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

longer-term moving average currently. that is now the next level. scarlet: the dow did not recover yesterday. it is the longest losing streak since october. $50 billion companies are falling. you can put the blame squarely on the media. they have been taken out to the woodshed from disney to viacom. , thell, the media index gains for the year. he's losses reflect fear and concern over the media. the allah car trend. it is not actually happening. the possibility that it might. >> he saw especially at espn and all of that adding two fears and stocks. scarlet: you have something you wanted to show us.

here we go. let's take a look. thank you. wasicked this because there good news out of the u.k. this money. the bank of england, you can see a big start -- a big spike. inflation would stay muted. there could be another time with price declines. that led to a rate increase this year. the bank of that's the boe slated -- slated. that is where you see a different kind of picture. this is the euro losing ground. up and then really so far this year, it has depreciated against the pound. u.k., which is seeing some signs of price increases, ready to tighten. mario draghi said he will maintain his commitment to policy. good stuff. i'm looking at commodities.

for 2014.ity index the rep -- the white line is the commodity index for 2015. a much deeper selloff and we saw in 2014. remember, the bloomberg commodity index from that july peak fell another 22%. -- the concern. will 2015 be a back to the future in terms of commodity prices? scarlet: we are comparing commodities with 2008. this time, it is supply driven. alix: does that wind up continuing or does the response stem the tide for the bloomberg commodity index? scarlet: let's look at headlines at this hour. the owner posting revenue wider than expected. so -- sales fell 11%.

expected 3.2 billion dollars. the fourth straight decline in u.s. advertising sales. the company is struggling with falling fueling ratings. scarlet: that drop, 12%. it is ugly. quarterthe company profits beats after cutting expenses faster than revenue could climb. than estimated. revenues fell 1.5% to 380 $3 million just short of estimate. as moreing sales readers get their news online. hovering near the lowest level in four decades, the sign that it will bolster growth. by 3000 to 270,000 last week. say firingsxperts are down as employers hold onto more workers. all-importante

july jobs number report tomorrow morning. scarlet: as we mentioned earlier, a consensus on interest rates for all see makers in london. the bank of england of rituals voted 8-1 to keep the rate unchanged at a record low of 5%. >> at the u.k. expansion regresses, speculation about the precise timing of the first moves in the bank rate is increasing. this is understandable. it is another welcome sign from an economy returning to normal. bank also cut its outlook 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 next year. ibm is acquiring merged health care for $1 billion. moves into corporate the medical companies imaging management platform with its analytics tool. subject to regulatory review and approval from merge

shareholders. those are your top stories. much more is coming up in the next half hour of the bloomberg market day. gop candidates will go head to head to convince voters they should be the nominee on a presidential ticket. in the meantime, we will all be entertained. alix: tonight is jon stewart's last night as host of the daily show. apparently, we're not sleeping tonight. and in an exclusive interview the ceo, he talks about the transformation of wall street. he has seen everything. all that and much more is coming up. a group of lawmakers are fighting to lift a decades-old ban on crude exports. the iran nuclear deal is threatening to add even more oil to the market helping build the case to remove the ban. lisa and center is murkowski of alaska. chairman of the senate energy committee introduced the bill to limit those restrictions. the senator and

asked her how such a move could impact the u.s. economy and the chief u.s. economist carl joined in on the conversation. you have an opportunity to increase your production here, which you do because we have the resources, we have demonstrated through the technologies we are able to put in play now, that our ability to access the resource is extraordinary. us toe have that allows be a true competitor in the global market is the resource itself and you could have cheap labor but it does not do much good for you without the resource. we can do it in a way that is more environmentally response will than anywhere else in really the world. that, i think, gives us a competitive advantage. one thing that is important for people around the country to allow for is if we

the export of u.s. oil, it will not increase the price that the pump.l pay at in study after study, they have said, that will not be the case. be in a situation where you increase production and jobs, you gain benefit to the economy and have this resource as a foreign diplomacy tool, oil as an asset that could be used from a security perspective, and you do this all while maintaining reasonable prices are people. classify if i could follow up with a question, because i do not quite follow the argument that this will actually lower gasoline prices in the u.s.. it seems we have oil in the u.s. so simple supply and demand economics tells us the price declines. that start at order

supply, that would in my mind mean we would see lower gasoline prices elsewhere around the globe but not necessarily here in the u.s.. >> when you see lower prices around the globe, because as you pointed out, it is a global commodity here, lower prices elsewhere, we also stand to benefit from the lower prices. that liftsising tide all shifts -- ships. we will be able to increase our production, adding the jobs while at the same time, global are lowered and we benefit from that as well. it is not just me saying this. study conducted in the past 18 months or sell -- or

