data. 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 falling to its 200 day moving average. -- stockc hundred and

stocks aerging-market big loser as well. let's go to treasuries. slowing devaluation inflation globally. the odds of a september interest rate increase have gone down to 48% -- 40%. the fed is really going to delay in interest rate increase, the u.s. dollar gets less love. the dollar index by 1%. commodities up across the board. crude rebounding from a six-year low. on the safe a bid haven play. mark: numbers all over the place.

let's take a look at the top stories we are following at this hour. shares of alibaba sharply lower today after its quarterly revenue missed estimates. the company's transaction volumes fell short of targets and quarterly sales rose at the slowest pace in three years. some analysts say rising compensation costs are hurting alibaba. it's cheap says investing in workers is the right move. a program to incentivize our talented people. they are the most valuable asset in the company. we will continue to do so. announced a share buyback program. the purpose of this is anti-dilution. spend $4baba will billion in that stock buyback program. it just signed a venture with macy's, making macy's the first u.s. department store to join alley bulbous -- alibaba.

cost-cutting kicking -- the food giant announcing the elimination of 2500 jobs in north america, 5% of its workforce. the merger earlier this year was driven by warren buffett's berkshire hathaway and 3g capital of brazil. fears of legionnaires disease forcing a drugmaker to shut down a plan. glaxosmithkline cutting down -- shutting down a north carolina facility. the plant makes inhaled drugs. -- bernie sanders's campaign is gaining traction. in a statistical tie with hillary clinton in new hampshire. the vermont senator has a lead of 7%. mark: another legal hurdle today calais huddle in the tom brady

-- meeting with roger goodell in a new york courthouse. the judges telling them to work out their differences about the four-game suspension over that of late -- deflategate scandal. up --t: coming mark: emerging markets in a bear market getting hurt by china's falling yuan. how much worse could it get for these markets? scarlet: more people returning -- families forced to make tough choices on spending habits. the reason it is getting so much focus, millennials. mark: the keystone pipeline taking center stage in the canadian prime ministers elections. could this further complicate president obama's decision? scarlet: it has been a big week for m&a, berkshire hathaway kicking things off with a deal to buy prazosin -- precision

capital -- fidelity national following suit. mark: announcing today it is buying sungard data systems for over $9 million. the news sent shares to a new lifetime high. the president and ceo of f i s joins us in studio. thank you so much. why now? we focus exclusively on retail banking. we do a little over $6 billion in revenue and a little over $2 billion -- we are here to talk about the announcement of us signing the acquisition for some guard. we are very excited about this combination. if you look at what's going on in the global financial sector,

clearly what's happening is pullbody is looking to greater combinations together to provide more efficiency. you hear a lot about cloud computing and animation. scaleies need to have the to provide the services to their customers. we think this is an outstanding results for our clients. they bring us a tremendous amount of wealth management and capital market capabilities and being able to cross -- scarlet: it seems it is a lot of players in the financial industry choosing one or the other. it is hard to do both right now. compare and contrast those prospects. got intoross: we capital markets five years ago. we did a strategic acquisition in the consulting business. the premiere one of consulting groups within capital markets.

this is a logical step for us to step into the intellectual property and have products to augment that consulting. customerse our global , they are wanting to leverage -- ithan enterprise level puts us at a different playing field where we have grown our share in a much larger way. mark: you talk about accelerating growth. what are the benefits for shareholders? : we have announced $200 million in synergies. with us leveraging our balance sheet, we are refinancing sungard's data close. million of synergy take out, you will see very -- if youreciation tag but on to the revenue story, you will see it accelerate

beyond that. scarlet: can you give us a sense of when discussions began with sungard? they were originally planning to take it public. : it is a small industry we all know each other. we've talked to sungard before, but it was years ago. they had a lot of things going on that we did not care for. to ipo andecided they started announcing their ideas around ipo, we reached out and said that's reengage. maybe you can come over and enjoying -- join us. we engaged in late may come early june. these transactions evolve quickly from the course. mark: were they receptive? >> they were. they have a strong team. an outstanding job that she has brought in a lot of strong leadership. they had a nice turnaround transformation. when they look at their

situation, they were looking to go public or they could join with a strong company like sis -- like fis. scarlet: you talk about leadership. haverd and its owners operational expertise. what will you look to preserve from that management? is not new to fis doing acquisitions. we like to work through the integration plans. we like to identify the right leadership to take us forward and raise the bar to the next level. we will be working through our integration plans between signing and close, we have to get to regulatory approval. there are some things we cannot touch. we will be building out that and more on that information will be coming in a later day. mark: you've been with the company over a quarter of a century and you just became the ceo on generate first. was this on your horizon to do a deal like this?

