of china's currency moves are being felt. international -- it would take 16 months to clear the supply glut. what would that mean for crude prices in the interim? mark: cisco reports quarterly earnings without john chambers at the helm. what to look for as chuck robbins takes over the networking giant. betty: good afternoon, i'm betty liu. mark: i am mark crumpton. thank you for joining us on bloomberg market day. another day, more concerns globally, the ripple effects about china and what the country is doing to its currency, the evaluating -- d valley waiting

evaluating --e look at wall street right now. we see a lot of red on the screen, dow industrials down 153 points. nasdaq down as well nearly a full percent. stocks in negative territory for the year. the concerns weighing on some of the other stocks in the s&p 500 and the dow jones industrial average as well. we've had one of those days where the ripple effects are still being felt. falling today, both of them down -- yum! brands down 4%. , alibaba and yahoo! sinking today. alibaba down over 6%. yahoo! down 5.5%.

still a big story in oil and commodities today. we will get the latest energy report showing a less than expected decline in u.s. crude supply. we saw a lot of green on the screen. u.s. crude oil total inventory showing it is in the green come up by 25%. betty: at peak in the springtime. we saw inventory oversupply of up to 3 million barrels a day. let's take a look at the bond market. treasuries rallying for a second day on china devaluation of the yuan. -- the currency sink for a second day. currencies, commodities all being affected. alibaba withmpany

sales that rose at the slowest pace in three years. it will buy back as much billion dollars in stock. -- buy back as much as $4 billion in stock. >> people come here for the lifestyle. and we willdent continue to closely monitor the consumer behavior and the chinese economy as a whole. down 35% since they hit a record last november. mark: concern about china is hurting markets around the world today. the currency falling 1% against the dollar. the loss was cut in half in the final 15 minutes of trading. after china's central bank intervened to prop up the currency. asian currencies fell and so did global equity markets. greece is a step closer to getting a note -- new $94 billion bailout.

a technical agreement on the greek rescue has been concluded. lawmakers still have to approve the deal. willarea finance ministers meet in brussels on friday to discuss the third bailout for greece. betty: no real surprise the combination of craft and heintz is leading to job cuts, limited in north america, 5% of the combined workforce. 2500 jobs ing north america. shut down aine has plant that produces inhaled medications after discovering the bacteria that causes legionnaires disease. the plant was closed after routine testing found the bacteria in a self standing cooling tower. employees have been told to stay away until the powers are

cleaned -- towers are cleaned. mark: here is something you do not see every day. covering a reservoir in california. they've been released to cover the water and protect it from evaporation. each costs $.36 and up like uv rays. her are designed to stop hundred million gallons of water from evacuating that she evaporated each year. 300 million gallons of water from evaporating each year. the new york mets have their eye on the playoffs and higher ticket prices as well. we will tell you about the new rates as the mets try to make a run for the postseason. revolutionizing the

checkout counter. a cloud-based point-of-sale system. oil demand is the strongest it has been in five years. the global supply will last through next year. mark: oil prices have fallen below $50 per barrel. matthew perry is a senior oil analyst with the iea. good to have you on. what is in oil let mean for the world economy back out matthew: we have hit an incredibly oversupplied market in the second court. the previous history has taken us to stage with a song -- strong supply growth. it has left a massive surplus of 3 million barrels per day. this is the biggest surplus since 1998 when the oil price was $10. we have a huge excess supply and it will take quite some time before this is equated.

the second half of next year and most likelihood. betty: isn't there a brighter side? consumption as you see oil prices fall is growing. a doubling of consumption growth rate. by then of next year, we might be at this peak in terms of the glut and we will work our way through the inventory and prices will go up go. >> the market forces have started to take affect. takever thought it would this much -- it has stimulated strong demand growth, at a five-year high. it is starting to pull down the non-opec supply growth. there is no control over opec supply growth. that is the wildcard in the market when you think about how iran might join next year. on opec supply growth is decelerating.

