comcast a mistaken box medius. kkr joins the race for better benefits for employees who become parents. what the deal is, including flying with your nanny now. pimm: good afternoon. i am pimm fox. betty: and i'm betty liu. let's look at how the markets are trading at this hour. a little bit calm her. -- calmer. you can see the dow is up about 17 points right now. concerns about the chinese economy fading slightly after

the selloff over the past two days. let's look at a couple of stocks. advance auto parts are lower and we are also watching houlihan , the bank that specializes in mergers and acquisitions. that is getting a slightly nice pop. the top story of the week is the dollar against the euro. up 0.6%. by china's reassurances on the valuation, that also helping to stabilize not only the currency rates but investor sentiment. pimm: let's look at how u.s. treasuries are faring right now. a little selloff at the short end of that are on the -- short end of the curve on the two-year yield. basically unchanged for the long bond. investors prepare for $16

billion worth of 30-year bonds coming up for auction. commodity is, take a look at oil continuing its dissent. itdown five cents. back to january 2009, yes, a six-year low. , mainly because of inventories. oilcan see the cboe crude which shows the volatility. oil fluctuations are at their highest level in more than six months -- four months, i beg your pardon. at four months. let's take a look at some of the top stories. the latest on this and game of the greek debt crisis -- finland's finance minister says a final bailout deal is days away.

>> there are two options. one is that we support and approve a fully fledged esm program today and informally next week. the other one is that we go for some kind of bridge financing after the weekend and the euro move meeting on friday. i think both options entail that a payment will be made at the end of the day. of course, there can be an unforeseen crisis but i do not see that looming right now. pimm: greece knees $95 billion in rescue money desperately. it must turn right around and make a big payment to the european central bank. is due just days from now. betty: china tried to restore calm to the global market. authorities held a rare news conference to say there is no basis for the currency's depreciation to persist. >> we should look for some

modest appreciation -- modest depreciation but not a lot. the chinese don't know they need a stable currency. the chinese corporate bond market is bigger than the u.s. corporate bond market. many of those chinese corporations have borrowed dollars. they also know -- what does china do? they basically imports of a finished goods, symbol them, and export them. the actual ad you -- value added is very modest. they know this is not going to help exports that much. betty: policymakers also said they will step in to control large fluctuations. the speed at which the yuan fell this week sparked concern that stability.fect sales of cars and building onelies, june's number adjusted upward. and gasolineis up

prices down. but americans are still plagued by money worries. the bloomberg consumer comfort index is at a two-month low. -- lastrveys lest week week were more upbeat about buying habits. the average long-term u.s. mortgage rates moving higher this week after three consecutive weeks of declines. they key 30-year alone remained under 4% and the rate on a 15-year fixed-rate loan a little bit more than 3.1%. betty: we are near the weekend. call it the beverage of champions. please -- wheaties beer. it's available for a limited time only in minneapolis where the cereal maker is based. those are your top stories at noon. would you try? pimm: i'll give it a pass.

[laughter] honestly, serial and beer? i'm not sure you should makes breakfast and beer. betty: why? i do that every day. [laughter] pimm: do tell. betty: we will have the latest on the pga championship. the final major of the year. the: taking a cue from casco. we will look at what elon musk is planning down the road for his electric car company. nbc universal will invest 200 minoan dollars in box media. box -- $200 million in talks media. this comes after similar deals from companies such as hurston disney. disney -- hearst and disney. makersbloomberg market

talked about how they will balance this relationship. >> we are operating in a food industry and we want to be prepared to invest and seize opportunities, to focus on our key initiatives in building a great new media brand of a new generation. we are in a to them today and we will invest in those to build them up. we will invest in a technology. we will invest in our capabilities and our infrastructure. : -- matt: will you collaborate with programming at nbc? guest: absolutely. we are excited to collaborate on programming. huge expertise in video, huge audience. we look forward to exposing one another's program into one another's audience. our brands and categories in which we operate had to align very well. brandrse, we have a

called sb nation. great alignment. news, the, cnbc, abc lifestyle brands like robber -- like bravo. there is great opportunity to expose one another's programming. thee's also opportunity on advertising front. marketers are increasingly looking for not only scale by premium audiences and premium advertising. i think both companies are able to provide that. canoining forces, we increase the scale and the platforms. one: can you give us example. will sb nation be able to have a show on nbc sports? guest: we haven't nailed the details. the ink is still drying. but that is the kind of thing we are talking about, whether it's segments are shows her coproductions.