gary norcross: this is a $9 billion transaction. i don't want to trivialize it. i've been with the company for 27 years, i've been a part of our strategy. , i'vewell over 10 years let us do the majority of our largest acquisitions. acquisitions have always played a part in our strategy. ,or me as i entered in as ceo keeping our investment grade, returning cash to shareholders, groaning earnings-per-share's -- growing earnings-per-share. or break us into a new market. scarlet: i know you are suspending share buybacks for now. thankful -- we are having to lever up a little bit. we will pay our leverage down to a responsible rate. you will see us reinstitute it.

move, what does it say about your confidence in the overall u.s. economy? >> we are a global company. we are confident we are seeing recovery, good strong sales. our products are performing well. very competitive. scarlet: thank you so much. gary norcross, president and ceo of fis. mark: still ahead, emerging-market stocks officially in a bear market. it is just getting worse. ♪

mark: welcome back to bloomberg market day. scarlet: as a sea of red across global equities, it is still red, but the losses are smaller. read is definitely the color portrait appeared at our markets are now down today's in a row -- two days in a row. the last time the doubt was the slow was back on january 30. down by about .4%, paring its losses. the s&p is also seeing its worst two-day drop in six months. the nasdaq is pretty much down to the flat line. we are all deftly off our session lows. -- definitely off our session lows. the imap function a look at how --y 10 sectors are doing

banks and financials are the biggest laggards. telecoms down by 1.3%. utilities and energy and now information-technology have switched into the green. energy up by 1.3%. one of the biggest gainers for the day. let's look at notable energy risers, the energy select sector percent.r at 1.3 well, almostp as hitting the .9% mark. you how one-way fare is doing, the online retailer reporting earnings narrower than expected. -- stock prices jumped by 26%. earlier today, it was 15%. in the premarket, it was up by 2%.

wayfarer was expecting a loss of $.27, that turned out to be a loss of just $.15. over to homebuilding, look at dr -- up by 1%. the stock up after ubs made a bullish call, upgrading shares to a by from neutral. an optimistic outlook on housing and looking to the millennial generation coming-of-age and buying homes. up-to-date -- finally, the maker of led products shining brighter come up 9.4%. notching it best day since october 2013. revenue be estimates -- beat estimates. earnings were significantly lower.

cree says those numbers are not comparable because it got hit with a restructuring fee of $84 million. scarlet: thank you so much. if things continue to move in this direction, maybe we will raise our losses. -- erase our losses. mark: we are following a developing story in northern china. a pair of explosions today at a port -- victims are being hospitalized come about the number of people hurt is not yet known. scarlet: more californians being ordered to leave their homes because of a wildfire north of san francisco. the fire has scorched 110 square miles. only 5% contained. --0 firefighters are mark: at&t expecting all three to rise in 2015.

at&t expect earnings-per-share to top previous estimates by as much as $.11. those are your cap headlights at this hour. scarlet: emerging-market stocks have officially entered a bear headlines at-- top this hour. mark: the emerging market index down 2% over the past two days. there is red across the screen on wall street, but also all over the world, especially emerging markets because of what we are seeing out of china. >> it has been bad news for emerging markets for the past few months. you have the commodities implode, the rising dollar and the specter of slower growth in china. this is compounding all of that. a lot of what's happening in

china has already been playing out in currencies and emerging markets. this is a knee-jerk reaction, we need to do more appreciation and stocks are being affected by that. scarlet: a lot of people saying what china did triggers another round of currency wars. how is this different from the one we've seen in the past? internally in asia, we've been seeing some moves being made by vietnam, widening the trading been in the countries exporting to china being impacted like in latin america. countries reacting to what is going on in china. we don't know what china plans to be doing going forward. this is not a officially a currency war yet because we need to see what china is actually planning to do. if they are trying to show if -- we saw more market intervention already from them. they don't want the currency to follow up the cliff.

