kong. is american manufacturing alive and well? we hear from one congressman. carl icahn is doubling down on energy even after losing hundreds of millions this year. matt: berkshire hathaway is set to report earnings. is it good enough to pull the stock out of its slump? good afternoon, i am matt miller with alix steel. that you are seeing a dow is having its longest slide since 2011. in some ways, it came out of nowhere.

the only sector in the ring is utilities. the dollar at a four-month high. yes, there is a rate hike potentially coming due to the jobs number, but the economy is not amazing, and the markets are kind of digesting it now. was waiting on the markets was not so much the jobs great, but it not did sway more economists than before the number to say there will be a rate increase in september. maybe the markets are a little unhappy about that. maybe they were hoping it would be staved off until december or next year. i think it was probably more a biotech problem that we saw today. take a look at what is happening with the s&p right now. the 200-daying at moving average. it was below it for most of the day and just moved above at around 2:30 p.m.

take a look at a three-day chart. the s&p has really been flirting with this level but has been below it for the last two days. a key momentum level that many traders watch. you are mentioning biotech, that is where the move really is. industry really dragging on the s&p 500 today. spdr biotechhe etf dragging things down. you could say the jobs picture was one thing, but at the end of the day, sell the winners that have been working, and look for something else. matt: these moves are not dramatic, so i'm not making too much out of them. i'm not making much under the jobs report. alix: now to look at the stories making headlines this hour. capital management has

amassed a stake in american express. the activist fund is considering pursuing shareholder friendly changes at the credit card issuer. aboutct's investment is $1 billion, less than 5% of american express. a marketexpress has value of about $74 billion. revealing acahn is new 8.2% activist stake in cheniere energy. you would expect him to say that shares are undervalued. you would expect him to say that he want to talk with a natural gas company's management and even ask for a seat on the board. this is all playbook icon. 8% this yearlost so far, now trading up about five and a half. bank of america is looking to sell $1.2 billion of mostly delete home loans. five pools selling

consisting of nonperforming debt loans that have been modified and resumed payment, and some that have not defaulted. things have sold or offered $18 billion of default in home loans in 2015. bet: american airlines may the latest victim of chinese hackers. the carrier is investigating whether hackers breached its computers. processes sabr, which reservations for hundreds of airlines and thousands of hotels , says that they were hacked as well. both appear to be from the same group that stole data from health insurer anthem. alumni showedshow up last night to help jon stewart say his final goodbye. >> i know you are not asking for it, but on behalf of so many people whose lives you have changed over the last 16 years, thank you. and now, i believe your line -- correct me if i'm wrong -- is, we will be right back. [applause]

cameostephen colbert's was among the highlights during his final hour long show. they paid tribute to his satire and bruce springsteen provided the music. stewart did not tip his hand as to his next move but say that he will not fade away. on smith has been released by the 49ers after being arrested last night, charged with driving under the influence, hit and run, and vandalism. it was his fifth legal run-in since the team drafted him and after the general manager said that they were looking to keep him in the team beyond the season. alix: we do have some breaking news about consumer credit here

in the u.s.. ramy inocencio is looking at the numbers. u.s. june consumer credit has risen to $27 billion, according to the fed. this is in relation to the median forecast of 30 economists surveyed by bloomberg who said they were expecting a $17 billion rising credit. this is after a prayer is the reported $16.1 billion advance back in may. some of the things contribute to this, job gains, and an improvement in household balance ,heets since the last recession apparently, are making america's more comfortable about using credit cards and taking out loans for big-ticket items. let's go back to you. one bright spot in today's labor report, manufacturing. factory payrolls jumped 15,000 in july, the biggest gain in 16 months, and comes after five

