france showed no growth at all. the prospect of a u.s. rate hike and an unstable chinese economy could make the situation even worse. it promised to be a beacon of transparency when it went public but the homemade goods website is raising eyebrows. mark: looking for cheap luxury goods? had to brazil where they have turned the country into a haven for luxury bargain hunters. ♪ betty: good afternoon. mark: checking flights for betty liu out of jfk. we will talk about that in just a few minutes. let's begin with a look at the markets. -- following the

devaluation moves, it is mostly higher. it is headed toward a weekly gain. .33% trading over at 2085. the dow higher as well. 17,436. we also have data that showed factory production rose in the united states more than expected. atalso want to take a look oil. up over .75%. as julie hyman was telling us about what was going on with that it is back

as a haven play because of what is going on in china. right now, gold is trading down about .25%. whatever rebound we have seen in gold, that commodity has taken such a hit along with others. i'm looking at bonds. the safe havens. to comed continues down. the yield coming down a bit on the longer and. and now 50% chance the fed will raise rates in september. we have been keeping a very close eye on the dollar that had in reaching the four-month high. still stronger against the euro after that news came out. just a paltry .3%.

earlier,t devaluation take a look at the u.s. dollar. it is up about 3% given the move. we will watch of china continues to do this again. take a look at the top stories at this hour. shares of cisco rising more than a year after activist investor disclosed a 7% stake in the company. in a filing, they may seek representation on the board. hundreds of cubans gathered near the u.s. embassy in havana to see the historic raising of the u.s. flag over the building, the first time in 54 years. firsterry became the

secretary of state to visit cuba since 1945. take they: it does not dps to realize the road of mutual isil's asian -- isolation is not the right one. forthat the time has come us to move in a more promising direction. marco rubio is blasting the decision to reopen the industry. insured it will receive international legitimacy and a substantial boost to benefit its repression. mark: the greek finance minister in brussels today to meet with his eurozone counterparts. they will work to agree on the final details of the latest bailout. the three-year plan after debating through the night. this is the third bailout since

.010 >> it is a point of concern for the imf. it we will look at it closely in october. and hopefully, we can make sure it is sustainable by then. mark: debt ridden greece needs money for the payment do just six days from now. a loss smaller than wall street estimated. we boosted sales 2.7%. jcpenney will be following the attended reinvention that drove customers away. the stock is up 25% this year. the sec --

not: the sec's pay gap may -- we will tell you about some of the loopholes. betty: straight out of compton, will the hip-hop group become a box office winner? thewe have a fresh read on pace of economic growth in europe and it is not impressive. in fact, it was barely positive. they registered a 0.3% last quarter and the economy accelerated less than expected. what dohat -- mark: central banks make of this sluggishness? joining us now is former bank of england monetary policy danny blanchflower. this?re we to make of

>> the numbers are quite a weakness. countries in deflation. finland has gone into deflation and it will be four years in a row. if you look at the minutes yesterday, the european central bank said that they thought things were going ok within the european union but there were major risks to the downside. the downside with china, risks in europe, double-digit unemployment. this really does look like the plans to keep the euro zone economy going along steadily are actually failing. where we areboost ready to intervene and use all the weapons we need to.

likely reportages now, the strengthening of the dollar. what impact will this have on fed policy? janet and her cohorts ours focusing onare what's going on overseas and recognizing it will impact us. >> this is a complicated set of currency skirmishes moving towards wars. one action impacts everybody else. at the strengthening of the dollar has made a major impact on exporters. microsoft, ge, caterpillar, disney. strengthening of the dollar is actually equivalent to monetary tightening. betty: but does that mean the fed moves or not?

>> i think it means the fed should not move. there is monetary tightening driven by the dollar. that will appreciate the euro. when everybody else would like them to do that. mark: we did see some growth in germany, but we see this tepid growth and underperformance going on in italy. >> there is very little evidence that outside germany, there is a great deal of strength.

self is benefiting and keeping the euro much cheaper. very hard to get out. in poland, the u.k. has been doing reasonably well. employment started to fall and the u.k. may be on the turn. and business confidence has been falling for the past few months. betty: back here in the u.s., i want to focus on the u.s. economy.

