the country devalues its currency. we look at the winners and losers of a weaker chinese yen. stuns thele tech world with a new name. and look at the future of the company now known as alphabet. scarlet: is there really a war on women? betty: we will hear from claire miscast goal -- claire mccaskill on donald trump's latest comment on women and whether she will support the iranian nuclear deal. ♪ welcome to "bloomberg markets a." i am pimm fox. betty: i'm betty liu. what a day so far. pimm: we have china news and indictments that we are looking at.

let us look at the top stories crossing bloomberg terminal at this moment china just made history in july 2005 when it joined the economic system and decreased its currency though you want. the country's central bank has devalued the yen by the most in two decades. they call it a one time adjustment. morgan stanley has also watched china adapt its currency. >> to have a lot of balls in the air and they are trying to do a large number of things all at once here. they want to rebound, restructured, lead globally. they want to reshape international institutions and reform the capital markets. that is always the risk they chewed off too much and they have to be more selective in identifying their priorities. pimm: devaluing their currencies should make chinese exports a

little bit easier to sell overseas. perhaps less expensive now. last month, exports from china fell more than 8% and china is in the midst of its deepest economic slowdown since 1990. negotiators have agreed to a deal for another greek bailout. athens says only a few small details need to be worked out with creditors. the agreement will give greece up to $94 billion worth of loans. greece needs that money in the next week or so because it has a payment to make to the european central bank that is due a week from thursday. this hourthorities at are providing details on an insider trading ring that they say is broken up. the traders allegedly used computer hackers to steal corporate press releases. five suspects have been arrested in the united states and these hackers are thought to be located in ukraine and perhaps russia. the ring made more than $30 million in stocks such as boeing and panera bread as well as

hewlett-packard. they are accused of stealing up to 100 50 thousand press releases. officials say they broke into the services of prnewswire and business wire. betty: google has unveiled a sweeping reorganization that turns it into a holding company. the new name of the conglomerate -- alphabet. core business of search and advertising will be separated from other units like self driving cars and antiaging technology. its own ceo.l have larry page will be the ceo of alphabet. time punchai will be the new ceo. literally the last two years, billions of dollars have been going from public to private markers. with google and out for that,

wall street has a way to participate in some of these things that have long-term payoffs. betty: the new structure will give investors greater clarity as to how google invests in new ventures. home prices climbed to 93% of u.s. metropolitan areas in the second quarter. that is the broadest aim in a decade and led by florida. the national association of realtors say the median price of an existing single-family home is up from a year ago. it was an improvement from the first quarter when 85% of metro areas saw prices increasing. more rising in pricing, but seats were harder to find on american and u.s. airways. the combined traffic is up almost 5%. 87% of seats were filled on the average flight. that is up 2% from a year ago. lower average fares are expected to hurt revenue. pimm: there is new etiquette for diners. should you take a waiter at mcdonald's? the company is testing cable service at 50 u.s. restaurants.

the server will not take your order, but you have to ask for your food at an electronic kiosk. you may have bought your first compact disc or vinyl lp records from columbia house. you know, the place where you could get eight cds for a penny. the parent company has filed for bankruptcy protection and plans to sell the columbia house dvd club business. columbia house sales have been hurt by changes in the music and video business and are basically selling their trade market. betty: you think? i remember those clubs, by the way. coming up in the next half hour, how google's major reorganization and companies that use its operating system. former senior google executive. pimm: claire mccaskill joins us to to talk to us about donald

trump and why she is backing hillary clinton now after snubbing clinton for president obama back in 2008. were preoccupied with troubles in greece or puerto rico when you went to bed in the western world last night, you'll wake into a shocker out of china. as he mentioned before, china devalued its currency overnight by nearly 2%, causing ripple effects. concerns of china slowdown is much worse than we believe. pimm: we have the global head of currency and strategy at securities and he is with us now. do think this is the kind of event that he just described? >> i remember when they went the other direction in 2005 and it definitely shocked market. it is the biggest change since then. pimm: you seem slightly underwhelmed. [laughter] betty: a little early in the morning. i think this is a