we have forecast to decline next year. this, combined with the stimulus , the low gasoline prices to retail consumers, it is addressing the balance. thekey thing to consider is demand numbers are consistently being operated and the numbers have started to be downgraded. that does tighten the market and that should eventually impact prices. mark: let's talk about the devaluation of the yuan. what will that do for the demand for oil? simply, that should stunt demand. the chinese economy has been fighting against the fact that competing currencies like brazil and russia have become lower and it has damaged their export markets. do, it should boost the economy. hence not support of demand -- the problem for the market right

now is the admin's of guilt -- admittance of guilt of how bad the economy is doing. the chinese economy is struggling. right now, it might hit the price but should be supportive of demand in the medium-term. betty: thank you so much. matthew perry. i want to bring in stephen schwartz, the editor of the schwartz report. joining us from philadelphia. what did you make of what you just heard from matthew perry? it sounds like we are likely to hit $30 oil before we get back up to $100 oil. stephen: we are absolutely out to make a break point -- yesterday's spot settled at a six year low. crude oil prices are trading at the lowest level since the debts of the great recession.

the pullback in all industrial metals and oil is clearly a signal that something is not right in the global economy. from a demand standpoint, we have to keep in one, crude oil demand is a function of economic growth. is a clear to tell that something is not right. thexpressed concern was orwellian manipulation by beijing of the chinese stock market. that was a clear tail tail something is not right in that economy. now, the devaluation of the yuan confirms my view that something is wrong. devaluation, the the potential of an increase in the u.s. dollar -- if polls cannot support oil right now at

$42, we will see an attack on the barrier and oil prices with a 30 handle at some point in the near future. mark: if we have rig counts falling by 55-60%, why is u.s. production not being held up? >> it is being held up as we moved to high grading. more to productive field. that has been the mantra of crude oil bowls since october -- since october. the implied demand on the production on the weekly charts adds up -- we are not seeing that pullback in production. you are seeing it now with more production of oil coming to the market, up until recently, you had a robust backend of the curve, a very robust options market predict which all

incentivized future production. now that the back end of the barrel, around $58 a i'm sure we will now finally start to see this pullback in production. i don't think it will be can cement or -- be commensurate to overcome the pullback and demand --t i suspect because of the what we are seeing out of china and the rest of the world. betty: i want to get back to this notion that the 30 handle means there is something very wrong here. you, if weee with are at $30 oil, something is very wrong in the entire world. i'm not feeling it right now, other than china. like a $30 oil situation. what is going on?

is oil like a leading indicator right now of what's to come? all commodity prices are your best leading indicator of what is about to turn around the corner. if we look at the industrial production numbers, factory order numbers, the smokestack economy is in recession. the lower gasoline prices have started price elasticity for demand -- that is going to go by the wayside. on the industrial side, we don't have that driver that we need to keep demand going. friday -- when we factor in the 92 million people who are not in the labor force , even if you take an extremely generous interpretation of the boomers retiring, that is still over

12%. there is a lot of economic pain around this country. what does this mean for consumers? >> it is a bad sign for consumers. we are getting a savings at the pump but that doesn't mean we are creating more economic growth. if we are not seeing higher oil prices, we are nesting economic growth. -- not seeing economic growth. mark: thank you so much. betty: still ahead, at&t gives on when the acquisition of directv will start to pay off. mark: investors are not thrilled with the forecast. those details are next. ♪

betty: welcome back to the bloomberg market day. mark: during the commercials, she was picking on me because i like the mets. markets -- a sea of red. it seems to be a theme here. >> the broken record, that's what i feel like right now. another losing day for our major indexes, down two days in a row, but they are off their session those. six -- .6%.down down .6%. equity china second currency devaluation is the main reason. it is on track for its worst two-day drop -- the snp is

already seeing its worst two-day drop in the past six months. by's head to macy's, down 4.8%. it posted weaker than expected second-quarter earnings. profit came in at $.64 a share compared to an estimate of $.76. the strong dollar kept tourists from buying, shares at their lowest since may come on pace for their worst day in four years. at&t and the telecoms company raising its earnings and sales forecast after a deal with directv. it now expects earnings of up to $2.68 a share versus an estimate of 2.57 and expecting revenue growth in the double digits. it is down 2.5%. inflated expectations on guidance appeared to be the reason for the stock ball. shares down to the lowest level in three months. alibaba, china's e-commerce

giant is also sliding today, down 6%, falling to an all-time low. it had been down by as much as 8.2%. ,hina's economy is slowing consumers are not buying as much. sales growth for alibaba was at its slowest in the past three years. it grew 20% versus an average of 56% in the past 12 quarters. come into my bloomberg terminal and check the and our function -- a and r function. $106.83. now, look at this white line. this is the stock price. it is well below the 12 month for the whole entire year. the stock price at 72 and change. hase may, the stock price

accelerated its declines. the call bison the green are still strong. 88.5% of analysts say to grab the stock. kol price -- call prices in green are still strong. betty: cisco's changing of the guard have any impacts on earnings? mark: chuck robbins gets ready to deliver his first earnings report as ceo. ♪

mark: welcome back to the bloomberg market day. reportsisco systems earnings after the bell today, the first earnings release for chuck robbins.