the comparison between where the dollar has trended and oil prices. right into the middle of 2014, oil prices started to tank and the dollar began to sharply rise. just like what japan did. >> the affliction does appear to be an upward biased estimate and it is likely we are in deflation

anyway. and this looks like a major mistakes. you should always air on the they raise them to deal with the recession. are we in the middle of a currency war? how will that impact the thinking going forward? >> there are currency skirmishes

at the moment and in a way that the base is interested. it is very u.s. centric and it talks about what the fed is going to do. depends on the data and what everybody else is doing. sweden, switzerland, they're trying to depreciate their currencies against others. it is a relative thing. it certainly looks bad. it will depend on other people's actions and probably right now is not the time to raise the strength of the dollar. betty: on that note, thank you so much. skirmishes, i think of people a boeing each other. every time he comes on, i feel like i learned something. betty: ahead, we watched shares

of cisco. what kind of value does he see in the food company? that story is next. ♪

betty: welcome back to bloomberg market day. mark: let's go to julie hyman with a look at the markets right now. julie: i'm going back to news today -- surging in my head is spinning. 6.3 percent versus 9%. the food services company

disclosing 7.1% stake in this company. pardon me. intends to have talks on board representation at the company and it believes the company should adopt plans to improve its operating margin and that it has underperformed relative to its potential. a pretty standard playbook here from activist. they have had a very brief discussions and they are not going to speculate on intentions or future actions. take a look at my bloomberg terminal. show very often because it's hard to read but i will try to walk you through it. it shows you the largest shareholders of a given company. it has not yet updated to show the stake.

the biggests shareholder with a 6.2% stake. it would be the larger shareholder. a couple of others have a 5.7% stake. that we look at the top holders. you can see for the year today that her shares over the past year and has not done as well the s&p 500. it even on this chart, it's very clear as the stake has disclosed, it moved up after cisco reported earnings. a couple of other movers we are watching today in the retail space, they're up by 4% despite the news we got from macy's and kohl's. that the department store business -- the company raising

the profit forecast and sales forecast after numbers last quarter. i got my head on straight, i think. betty: let's take a look at some of the stories crossing the terminal at this hour. quarterly net profit dropped biking digital entertainment and the swedish company says revenue from the games are still declining but despite the slippage, it will keep investing in candy crush. executives look at the smart watches and said it is a good time to launch their tv service. bloomberg news has learned the company will delay live apple does nots have enough content or computer

network capacity yet. apple still plans to unwrap its new set-top box at the product launch event on september nine. the white house launches an official channel on spotify. the president enjoys the music of justin timberlake, stevie wonder, aretha franklin. a different story in the evenings. al green, frank sinatra, and beyonce. eclectic. hour coming up in the next -- betty: demanding companies disclose the pay gap. mark: nervous about shaming well compensated executives. the sec will be flexible about

what companies have to disclosed. very, very flexible. that is next. ♪

mark: we told you about controversial sec rules telling companies to disclose the pay gap between ceos and average employees critics including republican lawmakers and business groups says that the rule is meant to shame well-paid executives. betty: turns out, companies won't have to try too hard if .hey want to sidestep we dug through the details on this report. 300 pages? >> it is a hefty law. awake,if you are still there are loopholes here to sidestep this.

found more than a couple ways you can sidestep this. the companies can choose which date they want to use as the be -- whichcould could help companies that rely on seasonal workers or temporary workers. look prettye can significant. mark: how does this tie into dodd-frank? >> this was part of dodd-frank in order to shine some more gap. on the growing wage while which quite a is a lot for any kind of law. it has taken a long time to try .o figure out

betty: are they significant enough to lower the ceo worker to pay ratio. >> they can recruit extra workers and it could move the needle. is it going to be worth it in terms of a potentially worse public image? one of the other things that can lower the bar is the official status of workers. how does that skew the ratio? outsourcef companies much of their operations.

and if those workers aren't included, is this a representative ratio? betty: thank you for joining us on this. mark: you can see the story on bloomberg terminal. betty: i'm signing off now. mark: you'll be back for the 3:00 hour. ago,story a couple weeks where you say, ways to sneak out of the office? betty: i used some of those. we will talkup, about why a falling brazilian currency is helping discount the high-end luxury markets. ♪