potentially very big deal. if we see them drifting and fixing and a weaker direction again, and a trend developing, that will be a big news. government comes out with a directive that says the yen is going to be worth this much to the dollar? jens: that is what they have done in the past. they said last night we are going to change the system. now, we are simply going to use the market rates from the day before to set the central rate the day after rather than set by a certain government decree. if that is the policy, we are moving to a freely flowing currency. betty: are you telling us that tonight is going to be very key to watch or could it take some time before china reveals all of its cards on this? tonight is very important. my 15 new york times -- 9:15 p.m. new york time is the time to watch. we would be moving to a much more flowing currency.

we know the capital flows and china have been much weaker the past several quarters. that would suggest we are going in a weaker direction if they allow it to. devaluation.s a 2% as i was reading through some of chinaalyst reports, really wanted to devalue its currency, we could have seen something like 10%, 20%, or 30%. is this them just adjusting? let us bring up a five-year chart. hiis this them just adjusting their currency to other traded currencies? jens: the dollar is obviously very strong against different currencies. currencies so far have weakened against the dollar, but the chinese currency has actually been quite strong. you could argue this is the catch up for what all the neighbors have been doing. it isnot a big deal, but a big deal because we did not know that they would do it until

they announced it. jens: are you going to preannounce it? pimm: i was thinking of that. a slow drip. jens: the bottom line is that a lot of investors were surprised by this. that is why you see big moves in the market today. pimm: if the chinese were allowed to flow freely, it would appreciate and value against the dollar? it isi think short-term in that direction and we could potentially see a meaningful move of 6%. are they going to allow it? that is the key. pimm: special drawing rights. this is the component of a come conglomerationsk of currencies. this has to do with international prestige and finance. jens: this is the symbol of being a reserve currency if you are allowed in that exclusive club. pimm: and china was not allowed recently. jens: we had some news from the imf that they were not quite there. 80 there is a linkage that maybe

they did not quite get in and they would move the currency like we want to i'm speculating a little bit here, but there could be some of that going on. betty: jim richter put out a tweet and he is the author of "currency wars" and a lot of people look to him to comment on this. they areing that playing rough with china and they are deciding to play rough with us. all is fair. is a littlecy wars tricky one, but now it becomes relevant. now, if you have one of the in the worldmies in china starting to play this game, it is only the dollar left that is strong. the question is whether the u.s. economy can cope with having the strongest currency in the world. betty: austan goolsbee who we had on earlier talked about how the fed might react to this. this into what he said about that. has beenk that the fed

inching and want to raise the rates. they have wanted to raise rates for a long time. going to try to find a way to do it. is warranted. it i think the economy is not growing that fast. china is slowing down. europe is a disaster. what is the big race to speed up? betty: did china basically tell yellen don't raise rates? jens: it is a tricky decision for september. they shouldgest delay, maybe it's enough to shift a balance. the dollar is up 1% on a daily basis here. that is a big move. 1% at day is quickly going to be enough to make the fed more cautious. pimm: does this hurt people in china who have to pay for imported goods or does it hurt company like burglary, michael kors, people who sell electric products into china? have currency moves, there are always two sides to it. importers -- a gets more expensive for them. there are importers that benefit on a net basis.

you tend to think it is something positive for the economy, but that is the trick in china. if this creates a sentiment shift where it creates a lot of capital flight, people will not want to hold this currency because they think they can be more safe and dollars. that could actually be negative to the economy. betty: how is that not already happened though? we have so much outflow coming out of china. jens: we've had a couple of quarters were maybe 150 billion was coming out, but they accumulate several children trillion worth of reserves. if this takes hold, we will see more than we have already. pimm: what effect does this have on other asian trading partners? jens: it depends on if it is a trend or one-off. if it is a trend, china will be catching up with other economies. to the dollar. jens: it will of apparatus attention -- either operate

potential. betty: thank you so much. still ahead on "bloomberg market day," u.s. authorities speaking out on a trading ring. they used hackers to access corporate press announcements and stole more than 100,000 -- made more than $100 million. pimm: the latest details on that story coming up. ♪

