shot as the government values the yuan by the most in 20 years. it's the biggest economic slowdown in a generation. the effects are being felt around the globe. google shares soaring after a corporate structure reorganization. we hear from a former google executive. mark: a new chapter for mail-order music giant columbia house. the dvd club owners just filed for bankruptcy. good day from bloomberg world headquarters in new york. i am mark crumpton here with scarlet fu. it is all about china. scarlet: today at the risk off across the financial markets because of china. let's start with stocks. the dow industrial is off by 247

points. forming it slide falling the eighth time in nine days which is in line with the global selloff. in particular, companies that rely heavily on a forced to china. we are talking about automakers from the u.s. and europe, luxury goods retailers all facing the decline, the index off by 1.2%. the exception is greece, the only european market to gain after greece secured an agreement on a third bailout. let's move on to currencies. the yuan getting a burst -- a boost. the dollar is firmer right now. 12512. sparkingaluation concerns of a global slowdown across the commodities landscape area currency as a result taking a hit. the dollar stronger versus the loony, the canadian dollar 13128. as for commodities, red arrows all around with the exception of gold. gold is up by .4%. deflation shares perking up once

again. take a look at the top stories cross in the bloomberg terminal at this hour. china made history in july 2005 when it joined the international economic system and appreciated its currency. that was very managed. policy change today. the country's central bank has devalued the yuan by the most in two decades. the people's bank of china called a one-time adjustment. yale university's stephen roach has watched china adapt. stephen: they have a lot of bowls in the air and they are trying to do a large number of things all at once. they want to rebalance and restructure. and want to lead globally shape and reshape international institutions. they want to reform their capital markets. and so there's always a risk. they just chewed off too much and they have to be more selective in identifying their priorities. devaluing china's currency

should make it easier for exporters to sell overseas. last month exports fell over 8%. china is in the midst of its deepest economic slowdown since 1990. scarlet: greek prime minister lexus tsipras calls for an emergency session of parliament. the move comes after negotiators agreed on a deal for another greek bailout. a few small details need to be worked out with creditors according to the greek government. agreement will give the greeks up to $94 billion in loans, and it has a payment to the european central bank to august 20. mark: federal authorities busted a insider-trading ring that you skip your hackers to see -- to -- the ring made more than $30 million in stocks such as boeing, pineiro, and hp. packers are accused of stealing 150,000 press releases.

officials say they broke into the servers of your newswire, market wire, and business wire. scarlet: google unveils a , google'seevaluation core business will be separated from other units like self driving cars and antiaging technologies. each unit will have its own ceo. google cofounder larry page will be ceo of alphabet while his longtime deputy will be google's ceo. >> wall street in general has been excited about all of these transformational opportunities that are coming up in terms of venture backed companies and so on. last year, two year, tens of billions of dollars one from public markets are private markets. theoretically here in google and alphabet, wall street has a way to participate in some of these things that have long-term payoff. scarlet: the new structure gives investors greater clarity as to how google invests. illuminatedoup

about 3% of its employees with half of the cuts coming from technology staff. the world's largest futures exchange dismissed about 80 workers on august 6. this round of cuts followed a 5% reduction in october. cma shares have gained 33% in the past year. scarlet: home prices climbed to 93% in the second quarter. that's the broadest gain a decade and is being led by holiday inn florida. the median price of an existing's in family home rose from the year earlier. market improvement in the first quarter when 85% of metro area stop pricing creases. mark: seats were harder to find last month on american airlines and us airways. the combined airline says traffic rose almost 5%. 87% of the seats were filled on the average flight. that's of about 2% from a year ago. but lower average fares are expected to her revenues. scarlet: a new etiquette dilemma

for diners. should you tip the waiter a mcdonald's? the company is testing table service at 50 u.s. restaurants, at a server won't be taking your order, you have to order your food at a kiosk. my answer is no. mark: a rare white hub back mail was -- humpback whale was spotted. scientists believe it could be the iconic white whale that hasn't been spotted in a year. only three confirmed albino hub back whales have ever been identified. those are your top stories of this hour. scarlet: coming up in the next half hour of the "bloomberg foldingay," bloomberg the sunshine into a holding company called alphabet. we will give you the abcs of what this new company is and what it means for investors. mark: senator claire mccaskill weighs in on the presidential race and more specifically, the outspoken donald trump. scarlet: vicomte taking a back