-- fall off the cliff. does not saying 3.5% constitute as big of a move as we have been saying. mark: it is not a currency war. cap say currency skirmish. these other countries in a holding pattern. >> they are waiting to see what china will do next. they are facing slower growth. china makes for 30% of the global economy. if china goes, everyone goes. -- maybe thisee will benefit china's growth. if this is a play for them to getting the economy ran her dress would be great for emerging markets. impactuld have as good or could be them catching up to the fed. somewhat moving with the dollar, so it strengthened a lot with the dollar strengthening. this could be an adjustment to get rid of that affect.

scarlet: what else are you looking at in terms of seeking signs of stress? >> something many people have mentioned here is the economy really been hit with us commodity bust did not do what they were supposed to do when they had the commodity boom. get the economy away from a commodity driven economy so that when prices fell , investors would not fully out the door. -- flee out the door. thetries that did not play right game when they should have, we should see how that plays out. mark: any dilemma for the u.s. because of this? >> the treasury department has said they want to see china having more and more of a market determined rate. they were undervalued. now, they are showing overvalued.

this is a dilemma for the treasury and the imf says it did what they were supposed to do. we will have a dilemma for the fed with deflationary impact in the u.s. economy, maybe we will not see a hike anytime soon. mark: thank you so much. coming up, new parents facing higher childcare costs, a strong job market driving demand for the services. ♪

mark: it is not the cost of diapers or future college to wish and rattling younger u.s. households. with millennials reaching their prime childbearing years, prices for day care outstripping supply. scarlet: it is driving childcare costs up faster than inflation.

forly expenditures childcare in or three schools have surged at twice the pace of overall inflation. we know what of the fed discussions, which growth has been fairly sluggish. -- wage growth has been fairly sluggish. more young parents are turning to their retiring baby boomer relatives. that would be the perfect solution if there is any way you can pay our parents as well. mark: they want more than just "thanks, mom." what it does is it solidifies ,hat seems to be this movement if you want to keep the top female talent and your company, you are going to have to make moves like this. youret: if you want economy to grow, you need more participation from the workforce. force, to havek

them participate, you need options for them. -- half of the workforce, to have them participate, you need options for them. mark: something that has to be addressed sooner than later. scarlet: grandparents getting a lot of phone calls in the meantime. you have to take off. we have much more coming up. we will be hearing from the chairman and ceo of macy's on -- ongs that his company earnings and the state of the u.s. consumer. ♪

markscarlet: let's get you a lot the latest headlines from the bloomberg terminal. we begin with the impact of

china's currency devaluation. let the biggest two-day slide in asian currencies since 2008. a full to reverse the country's economic slump. carmen reinhart says the federal reserve is marching to its own beat. isi do think a rate rise underway sometime this year, whether it occurs in september or occurs closer to the end of the year, it is something that is going to be in the cards. think the chinese realignment is going to significantly alter the timing. scarlet: investors are focused on whether the slowdown in the world's second-biggest economy will spill over to the european and u.s. markets through commodities.

grease one step closer to a financial rescue. there is a technical agreement on the bailout, but the greek parliament and lawmakers still must approve it. the bailout is worth $94 billion. general electric selling another chunk of its finance business. capital one paying $9 billion for ge's health care unit. one is the nation's seventh biggest commercial bank. if you feel confined by twitters 140 character rules, get ready to type away. the company is sending the limit but only for direct messages. regular messages will still be held to that 140 character role. ray rice could be back on the football field next season. the cleveland browns have discussed signing the running back. he was released by the baltimore ravens last september after video serviced showing him knocking his then fiance .nconscious in an elevator c

coming up in the next half hour, prominent western analyst and journalist fighting back after their words were used parsley -- names were used falsely. the apple watch getting a high-end competitor from montblanc. that and much more. first, we want to talk about macy's. it reported earnings this morning that missed analyst estimates. they've been struggling with bruegel consumers and pressure from the activist investor. they've been forced to use deep discounts to slows -- sell slow selling inventory. the best quarter we had last year was in the second quarter. we are going against top numbers. --took out promotion consumers are responding to promotions. we thought it was a good idea to

do more business before and after the promotions. talking about how the consumer's promotional focus right now -- something really important is the international tourist. you are not seeing them shopping in america today. the dollar is so strong, prices have gone up by 30%. we can track it by location and macy's and bloomingdale's is a strong retailer for international consumption. >> how can you combat that? you are running a business, looking at inventory, you have consumers into progressions and you cannot help the strong dollar. >> i will anniversary that number. that's the only thing i can look forward to. the -- we areg entering the off-price business at macy's. we will have macy's backstage, a

separate company, a separate business. andng off-price merchandise taking discontinued merchandise from macy's stores and transferring into these stores. we are opening up six this fall season. we will compete with tj maxx and nordstrom rack. >> my fear is you are feeding the beast. nobody wants to be the sucker to pay retail anymore. i just bought a great company called blue marker which is very high, full priced cosmetics and beauty products. it does range in terms of what the consumer is doing. the consumer is trending to trade down. consumer andt think, they are buying right now, this not buying in our category -- they are buying cars and houses and furniture. their home improvement businesses are doing well. they are not buying apparel and accessories the way we had planned.

