is up by nearly 10%, the world's largest offshore rig owner. it turns out second quarter profit estimates by more than

double. $1.11 per share, versus an expected $.51, a ceo, jeremy think 10, says he has been cutting costs said he says he has cut parking costs a particular for deepwater rigs from $85,000 to $55,000. scarlet: thanks so much. we will continue to check with you. mark: let's take a look at some of the top stories we are following at this hour. fannie mae will pay $4.4 billion to the u.s. treasury after posting a profit. the u.s. controlled mortgage from noted net income of $4.6 billion in the second quarter. fannie and smaller rival freddie mac were seized during the 2008 financial crisis. according to a regulatory filing, fannie will never turned more than $142 billion to the federal government. steeringmercedes-benz clear of chinese auto sales for a second straight month. the german automaker posted a

42% increase in deliveries there even as bmw warned of it increasingly difficult environment. global deliveries are up 13% to almost 150,000. mark: softbank group says it is spending $960 million to buy back 1.7% of its stock. the move comes after a surge in first order profit in japan. to $1.7 billion. is billionaire founder trying to revive sprints rather than sell the u.s. carrier. softbank bought it for $22 billion back in 2013. those are your top stories at this hour. scarlet: activist investor bill ackman has apparently settled his next target, the snackfood maker mongelez. he announced a $5.6 billion stake in the oriole maker. shares of mondelez somewhat higher on speculation that

ackman will push for the company to put its app for sale. mark: earlier today our colleagues asked ken shay about the prospect of mondelez recombining with the former partner, kraft foods. guest: i'm not so sure it makes the most strategic sense. you have got to remember why in october of 2012's companies were separated, because in theory, mondelez could allocate capital to grow in emerging markets. i do not think that is change from a secular point of view. since that time these markets have softened a bit and i think that is probably one of the biggest headwinds that mondelez faces right now. say that thoseo jumping to this conclusion or possibly just totally wrong, mistaken? guest: they are short-term minded. mondelez is betting that demand

will rise -- erik: surely a you are not saying that activists are short-term minded? guest: they have a reputation for that. mondelez has been pushing cost-cutting. it has raised its margins while a middle of the pack company. fair criticism towards mondelez is with strong brand names it has, oreo, cadbury, why isn't it doing better? these are beachfront property kind of rants -- brands and investors expect that her performance than in line. some of it could be given the environment of a consolidating activist oriented market, could be behind some of those gains. erik: what do you think the chances are that we see mondelez get back together with kraft? guest: it's a long shot. see the rationale

for the separation. towardse allocation emerging markets, long-term opportunity these companies have. combining them together again, not so sure allocations will be quite as aggressive there. it's hard to say. i still think the rationale for the separation exists here in -- exists. erik: does it make sense that bill ackman is in this stock is large of a position that he has? nelson peltz and try and are already there. pushing for the same things that bill ackman wants. the stock has been an outperform or just because of the activist pressure that has already been there. guest: that is the observation i had when i saw the news. the timing is curious. peltz has been there for years and he has helped influence the

separation, margin improvements, some of the actions they have been doing all along. investment me this may be late to the game. returns have already been made and margins are already on the move higher. -- this is a layup investment at this point. shay speaking ken with our colleagues, matt miller at erik schatzker. scarlet: thank you to our producer for pointing this out, mondelez was of much higher earlier today -- up much higher earlier today. coming up on "bloomberg market day," you can call the job terminators. most at risk of being redundant. ♪

you: now more than ever might want to appear indispensable to your employer. according to a research study, 47% ofthe next 20 years jobs in the u.s. are at risk of being taken over by automated technology. scarlet: think about how driverless cars are almost the future. according to the same study, men are at a much greater risk of being replaced by robots as opposed to women because of the kinds of jobs that men tend to hold. truck drivers, for instance, because of the driverless vehicle. mark: and a long halls. construction and carpentry also vulnerable to being taken over by robots. mainly heldof jobs by women, secretaries and administrative assistance, more than 95% of these jobs are held by women, and registered nurses,