-- taking a bath on the share buyback program. what does it mean for the ceo? all that a much more coming up next on "bloomberg market day." its: why china made currency move has been the debate all day long on bloomberg television. here are the experts in their own words. >> they've been getting killed having basically pegged their currency to the dollar. -- that's linked to not precisely defined. but certainly linked to the value of the dollar. but we have the last year is a significant global strengthening in the value of the dollar. >> they're trying to weaken the currency to boost of growth. >> they have a lot of bowls in the air and they are trying to do a large number of things all at once here. >> they are trying to figure out some way to counteract that flow down. >> they want to rebalance and restructure. and want to lead globally shape and reshape international

institutions. they want to reform their capital markets. >> is a risk they have two to off too much. >> the potential to send deflation around the world. >> this is not going to have a huge effect. the chinese think they can get away with this. >> these feed into that nagging fear that it is not growing year as fast as they say. i think people are pretty nervous. >> the chinese are saying it is one and done. >> a one-off devaluation. >> they claim it is a one-off. i got it. >> there is no way. >> if there's one thing that i'm very confident of this morning, it is that this is the beginning of much bigger. scarlet: you saw david wu, head of currencies research at the firm. he discussed the impact on the currency markets overall. david: it's not going to turn around china's economic prospect at all. ishink even more important

the fact that when you to recognize they did this today in order to ease monetary policy more gracefully. one of the things i have been writing about is this whole notion in impossible trinity. is the notion that no country can fix exchange rate and have a capital account open at the same time. china is no exception. i don't think it is a coincidence that this thing happened today three days after friday, on payroll and dollar data expectation. that chinese can lower interest rates at home, defend this while the fed is trying to hike rates. as we approach the start of the hiking cycle, they increase the urgency for china to let the currency go. by letting the currency go today, they are telling you it's going to be easing monetary possibly -- policy aggressively. sayinghere are people that this is the end of fixing

as we know it. mavs: and having the end of fixing as we understand fixing to be. but fixing as china has done it is maybe going to change. the band is the real band now. david: they are moving towards a more flexible exchange. the purpose of this is so they can lower interest rates. as interest rates come down, obviously you are going to see more offload from china. way, they areis able to tell the whole world we are letting the currency go down, but is not only going to be different china, but for the world economy as well. erik: will it? david: not today or next month either. china has joined the global currency world. that's what you see today, here's a competitive valuation, if china says they are valued 1%, i will be valuable percent.

from japan, korea, mexico will have to start with the consequence because one germany for china's 3% of german gdp versus u.s.. do we have to fire our own salvo in the global currency wars? david: what stan fisher said yesterday is vis-à-vis the dual mandate we are getting closer. concerned about inflation. you leaving the door open saying if china devalues and this brings on deflationary forces around the world, the u.s. is not going to be able to escape the implication and that is something we need to take into account. there's no question in my mind that the chinese move today is going to cut short the fed tightening, even if they were to hike the rates in september. we see that. want to go back to the

point you're making about the impossible trinity. you are framing it in terms other than what most people are using this warning. most people are evaluating the chinese devaluation as a short-term effort to boost exports. ,ou are talking about it phrasing it is a structural capitulation. qe,d: when the u.s. did rates went down, the dollar collapsed, and the u.s. stock market went up. when the ecb did qe just now, interest rates collapse of the european stock market soared. i think china is going to be an exception. really sense, they are approaching the chinese style of qe. to the extent that it's going to be driving down rates, but that also should make you feel a little bit less negative about the chinese stock market. from our point of view, this is about the start of chinese tv. speakingdavid woo,

with erik schatzker and matt miller. mark: "bloomberg market day," still ahead on the "bloomberg market day," "bloomberg market day," google reorganizes its corporate structure. we hear from a former executive about the new alphabet. ♪

mark: welcome back to "bloomberg market day." i am mark crumpton with scarlet fu. remyet: we had over to with a look at the biggest losers and winners in the s&p 500. ramy: not doing very well. to individual stocks, not having a great day, falling deeper into the red. 5%, a couple of minutes ago was 4.5% down.

this is at session lows guys. this after ubs says they are seeking lackluster interest in the apple watch. they are estimating apple will sell about 20 million watches in the next fiscal year for 2016. apple has said it sold more watches that ipads in their first nine weeks. let's dig a little deeper into apple's fault. this is the gpo function. you are looking at the 200 day moving average. if you look all the way to the right, apple broke low that on august 3, try to push through that yesterday. just couldn't do it. as you can see, we're not turning back lower. the last time apple broke the 200 though was back in september of 2013. looking at commodity producers, they are getting hit by china's currency devaluation. red,ort trading in the plunging down about 13.4%. your to date it's down 57%.