months a little to no increase. us from cleveland is ohio congressman tim ryan. andits on the house budget appropriations committee as cochair of the congressional manufacturing caucus, a big proponent of boosting american manufacturers. thanks for joining us. your reaction to today's jobs report? we did not exactly see the number that economists were expecting, but it was fairly close. a lot of the other numbers, once you broken down, looked pretty good. >> not too bad. this is 65 consecutive months of having some solid job growth. but i think we can do better. if we can get our act together in washington, d.c., we could help out. we have these manufactured crises that we have out there with the export/import bank out there, which helps many small businesses grow, compete globally. the republican-led congress has

tried to put the kibosh on that. we also cannot keep on doing these short-term extensions of the highway bill. bridge projects and highways are much needed and will put americans back to work. if we can add more of that more mature public policy, investment to match what is happening in the private sector, we could get the economy cranking. is the risk of the stronger dollar on the manufacturing sector, as we inch closer to a federate hike -- fed rate hike? >> obviously, it will affect exports. with regards to energy, other investments that need to be made, like the highway bill, a lot of these products need to be transported out of the united states, out of the industrial midwest, and to the coasts to be

exported. these things are all intricate and interconnected. that is why the public policy has to match what is going on. these other issues on the monetary side may have a detrimental effect. matt: getting back to the highway bill, republicans and democrats both agree the crumbling infrastructure in this country needs to be fixed. it is the kind of thing that even republican do not mind spending money on. commodities that we would use to repair old highways are cheap right now. slack is still there. why can't congress act do something? >> the congress right now, especially the house of representatives, is not driven economicor a solid analysis. it is being driven by ideology.

right now, you have the tea party members controlling the legislative process. that is why the export/import bank has not been reauthorized, why we cannot give investment into highway bills. her living under a narrative or another that is very dangerous for our country. i am for fiscal responsibility and balanced budgets. i have kids. i want to make sure we do not put too much debt on their heads, but we have to invest in the country. the private sector depends on the public investment. we are living under a narrative now, and we have been for many years, where anything that the government spends money on is bad, the matter what it is. hast now, that there didn't taken hold, so we cannot get the republican congress to find any way to fund and get money to fund the transportation bill. matt: let me ask you about something that a lot of people would consider dangerous. bipartisan concern for the deal in iran that president obama

wants to make. where do you stand on that? it seems both parties have a real problem with not only started negotiations with a country that may be a supporter of terror, but also making a deal that could allow them to become a nuclear power in the future? iran is a supporter of terrorism, there is no question about that. they are a very dangerous country, and i think, needs to be watched. our approach needs to be very disciplined. our approach needs to be very copperheads it. i have not come down yet on this matter. it is very complicated. i have had a number of briefings, continue to have briefings, continue to study. i do not want to make a rash decision on it. as chuck schumer said, this is a personal decision where people need to vote their conscience. regardless of where i come down on this, i will be dam sure we know how to handle iran, and whatever happens, whether we

have a deal or no deal, that there will be an aggressive approach to iran, if we have to get them back in line. i want to figure out what is in the best long-term interest of the united states and the safety of our friends in israel. us,: thank you for joining tim ryan, from the great state of ohio. alix: coming up, the recent plunge in media stocks causing major pains for hedge funds. ♪

matt: welcome back to the bloomberg market day. i am matt miller with alix steel. let's go straight to ramy

inocencio who has a check on the markets. the major theme of the week, the media stocks taken to the woodshed. first off, to the major markets. major averages are slightly off of their session lows. the s&p 500 has been hovering around this negative territory, about .6% down for most of the day. the dow is down half a percent. the nasdaq's parent some of its losses, also down by .6%. the dow is down for its seventh straight day in a row, the longest losing streak since august of 2011. that said, it is down only by 430 points, about 2.5% down. still, its lowest since january 30. let's go into some of those media stocks. down.ision is

earnings were down three point 6%. -- 3.6%. second-quarter earnings matched and subscript and were better than expected, but something came out, in that it would have higher in the second half -- cap ex in the second half. two media companies moving on analyst ratings. one of them is viacom. they are up right now about 3%. one of the top performers in the nasdaq 100. this is actually it fell 14% yesterday. it was raised to overweight from underweight over at barclays. time warner is also up on ratings. it was upgraded by moffitt. the price target is now $96. now hovering at the $80 mark. finally, netflix.