mark: as for the business, we will be looking at potential job cuts, the sale of underperforming units and whether cisco is emerged from a long slump. cory johnson is in san francisco. it is the robbins aronow. -- era now. a big giant company, one of the most important companies and technology. unlike the other giant hardware slingers in the world of technology, whether it's dell or hp or ibm, these guys are seeing sales growth and real innovation with product lines. you can see it in the results. what's interesting about this call, where is cisco going to go in the future, how much of that future might we see in the call today? what is the strategy when it comes to acquisitions? that is how cisco has maintained

its edge by acquiring a lot of hot young companies and making sure those new products are part of cisco's offerings. in great strength has been managing its sales staff and .ncorporating this acquisitions will that be the future of cisco? we've usually seen with these earnings reports, cisco announcing cost-cutting, job cuts. do we expect anything of that sort this time? cisco took a lot of difficult steps in the last year or so. john chambers having a zion retirement, wanting to leave an easier job for his successor. -- having his eye on retirement. john chambers did warn that

fourth quarter could be a challenging one. this is their fiscal fourth quarter. one of the really interesting things to look at is the role that emerging companies play. called pureompany storage. wheelhouse,co's offering a new kind of storage. this is a company that has seen its revenue growth of upwards over 100% in the last year. that kind of growth, the newly created companies that cisco is having to compete with, their strategy will be something i will be listening for on the call. mark: we have 30 seconds left. a lot of companies starting to create their own switchers and routers. is it easier to partner with cisco? >> depends on who you talk to. companies like google and amazon and facebook and apple are increasingly making their own

rather than buying off-the-shelf stuff. they know exactly what their needs are. yet another challenge for cisco. betty: thank you. cory johnson in san francisco on cisco. i'm signing off. mark: all about the emerging markets given the ramifications in china. china. to circle back to will the international monetary fund snub the yuan? ♪

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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. mark: welcome back to the bloomberg market day. let's go straight to your top headlines at this hour. two of the biggest european

banks may pay tens of millions of dollars to settle u.s. investigations into so-called dark pools. credit squeeze in talks with the alleged -- over alleged wrongdoing. t suisse.s wee macy's will look for the discount shopper, opening off-price stores called macy's backstage. we will have macy's backstage a separate company, a separate business. we will all be buying off-price merchandise and taking discontinued merchandise and transferring it to these stores. we are opening six this fall season to compete with nordstrom rack and t.j. maxx. mark: macy's reported second

sales -- second-quarter sales unexpectedly fell. hedge fund manager john paulson made billions betting against subprime mortgages and are profiting from another u.s. housing bet, owning land. he has acquired 35,000 lives since 2009. his company shifted towards selling last year. now, that pace is accelerating. his funds have invested $770 million in lots bought out of bankruptcies. activity of the whole central nervous system of a complex organism has been captured on video for the first time. a fruit flyng in larva's nervous system. the organism and has two cameras recording.

they are hoping to see how brain and neural activity control behaviors. with home cooking and baseball for the first time ever , all 15 hone teams one last night. won a deal valued at $9 billion -- how will the deal help the banking technology provider? pivoting back to our top economic story today, china allowed its currency to tumble even more, sending investors fleeing chinese and emerging markets for safer havens like u.s. treasuries. do we know how low china will let the yuan fall? strategistg market joins me now from london. thank you for your time. the second move by china in as

many days, were you surprised that they took that action again? at the initialthat phase, you will have to move in a number of steps. it's difficult for the market to gauge what is happening. the market is try to find its equilibrium while the central bank is trying to move its fixing. the exchange rate become more flexible and let the market decide where the equilibrium is or -- mark: the global markets have had a reaction. do they believe beijing when it says the yuan's klein was a one-time event -- decline was a one-time event? >> it came as a big surprise for everybody. the whole market is in a summer liquidity low. events like this will be big

market movers. at this stage, a really big market mover. the question is whether the market believes that -- in this situation, you need several days for the market to acquaint itself and understand what the central bank is doing. and for the central bank to understand what the market expects from it. it is a vicious circle, but it can become a virtuous circle. mark: consensus is this move by the chinese was in fact to help its exporters. with global demand as weak as it is, is that even possible? >> i don't think that is the story behind the whole thing. we know the chinese economy is coming down, we know the population growth is at 0.4% annually now. emergingmpare it to markets, it should be 5%.