93% of these jobs are held by women. mark: we are talking about environments that are oftentimes a lot more chaotic trade -- chaotic. scarlet: you need to be able to rely on someone possibility to read emotions and intentions. a robot cannot do that. mark: it seems like the same argument we are having during atms, they're just taking jobs away from bank tellers. scarlet: another job being vulnerable, umpires and referees. you are seeing that already with all the people appealing the calls i going to instant replay. no computer could have done what we just did. mark: bye. scarlet: we have much more coming up on "bloomberg market day." ♪

scarlet: welcome back. let's get straight to the

stories making news at this hour. ratesensus on interest from policy makers in london. officials voted 8-1 to keep the interest rate unchanged at a record low. the bank also reduces outlook on inflation for the rest of the year, saying it is muted and that the recent decline in energy prices will have an effect until at least the middle of next year. healthacquiring emerged care for billions of dollars as it moves from corporate to medical companies imaging management platform with this data analytics tool. the ibm senior vp explains the benefit of the merger. be offering insights back to the health care providers. we will improve the care, which will reduce the cost, and we will be paid for the insights, provided back to the doctor through watson. the deal is subject to approval by shareholders. fannie mae will pay $4.4 million to treasury. the u.s. controlled mortgage

firm reported net income of 4.6 in dollars. fannie and its smaller rival were -- turn -- morey will have returned than $142 billion. nasa says it needs half $1 billion six astronauts into my dollars a piece. the u.s. does not have those are our top stories. now only down by .4%. earlier, leslie spoke with the ceo chris -- who began working at the company 20 years go at the front desk or leslie asked

him what he sees for the planet fitness over the next two decades. >> he put the money back in the system. half of which will open the next three years. model, what is your plan there? >> we are really a franchise company. more testing grounds for trying new concepts and new ideas as well as our corporate staff here it 58 sources really enough, your franchise company. 7% in early about trading. what do you think investors are missing about your story? >> in for the long haul. looking for future growth. am lookinging and i for the long haul. >> terms of your revenue generation, i saw the biggest

revenue generator for your company, which i thought was 10prising given you are a month jim. you grow that beyond just opening up new planet fitness stores? is profitable.e the equipment is based on openings. we will see as clubs remodel in the coming years, we will open up 500 stores in the last three years. we will see more reequip revenue. terms of competitors, we saw a profile for its ipo last week. how'd you envision these more niche studio type businesses relative to what you do? are they competitors? >> very different customers than we are. they are more of an enthusiast and we are going after the first time casual user. membership more dual

concepts where they join those but they join us as well. where youe work out see a dual membership starting up. >> a more direct competitor owns fitness chains. they declined about 43% this year as the sales growth slowed and they reported losses. how do you see yourself differently? 20%.ey cater to the we are not really in their seeing the ball game. different moving pieces. a lot of cardio in our stores. >> the $10 price point of course. in terms of that price point, you expanded after the recession. how do you envision your business looking in a more recessionary environment #>>

during the last few years, the e-commerce compression on real estate has really helped our model grow. noble's,ity, barnes & our franchises taking advantage of the real estate that helps fuel the growth. >> planet fitness fought its back with -- fought back. look at how i the o's have fought back overall. this is the bloomberg ipo index, which measures newly -- stocks in its first year of trading. it has fallen since that peak in late may. alibaba makes up 42% of the index. it is certainly that stock that has dragged the index lower. the performance of newly listed companies these last two days have not been encouraging. if you look at the snack food company which makes the skinny pop popcorn, we will continue to

keep an eye on how planet fitness trays for the rest of the session p are much more is coming up on the next half hour. including commodities. gold alone has cost russia $5.4 billion in the past weeks. how much further could it fall? -- shares his his thought. and read it. been paid to the business side of the website. drop in oil prices, some people are calling for the end to an export ban on u.s. crude. a republican senator joins us to explain why she thinks reversing the ban would be good for business. all of them and much more is coming up in the next 30 minutes. move toswitch gears and higher education. the cost of financing a higher education continues to skyrocket. $1.2 trillion outstanding and federal student loans. that is expected to double by

2025. there may be relief programs for students struggling to pay that the loans. it will probably be at the expense of taxpayers. joins us now to explain. first, tell us what income-based programs are. how does it work and who qualifies? >> if you have a loan payment you cannot make, you cannot pay what you would in a standard ten-year plan, you could qualify for the programs and pay either 10% or 15% of your discretionary income after expenses like housing. forlet: you have to not pay a certain time before you qualify. i few could actually graduate and realize your loan payment will not be affordable to you based on your job or you cannot find a job. it is adjusted based on your income. you may not pay anything if you do not have a job. scarlet: the program was launched under president clinton. the talk has happened over the last few months.