this is going the other way, one of the worst performers on the nasdaq 100 today. this is despite a price target boost from pivotal, targeting the stock at $175 12 months from now. 2.6%,now it is down trading at $123. when he could be seeing is some profit taking from people who think they will not see this go to much higher from now. thing, let's take a look at my bloomberg terminal. this is the percentage of sells and buys for analyst ratings. sells are at a 10-month high. up by nearly 16 present. buys are at 51%. maybe indicating that people are gaining a little less of an appetite for the stock. we will keep you posted. alix: thank you.

we finally found out how many viewers actually watched the foxnews presidential debate. 24 million viewers. fox is citing a nielsen statistic. firstlion viewers in the republican primary debate. matt: i want to look at some other numbers to see how it that is relative to the super bowl or "game of thrones." guess, the super bowl had more viewers, as it is more important. the biggest television audience ever in the u.s. 8 million watched the "agreement thrones"- "game of finale. alix: way to go. matt: it seems people care more

about donald trump than jon snow. alix: we will be speaking to john heilemann about the debate, the winners and losers, in just a few minutes. the love affair between hedge funds and media stocks is being tested. cable and tv shares are getting crushed this week. although some company did recover a bit today. matt: hedge funds have big investment in the media industry, so how are they taking the hit? we spoke about it earlier with mark crumpton. stems from it earnings, and a lot stems from what we have seen across the market, a correction. all time highs, the stock market has been resilient. media companies have been one of the biggest winners. a lot of times, people think about the bull market, they think about tech and health care, because those sectors have done well. they have a lot of market cap,

but when you look at the winners, media has been up 500% as of monday. we talk about hedge funds investing. give us some names. >> valueact is one. they have a 5% stake in fox b shares. fundlso have a pulsing or that also has a stake. basically, you have some funds that are looking to take advantage of what seems to be quite a bit of merger speculation. you also have a lot of hedge funds, about 20% of ownership in time warner is hedge funds. there is a pending transaction, so you can play that spread. a bigst because it is in company does not mean that in my not have been somewhere else in the sector. --there is any kind of song consolidation, any kind of take over, these hedge funds are trying to get in a position to

capitalize on the upside that comes from these deals. mark: talk about some of this merger speculation. anything that you are hearing that you can tell us about? >> obviously, there are a lot of murders going on. not only are you seeing it on the targets, but also the acquirers. any kind of consolidation that happens, there is a pretty good chance you are going to see a share boost. do they know there is a deal happening? not necessarily, but at present a solid opportunity. fundamentals, up until now, have been very positive. mark: the sellers of these media stocks, where are they moving their money? >> hard to know, but there is an interesting observation. since monday, media companies have erased about $53 billion. there are two stocks -- 53 billion. there are two stocks that have added that same amount in the past month. netflix and amazon.

on theuch more ahead bloomberg market day. we will talk to john heilemann about the debate last night. ♪

20 4 millionght, viewers tuned in to watch the first debate of 2016, and now fox news is saying the debate was the top-rated nonsports cable telecast ever. as they went head to head, we want to get the perspective from the expert. the most important takeaways from the event. joining us now is john heilemann, managing editor of bloomberg politics. just flew back from cleveland. let me ask you, did you get what you wanted?