pimm: welcome back. i'm pimm fox. there is a live shot looking down at the empire state building. betty: i think the rain has stopped. pimm: looking down at the

metlife building. it is south of manhattan. betty: stocks are reflecting the gloom that we have seen in new york so far with all that rain. they are in the red today, giving back nearly all the gains we have seen since yesterday. ramy is here with us showing one big gainer -- verizon. ramy: it is up about 1% in the telecom sector and trading at $47.70. for verizon, we're looking at this because it follows nathanson's raising the rating on the stock from buy to neutral. the stock now is $54 a share. we are several dollars shy about and we will see if we get in the next 12 month or so. apple not having a great day. down 3.6 percent saying they have seen lackluster interest in the newest product. sellestimate apple will

watches in fiscal year 2016. apple has said they sold more watches than ipads in the first nine weeks on the market. let us take thei dig deeper into the apple index on my terminal. you look at the yellow line here. apple broke this 200 on august 3. it try to push it through yesterday, but it lost momentum. as you can see, we are turning back lower to 3.6 percent. the last time apple broke this 200 was in september 2013. cause for concern there. oil companies taking a hit today, too. energy is one of the biggest laggards on the dow. down two point 6%. chevron is also down 1.5%. this is in reaction to oil dropping to its lowest levels in nearly five months. in part due to new news about a oilvery in the iranian production could it turns out

opec supplies are now at their highest in more than three years at 31.5 million barrels in the past month. let us check crude oil futures and they are down by duly 4% on the day. this is the lowest price since march 2009 and trading at $43.17 a barrel. back to you. pimm: thank you very much. someet us take a look at of the top stories crossing bloomberg right now. hong kong authorities have drivers ande uber search the company's office in the asian financial sector. officers posing as customers arrested drivers for illegally carrying passengers and driving without insurance. butce have not blamed uber cameras showed the hong kong office and they removed computers and documents. stock buybacks are turning out to be a bad that for viacom. plowing money back into its shares cost the company nearly

$3.5 billion in the last five years. the media giant is controlled by the 92-year-old sumner redstone -- also run by the chip chief executive. he has suspended buybacks, but he says they will resume in october. twitter's interim chief executive jack dorsey made a point of tweeting that he just bought a hundred 70,000 -- $875,000 worth of traders thought. -- twitter stock it since twitter's initial public offering, he sold $14 million of company stock and twitter shares are down 19% in the last two weeks. betty: much more ahead, we are following the headlines at a press conference happening right now. as you can see, the sec indicting nine people for hackers to trade on data. pimm: mary jo white saying these events are "a brazen scheme to

earningspublic information." we will speak to our own cyber security expert from washington, d.c. coming up next. ♪

betty: you can see federal authorities speaking right now in brooklyn at a press conference, announcing they have broken up a major cybercrime ring locust on insider trading. hackers based in ukraine, pennsylvania, and the u.s. state of georgia stole more than 100,000 corporate press announcements and traded that information before it became public. boeing and hp were some of the companies affected. pimm: the indictments in the complaints allege that $30 million in illegal profits were made. five men were arrested this morning in georgia and pennsylvania. for more war indicted on fried for more people were

indicted on fraud charges. that is security jeh johnson. mike riley is joining us from washington. what do you make of the arrest that are made this morning, is it going to have a substantial effect on cyber attacks to glean this nonpublic information? mike: it's an interesting question. one of the things that this case represents is a combination of expertise with hackers actually located in ukraine and maybe russia and people who really know the markets, who are located in the u.s., and some places like malta and france. you take those expertise is together and you get a pretty amazing scheme that could skim nonpublic information some time in very short windows as little as 36 minutes and make big profits off of them. whether or not this is a way to , onlythis kind of hacking the future will tell. the sec and fbi are certainly