so on this. when the decision was made in ban for alaskae crude oil, it was a concern at that time. what will it do to pricing and what will it do to overall economics. what we learned is to did not at impact to the price. it is important for people to understand the studies of conducted and in fact we will not see the price increase. >> when you take a look at the oil market here in the u.s., we are importing about 7.2 million barrels of oil a day. willie have enough while fulfilling our own demands here? >> it is an important question for people to understand. so much what we're talking about here is what we are able to refine, what the capacity is, and what type of oil we are able to refine here in the united states during much of what we

see coming in, the imported oil, that ourr oil refineries are sped up to accommodate. , we we have been producing do not have their fun -- the capacity to carry that out. the misalignment between what we you could say, all we need to do is switch out all the refineries. that is a pretty significant left. an argument to a made that while you are some imported oil, to allowing your domestic crude to be exported you get

this leavening. -- this evening to the country's benefit. >> who benefits the most. .n theory, u.s. producers investments, it will bring about $15 million of additional revenue according to leo, the international president of the united fieldworkers. do you haveant to got refining and production operations. refining operations because of these good margins. that would obviously go away if they were able to sell abroad.

they think u.s. produces would eventually work off over time. that will eventually pressure producers. what if it goes to 20 and now have a gadget has a global supply. has the collapse of energy prices release the alix: why can't we export, replace russian and iranian oil. >> trying to preserve market share? >> i would make yeah -- the argument iran is going to sell oil to matter what the price because they desperately need the money.

$136 per barrel. make and sell as much as they possibly can to make any kind of money. who are they going to buy from, the u.s. or iran, any price that you want it? you answer that. a fascinating conversation in a really good debate. classless how excited she is. much more is coming up. earnings are coming up after the bell. ♪

scarlet: welcome back. to a looks get right at the markets. as media stocks are seen taken out of the woodshed. >> i want to talk about tech and the media. the stocks actually reporting after the bell. this is the maker of farmville and other mobile games. about 2% righty now. we expect a second-quarter loss of two cents per share of the loss of $180 million in revenue. surveyed by bloomberg have a hold rating on the stock. company hinges on a new bit desperate hit mobile game to we do not see that coming anytime soon. it will be interesting. a maker of computer graphics chips is flat right now before its earnings call. your today, just over 2.5% per the stock was raised to

outperform with a price target of $.4 per share. i want to take you into the bloomberg terminal to show you one thing about the stock. a 50 dayding close to moving average right here. andprice is a bout $29 $.50. about $20 and $.60. if earnings are worse than expected, we could see that stock fall. finally, line gates -- lions gate films. a rows the fourth day in it has fallen. bloomberg intelligence says first order revenue could fall by 4% from year ago. lions gate is behind the diversion movie series. it turns out, this year's sequel did not do as well as last year. because of that, first or box office revenue was lower, compared to 96 nine dollars. outperform in the stock, it raised its price target from

$38. right now, $38. scarlet: thank you? >> i saw the first one. i did not see the second one. i plan to it i will see it online. alix: the first one was good and then downhill from there. >> hunger games? >> they all blend together. >> hunger games rocks. divergent, not so much. scarlet: thank you so much. now for a look at top stories crossing the terminal at this hour. the california governor arrived a massivee of california blazed your briefed on measures to contain a miles, that7 square -- thousands of people from their homes. told to stay being vigilant because changing winds can cause a flare up. alix: forecasters are even more

confident -- confident this season will be a breeze. scientists are warning coastal residents to be vigilant. contradiction center is calling for below normal for -- hurricane season. six-10 named storms with one-for strengthening and hurricanes. puerto rico not only suffering through an economic crisis, but residents are also experiencing a severe drought, one of the worst in the u.s. territory's history july was the fourth driest month in their -- in the capital since 1898. >> those are your top stories right now. >> still ahead, with the games begin. the gop kicks off its first debate tonight. >> we will look at what to expect. i am pumped. ♪

scarlet: tonight is the much-anticipated gop debate. 17 canada's but only 10 will take the stage tonight. to johnbe going heilemann to talk about the debate it, this will be an intense debate on how we will see other candidates respond to donald trump. we have been hearing about a lot of their strategies. it everyone is fixated on donald trump, that he has the most to lose and everyone else is looking for ways to get in on the conversation. us.: john will be joining eating popcorn while watching the debate here joining us now from cleveland. what are you looking for in the debate tonight? for: ladies, i'm looking