president bush was involved. give us a history of the program. >> the early program was income contingent repayment. it started in 1992 and was not used very much and was expanded in 2000 and one under the bush administration and the first borrower could use that program in 2009. it was then expanded again under president obama. that was for newer borrowers who took loans more recently. we are expecting to see another boost to the program in september. .hat would expand the pool scarlet: it has got bipartisan support. let's talk about the cost for taxpayers. >> let me back up. it does not have to be approved by congress. it was an enhancement of the 1992 program. --rlet: you had a republican

what about the cost of taxpayers? what will it mean for you and me? >> a good question. part of the program offers loan forgiveness after 25 years. one program called public service loan forgiveness offers loan forgiveness after 10 years if you work in a government job or nonprofit and you make 120 consecutive payments. those could be on an income driven plan where you are paying less of what you would be paying normally. what does that mean for creditworthiness of securities made up of student loans question mark that surely has to have an effect. >> good question. the total pool of federal loans is complicated. we have a pool originated by private lenders but backed by the government. those loans were securitized. muchayment is coming and slower. if you are expecting to get $1000 per month from a borrower and you are only getting $50 per

month, the repayment is coming in at a much slower pace. scarlet: you're also looking very carefully at this as well. thank you for putting this into perspective for us. it is important to discuss and understand. up, best-performing gold-mining stock in the past decade is bracing for another plunge in gold prices. we will hear from the ceo. ♪

scarlet: welcome back. storiesook at the top of the hour. forecasters are more confident this hurricane season will be a breeze. scientists are warning residents to be vigilant as this month tosses season hits its peak. a below normal hurricane season. expectation right now is for 6-10 storms, strengthening into her gains. not only suffering through an economic crisis, but also experiencing one of the worst droughts in u.s. history care july was the fourth driest month in the capital since 18 98 to only 1.6 inches of rain fell last month. take a look at the world's's newest island. the land mass is 30 miles northwest in the south pacific. the island is just over 15 feet long. it was formed after the hunger tonga volcano erected. it will not be there for very long and less than 12 people have been to the island so far. those are your top stories.

commodities, the best-performing gold-mining stock in the past decade is getting ready for another plunge in gold prices. the worst has whacked out profits for gold miners and led producers to reduce after values and raise cash. the company reported earnings that met analyst estimates. classic you look at the data in the industry, it is an unsustainable situation. they continue to hope for a higher -- gold resources is one of the few companies that has, for many years, stated its long-term goals at $1000. it is tough for us. those companies that designed thebusiness longer-term at hire $100, it requires some sort of reengineering about business.

big debt, demand to service the debt, so the continued climate to produce, hoping that one day the gold price will go up. the sweat breaks? we seem to be in that kind of cycle, gold feeling the pressure. what breaks that? >> the banks are pregnant with the debt. it is a difficult decision. to be more disciplined and cut out that more and profitable production. an oversupply in the market with unprofitable product, like gold and the iron ore business is very similar. mentalmany others of the death metal industries. -- of the metal industries.

nobody wants to be the first to cut back or they wait for someone else. back in july. until veryup recently come all the analysts have been saying, no, we will get through it here at forecasting and looking for growth production. now people are looking for who will survive. scarlet: for more on gold prices, we will rock -- watch the interview with anna. >> the reason why the industry tends to pay attention to him is he says it is the way he sees it, he really does say it here he operates in part in mali and that has been an area under a lot of stress in recent years. he will tell you that straight up. when he says he can see gold prices, you need to listen to what mark is saying. a striking call that he did make in a later interview. 800, a real possibility.

he is also saying he would have to write down the value of assets if it fell below and he would cut production at 800, an interesting insight into the psyche of a gold producer and why we have not seen production cuts yet. up at theold is moment here defying the overall slump in commodity prices. i want to focus on crude oil. talk, can the fed really raise rates in september? it does not end. about one million barrels per day oversupply currently on the market pair the target is $45, but they see substantial downside risk to the forecast. a fascinating note. it is basically the idea that the international -- have the worst assets. it typically is not the case. it is usually the week balance sheets.