whether it's segments or shows or coproductions. we are a private company. we are profitable. , in doubling the last few years roughly, we are experiencing tremendous growth, both in terms of our audience size and our revenue. erik and matts with jim bangkok. -- bancroft. you put a big x on this deal, right? bangkoft is laughing all the week to the bank. is hard for me to understand why

a company like nbc, with all the talent at all the resources they millioncan't for $200 company eight five boxes of their own. and buyhy not go out it? guest: coming together with nbc, getting onto cable, doing all theirthings, nbc values own content more than they value a minority interest in a competing content provider. pimm: i'm wondering if you can do strive -- can describe validating the evaluation of a company that previous investors have already put their money down for -- what goes on in this? think youically, i have a group of senior citizens who are running these companies who are out of touch with what is going on. the see the transformation,

earthquake, the earth moving in terms of content creation and content distribution and the different viewing habits of the millennials and the vast majority of the population. they do not know had to contend with that. they see traditional media slowly eroding. pimm: in terms of ad dollars. guess: and viewers. last week when espn indicated a slight softness in viewership and advertising come almost every new company is suddenly a seller. betty: not every senior citizen. these are smart guys who know what they are doing. guess: no, i don't think they do. if you are over 35 or 40, you cannot conceive of the viewing tastes and habits of what is becoming the majority of our population. the one that is really scary is the centennials behind the millennials who are coming into teen years. betty: like my kids.

guess: no one can understand what they will want and need in terms of content. pimm: that's because they don't know what they will want. guest: right is the challenge for old media to make this transition. tom: just to give some due old media, you have been involved in making deals for a while. do these things ever pan out, just owing money at the problem and say, give me a list of the 10 biggest ideas in website land and we will go by the? guess: -- buy them? guest: there are a few instances. aol bought huff post for $300 million. they ended up selling aol for more than just $300 million to verizon. huffington --nd a made arianna huffington very wealthy lady. i don't think you can really see has notut -- look, nbcu only put $200 million in box, but $200 million in vice as

well. betty: would you put vice in the same category as vox? or buzzfeed in the same category as vox? guest: vox is an aggregator and a recycler of news. betty: so you give vice credit. guest: more credit. betty: what about buzzfeed, over a billion dollar valuation? guest: again, those are recycled stories. they are aggregating news. they put a new headline come a good headline erected at -- directed at a younger target. they are not doing a whole lot of -- i mean, i have a problem with undocumented user-generated and aggregated news. and networks have all the resources. the news departments are still the best in the world at nbc, cbs and abc.

m bloomberg and some of your competitors. a start up going to do with a bunch of 20-year-old guys running around recycling news? it can't last forever. pimm: if you were an investor in any of these companies, like vioxx or vice -- guest: i wish i were an investor. pimm: if you were my accountant, but you are not my accountant, if you were an investor and you got the chance to sell your stake now, would you? guest: you bet. look what happened with shake shack this week. who is selling in the secondary? it's all the sellers. you see this volatility. another wonder -- another one of these companies with a 600 pe. betty: you see these companies crashing down to earth. less than half of now? guest: it depends. netflix for instance, i don't

think that model is sustainable because the cost of content gives going up. betty: i don't know, netflix is pretty good. that somebody say like an alibaba, for example, will pick them up and pay the price. there is some economic and investment potential in these companies. but they really aren't sustainable. pimm: you never go broke taking a profit. [laughter] betty: there you go. a pimmism. guest: long-term investments is not the way to go. pimm: thank you very much. on "bloomberge market makers." ♪