fireworks, last, choose, all of those humorous moments that make presidential debate so exciting. i asked the same question, how are the other nine candidates going to do with donald trump? fair tonight?ush he is no longer the front runner. he is had a rough go over the last week or so. a lot of eyes will be on jeb bush to see on how he performs. >> talk about hot button issues. what only go there? john: i'm it -- i have no idea how they will start. obviously, fox news is the sponsor p roy will hear things about obama care. aboutre we will hear things in the news right now. like the iran deal. there will be a lot of focus around the immigration policy partly because there has been

some of the hottest rhetoric in the party and also because mitt romney did himself so much damage by answering immigration questions in 2012. the question of how they handle the questions and what it means for the general election will be on our minds for sure. >> what about donald trump? does not have foreign-policy experience. he has not served on public service. john: donald trump has weaknesses like all the candidates. no billionaires other than donald trump. he has certain ranks, one of the questions everyone has is how much, questioned rigorously and closely, on specifics, on policy, how he will answer. and what the other candidates will do to try to draw him out on those and expose the contradictions. he is held various --

contradictions on various issues over the years. what they highlight and to what effect is one of those things. was a total debate junkie in my younger years. definitely make sure you tune in "with all due respect special tonight. guests will include josh, parker marke washington post, leibovitz, and much more. i'm excited about it. will take off. i will try to catch the beginning. i have plans tonight. it is jon stewart passes last show tonight. not able to make fun of this. talk very sad and we will about it much more on the bloomberg market day. ♪

alix: welcome back. let's get straight to the top headlines.

sales forinese auto the second straight month. he 42% surge in july. of ans a rival once increasingly difficult environment. 15% from a year ago. elon musk says tesla is facing challenges with other interior .ieces deliveries are set to begin in late september. tesla could also slow output of the model s sedan here the ceo said the company may deliver 65,000 a year, down from 55,000. publiche first day of a -- public we traded company, which sold 13.5 million shares. -- e-commerce

provided planning fitness with a real estate opportunity. it really helped everyone with barnes & noble's in bookstores. alix: that is listed under the new york stock exchange. adidas slashed its forecast after 26% revenue drop. the company's ceo is trying to streamline the business and , soccer,te on running and other sports. comedian jon stewart is signing off tonight as the host of the daily show. the tv show he started is still going on.

he aired twice as hundred shows in 16 years, creating a new audience that wants is with a creative spin. a museum will preserve jon stewart passes daily show set. creative spin. he is taken plenty of jabs at wall street over the years. jon: welcome to the daily show. the economy. financial markets. the 50 day moving index. [laughter] yesterday, the dow industrial fell 500 points, following the largest bankruptcy in america has. the lehman brothers collapsed after leaving it in the hands of the youngest lehman brothers, bongo.

accuse of advising people to buy billions of dollars worth of shares in companies they knew were failing. i believe the word for it is fraud. everywhere you look today, financial catastrophe. let me get this straight. wall street does not like the particulars of the $1 trillion bailout of wall street. let me briefly explain the rescuer, rescue we relationship. we just bought an insurance company. we are broke now. we just paid a lot of money for someone to [beep] us. toy one guys brought the economy to our knees and that is why we don't need reform? 19 guys flew planes into buildings and suddenly everybody has got to walk through a metal detector? i am sorry i committed systemic fraud for 10 years. how about i give you a carpet? -- a cut of it? i know you are a busy man and your time is valuable so. here is a little something for your trouble, you know what i mean? there is a simple credo that exists to cover up any

wrongdoing. that is what the money is for. [laughter] it is that old saying, do not do the crime if you cannot pay the nominal fine. let me see if i got this straight. the only people who fully recovered from the financial meltdown are the ones who caused the financial meltdown. by recovered, i mean apparently read dipping their balls in gold. i actually give up her u.n.. -- i give up. you win. take the money. i do not care at this point. take the flag. i do not care. just go. take the money. the rest of us will start a nut-based economy. we are just going to have to pray no one on wall street is a squirrel. [laughter] alix: awesome. we are about 25 minutes from the closing bell. -- at the stories

coming up on the bloomberg market day. a big day for over despite the potential ruling it must -- media stocks getting battered for the second day in a row on fears more more are subscribing to cable. all of that and much more is coming up. after inking one of the biggest bank deals since the financial crisis, the ceo is coming out with a major warning. what could fuel the next week financial fallout? earlier today, erik schatzker and stephanie ruhle spoke with the former maryland ceo and asked him about it. leveraged the most banking into the hedge funds, and so if you wanted to worry about the next crisis, you would worry about that space. that is where the more risky pieces are going. lendingutomated lenders in the market space are doing it