that will change over time. >> what do you think the consumer looks like today? when you look at the u.s. economy, we are trained to get a feel for what the real beat is what -- do they have money to spend? >> it has been gradual, but the answer is yes on the savings part. first quarter gdp growth was nothing. second quarter, little bit better. they are spending, categories and mentioned. they are spending, but their savings rate is high. that is good for the long-term consumer. we will get some of that. right now, they've chosen to save their money. is there will be a shift back to purchasing and those discretionary categories. china is a big plan for you.

you have new partnerships there. we are looking at the market today, looking at the yuan being devalued. >> i'm just going there. for me, i'm brand-new. we will be launching their this fall. i'm not going against the negative stuff that may create problems for existing retailers there. this will be new for us. 630 potential middle-class consumers -- i want some of that. that is double the entire population of america. it would be crazy not to have some role there. to have this great venture with and my guys group who started macy's.com for us, he is moving to hong kong, we will sit together and build the business online. >> i have to ask about donald

trump. when you choose brands to partner with, celebrities to partner with, it has to take a lot -- things have turned with donald trump and this man has come out on twitter "macy's sucks." do you regret doing business with them? >> i don't. what happened here is unfortunate. we're not going to support any presidential candidate -- you cannot possibly win as a retailer. if hillary clinton comes up with a new coal line, i will not -- coat line, i will not carry it. even if it is a hot seller. you just cannot win. we are not a political company, this is the last thing we want to be involved with. that was a business decision related to the role that he has. it's unfortunate how it has come

out, but it is what it is. >> did you feel inclined to respond in a big way on social media? >> no. i don't believe that is necessary at all. >> do you think he's qualified to be president? >> no comment. up, caught up in canada. what is really holding up the decision on the keystone xl pipeline and what it means for u.s. canadian relations. that is coming up. ♪

scarlet: welcome back to the bloomberg market day. it is time to get a check on how commodities are settling in new york. some green arrows for a change in part because of a drop in the duality of the dollar -- value of the dollar. wti recuperating from a six-year .3% thanksarely by to a government report that showed a smaller than projected decline in u.s. stockpiles. nymex at $43.22. term, thingser have not really improved. the energy international agency predicting the global oil glut will last through next year. gold also making a comeback as pushes yuan devaluation people to the precious metal. .p 1.8% in the period

corn and soybean futures plunging as the u.s. raised the crop forecast. the 2015-2016 crop year did begin with record rain in june. levelscome off its worst since may of 2013. soybean futures fell as much as 7.2%. canadians had to the polls this october. it may shape the seven-year saga of the keystone xl pipeline. the incumbent prime minister supports the pipeline whereas the main challenger has spoken out against it. here in the u.s., the president may delay any decision about the pipeline to keep from interfering with canadian politics. joining us from ottawa is greg quinn. decision -- would it have

an influence? >> it would have a big influence because the project has been on the box for a long time. harper has made it a signature of his term in office to have the project approved. ana rejection came during election campaign, it would be seen as an insult and burn from obama. frankly, canada and the u.s. are the biggest trade partners, historic military allies. on the campaign chill, leaders have to explain how they would manage the u.s. relationship. it would be hard for harper to show that he has good relations with the u.s. if there was a rejection. how did a pipeline become a proxy for the relationship? was it this way seven years ago? as --ada used to be known it's only been in the last

decade or so that oil has become our top export. the u.s. buys 99% of that oil. prime minister harper is from alberta. issue and hastant emerged as a dominant economic story. canada u.s. relations are important in the nature of how we trade with each other is changing a lot. keystone is a benchmark for were that relationship is going. scarlet: harper is in support of the pipeline. what specifically has he been saying about the pipeline as we get closer to the election? he spoke with our bureau chief here. he said he is not hopeful about the project being approved. he said there are peculiar politics within the obama administration holding it up. that is a large shift from a few years ago when he called the project a no-brainer. would createone

jobs in the u.s. and would replace oil from volatile countries. he has changed his tone, preparing voters for the idea that this is not going to happen. scarlet: managing expectations. how are his opponents framing the discussion? are they focused on the my mental impact? -- environmental impact? greg: climate change has come up. have said that the environment is an important consideration. have not rejected the idea of pipelines outright, but they say we need full reviews and they blamed harper for the west hold up saying because he has degraded environmental regulations are, the u.s. is not going to allow it for that reason. they've suggested that harper has walked into that trap. scarlet: clearly, this is a ball in the u.s. court right now.