betty: let's get a click check on how the markets are trading right now. julie hyman taking a look at the best and worst performers. sharesadvance auto parts are still doing very well, rising to at least a 52-week-a up to 186.38. so the best performer today. we don't talk that much about advance auto parts but it is a more than $10 billion company. so pretty widespread in terms of its outlets around the country. also one of the best performers today is news corp., even though earnings missed estimates. the company said it is in the final phase of talks to sell its education unit, which is called amplify. it has pared its gains to some extent and now by only about 5%. at how news corp. has done versus the other

entertainment companies year to date, this is normalized so it is looking at the percentage gains. news corp. is the white. we are seeing the other entertainment companies in the green. news corp. for the year to date is down about 5.5%. but that is 10 percentage points or so less than entertainment companies as a whole. and in talking with some of the analysts at bloomberg intelligence, they point out that the newspaper business in which news corp. is involved has performed a little better than broadcast or cable this year to date. in addition to that, news corporation has been more aggressive, getting into the digital businesses, like move.com. interesting where there is that divergence. pulled sharply last month after earnings from disney and others. comparable sales rising. some of the larger trends have

not been good for the department stores where we saw an overall decline. retail sales data showed us that today. overall decline in department store sales, handbag sales are down, people shopping at off by stores instead. -- off price stores instead. betty: that is what macy's was saying pared nordstrom rack was giving them a run for their money. pimm: heaven for bid handbag sales are down. still ahead, what do bathrooms, bathroom fixtures and the 97th pga championship have in common? betty: we go to wisconsin to find the answer. ♪

betty: this is "the bloomberg market day." pimm: i want to take a look at some of the top stories at this hour. airbnb is offering a lucky fan the chance to spend the night in boston's fenway park. this is a one night only contest

with a prize that includes two tickets against the new york yankees. after the game, the winner can sleep in a specially outfitted luxury suite followed by breakfast atop the green monster. less fun.little tom brady was in court yesterday for the deflategate scandal. but with made -- but what made scandal was not the case but to the courtroom sketch of tom brady. the courtroom sketch artist apologized for the depiction of the star quarterback. betty: she said she was in a rush and under pressure. pimm: the pga championship, golf's final tournament. this is along the shores of lake michigan. the visionary behind the courses

herb kohler, the chairman of the kohler company who make all of those extensive bathroom fixtures. betty: there are some big storylines, including the return of rory mcilroy from an ankle injury and whether jordan spieth can win three of four majors this year. mike, let's tackle rory mcilroy first and how he is feeling and how he is looking. off yet.hasn't teed he will tee off later in this afternoon. is 100 percent. he played a lot of golf, three or four rounds in portugal. he came here over the weekend and played around on saturday and sunday. he played practice rounds all throughout the week. if he is not ready, i would be very surprised. if you are not ready to play out

here, it will deftly show. we will see how he plays teeing off the first round. pimm: it's a links course. what is that and who does that favor? the linkss not quite course we science yet offer the u.s. open and chambers bay. there are 1400 sand bunkers out here. it looks like a moonscape if you look at it from an aerial view. so very different. a is a dive course -- it is dye course. guy who isthe hitting a long and straight is dustin johnson and he is in the lead at six under. it is not savoring tiger woods too well. he is struggling on the course, the way he has been most of the season. betty: tiger, can't forget him,

but what a year. thank you so much. keep your eye on dustin johnson. betty: and jordan spieth. pimm: he is bringing the trophy in order to psych out the rest of the players. betty: he is tried to psych them out? that's a great tactic. goodbye, pimm. coming up in the next half hour, citigroup says something fundamental has changed in the market. we will have the details on that in a moment.

betty: we keep climbing here in the markets on the rebound. outlook, a gorgeous day outside in new york. i'm betty liu. let's take a look at the stories making headlines at this hour. carter's agentmy family history will complicate his cancer treatment. he revealed that cancer has spread from his liver to other parts of his body. the former president is 90 years old. his father and three siblings all died of pancreatic cancer. carter will be treated in his home base in atlanta. began trading today on the new york stock exchange. the company raised $220 million in its ipo. however, it sold less shares and offered a range. >> we do add very good times and economic -- and poor economic times.