making that case. they are basically saying in this press conference that, look, it does not matter how complicated your scheme is, we have got ways to spot it and we are going to find you. betty: who are these hackers? what do we know about them? mike: it is interesting. guys whors are some have been around for a long time. the fbi has had some of these guys in their sites for a wild. they can hack just about anything. in this case, they decided that they could get insider information by hacking prnewswire and market wire and others to get these press releases from fortune 100 companies. sometimes 24 hours in advance and have very sensitive information on the kid they sat in those networks for up to four years. a created this complicated way to distribute that information to traders. that these servers traitors in europe and the u.s. can access very quickly and get information and make these it.es and make money off of

some of these traders are wall street veterans. one of the people who was arrested in pennsylvania used to work for morgan stanley and then set up his own hedge fund. pimm: what you make of the announcement also that the hackers, the software and technology experts, actually monitored the accounts of traders were placing the traits to make sure they got there right cut? mike: you are seeing a little bit of a window into how these deals work in cyberspace. keep in mind that these guys do not know each other. deal.is a big the question like how are you going to trust guys who by their very nature are criminals -- one way to do that is transparency. orderntly, the traders in for the exchange of getting access to this information decided that they would give transparency to how much money they made it and the hackers would know what the cut was supposed to be. pimm: thank you very much, mike riley reporting from washington. i will turn it over to you for the rest of the hour. betty: coming up in the next

half hour, i sat down with missouri democratic senator claire mccaskill with her new book "lady like." one of the highlights was celebrating the republican win in the rough public and primary shotgunning a beer. daughters imy would shotgun of your. me betty:re shows doing it. what will you do next time you went? >> i don't know. hopefully there are old enough that they are not anxious for me to shotgun anything. betty: we have that interview next. ♪

betty: welcome back. i'm betty liu. now to some top stories crossing the bloomberg terminal at this hour. a lawyer for bob mcdonald says

he will appeal his corruption conviction to the u.s. supreme court. that comes after a federal appeals court said it will not review mcdonald's case. last year, mcdonnell and his wife were found guilty of doing political favors for a wealthy vitamin executive for exchange of $165,000 in loans and gifts. both received prison sentences, but they are free as they pursue their appeals. now to the campaign trail -- rick perry staffers in south carolina are no longer being paid. the former texas governor and republican presence of candidate says he does not have the money. on the democratic side of the race to the white house, bernie sanders has received an early endorsement from major nurses union. that happened yesterday afternoon. now to some economic news -- wholesales grew in june by the most in a year. wholesales stockpiles were 9/10 of 1%, rising inventory levels are seen as a sign that businesses are more confident about consumer spending.

meanwhile, productivity still is not growing as fast as expected. the measure of employee output per hour rose at an annual rate of 1.3% in the second quarter. productivity had actually fallen in the prior two quarters. billionaire dollar no -- donald tmz at his suing ex-girlfriend. the lawsuit deals with the recording of his off-color remarks about minorities that cost of ownership of the l.a. clippers. his wife,s also suing the nba, and two doctors who examined him. toclaims they conspired remove him from the team. that is a look at the top stories of the hour. coming up in the next half hour, times are changing fast for hong kong luxury retailers. just a year after boasting the highest retail rents, companies are begging when lowers to lower rents as stocks plummet.

buybacks turning out to be a major done. the company has lost about $3.4 billion investing in itself. as ceo still has the confidence of investors. we know that senator claire mccaskill can shotgun a beer with the best of them. more importantly, she is out with a new memoir called "plenty ladylike. before we got down to business", senator mccaskill describe what it would like to be an assertive woman in washington planning to get her voice heard. sen. mccaskill: i wanted to planning story about ambition and the strategic decision to the ladylike and my career has navigated a lot of those obstacles. it would be great in a candid way to show i'm never going to run for president and telling the story of my political career and particular you some of the incidents that became of national significance in my last election. betty: another topic we talked