i tuned in expecting some entertainment. obviously, a lot of americans were. do you think it delivered? >>? don't you think? it was pretty fun. the thing about a 10-person debate, two hours, whether you like this or not, it is a fast paced endeavor. you had one minute to respond to each question, 30 seconds of rebuttal. everybody had to be on their toes and that cap is moving. also, the moderators, particularly megyn kelly, did a good job holding the candidates feet to the fire, asking tough questions that were not gotcha questions. on that level, it was a really good kickoff to the debate season. matt: i feel like megyn kelly stole the show. brett baer and the other guy were pretty good, too. >> that would be chris wallace. able you think they were

to do such a good job of that because nobody would accuse megyn kelly of liberal bias. >>'s has been one of the big teams in the past cycles. cnn asked certain questions that were really pointed or tough, republicans go crazy and say that is liberal bias in the media. no one can say that fox news is a victim of liberal bias. those guys have the ability to ask tough questions without any fear of being bashed by the republican base. i think that fearlessness is part of why they were so tough. alix: good stuff, thank you for joining us. tune in tonight at 5:00 p.m. nice to see you, matt. much more coming up. stay with us. ♪

♪ ♪ ♪ get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. ♪ >> welcome back. alix: a look at the top headline. progress in the labor market.

inloyers added 215,000 jobs july with the unemployment rate at a seven year low. >> it takes much longer to recover from financial crisis. others,ompare it with we are doing much better than other countries. is bigger than estimated. in a leading democratic senator says he will not vote for the iran nuclear deal, chuck schumer of new york is opposed. he does not believe that iran will keep its promise to not build weapons. he put his decision on the web. a french search playing drifted off today for a birds eye view of reunion island. they are seeking more debris from the malaysian airlines flight 370.

they launched a weeklong operation with boats and aircrafts scouring the area. malaysian officials say this wing fragment came from the missing aircraft. other countries are being more cautious. and people in taiwan seeking shelter as a monster storm heads their way. the island is already heading hail andbeing hit by the wind gusts are topping 120 miles per hour. and you can call him professor bud, buzz aldrin will soon be teaching classes at the florida institute of technology. school announced that he will be a research professor of aeronautics. they also plan to make a buzz aldrin institute. and that is a look at top stories for this friday. back to another top story, the labor report showing signs of

progress and the u.s. jobs market keeping the federal reserve on the path to raise interest rates. , a september rate hike was discussed. they are mentally committed to moving before the year ends. probably 25 basis points, 50 would scare the market. , notnk september is almost unanimous, but majority opinion right now. >> what will happen to the markets when they activate the great mystery this weekend among the sophisticates, bill gross, even academic economists like brad delong? do that --e cannot what will be the market reaction when janet yellen and stanley

fischer raise rates? in with the forward curve presumes -- >> we like that. , give itn punch it up the active forward curve for all countries, but in the u.s. in two years the fed rate has been assumed to be 1.5%. so if we get there in 2017, there should be no market reaction because it is priced in. that is, gated -- complicated, but investors expect to be at 1.5% two years from now. anything less is positive for the bond market. >> are you managing for total return? how is bill gross managing day to day given the back-and-forth that we see?

risk off, thatg is the dominant flavor of what i am doing. for half a century investors have been looking at financial based capitalism, that is usually around guaranteed return. by the central bank bailing them out or through the dynamic movement of capitalism. now with interest rates low, we have to question whether a positive carry produces positive return going forward. sense deflation, among much of the globe with currencies, you have a germanic decline -- dramatic decline. is notyou sense that, it a positive for equities and risk markets.

>> bill, we will have you come back with further perspective. -- or what we see in mexico, or with deflation in europe, that has to filter over to janet yellen and her decision, doesn't? >> i hope so. they stress it as part of their consideration. i hope it becomes a consideration because when markets move so much and they have emerging markets and markets. -- dramaticrmanic move. at has implications for inflation in the u.s. >> what is the level of sweat you perceive and local commodities -- in global commodities right now?