the president deciding whether to make this announcement or not. what does the canadian public think about the pipeline? greg: that is a tricky question. is veryy, alberta supportive of the industry. even the government there has passed some regulations on emissions. to show that we can happen good -- have good environmental records. where in myncouver mental issues are much more front of mind -- environmental issues are much more front of mine. there is no clear consensus on where this is going. most canadians will also say that good relations with the ..s. are essential it u.s. rejected this, it would be hurtful. scarlet: thank you for putting this into perspective for us. let's get the latest check on

your headlines right now. activists not being invited to a historic event friday at the u.s. embassy in havana. the latest step in normalizing relations between the u.s. and cuba. they are being asked to meet separately after the event with the secretary of state, john kerry. a key suspect in an insider trading case is free on bond. he ran a global ring that used hackers to steal news releases, raking in $1 million. he worked on wall street before starting the hedge fund. -- raking in $100 million. the company leading business publishing altogether -- pearson selling at 50% -- its 50% stake in the magazine. a russian published in house is publishing house has been selling a series of books about vladimir putin.

the authors have never heard about the books, so they clearly never wrote them. the story appeared in the guardian with this picture and tweet. some of the authors include edward lucas and even henry kissinger. i want to bring in matt miller for more on this. pretty outrageous. by the way, i saw your book in a russian bookstore. matt: it is pretty outrageous. the publisher has said if the authors have a problem with us, they can come here and we can negotiate some kind of payment settlement. luke harding has been banned from reentering russia. he cannot go to them. on the other hand, although he did not write the book per se, it does look like it is a

compendium of his previous commentary from the guardian and other sources. it's not like they just made it up. scarlet: he can't really distance himself from it because he wrote about putin in the past. matt: it is unfair for them to publish it under some fun and name. find them at making of henry kissinger's book. they do have a history of controversial political commentary. it's not necessarily the case putinhese are all pro books. there is one called how the west lost to putin. cia -- the have one called putin's big mistake.

it is possible that they could be at least a little bit balanced. they have one that was written by boris, the recently assassinated opposition politician. they have one that was written by a guy from the economist -- the question is, how much of the original writing are they? and if these authors will ever get paid. miller will be back at the top of the next hour. the pressure is on for the apple watch. hear what the ceo of montblanc has to say about their competition to the apple watch. ♪

scarlet: a new competitor, montblanc. the maker of watches and other accessories launching a new e

strap that goes on sale this fall. stephen spoke with jerome lambert and asked how the new wearable is different. . does it.ontblanc our tradition is coming from watchmaking. we are coming from the traditional time watchmaking history. solution, ano a add-on. it became a functionality. if you compare it to the activity tracker itself, you will have the tracker, forfications, bluetooth music, all these kinds of things. compared to this one, i don't

have to wear an additional bracelet. compared to the one watch ilution, the difference is don't show it, i don't wear it as the main device. it is an additional device, and accessory. it does not replace the watch itself. >> will you add new functions and software? jerome: yes. focused on software innovation. for the lifemonths of the device before we say it needs a change in its structure. watchmakersss

have announced their own digital devices. do you see this becoming something big in the watch industry? jerome: it is a new dimension. it is trying to find itself. the iwatch is very present. one dedicated to goivity tracking, some that to censor -- there are more and more initiatives. quite different from one to another. the solution of montblanc was the first one to use this strap as a solution. price of thehe

device with a strap, you have more or less the same price. through integration of the strap. we have added this new experience to your traditional watch. scarlet: that was jerome lambert , the ceo of montblanc. u.s. stocks at their session highs. the nasdaq now positive and the dow paring its declines. the s&p 500 lower by .1%. energy stocks and utility stocks are higher. we will keep an eye on these markets as they make their comebacks. ♪

. .

♪ scarlet: it is noon in san

francisco, 3:00 p.m. in new york, 3:00 a.m. in beijing. matt: and this is the bloomberg "market day." i want to get you quickly to a look at stocks right now. we've had really a global selloff. europeans docs still look that at the close. u.s. stocks, as we get toward the close, seem to be turning around a little bit. -- european stocks still look close.the the s&p 500 was down 1.5%. so was the nasdaq. the nasdaq has shifted into positive territory, and the dow and s&p are getting close to unchanged. scarlet: come inside the bloomberg terminal and you can really see it. we pretty much tell at the open and treaded along the bottom with the first hour of trading and pretty much have