based on algorithms in less than two minutes. when i hear these stories, on one level, we are seeing peer-to-peer lending to the other level, i'm worried we are seeing honesty -- honesty and integrity of other subprime. >> we have not seen what happens when you go through negative part of the credit cycle. these online guys are not keeping any of the risk. risk to pushing all the somewhere else. what happens when you get to a bad part of the credit cycle? holding cubedys years ago.les >> they should maybe buy things they do not understand. i do think the model will come under stress. >> i want to hear more about this, the idea the next crisis might be in the shadow banking industry? how do you think it will unfold? >> it is always hard to tell. if you look at where the biggest risks are, and where the most

those arepieces are, all in the unregulated market in hedge funds. >> for people who say, no big deal, they will shut down. are we really going to say that? look at who has invested in the hedge funds. it is pension plans and retirement funds. it is the niagara falls and firefighters teachers association. >> that is why we should worry about this. >> who care some guy will sell his yacht? it is the guys invested in the hedge fund. >> that is what i'm trying to get into, the mechanics of it. i want to walk through it a little bit. the hedge funds will come under pressure, presumably if they on bigo lose money leveraged positions, on loans. they will have to sell some other stuff. toremain solvent and perhaps

meet redemption from investors. crisis showing up, the fact they need to raise some money. >> people have to generate cash. they have to drive down asset prices. that is exactly right. the second thing is, these are publicly traded companies. those are public shareholders and they're the ones who will suffer. companies today, as we look at bill ackman getting involved, thousands already there. do you think this is healthy for the market and healthy for business? >> there are two kinds of activist. there are activists who really have a long-term view. they're trying to push management to improve their returning -- their returns.

they're looking at a long-term investment and other activists -- i do not think it is fair to combine all activists into one group. activist knocked on your door? john: yes. after they decided they were not going to be a will to get a quick slip, they left. erik: who was it? john: it is not necessary to name names. erik: how did you know that is what that activist was after? john: the whole game plan was to sell the company pair that was not my job to sell the company. my job was to fix the company. selling it would not have maximized value.

the market value is $4 billion greater than when i started. stephanie: how much art or your job today? john: it is not that much higher. -- harder. a lot of things are wrong. it is in good shape now. erik: how do you feel about what was just decided yesterday, that you will be forced to compare your salary with that of employers? john: it undercuts its credibility. his is not something shareholders care about. as a political statement. think about this. why don't we disclose what the top facebook player makes versus the guys who sell hot sauce in the stadium. it is a purely populist, political move.

it is not a benefit to shareholders. they already know what i get paid. >> coming up, another day and another lawsuit for uber. why they will put a gent in the billion dollar evaluation. ♪

alix: welcome back. we want to look at the markets right now. 15 minutes before the closing when you are looking at

the s&p, 11 points away from the 200 day moving average that jon stewart just made fun of. >> as we close out for the day, basically all of our major markets are in the red. the s&p is down. the biggest loser here is the nasdaq, down by nearly 1.6%. you into my imap function on the bloomberg terminal or and i want to show you how the sectors of the s&p have been performing. or the most part, throughout the day, it has pretty much been the same story. consumer discretionary have been the two major laggards. one ands up by about two thirds percent. media was disappointing earnings coming from lower ad sales. to take you to individual stocks. for example, viacom is down by more than 13%. this is the biggest fall since 2008. the reason here, sales dropped

11% and we were expecting three and a quarter billion dollars. this is its biggest fall since 2009. the whole entire meltdown started with disney reporting disappointing earnings this week. it is extending its losses. yesterday did fall by about 9%. switch to commodities, oil is hitting its lowest level in more than four months. at $44 and $.17 per barrel. it is off of its lows for the day. goldman sachs said the world is seeing -- too much supply. 90 million barrels above the five-year seasonal average. gold is at the five-year low. byh that said, it is up about one third of a percent. it is down 1%. tomorrow, if the employment report ends up being better or good, that is the case

for higher rates and the stronger dollar could mean we could see a fall in gold price. treasuries, #yields have been falling for most of the day. is 2.23% hereeld are this is off of falling oil and better than expected jobless claims than we saw earlier today. we have to look ahead tomorrow to see what will happen with that data this morning. by 9:31.y're out we look at the stories making headlines this afternoon. the canalexpansion of today, the extension is the first in a series of megaprojects aimed at the country. a link of the red sea to the mediterranean. russian a ride with the international space station is costing the u.s. a pretty penny. needs half $1 billion to set up six astronauts, about $82 million