this is the world's biggest publicly traded copper producer. this is at its lowest prices december 2008. it's the biggest laggard in the s&p 500 today as well. in the transport sector, want to take you to american airlines. on the flipside, a little bit of good news. rising higher today. it is up by 2.5%. it had been higher by 3.5%. it did report better air traffic with passenger miles increasing 4.8% to 21 20 billion miles in july. that is a record. scarlet: thank you. some let's take a look at of the top stories we are following up this hour. authorities in hong kong have -- uted five over drivers ber drivers. they were arrested for illegally carrying passengers and driving without insurance great police have not named uber, but local thehowed officers inside

company's office and said they removed computers and documents. scarlet: stock buybacks have been a bad bet for viacom, i money back into shares cost the company almost $3.5 billion in the last five years. is run by ceot philippe dauman. he has had suspended buybacks, but also says they will resume come october. jack dorsey said he bought $875,000 of twitter stock. made a raise past transactions come all of them sales. since twitter's ipo, he sold more than $15 million in the company shares trade twitter is down 19% in the last two weeks. those are your top stories of this hour. google is undergoing a massive reorganization. larry page will be the ceo of the new parent company, alphabet.

google will be a division of alphabet. scarlet: got that so far? emily chang got reactions from former head to bavaro. he spoke with emily through skype from beijing. hugo: i think the technology community is enthusiastic about this. very enthusiastic. i think what larry is building is the most amazing business platform that has ever existed. given its potential to invest and especially given their ambition. there is no one in the world today, or maybe there's a handful of people in the world today who are as ambitious as larry. very excited about this. emily: he should be running google so he can focus on the future of humanity. take me as i the minds of larry page answered a brand. why are they doing this?

for: they're doing it reasons they've stated from the very beginning. they are here to build a technology company that can change people's lives. i think they are best at that. but they are better at that than a running day-to-day operations of any business simply because them in particularly larry, there are very few people like them in the world. is a producte who guy, one of the best technology executives in the world who is also business savvy, very operational and humble is still very impatient in a good way, someone who likes to move fast and have them around the operations, someone who knows google very deeply, so they can focus of a particularly larry shots, iton the moon can also be phenomenal businesses. i think there will be incentives. emily: is it just because they want to work on moon shots and

google is just plain old google and has gotten boring? hugo: i think so. when we look at this is larry is probably the world's most sophisticated investor in the sense that he's investing intots that are further the future than anyone can see. and certainly than anyone else could invest in as well. i am pretty sure that his commitment to investors will always be number one. but he is bigger than his ambition. it's equally important and completely unique. emily: he hasn't shied away from making investments in company like best. he kept the ceo. could we see more acquisitions like that in the future? what does it mean for potential acquisition? hugo: it's probably early to say. i think the new organization structure, alphabet, gives google an option which they can

exercise any point in time to do s, toand asked -- more nest find more counties. i think with some company structure they can take a more interesting way to attract and retain people. they can come up with different conversations games that probably weren't possible in a traditional google. they can do anything. in terms of defining how these companies operate. it also comes with a much higher of reporting, responsibility, accountability. the probably didn't exist in the way to google's run today. it's great provision and ambition, but it's also great for the investors, frankly. scarlet: that was emily chang and you bavaro. hugo borrow. mark: a new chapter for

mail-order news giant columbia house. ♪

mark: long before spot of fireeye tunes, there was a different kind of subscription service that ruled the music world. columbia house, which many of you may recall offering stacks of cds or cassette for as little as one penny. scarlet: the catch was you had to buy a certain number of albums at full price over the coming year. it'sarewell to that, officially the end of times for the former music giant mail-order company. columbia house has filed for chapter 11 bankruptcy protection. it is seeking to sell what little remains of its business almost two decades after seeing revenue drop off dramatically. the arrival ofs digital music makes cds and dvds

obsolete. i didn't realize this because it has been years since i opened up rolling stone magazine and saw the flyers in the magazine. for the past five years, columbia house has been dealing specifically and dvds. they dropped the cd business back in 2010. mark: it's a sign of the times. according to some of the stories we have been reading, the bankruptcy filed in federal court here in new york, 110,000 people bought a product from columbia house dvd club within the last year. it still had some diehards who were holding out. it is a victim of a sign of the times. scarlet: at the peak it had a profit of $1.4 billion. mark is off, we will be back in two minutes. ♪