the space we are a income of the mid-cap space, continues to grow we just don't have as much competition in that space as others do. betty: the firm's executive and employees. the world's largest chipmaker says that so far this year, more than 40% of its hires have been women or on represented minorities. been criticized for its lack of women in african-american employees. -- the comet where a spacecraft landed last year has made its closest point to the sun earlier today. it will now swing back out on an

orbit that takes it as far away as 500 million miles. it is great to see all of these space of compliments. coming up in the next half hour, we will tell you about the flying nanny. kkr joins the race, offering benefits to new parents. thene will hear from carson. his numbers are up after last week's debate. one poll has him running just second to donald trump in iowa. at nausea him about the lack of liquidity in the bond market. so what is to blame? fromint at everything tighter regulations, dodd-frank, to dealer inventories. but citigroup is taking a very different look at the issue, saying that thin liquidity has more to do with low interest rates and the herd mentality among investors. also the dominance of some very big investors in the market. here to explain all of this is

dorothy and lisa. -- and tracy. tracy, give us a rundown of what citigroup is saying. tracy: i think your intro is exactly right. we hear about illiquidity liquidity in the bond markets again.d over there is a lot of disagreement as to what causes that, but a lot of people tend to cite new regulation and the dealer inventory issue. citi has a slightly different angle. we have had all of these low interest rates in qe -- and qe interest -- and herded investors into the same position. is it is not just the banking regulation issue. it's not just an inventory issue. this is about something much much wider in the market. betty: but the lower interest rates, heard mentality, it wide? they are all looking for the same interest rates?

tracy: people have not been looking as much at the fundamentals for years. there are things happening in bond markets that don't make a lot of sense to people. like the two-year german yield. why is it negative again? why did it hit a record low this week? people are realizing you're not getting paid. the only way that would make sense logically is if there was a recession or some kind of deflationary environment in europe. yet, because of the quantitative easing program over there, it make sense. for so many years, people were forced to throw out some of their investing logic and just go with the central bank money. that creates positions that are necessarily self regulating in a way that they once were. betty: so why does this matter? the fact that citigroup has a different take on this, why does this matter? tracy: it dictates the narrative. if you just care about the inventory issue, if you are a regulator, maybe we should repeal some dodd-frank aspects and make it easier for angst to hold bonds on their balance sheet. marketlook at the wider

problem that has to do with interest rates and qe, you would have a different stance. -- atght look at micro macro prudential tools. you might even think about posing regulation on big buyers in the bond market, such as the big asset managers and the mutual funds. and we have heard some romans of that. it suggests it will be a rocky road for at least a year or two years. betty: but interest rates are about to rise. couldn't we go back to a more normal stance? we are.d you are seeing some depreciation within the bond market. some bonds are doing well and some are not. look at the energy sector with some names falling out of bed and some really falling out of bed. but this is going to take a while to correct itself because the have been 70 many years of being funneled into the same position. unless there is a violent reversal. in which case, it could get really exciting.

betty: what would trigger a violent reversal? part. that is the tricky we don't know when they will suddenly wake up one day, roll out a back and say, hey, it is time to take other side. i heard a really good analogy. qe and low interest rates have been like a lush meadow that have attracted the zebras of the investment world all in one place. one day come a suddenly decide to scatter, that is going to be a big deal. the question is are they going to do that? a lot of buyers buy and hold bonds for a long time. if yields go up, maybe we could see some of those fundamental guides that lisa mentioned come back in and maybe markets will become self regulate again. citi's big point is that that has not happened for the past five years. we have investors chasing inflows rather than getting returns or chasing value. betty: are we talking about a banking crisis?

is it going to look like 2008 when we see this reversal, this violent reversal? fear.that is the big the people i talked to don't see yields spiking up anytime soon. you have slow growth across the board. it doesn't really feel like that is much on the table. i think some of the currency shocks have been more real for a lot of people and there is a lot of questions about just how big the derivative exposure to currencies and to interest rates and different products that have come out there, how much that is going to affect the violence and the moves as well. betty: i think the money that i worry about is not on -- well, it's not really on the bank balance sheets anymore, right? but it's really on the mutual funds. tracy: that is the key point. i don't think we are going to get a banking crisis. we don't have that much leverage in the system must and sibley anymore. we are looking more like a