there is a good correlation between when prices fall, production have to shut in. the integrated oil companies have the stomach and the balance sheet to do with oil prices. they are not forced to cut production. that is why you are not seeing a semester and supply response as you might have seen back in the 1980's. a fabulous point to make. absolutely. very quickly, we want to and with sugar. like all the other commodities, it is like a 6.5 year low. classier is part of the deal. it makes it very attractive for also,ers to sell sugar, the commerce bank may pass a law forcing sugar mills to ask or even more sugar. the idea is to get the sugar out of storage to help increase to messick prices and help those. that would create even more supply on the market and that hover thentially

global supply deficit we could see next year. another commodity. it has not been a good year for commodities. stay with me here as we shift from commodities to infrastructure. the latest examples deteriorating, lampposts in san francisco. three-story tall went posts toppled onto a car around rush hour. it just barely missed the driver. thankfully, no one was hurt. the lamp post was corroded by urine. this was caused by dogs and humans alike. it is interesting. san francisco is a first world city. it has a bit of a homeless problem. this is something they have not figured out yet. -- oldously, old days it age is an issue. it apparently has a heavy banner. you raise a good point in terms of overall infrastructure of the city not holding up. last year, the streetlight budget increased tenfold to $5 million to replace and maintain

these kinds of holes. it is serious. >> a plan to check on every single light posts in the city. 25,000 across san francisco. there is an app. >> you are kidding. >> yes. alix steel, thank you so much to her doubts be back at the top of the next hour. coming up, the question and had a site, read it has tough year. now, turning to the business side of the website next. ♪

scarlet: magazine publisher bought reddit. today, after countless incidents

of questionable credit behavior, the parent company would prefer you not think of reddit as theirs. the massiveite growth of 164 million users. why is the company so unmanageable? is being discussed in an article titled "reddit, a nine-year case study." joining me now is the author of the article. that subtitle gives it away. basically, they said we will not do what every other big company does. we will not meddle with it. we will worry -- we will let you willtake care of it and we let the community manages self they took a hands-off approach. in one sense, that worked. but now we're seeing the downside of that and the limits of benign neglect as a management strategy. there was a business

model. >> yes. on whole site is based anonymous users. there is essentially no targeted information. data oncts basically no the users, which makes it completely out of step with the entire online advertising market. not surprisingly, it has not made much money and is not popular. they are talking about monetization and trying to figure out what that this is will be. first, they need to get control of the community. let anyone say anything on reddit forever. that is part of its appeal. of like free speech. that is appealing to a lot of users. at the same time, it has been unappealing to advertisers who do not want to be in this community where people are doing anything.

one thing they started doing his yesterday, they came out and banned a bunch of the most racists sub reddit's, and they of starting to crack down those parts of the community. >> one thing similar to wikipedia is the website relies on volunteers to do a lot of the work. >> yes. it is great in one sense because it is free labor. they are dedicated. at the same time, they are -- they have been saying we need better tools. more investment. that would allow them to block of the sites themselves, which would again make it more friendly to advertisers. first, they need those tools. you find a lot of comparisons to wikipedia when you are doing your reporting? >> yes. that was one model where, why don't you make it nonprofit. the problem is it was bought by

a luxury magazine publisher 10 years ago. they've raised $50 million from other investors. there is pressure at some point to really make this into a business. scarlet: there has been a management change with cofounders coming back here do they have the solution here? >> they were away for a number of years are now the cofounders are back and are in charge of anybody who exerts top-down influence. you would think they would have the legitimacy to do it. scarlet: thank you so much. the co-author of this article on reddit. you can see it in the latest issue. more is coming up. we will discuss a ban on u.s. exports. ♪

scarlet: it is 9:00 p.m. in berlin. >> this is the bloomberg market day. >> she's fought for alaska to

exempted from the new power initiative. her top priority. could they bloomberg exclusive. the ceo talks about his and the future of financial regulation. then one of viacom's top, josh -- jon stewart, signs off. a look at some of his top jabs at wall street. ♪ good thursday afternoon. happy friday eve. i'm scarlet fu with alix steel. alex: let's get a look at the markets at this hour. the level you really want to 2072, the 200 day moving average here and we are below the of -- the other