about -- whether she will support the president iran nuclear deal and what she makes of the republican primary so far , and in particular, what does she make of one very loud presidential candidate, donald trump. sen. mccaskill: the problem is that when you publicly trashing does on the basis that he that she looks like a tape or she is not attractive enough or her face is a seven but her legs he a 10 -- all that stuff does, that sends a signal that he doesn't respect women. betty: what he says he does not want to be politically correct -- sen. mccaskill: i think there's a difference between being politically correct and civil and being polite and being respectful. i think most people want the president of the united states to be all those things. i think what donald trump really does is he says whatever he needs to say to demand the most attention. i think he is taking narcissism presidentiall in

politics. and has always been high, but this is a whole new level of narcissism. betty: do you really think he has a chance? sen. mccaskill: let me say this -- i do not have a lot of her split -- respect for donald trump in the way he is running for president, but i respect what he is tapping into. there are a whole lot of people are frustrated because they work hard and are playing by the rules and are not getting ahead. they want to blame that on the government and the government deserves some blame. but they are very cynical and negative and that is what donald trump is tapping into. i respect that is out there. i do not blame people for being cynical about the government. it is not as if we have our act together in washington, but i do not think the answer who is someone that is loved and bluster him of the demands attention, attacks people who has a disagreement with him. the answer is to figure out someone who can be strong and stable and leave the united states. betty: you did not endorse clinton the last time she ran

and you endorse the president .i know that caused a rift , but what is the relationship between you now? sen. mccaskill: i talked about that in thesen. mccaskill: book. betty: about how you are not want your daughter near clinton? sen. mccaskill: it was a stupid thing to say, but we have a good and cordial relationship now. i'm anxious to be helpful. i think she will be a terrific president. she represents the strength and stability we need on the world now. betty: are you talking frequently now? sen. mccaskill: not frequently, but i haven't had a chance to speak with her on the phone and meet with her in the last few months. we had dinner with her and the women senators not too long ago and it was a terrific evening where i was struck by how ready she is for this challenge. she knows what she is getting into. she knows how hard it's going to be and she is really listening now more so than she did in 2008

to the people that she is meeting on the campaign trail. betty: one of the first orders of business when congress reading convenience is voting -- reconvenes is voting on the iran nuclear deal. are you voting on this deal? sen. mccaskill: right now, i'm contacting the countries that hold iran's money. many of them are not part of this agreement -- turkey, india, south korea, japan. it is not the united states that holds its money. it is about $60 billion and we cannot control whether or not iran gets this money because other countries are going to make that decision. i want to find out what they are going to do if we walk away from this deal. betty: senator chuck schumer decided not to endorse the deal. how influential is that on you? sen. mccaskill: not at all. i think most senators are trying to do their own homework without pressure from the white house or chuck schumer or various lobbying groups flooding

washington and the airwaves. i think most of us are trying to get into the weeds and look at the details of this agreement and look at the implications of the agreement and hopefully look at what it means in the world is having the united world in this agreement if we then said, we are walking away. that is what i think matters most. betty: that was democratic missouri senator claire mccaskill. if you missed any of this interview, you can catch it all on bloomberg.com and i will tweeted out as well. you will find it at my twitter handle. still ahead, stocks getting clobbered around the world on china's devaluation. here is where some companies that did big business there in the u.s. and here is where their trading -- they are trading right now. let us show the market board. ♪

rolling inclouds are now over the skyline in new york city. welcome back to "bloomberg market datay." let us go straight to ramy for the big tories in the market and the clouds are reflecting the story so far. ramy: stocks are sharply in the red -- at or near session lows and giving back some of the gains we saw monday. the dow is the biggest loser, down 1.2%. the biggest drop since july 8 and it hit a six-month low added session low today. it is lower eight of the past nine sessions. china's surprise current cd valuation being the catalyst here.

let us dive into my bloomberg terminal. you can see the s&p 10 sectors performing. utilities and telecoms are the only sectors in the green. energies and materials on the flipside are the biggest losers. materials down by 1.9% as they both have been all year. it turns out the energy sector is now down 15% your today. let us move to commodities and we will first take a look at oil. crude oil futures are down -- look at this, four percent just today. they are trading at $43.17 a barrel. march 2009e since and due to the production of iranian oil pushing it to the highest in four years but china's devaluation also making the biggest oil user production slow as the commodity rises. on to another commodity, copper is at its lowest level since