♪ scarlet: welcome back to "the bloomberg market day."

top stories crossing the terminal at this hour, later today republican presidential candidate jeb bush the step of his criticism of hillary clinton and her tenure as secretary of state. he will say that the democratic front runner shares in the mistake that he said led to the rise of islamic state. meanwhile the secretary of state is making to stops in new hampshire today. she will hold another town hall meeting on her college affordability plan. in an early primary state in south carolina rick harry's staffers are no longer getting paid. the former texas governor and republican candidate does not have the cash. a lawyer for bob mcdonald said that he will appeal his .onviction to the supreme court that came after a federal appeals court said that they would not review his case. last year he was found guilty of doing political favors in exchange for $165,000 in loans and gift.

harvard law professor says that he wants to hack the political system by running for president. he is beginning a crown -- crowd funded campaign for the democratic nomination today and plans to run on a single issue, money in politics. if he raises $1 million by labor day and does not believe the other candidates are sufficiently focused on that, he says he will resign net position at harvard and run for president full-time. those are your top stories. coming up in the next half hour, the iran nuclear deal is teetering on failure as president obama waits for approval from congress. senator claire mccaskill weighs in on her views on that agreement. viacom, cost $3.5 billion with annual pressure on the ceo. that and much more coming up on bloomberg market -- "bloomberg market day."

stanley fischer told us that issues in the economy now. >> the problem is in the employment. it's doing just fine. but the inflation part, if it was just inflation target or's, we would have the same situation we have now. we would have to be doing even more, if that were possible. this morning austen goolsbee said that he agrees but that it is not the only problem. : gdp is growing ok. not bad, not great. that's why i gave it a the -- b . gdp has been modest. inflation is below target. job performance has been relatively strong. that's the collection of things. stan fischer is my old teacher

and i am a big fan of his. but i think that they have been itching to raise the rates. they have wanted to raise the rates for a long time. i don't think it's warranted. i don't think that the economy is growing that fast. china is slowing down. europe is a disaster. >> the problem is that the fed does not have a gdp mandate. : in a way, that is the problem. but gdp and inflation are tied together. they have a dual mandate of employment and inflation. employment is strong, inflation is weak. you have a divided mandate. king of there the fed, if you ran the whole thing, what specifically which -- would you look at? what would be the determining factors? austan: the fed is neither a kingdom nora cleaned him --

.ueendom what they ought to be looking at is before you start raising rates, how would we achieve some form of sustainable lift off in which you feel that the economic growth is not just a blip doing pretty good. well by oneng measure. the jobs are good, therefore we should raise rates? you want to be consistently sustained growth, something like 3% before you start raising rates, in my opinion. : one quick question before the break, macro prudential, should the fed worry about popping bubbles at this point? is hardprobably, but it to do that, as you guys know. how do you figure out if something is a bubble? if you thought it was, what would you do? you don't want to

drive the economy down just because you have a bubble. goolsbee served as the chief economist for president obama. they also asked him what he thought of the 17 member field of republican presidential candidates. austan: if you watched the debate, it was certainly entertaining. all of the controversy about megan kelly, fox news -- what about the whole part where he got up and said that he wanted hillary clinton to come to his wedding and she had to come because he gave her the money? it was a strange event. the polls that came up after the first debate show that the top four candidates are trump, ted cruz, beg -- ben carson and carly fiorina. the top four are not conventional candidates. it's pretty interesting. something is going on in the republican primary electorate. they really don't like conventional establishment type

candidates and it will be interesting to see how it plays out. : let's shift focus to what we might hear more of from democrats. if the conservatives, the republicans are shifting more into a populist mode, thanks to the leadership of donald trump in the polls, will that be : inored on the left? austan a way it is a fun house mirror. i don't know who is on the spending side of the mirror. i think you have seen hillary clinton and bernie sanders, the two who have out promoting policy, if you will, with conclusions on strategy over , inequality,ding building up the middle class, things like that. i don't see hillary clinton veering away from that one iota. that is her focus and it will be the focus the whole time.