the chinese authorities don't know where the threshold is on the growth side. that is the most important thing for them. -- wentral bank itself know this, the authorities have made it clear. -- weant to join the imf have developing market currencies -- it would be the first emerging market currency to join. this is much more political than about exports and gdp growth. is a big political move and it's the big political message coming from emerging markets to the whole world. mark: what about the message from the international monetary fund? is the imf going to continue to snub the yuan as a reserve currency? been --lagardere has

, maycame out with a report be some suggestion of billing decision until 2016 to provide delaying a decision until 2016. international governments decide whether the yuan joins. the united states has a voting right of 17%. mark: let's talk about exposures, specifically among south american countries. chile, they all have a lot of exposure to china. talk to us about the reaction that they are having in their markets to the events in china. look to -- the currency with the least exposure , low oil prices come any

deflation story, the one currency that has the least exposure is the mexican peso. has exposed itself to china, number one trading partner. seentunately, we have not the diversification of the brazilian economy in the last 10 years. it was easy to export on the soft commodity side. with copper -- those currencies are the ones that you have to look out for. brazil has its own domestic problems at the moment. we are very cautious on brazil. mark: if china's economic growth was not at a rate of 7% tomorrow even having this conversation? of debatese a lot going on about what the chinese growth really is.

some people have their own estimates of 1.5-5 percent depending on what factors you look at. if we had eight or 9%, we would not be sitting here. thing that is very clear is that china -- china is the number two economy worldwide and they really want to place themselves politically. banks, about the global the developments of emerging markets. the moves that we saw this week out of beijing, will they complicate the u.s. federal reserve in its decision on when to move on interest rates? >> mr. dudley made a point about they have many economists watching emerging markets. it definitely is an issue. will they delay? let's see what the reaction is over the next 1-2 weeks.

thank you so much for your time. , the new york mets on pace for their first winning season in seven years. fans on the verge of striking out again. the teams ticket price hike, next. ♪

mark: welcome back to the bloomberg market day. let's get to a check of the markets. about the red on the screen. that has not changed at all. >> has not changed one bit.

afterrkets are down china's second currency devaluation in two days. we've pulled back from session lows and we are now down the least for the day, down by seven -- .7%. s&p anditch over to the i will show you the imap function come a snapshot of how each of the 10 sectors are doing. banks and telecoms are the biggest laggards. on the flipside come energy is one of the two biggest gainers. utilities up by a little bit more. that's look at individual energy stocks, they are enjoying a bit of a bump. earlier,me gains from it had been up by more than 6%. southwestern had been higher, now 3% up. apache by 3.6% up.

the financials are the worst performers and the biggest losers included jpmorgan down 2.5%. their lowest stock price and five weeks. bank of america down 2.8%. morgan stanley nearly down 2%. the biggest loss since april. when you talk about stocks selling off, the vicks usually goes the other way. it is rallying for a second straight day, it has touched a one-month high. we've gone through a pullback. , had been higher by about 12 or 13%. investors are less jittery this afternoon versus this morning. so much.nk you let's take a look at the european market close. mark barton has details from london. for shares in europe, the

biggest decline since october. china very much continuing to cast a shadow over european stocks. the two-day decline for european stock markets, 4%. that equates to 450 billion euros. a sea of red. these are the individual stocks that are really taking a hammering from their exposure to china. the week currency lips the value of their products which they are trained to sell to chinese consumers. the biggest two-day drops since november of 2011. 30 billion euros have been wiped in the last two days. the biggest luxury goods company in the world, 10% decline over days.s -- two glenn core with their biggest fall since 2011.