♪ ♪ ♪ 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: you are looking at a live picture from havana, cuba. john kerry's taking after

marines raise the american flag on the newly reopened embassy in cuba. the secretary of state made an unprecedented nationally broadcast call her democratic changes on the island ruled by a single party by more than five decades. will follow his comments and bring you details as soon as we get them. staying with us. it lets get you straight to the top headlines we are following at this hour. tesla motors is boosting its stock offering to 2.7 million shares. filed toerday, they 2.1 million shares to raise $500 million. the net proceeds of $642 million. as well as giving itself a bit more breathing room as it repairs to sell the model x suv. crude oil is headed for the longest weekly decline since january.

it has dropped 4.3% since august 7, bringing prices to their lowest level. he talked about electric cars. >> they have an interesting future long-term. it is a bit of a distraction for the oil market. you'll probably have more electric cars but the bigger impact today and in the years ahead, rising fuel economy standards. bigger impact on demand today and in the years ahead. mark: the market surplus will last through 2016. volkswagen is recalling 420,000 vehicles in the united states because of a problem with its front airbag. models including the

jetta, the sought -- passat and tiburon models. recalling chevy cobalt in the u.s. and canada. prevent wiring could the driver-side airbag from deploying after a crash. those are your top stories in this hour. sells uniquesy items but the company is not unique in its tax strategy. andakes a page from google linkedin to save money via ireland. senior fellow at the peterson institute. my colleague is standing by the breaking news desk with the details. taken a mistake in para go.

a $33 billion unsolicited takeover bid. goadingsed a statement, the shares. in order to try to nudge this deal along. the company does already own a stake and it is a report that it is taking a stake. capabilitiesled with the attractive platforms could create a pharmaceutical powerhouse. they offer conflicting advice on if they should vote in favor of this deal. you when we do and if we do get more.

mark: falling currency is good for shoppers. product, and, tiffany are cheaper in brazil than in new york city. bloomberg has a story about the phenomenon as we're joined from brazil. thank you for your time. what is allowing for these ?iscounts yeah > makers onlyy good have about once a year. doesn't connect with what we are seeing today. still ending up the deeper -- being cheaper.

>> would this be that the retailers adjust their prices more frequently? >> they go along with currency volatility. and will adjust next month they expect a quick adjustment. of thed $1000 off encrusted platform heels compared to new york city. that is a really great deal for people that can afford it. mark: what did you find? >> not that many shoppers, but it was during the week. tiffany'satches it that were mostly cheaper here. you do have some things like

rolex. they seem to adjust on a monthly basis. but the shoes, the watches, and the handbags are a good deal. mark: this is a dramatic turnaround because many follow the steps. >> even with a plane ticket and the hotel cost, they had strollers and car seats. vacation.n take a

maybe that will realize what is going on. we look over the stories you did on this. andprices could turn around -- and rise very quickly. >> get your deal now because it will be more expensive. it is a little bit of good news. >> how will this play out? >> people are buying the basic goods and not buying anything in important.

it is good news for the locals. it used to belong to chilean wine or spanish wine. or spanish cheeses. everybody is cutting back. mark: thank you for joining us. we appreciate it. running away with the box office crown with the release of straight out a compton. -- the marketing behind the the marketing behind the nwa biopic. ♪

mark: welcome back to bloomberg market day. there is still a big area of weakness and julie hyman is here to tell us where those areas are. julie: we see some green on the screen. this is the high of the session but it's not saying a heck of a lot. ending what it has been a lackluster week on a high note. looking at the bloomberg terminal, energy is the worst-performing group. down about .1%. i wanted to point out a subgroup that is weak here and has to do with applied materials.

boy -- down about 3.2%. after forecasting revenue below analysts estimates. outsourcing chipmakers, this is causing concerns in the industry. it is a harbinger of things to come in the semiconductor industry. it is down more broadly as well. it will be a seven straight week that we have seen them pull back.

we will see this long losing streak continue. it is the longest losing streak with have seen since january and it continues. appreciate it. take a look at the european market close. >> a hangover from china's currency depreciation. to be fair, friday was all about matters close to the home. it did not come in as high as expectations. the attention now turns to a big

referendum for the end of this month. a vote of confidence after many members of alexis tsipras's party voted against the measure today. they possibly rubberstamped the deal. led by revenues, bp, they face penalties after a judge concluded it manipulated markets in texas act in 2008. this is the year-to-date performance.