2009, down 3%. this after china's devaluation as well and it makes its own exports cheaper is. it makes things more expensive to import goods like commodities. the country is the world biggest producer as well as consumer of metals. note,y to the 10-year bonds are rallying after china's move. yield is down to 2.12% right now. fear and loss pervading the market. betty: marcus determined by greed and fear and right now it is fear -- a lot of it could thank you very much. markets determined by greed and fear and right now it is fear. they can very much it here is mark barton from london. casting a shadow over the european stock markets on the session today. if you are a company that is in china, the sales you are impacted by that surprise move. take a look at the big decliners

in germany today. -- 15to related stocks of the euros have valued european auto stocks today because of the china move. look at the movers in the u.k. today. the two big miners -- mining stocks, 9 billion euros with the value of the industry because of the chinese devaluation. it was not all doom and gloom. the asc rising for the fourth consecutive day. last wednesday, rick stockstill lowest in three. the have risen by 11%, by the way -- the best-performing stock market in that four-day period in the entire world. , the uk's up by 4.9% biggest insurer. it is led by gains in asia and raised its dividend. delta lloyd with us biggest

decline ever am a down by 20% today can swings in interest rates and credit spreads contributed to a loss. ubs,am, formerly owned by is going to cut 165 jobs after reporting a drop in forecast profit. it is about china and it is about greece. back to you. betty: over to asia where chinese devaluation hit its neighbors hard. bloomberg stephen engle has this report from hong kong. china is entering a new regime after devalue waiting its currency -- devaluing its currency, a move that may be in line with efforts to get the imf to include the rmb in the fbr an basket. tois sending the currency its biggest one-day loss since china unified rates in 1994.

it is calling it a one-off adjustment and that they plan to keep the you want at a stable and reasonable revel. why the china do this now? july exports have been falling while japanese yen have been appreciated. up until tuesday's move, it kept yuan relatively stable, but authorities tuesday decided to hide the expressive trade rate for the devaluation. betty: for evidence of the china slowdown, all you have to do is go to ruffle street in hong kong. late last year, that was one of the world's most expensive streets. a command of the highest retail brand in the entire globe. now retailers like bird be in gucci -- burberry and gucci are pushing owners to lower rents as sales plummet. it even closed its russell street store.

the hong kong retail association says that sales of those gifts along with jewelry, watches, and clocks fell 16% in the year ending in june. mark crumpton joins us now. note, i was born in hong kong and have been there many times. i know russell street very well. we were there last year and we have video of it. we did a profile of one tiny camera store. that little piece of property was worth $20 million. mark: what? [laughter] betty: and this was one of the brokers in hong kong. mark: you are on the ground there and talking to some of the people there. why were they telling you about that? this was last year, right? did they see this coming? betty: no. this was a real estate broker that we talked to and he was telling me that it seemed like andything was continuing

they were continuing to seek tons of chinese tourists coming in and buying 5-7 louis vuitton bags. by the way,ods, were cheaper to buy in hong kong that they were in china. mark: you know what is interesting -- according to the research and stories we have on bloomberg.com and the bloomberg , theyal, the mall owners are standing to whether this pretty well. in the malls, you do not just have the luxury shops. you have this very diversified set. you have the restaurants, jewelries, clothing stores. they are able to withstand this. when you're walking down that street, they are taking a hit they?now, aren't betty: they are indeed. apple was building a store near one of those malls, but the thing about hong kong that is really interesting is that rents themselves are sky high no

matter what. there is only a certain amount of land that you can build on. even though rents are dropping and sales are falling, you do get the sense that there is no more room to build. there is some sort of buffer there. mark: and there are two factors here. one is the economic slowdown. that is clear. but the president -- the anti-corruption crackdown is having a sizable ripple affect as well. betty: a huge ripple affect and part of this has to do with macau as well. they are curbing the visas to go in to this gambling mecca. what do people do in china when they came to hong kong? they went shopping. they had a lot of money. the gamblers going into macau were not going into hong kong either. mark: we spoke to one of the guys who is head of research for