breakfast -- a black friday situation were people change directions and you have big apps out in price. to be fair, -- big gaps out in price. to be fair, we are seeing that already. u.s. treasury's should be the biggest liquid market in the world. suddenly everyone heads for the exits. surprise surprise, there is no one on the other side to take that traded you have big rights movements and big volatility. therei would argue that is a new aspect of market now with the central clearing houses and some of the other limitations of regulations that have come to the four. -- to the fore. if you see certain brokers that have bigger roles in futures markets that collapse, that could be a problem. or hedge funds that are counterparties that are very large. about are concerned another long-term capital management situation. a lot of money has moved to the buy, away from the biggest and

most related banks. could that be a mistake? absolutely. betty: it's him most like we won't know until we get there. thank you so much for joining us . much more ahead, guys, on the bloomberg market day. tesla has big plans on the way. the latest on the company's roadmap for expansion and how it is plain to raise all that money to fund the expansion. ♪

betty: welcome back to the bloomberg market day, guys. let's get to julie hyman for the big stories on the market day.

so far, we continue to climb in the rebound. is.e: such as it it is a pretty lackluster rebound as rebounds go, but we will take it. the nasdaq's leading stocks higher in terms of major averages, up nearly or tencent 1%. we have had. -- nearly .4%. you will see what is going on here. consumer discretionary stocks up about .9%. and then we have information technology and financials also relatively strong today. although, on a percentage basis, not huge. it is energy that is a big counterweight to the gains we are seeing today. on the consumer discretionary, it has to do in part with ernie said. we talked about news corp. -- with earnings today. we talked about news corp.. and yum! brands snapping back

from its china woes as we have stocks that get their revenue from china following on that yuan devaluation, now seeing somewhat of a comeback for young -- for yum! brands. that is on the plus side. on the downside we have energy stocks. big cap energy stocks falling in 6%.socean down explanation companies like on a go as well. it comes back to oil prices, which are once again trading near a six-month low. the kleins pretty sharp -- declines pretty sharp today. we had had people looking for a little bit of safety over the past week against, in part, tied to what is happening in china.

but we are reassured today on that front. that is reflected in the movement we are seeing in the dollar as well. we got their retail sales report this morning in line with estimates. showing a definite rebound from the month of june. the jew numbers were also revised higher. so consider -- the june numbers were also revised higher. so we see a little bit buying of the dollar. betty: thank you so much. now a look at how the european market closed today. biggest drophe , stocks have rebounded today. investors dwell on china's devaluation concerns seem to be somewhat debasing. the gauge a volatility

expectations is on track for its biggest a kind and months. those companies that have sunk the most, the bmw's of the of this world,'s those are rising today. automakers getting back some of their two-day loss of value. though one sector declining though, mining in the last three days. miners have fallen 7% at 17 billion euros of value. sentiment has very much turned on its head in the last one to four hours. what is happening in the bond market is the bonds -- is the flipside of what happened yesterday. core european bond yields are rising. peripheral bond yields are following. the biggest surprise of the day came from greece. .8% ins economy rose by the second quarter. economists are expecting the

economy to decline. that is before capital controls were implement it in the greek economy. that was the shock of the day. the euro, after six days of gains against the dollar, the longest winning streak since april, has finally come to an end. economists expect the euro-dollar a to b 1.08 in thethird quarter -- 1.08dollar average to be in the third quarter. fory: the chinese yuan fell -- the chinese yuan fell for a third day in a row. the pboc says there is no reason for it to persist and it will step in if the market is

distorted. the current exchange rate level is consistent with economic fundamentals. and the three-day long fx adjustment is "basically are he completed." after's tuesday's changing is respected, they will the market while letting the government play its role. the mechanism will provide longer-term stability and hit positive. it's a matter of old media meeting new. comcast boosting it is stake in vox media, focusing on sports, tech, fashion and food. comcast nbc universal is making a $200 million investment, at $2 billion. jim: there is great opportunity to expose one another's programming. there is also opportunity on the advertising front as well. marketers are increasingly looking for not only scale by