>> that is a great point. to me, markets subject to real-time supply and demand as opposed to artificial stimulation, they tell a truer unemployment rates, staff projections, 2-2% growth. -- is at a cyclical low. it basically means if it is that such a low, the global economy is dangerously close to deflation, certainly in brazil and other developing markets. perhaps in the u.s. alix: that was bill gross speaking with tom keene. if the world is heading to deflation, can one central bank start to raise rates? lisa abramowicz is here.

what is so fascinating is as the threat of higher rates emerges, markets have moved in front of that, what does that look like? lisa: if you look at the pound, it is the strongest since 2008, versus the euro. we are looking at decade highs in the u.s., we have come off a little bit, but the dollar is at a four-week high. there are expectations that the fed hike will come in september, so currency markets are heading in front of central banks and that is a problem for them. alix: when it comes to the bank of england, maybe them rating --e earlier, it looks like hey the currency market might be doing the central banks job for them.

lisa: in a sense. they do not want to be at these levels. when they say that the currency market is doing their job for them, they want to do their job. let's be clear about that. i think the issue is people are hoping that the economy has been stimulated with this, do not get overheated. if you have a stronger currency, that has a dampening effect on growth because companies do not have a competitive stance when they look internationally, exporting. ont has a dampening effect growth, which is what the fed would try to do with raising rates. is that really what they want to do? no, they are trying to get away from crisis era policies. it is making it difficult for them. it is making a problem. alix: for them to actually do their job. lisa: exactly. alix: thank you.

up, and activist investor is going long on energy. we will look at that motivation behind it. ♪

♪ alix: welcome back. time now for a look at markets, we are 15 minutes away from the closing bell. we will head to remy. newswish i had that are emma it looks like we will end of the week in the red. all in negative territory, but they are paring losses.

the s&p 500 is down by about .32%, the down down summarily. the dow is down for the seventh day in a row. the longest losing streak since august 2011. i will take you into the terminal and show you what is happening with the s&p 500. it down for two days, the gger is lag or -- la energy with materials not far behind. so, don't lean into energy, i will take you into individual stocks. here you can see across the board, negative stuff. consol energy down. eog resources down, the biggest shale oil producer in the country. they say they will help growth -- halt growth since oil has all

in. $5.3 million versus $706 million a year ago, a huge difference. marathon oil down by 5.6%. biotech is another loser. lost oraq biotech has percent on thursday and some , all down.of those biogen by 7%. winners market trying to take profit. at the vickss look . it has been rising, up by 2% -- up by 17%, two points. we are looking at this increase in volatility over the past

days. more job numbers and the better the job numbers, the more likely people will see a federate happen sooner rather than later. of people think that will happen as soon as september. with that, have a good weekend. traders put in a third trades at 9:30 a.m. and went to the beach. top stories making headlines at this hour. picturesroy posted suggesting he might be able to return to the pga championship next week. the world's number one player has not been on the links since he finished fourth in the u.s. open, he fractured ligaments in his ankle while playing soccer with friends. the forced him to miss british open and this week at the bridgestone invitational. for some people in maine, every day is lobster day, but the u.s.

senate makes it official, september 25 will be official lobster day. no surprise, the revolution was introduced by maine senators. and the revolution's cosponsors were from new hampshire, rhode island, and connecticut. from fox news, the 24 million viewers watched the first republican presidential debate last night. the network said it was the top-rated nonce boards telecast ever. meanwhile, the cosponsor facebook said 7.5 million americans made millions of interactions on the network. this was higher than the state of the union speech in january. all posts were interactions. carl icahn is doubling down on energy, even after losing hundreds of millions of dollars this year. the activist is taking a stake in cheniere energy, saying that

they are undervalued. is well, anor more equity analyst. will, thank you for joining me. company has never turned a profit, but the ceo was the highest paid in 2013. why has he come on? file -- the in his topics he wants to discuss. in my view, the main issue, the company has not turned a profit, but they have their now cash flow for a 20 year long andracts for supporting -- it will probably come on next year. it is a big question as to whether that question -- whether the company should continue with

their plan of investing in new projects. iix: basically a company says want to reserve the right to export from your terminal, i will pay you commission near, whether i import gas. not workt market does out, they basically have a 20 year dividend. icahn want icon -- in future projects? >> not a lot. when the recast business did not re-gas business did not work out, they wanted this. the amount of money put in already, it has been arranged. place, they're waiting for the cash to get