in a way that's populist. in a way i think that's just smart politics. that is where the most voters are and you will see them gearing a policy towards that. if donald trump or somehow the republican nominee, i think the democrats would be thrilled because they would say -- look, we are for ordinary people. do you think that donald trump is for ordinary people? wait,nie: wait, wait, wait, wait. donald trump might not be an ordinary person. but do you think that phil and hillary clinton are ordinary austan: i have met hillary clinton and bill clinton only a few times. i think that their policy is way geared toward middle-class people. i think that thus far if donald trump's campaign goes the way that his personality has been taking it, it's not going to be about college affordability. it's going to be about ingles

that are more geared toward business and also anti-immigrant type of stuff. will be a career contrast on the policy side. 8 that -- scarlet: that was onten goolsbee speaking "market makers" this morning. claire mccaskill of missouri weighs in on the 2015 presidential race and whether bernie sanders poses a threat to the democratic front runner. ♪

welcome back to the "bloomberg market day."

another blow to commodities, let's show you how energy and metals prices have settled in new york trading. we begin with nymex crude. down 3.9%. if you look across the commodities spectrum out of 26 commodities that we track at bloomberg, only six did not fall , including one of them up for tenths of 1%. , pushinge longer-term opec output to the highest since 2012. six-year down to a low. china is the world's biggest producer and consumer of copper. gold may have rebounded off of the six-year low but it has collapsed over the last few months leaving a mexican billionaire in its wake. carlos slim's mining company had its worst performance among 90 international peers tracked by bloomberg.

a straight line down over the past year. it has been so awful that they ejected from the latin american standard index back in may. the company has had the biggest blight on his empire and unfortunately for him, his fortune as well. if you look at my terminal, tracking the wealth of world billionaires, this is his personal wealth over the past three months. you can see that it has come back a little bit as gold as -- has somewhat recovered, but has been an ugly few months as gold has lost year to date. should emphasize that this is a paper loss and not an actual loss. let's get you a look at the top stories crossing the bloomberg terminal. we begin with the northern california wildfire doubling in size overnight despite the increase in humidity and cooler temperatures. earning 19 square miles and for the second time in as many

weeks, residents had to move 100 miles north of san francisco and evacuate. america's healthy eating trend is not hurting bacon sales. analysts say that people are putting bacon on anything. the price used for bacon is up 174% in four months. if you buy this car, chances are you will not be that hard on the street. bring up to $18 million this week. $38 million. those are your top stories. claire mccaskill is one of the whot women from missouri

senator. united states she had a lot to say about the presidential race. particularly the republicans. ready: she did. we got right down to the state of current and she talked quite a bit about the republican primary. in her memoir it is a lot about documenting how she rose in washington at a time when there were very few women. in particular what she thinks about one loud and prominent presidential candidate, donald trump. senator mccaskill: the problem is when you trash women the way he does, the way he talks, the , it sends a signal that he does not miss deked women. betty: he says he is sick of

being politically correct. senator mccaskill: there's a difference between being politically incorrect and being polite, respectful. most people want the president of the united states to be all of those things. i think that donald trump says whatever he needs to say to get the most attention. he has taken narcissism to a new level. been high, but this is a new level of narcissism. senator mccaskill: do you think you -- stephanie: do you really think he has -- betty: do you really think he has a chance? don't haveaskill: i respect for him, but i understand what he is tapping into. all whole lot of people are out there and are frustrated because they have worked hard in laying by the rules and are not getting ahead. they want to blame that on the government. the government deserves some blame. but they are cynical and negative. that is what donald trump is tapping into.

i respect that that is out there. i don't think people cynical. it not as though we have our act together in washington. but i don't think answer is bluster from a man who demands attention, attacks people who have a disagreement with him. i think the answer is to figure out someone who can be strong and stable and can lead the united states. betty: you did endorse clinton last time she ran. then you endorse the president. . know that caused a rift how is that relationship now? senator mccaskill: it's good. i said some stupid things. betty: you did not want your daughter near bill clinton? senator mccaskill: it was a gratuitous, dumb thing to say. we have a cordial and good relationship now. i think she is going to be a terrific resident. i think she represents the strength and stability we need on the world stage right now. betty: are you talking creepily now? senator mccaskill: not

frequently, but i have had several chances to meet with her in the last few months. we had dinner with her, the women senators, not too long ago. it was a terrific evening where i was struck by how ready she is for this challenge. she knows what she is getting into and knows how hard it will be. -- is really with lists really listening right now. more so than 2008. onetor mccaskill: -- betty: of the first orders of business for congress is the iranian nuclear deal. are you going to support this deal? senator mccaskill: i have not decided yet. what i am doing right now is i have contacted the countries holding iran's money. many of them are not part of this agreement. turkey, india, south korea, japan. it's not the united states that holds this money. notannot control whether or iran gets this money because