hong kong macau in taiwan crv group and he told up that rents would trend down and he also continued that some midmarket shops looking to expand may be able to find more affordable options. maybe the big guys are just getting smacked around and this could be in opportunity for some of those smaller shops to set up shop and make money. betty: possibly, but $20 million. it was the size of a bathroom, mark. mark: sound like a new york city apartment. [laughter] there going to continue china story because this is obviously impacting markets around the globe. capital saysctic that his hedge fund is having a negative outlook on china for a i we willm talk toe him.in the next half hour and he joins us from connecticut. betty: mark, i will see you in the next hour. share buybacks have been a trend

among big corporations in the past year, but buybacks are backfiring for viacom. we will have more in a moment. ♪

betty: welcome back. i'm betty liu. now let's look at the top stories of this hour. northern california wildfire doubled in size overnight despite an increase in humidity and cooler temperatures. it has burned nearly 19 square miles for the second time in as many weeks. itidents had to the vacuum their homes because of the uncontained blaze about 100 miles north of san francisco. firefighters have nearly surrounded a larger blaze that started two weeks ago and has burned 109 square miles. america's healthy eating trends not hurting bacon sales, even though two thirds of its calories are from fat. analysts say that people are

putting bacon on anything. the price of pork bellies is up 174% in just four months. bananas for bacon. if you buy this car, chances are you will not need to park on the street. a 1961 for re: california spider may bring up to eight in the team million dollars -- up to $18 million on auction. it will be in one of 4000 equals on the block at a classic car auction in northern california another ferrari when up for sale for a record $38 million. that is a look at one of the top stories of this hour. a viacom taking a bath in its own stocks. the struggling media company spent $15 billion buying back price at an average of $16 60 two cents. the problem is the stock is trading around $46. the company has lost about $3.4 billion investing in itself. meanwhile, the heat is on. the ceo suspended buybacks back in april and try to reverse

declining revenues. bloombergs chris paul mary jones us from l.a.. a lot of companies have bought back stock to the tune of trillions of dollars. what has gone wrong here at viacom? chris: stock buybacks are great strategy if your stock is rising. but if your core business is not showing the kind of growth that wall street once, then it becomes a problem. that is the issue with bike on. their ratings are down and advertising is down. people are shifting to newer media. their stock buybacks do not look so smart in that situation. betty: not at all. they have lost money on it. have shareholders voiced their frustration? this is not a new revelation here. chris: no it is not. you are seeing a greater chorus of people saying that at viacom the money would be better spent

investing on new technologies and more programming. generally, people saying that all the stock buybacks that copies are doing -- maybe we should be investing more in technology and paying our workers more. betty: indeed. there could be better places to put their money. philippe daumannague dom say? if the under pressure at all? -- is he under pressure at all? chris: they have spent record amounts of money on programming. they did a big acquisition of channel five in the u k. he has invested in technologies that will make his advertising partners more effective. he is trying to do a lot to address the core business. betty: how is he paid and compensated? chris: extraordinarily well paid with more than $40 million last year. like a lot of ceos, part of his

compensation is based on earnings per share. when you buy back the stock, you have higher earnings per share even if earnings do not grow, as has been the case with viacom. betty: chris, thank you so much. changes in, major mountain view. google undertaking a major reorganization. will forming a new company called alphabet spell success for the search giant? yeah, we had together. that is coming up. ♪

betty: it is 10:00 in san francisco and 1:00 a.m. in hong kong. mark: this is "bloomberg market day."

china devalues yuan. will it turn around china slowing economy? google announces a sweeping reorganization right out of the war in buffett playbook. -- the warren buffett playbook. we detail alphabet. termsgreece reaches the of a new bailout deal. while the greek parliament follow-through with the package of economic reforms? ♪ betty: good afternoon. i am betty liu. mark: i am mark crumpton. betty: welcome back. mark: thank you. let's start with china. it was a little today and it is a way right now and it's going all over the markets. both the dow and