because of this, this chinese evaluation -- where is the money going? into the european bond market. one bond market you want to watch as the german bund. the yield continuing to head deep into negative territory. it held at a record low today. u.k. expectations in the have been pushed doubt -- out by the chinese news. bonds --suring that the euro is up for the sixth consecutive day against the dollar. one of the haven currencies, it's best run since april. that 1% rise is the biggest rise in two months. across thew losses board in asia. the shanghai composite and the

nikkei dropped by more than 1%. the hang seng down over 2%. fell sharply,an severing its biggest two-day loss against the dollar in two decades. -- suffering its biggest two-day loss against the dollar in two decades. >> the first time beijing used its methodology for setting the yuan daily reference rate from which the currency can trade 2% on either side. that fixing right was set low fell sharply. the biggest two-day loss against the dollar in more than two decades. many regional currencies have fallen as well on for china believe -- will leave the china's central bank says there is no economic basis for a constant evaluation of the yuan. a federal judge told new england patriots cornerback, he hasnd roger goodell

not decided who will prevail -- patriots quarterback tom brady and roger goodell. they arrived at the courthouse to discuss the plate gate -- deflategate. the judge is open to suggestions from both sides on resolving the dispute. brady is appealing his four-game suspension. one nfl team is considering .igning ray rice the cleveland browns have reportedly discussed signing him. rice has not played since being released by the baltimore ravens last september. after video surfaced of him incking out his then fiance a casino elevator in atlantic city. like home forace major league baseball teams. for the first time in history come all 15 home teams wob yesterday. -- won yesterday. when the league had

fewer clubs, there was a day when home teams went 11-0. one of the winners, the new york mets. colorado.eat they are in first place, increasing their lead over the washington nationals to 2.5 games. they've used the occasion to boost ticket prices. they are winning, now you have to pay more. scarlett: they might jinx themselves. don't go that far. we are raising ticket prices for next year by 2.9%. faster than the rate of inflation. the front office is preparing for the postseason. they sent out information to season ticket holders to buy for 11 home playoff games so that people can start getting ready. if you want to get those seats, you have to pay up by august 31.

mark: you mentioned, you talk about -- they have not made the playoffs since 2007. scarlett: 2006. mark: they are on a roll now. to be talking about the playoffs when there is still 6.5 weeks -- >> 50 games left. i needed reasons to be skeptical. on youreen a mets fan life. they have not finished above 500 since 2008. they have not appeared in the playoffs since 2006 and the team batting average is 236. -- they havenews 50 remaining games, 36 against teams with losing records. many of them are at home and they have a 684 winning percentage at home. mark: i'm rather talk about deflategate.

they have the pitching. what you said about the ticket prices going up, this is classic supply and demand. the supply is good because the team has young pitchers. be evennd is going to greater because people are going in droves to see these games. they sell out every home game. >> things are getting better in queens. hopefully david wright will be back in the lineup soon as well. -- the ceois buying and president coming on to join us. we will talk about what he sees in this deal to make his company a better competitor and what he plans to do in terms of keeping management from sungard. ceo. we will talk to the still ahead, we will hear from

the ceo who is changing the game from traditional retail systems with the cloud. ♪

mark: in today's edition of founded big, jason shopkeeper to solve problems he

encountered with traditional point-of-sale systems as an independent retailer. how he got thousands of merchants to get onboard with the company's cloud-based technology. i started shopkeeper seven years ago to solve my own problems. i had a grocery store, to wine stores and i was having a lot of time with my sales system. database crashing, keeping all the drivers working, keeping the equipment running. i could not get data without going into my stories. i have to have a cloud-based system. , it wast two years completely funded by my grocery store and wine business. we initially built the app on windows, the only touchscreen computers you could get. and the ipad came out, it was clear that this would be a better device for us to use. we got our first funding round in 2011. i got some friends together,

people who knew sales and we every wineyone -- store in the country. it was really tough. it was only when we switched to the ipad and i was able to put a it got a lotube -- of pickup. we've been doubling every year. as the numbers get bigger comic gets harder to double. we are still keeping the same path. publicto be a big company and we've raised over $90 million over the last three .ears we have an office in portland, oregon and dublin, ireland. op -- we keep on t brought in the co-ceo. he is now the ceo and president i a. he is a machine and he is really running the company very well in growing the company and doing all the things we need to do to become that big public company

we want to be. i am a retailer. i still use shopkeeper in my stories. it keeps me very in touch with customers and products. it helps us stay on point. ofk: that was jason, founder shopkeeper. maker mod luxury pen blog will soon release its first smart watch. how does a plan to compete with the apple watch? ♪

11:00 a.m. in san francisco, 2:00 p.m. in new york and 2:00 a.m. in hong kong. fidelity national information services spending $9 billion to data.e sungard

misses profits estimates. books about vladimir putin being published by western authors. the problem is, they did not write them. good afternoon, i'm mark crumpton, here with scarlet fu. evaluationina's yuan continues to ripple throughout the market. this is the ninth drop in 10 days for the dow. noticeable for the trend over the last 10 days. the s&p 500 fallingit