going. ceo has an amazing story and has had a wonderful dialogue with investors in terms of getting money for the company. how do you foresee that relationship working out between -- and the ceo? >> we will see if it coincides. we will see where they come out and talk about issues. i expect that the ceo will make his views known to investors, he is very competitive. -- indicative. see: what would you rather the company did, give the money back to shareholders? >> i am almost neutral. my view is the cash flow they exist from parties are already contracted and they will be sufficient. in the balance to push to new projects is good, i

long they have commitment and contracts. i'm happy with that. as long as they are contracted. and with paying back, it will probably help support stock prices. alix: we saw shares rise on this, what does that do to help support cheniere energy? >> it is a validation. investor,ep value things that may not be getting the full recognition. i would agree with that point of view, that this is a company trading beneath its value. and if he recognizes that, that is motivation. the more the better. that is the kind of shareholder you want to have. alix: thank you. still ahead, after the bell -- releases its second-quarter want earnings -- second-quarter earnings.

♪ alix: we will report second quarter earnings. brookshire has talked about 7% since the beginning of the year. to knowledge asset joins us as well as mike reagan. this would like the biggest company out there. what is in the business we should focus on? well,s is not doing insurance is a hard business to be in. i don't know if you saw allstate last week, they had dropped below 2009, claims were increasing, people are driving more and getting into more accidents. the business is not doing well, geico already said they had to raise rates. alix: that is one area. killingseen for shire

it earlier in the year, but they have fallen off a little bit. mike, what will it take to get juice back here? >> apart from its core business, it owns this tremendous investment portfolio. in are notas escaped doing very well, ibm is down, american express is down, so warren buffett likes book value. looking at the values of holdings coming can see that is under pressure. this is because some of the holdings. they are so diversified, people look at them as an index on their own, but if you break it down to big holdings, it is not great. railroad stocks have had a hard time this year. that is partially because of the oil slump. business is another problematic area. alix: talk about the railroad business and what we can expect? >> it is mixed. a lot of delays in 2013, 2014.

on the other hand, oil prices are lower, so it will be interesting. alix: what can we expect to hear about the money they will have to cut out, $6 billion to upgrade cars. will that be a cash burn for them? >> i don't know at what point that will be, or how much of that will impact their costs. alix: what does the stock do on earnings? >> it is huge and important. the stock is quiet after earnings. it might move 1.4%. if you strip out the years of the financial crisis, it is rare to see it move more man 2%, and that is because investors are comfortable with the holdings. and the value going into earnings. really, from the macro stock market perspective, the big question on everyone's minds is where is worn -- warren buffett

elephant gun? alix: the money he will put forth to buy huge companies. >> yes, it is a great metaphor. he is a big game hunter out there. heinz kraft deal he has been silent. is he not finding value in the market, maybe waiting for a crash in prices? we will not get clarity on that today, but that is what we are wondering. >> the heinz kraft deal, it will be interesting to see how much cash they have. it was $53 billion, so that will be big. as it grows, there'll be more pressure to do something else. alix: is it going to be one huge like we or maybe deals have seen before, making small stakes. , whatlse have we look for

is on your radar? >> operating earnings, and value are looking at book , which is supposed to grow. alix: we will be waiting. thank you so much. still, much more ahead. we will break down the job numbers and three industries are growing jobs right now that you do not know about. ♪

♪ alix: we are moments away from the closing bell. eel. alex real -- st joe: and i'm joe weisenthal.

u.s. stocks falling, led by the dow. report came in line with estimates. joe: but the question is, "what'd you miss?". september rate hike, could anything change? alix: where the good jobs are, we will look at unusual places that are hiring. joe: and we talking turkey. crucial to the world economy, but next door to a war. alix: we will begin with the markets. you are looking at an industrial average, the longest losing streak since 2011. now trading at a six-month low. down for seven straight sessions. it came out of nowhere. joe: we have been having