each. rockets does not have to the job right now. the former los angeles clippers owner donald sterling filed or divorce from his estranged wife. 60y have been married nearly years. he is suing his life over the $2 billion sale of the team. he negotiated a deal with the microsoft ceo after sterling was found incompetent to handle his business affairs. those are your top stories. cooper is back in court in one of the biggest legal analysts it has seen today. a san francisco judge will decide whether or not to grant class-action status to a lawsuit filed by three drivers. the decision hinges on a water issue of whether cooper drivers are independent contractors or employees entitled to get unemployment workers comp. emily chang joins us now from san francisco. what is at stake for uber's

business through this? emily: there is a lot at stake here. this could change uber's business model entirely pair what they're asking for his coverage for mileage and coverage for tips. if they were to become employees, over -- uber would have to pay in the nature of tens of thousands of dollars for benefits, for taxes during uber has to argue today that there drivers are so diverse, they should not all be accounted for in once single last so to speak. can they decide that hundreds in california are essentially all doing the same thing? one thing uber has argued is that the drivers actually want flex ability, that they have a choice of whether or not they come to work and how long and when they continue to work for the company. saying look, we are all doing basically the same thing. we caught up with uber's lawyer. you will hear from him coming up on bloomberg west. terms of the $50

billion evaluation, will that have an impact? it could be a lot of money? amalie: you're talking about tens of thousands of dollars for an employee. i think yes here it is in fact uber is forced to reclassify all of its drivers as full-time of ways, this will have a full impact -- in impact on the business model. investors we talked to say, if it comes to that, we can survive it. the hope is it does not come to that this is what the business is based on and it has wrought are implications for the economy. alix: what happens if the judge does rule to treat all the -- whatas -- what does happens to lift, for example? emily: lift is facing a lawsuit coming up in december. if this happened in california, other states could follow suit. you also have a food delivery company called caviar facing

similar losses. at the same time, you're seeing other startups that already classified their employees as full-time because they say, our workers, they come to work for eight hours a day, they need training, they need digitization in terms of the jobs they are performing. the argument is that uber is very different because cooper drivers can choose what time it work and how long they were for. argument in the technology community seems to be that uber is a different company than the other companies. alix: thank you, emily. more family coming up a 4:30 p.m. eastern. still ahead, a bloodbath in media stocks. what could support a rally? ♪

alix: overall, it has been a two-day bloodbath. the owner of an tv, nickelodeon, comedy central, size shares down today. mica said, the s&p 500 media index was dragged lower, adding to a 6.6% drop. us for more is paul sweeney, the director of north american research from bloomberg intelligence. this, peopleor want to watch tv differently. what was the catalyst? evening when disney

reported earnings. a little disappointed on the revenue side. but they highlighted espn. espn is the juggernaut, the biggest cable network by far, the most variable. fewer subscribers this year versus last year. that reduction in subscribers caused them to lower their guidance going forward. think investors said, yes, we know the issue has been out there. we know it is on the margin. when it impacts the growth rate and the numbers for something course,n, and then of media company after media companies said similar things and does my numbers. it fed upon itself and we had a real snowball effect. alix: is it overdone at this point? at what point is it overdone? >> a really frenzied selling over the past couple days and we saw a huge volume. it felt like we had a mad rush to the exit.

a little context. coming out of the financial crisis, media stocks have been extraordinary performers. the story has been good and yes, out there,roducing but the fundamentals are too good. you probably shook out a number of investors and probably did not feeling it is to be here long term. i think investors will step back and try to identify winners and losers in what to be a tougher, longer-term outlook for the media sector. alix: which ones are different? i hear a lot names from investors today is disney. just in the context of, a lot of investors look at disney and , butit has a big exposure also, some businesses not tied to advertising, such as their theme park business and film studio, which has arguably some

of the best film franchises in and ofiness with marvel course the star were moves -- star wars movies later this year. a world where cable bundling is unraveling, what are the networks people have to have? is it a broadcast network take cbs or general interest collection of non-scripted communication? people over the next week or two will try to sift through the to worknd find names longer term. alix: thank you so much. prospective from paul sweeney. much more is ahead. what she seesbout for the future of the s&p. ♪

alix: we are moments away from the closing bell. i'm alix steel. joe: and i'm joe weisenthal. ♪

[closing bell -- [closing bell] alix: u.s. stocks had the biggest selloff in earnings. on tomorrow'sare jobs report as jobless claims coming at the lowest in four decades. alix: we will speak to the wall street veteran strategist on market momentum and what keeps this bowl of that night. -- bull up at night. and we have one chart that will make all of those apple bulls breathe a sigh of relief. alix: about 11 point away from that 200 day, the longer trend line, but the story today