other countries will make that decision. i want to find out what they will do if we walk away from this deal. senator mccaskill: senator chuck schumer -- betty: senator chuck schumer decided not to endorse. is that influential on you? senator mccaskill: not at all. most are trying to do their own homework without pressure from variouse house or the lobbying groups flooding washington and the airways. i think that most of us are trying to get into the weed and look at the details of this agreement and look at the implications of this agreement and, hopefully, look at what it means in the world. if we unite the world in the agreement and then we say we are walking away? that is what i think matters most. weeks, not have months, to make a decision on this. scarlet: it is interesting, her history with the clintons. what do she think of the

democratic field? two people officially running? betty: two people, officially. maybe joe biden. harvard maybe this professor. what do she think of bernie sanders? betty: she thinks that donald trump is tapping into that frustration that americans have. that is what bernie sanders is doing as well. scarlet: on the left. betty: right. she did say that he's a socialist. she said she could not imagine the united states electing a socialist president, although we have seen stranger things, right? i mentioned in that interview, she is an early supporter of hillary clinton and endorsed her back in 2013, before hillary made it official. it will be interesting to see congress and the female senators who fall behind, it will be interesting if senator elizabeth moran, if she decides not to

run, will she backed clinton? scarlet: betty liu, thank you so much. that he will be back at the top of the next hour to take us to the close. coming up, share buybacks. a big trend among media companies in the past year. that story, up next. ♪

scarlet: buy a losing billions after getting stock buybacks. the struggling media company has spent 15 point $2 billion in the share buyback program but the slide in shares has caused a 3.4 ilion dollar loss in the investment -- $3.4 billion loss in the investment. covers themary, who

from lospany, joins us angeles. a lot of companies buy back stock. what went wrong for viacom? yous: it is a great idea if have got rising earnings and arising talk price. but if your core business is under pressure, which viacom certainly is, the idea of buying back stock is not so smart. a lot of people are urging the company to spend its precious cash on other things. they had to go into debt to buy back the shares. they are not the only company who has done that, of course, but they appear to be in worse shape than other companies who have done that. chris: right, they were not earning enough money and they 2009 andhe debt since as a result they now have the highest debt to earnings ratio

among the big media companies. it is a problem that is just going to keep growing. these media companies in the last week cap really come under scrutiny because perhaps the business is slowing down. latest numbers tell us about their future? the numbers are not great. revenues are down and they have seen steep inclines and ratings. what is happening across the tv universe but for viacom in particular they have a lot of channels aimed at younger viewers. watching videoe on a lot of other places besides traditional television. scarlet: did they have any digital media investments? they were an early investor in feist media. chris: which has been this media darling since then and then they sold out early. there have been some suggestions

determining online video. some of their properties included the daily show with jon stewart. at the top there he was retiring. what about the lip-synched battle show that they are launching to great fanfare? chris: that is the one that the ceo has touted a couple of times as a big hit for them. they have got some competition with their own lip-synched battles as well. whether this has a long-term impact on the business or is a short-term hit, we will have to wait and see. scarlet: we have noted several times in the past that he is one of the better paid ceos. can you give us a sense of where he made overis: $40 million in the last year,

putting him in 60th place among ceos. part of what has happened with these buybacks is he has had numbers of shares to burst -- boost the earnings-per-share. part of the conversation is boost on -- based on earnings-per-share growth. thank you so much for joining us today, chris, talking about the struggles of viacom as they struggle with results. still coming up, mary jo white calls today's insider trading arrest unprecedented in nature. arresting computer hackers, we have got all the details, coming up next. ♪

scarlet: it is noon in san francisco. this is "the bloomberg market day."

hackers and corporate announcements, guess what? millions. stunned theberg tech world with a major reorganization and a new name. what about this new clothing organization? scarlet: reach comes to an agreement on terms for new aloe deals. one of their opponents? ♪ scarlet: good afternoon, i'm scarlet fu with eddie lu on this tuesday -- that he lose on this tuesday. -- betty liu on this tuesday. coming out of china, you can see the dow is down 250 points. we basically erased all the games that we saw yesterday. which actually erased the losses