premium audiences and premium advertisement. by joining forces, we can increase the scale and the platforms. betty: in this range bound market, investors are hungry for growth. when they find it, they are happy to pay off. shares shot up higher, more than 25% after results showed rapid sales growth for wayfarer -- way fair. ceo: home is a $250 billion retail market in the united states. as it is shifting online, it is about 8% online. we think it will be a big winner. we are positioning ourselves and our growth is showing we are trying very hard and we are having some success at being the winner. betty: today, they reported a

loss that was bigger than expected. big expansion plans in the future and looking to raise money, offering 2.1 million shares to the public. it will raise at least $500 million. mark crumpton joins us now with more. you like tesla. [laughter] mark: ok. but this is all about the model three. it will come out in 2017. they need the money. elon musk says this is about expansion. and he did mention earlier this year, you know, there will be a period were tesla might not be profitable because they have these plans -- they are expecting big plans, but matt miller, who has covered tesla extensively, tells us that one of the problems is that a lot of people says you need a charging station for these cars. and there was an announcement or some news that tesla will be putting more

charging stations in manhattan because this area is filled with people who live by a tesla. mark: the battery production in developing new models, that is going to take aliens and billions of dollars. and that money is going to have to come from somewhere. so i believe that mr. muska right now is making a bet there will be a market for these cars. but as long as people say, the mindset is, ok, i want to drive one of these cars. but when i am on -- but when i am 100 miles in, and there is no place to charge -- betty: there is no word for that. mark: scared is the word. [laughter] betty: it's a disease. it is called ranging zaidi. mark: you are joking -- it is called range anxiety. mark: you are joking. betty: i'm not joking. that is one of the things that elon musk has tried so hard to quell with potential buyers. mark: i thought the range

anxiety is we do this little tease right now and i walk way -- betty: and i get anxious? where's mark? [laughter] we are going to hear about the dow death cross coming up. betty: we will be back in just a few moments with mark on bloomberg market day. we will be back. ♪

betty: this is a great story. one of the oldest private equity extending its leave time for parents and offering a benefit to bring a new child and caregiver on business trips. yes, your nanny. apart from its

rivals and competition in the tech world, which is famous for its perks for new parents. last week, netflix offered unlimited paid leave for new moms and dads. and now we have devon. tell us some specifics about this new policy. devon: it is a new policy they rolled out in may. it allows new parents to bring his or her child and a caregiver, a nanny, as you said. betty: this applies to new fathers, too. devon: yes. this is not just a maternal policy. what kkr is doing is applying this to primary caregivers. think about a gay couple, two fathers. typically, they have been not -- they have not been able to take advantage of maternity leave. kkr is not even calling it a maternity policy. it is called a caregiver policy. betty: this is good for a year. reporter: until the -- devin: until your child's first birthday. betty:?

why are they doing this? devin: finance in general, private equity has had trouble hiring and retaining diverse people, women, minorities, gays and lesbians. they need diverse thinking on their committees, on their investment committees, they need to step up their efforts. the second big point that you mentioned in the men -- in the intro, is the talent war. if you look at business school students coming out of there mba's these days, they see the funding flowing and the perks. they see the skyhigh valuations. a lot of them are not thinking about finance. they are thinking about silicon valley. theyinance firms think have to step up their efforts in order to compete. betty: so it is the talent war. tell us how kkr stacks up to other the firm's with diversity. pe firms need to step

up. by 11% of numbers are filled women. kkr is better than average. all these numbers are high enough. i think any of us would agree. and this policy is part of the effort to improve that. betty: good for them. make it so much. -- thank you so much. coming up, we will explain what the dow death cross really means for the markets. we will be back. ♪

betty: 10:00 in, 1:00 in hong kong. -- 10:00 in new york.

mark: is it really that bad of an omen? we will break down technical data. betty: to republicans who have never held public office are leading the polls. donald trump and ben carson comfortably ahead of the rest of the field. mark: shares have failed to impress since hitting the market in january area now the file storage company hitting a major higher.g a major the ceo here to tell us about it. betty: good afternoon, i am betty liu. mark: the death crunch sounds ominous. we will find out if it really is coming up. a look at the markets office tuesday