from there, the high of the year in april, through there, today, down by 7%. back to you in new york. thanks to jurassic world and minions, universal pictures the box office this year and may top the $2 billion domestic ticket sales by the end of the summer. the remarkable run will get more fuel this weekend with the release of "striaghaight outta compton." this has the potential to be a marketing juggernaut. dre has been behind the push to really get people from

the millennial generation excited about it. my husband has been trying to convince me to go to this movie for weeks now. there is this meme generator. for me it would be straight o new york. you would be straight outta crumpton. [laughter] mark: i'm all over that. scarlet: you don't even have a twitter handle. i was looking into some of the reviews of the movie. they are mixed. the l.a. times which i pay attention to, they say it is all over the map. a meandering two hours and 22 minutes movie. has made music videos with dr. dre and ice cube in the past.

he directed friday. with all these movies, the rise of the group is probably more interesting than the headaches that follow when you get success. the legal problems in the contract disputes. a story of young african-american men that found they had a talent. they went to the studio and found that the talent transcended race. the talent was across all spectrum. white kids, young hispanic kids in addition to young black kids that really either related to this movie or are trying to get a sense of where these guys are coming from. scarlet: it resonated with them. not just about music. it's about life and where they came from. and cube, his son looks just like him. you are playing your dad. he said it was kind of strange.

scarlet: it transcended a lot of the traditional barriers that we think of. i can think of so many people in high school and college that connected with it even though they were not, obviously, from compton. mark: you are not the first person to say that. and a lot of fury. a lot of hostility. some of it is warranted and some of it isn't. scarlet: universal said it will start paying for security because of gang violence concerns. universal has had a very good run. is your husband going to have to twist your arm? scarlet: you my husband should go see it. we will do straight outta cru mpton later on. movement nla to conserve

water. it making sure the water in the reservoir -- mark: it is fascinating. it we showed video of it. it scarlet: four inches wide. you put it over the water to protect the water from sunlight so it doesn't evaporate and a chemical reaction that could be dangerous. we will talk to the water department about this. by any means necessary. mark: given the drought, they have to do what they have to do. , as bloomberg market day continues, at sea may be breaking its promise to be a thanks tot company recent rules in ireland. ♪

mark: welcome back to bloomberg market day. take a look at some stories crossing the terminal. the el niño is the second strongest on record for this time of year. of the mosto be one potent weather changes of the past 65 years. warming in the pacific ocean causes wind to shift and change whether in the u.s., mostly in the weather. drought stricken california could see extensive rain. there are concerns that there might be wildfires. tom brady in uniform instead of a three-piece suit. the quarterback was a surprise starter in the preseason loss to green bay. he has been in and out of courtrooms fighting the deflategate suspension. a look at some of the top stories this hour.

etsy claims to be a mindful, transparent, and humane business. what is in question now is the commitment to transparency. they recently changed the designation of the subsidiary. at sea will get to keep more information private and will make it easier to hide money in offshore tax havens. is at sea -- etsy different? >> a company that promise to do good by the employees and the environment. they are the second one of these to go public. they also employ what is called a limited liability company. have come out and said being transparent and accountable is core to our egos. has resented this interesting

dichotomy with this new as a type classified of company that doesn't have file basic financial information. the companies telling investors at home that we are going to be trans-parents. mark: the ceo, there was a recent filing. as a public company, we will be able to provide a higher level of trust nancy and accountability to a broader number of people. if we succeed, other companies might replicate our model. the world might be a better place for it. transparency is the name of the game here. >> it brought up this interesting question if public investors will be ok with a company that may not push every penny to the bottom line. it spends on its employees and maintains a very high wage. this is a strategy that tax experts will tell you is only employed see you can't see how much money is going to this

irish up city -- irish subsidiary. they are also funneled to another low tax or zero tax zone. well below the u.s. 35%. i would gather that legally, there is information that they do not have to make public. >> they do disclose that they have this subsidiary. before the classification, you can see annual reports and basic financial data from this subsidiary. potentially, more revenue stands to be going through this business. etsy doing to satisfy investors? >> they want to push internationally. the stock has been volatile.

on earnings day, they said, look -- revenue growth is slowing. international market growth is stagnant and that is what has been top of mind for investors. they have been spending to grow out into these international market and they've had to hire a lot of folks. mark: the story along with jesse drucker, a secret irish tax haven and transparency at home. thank you so much. up on the bloomberg market day, as the u.s. and cuba normalizes relations, what will the impact beyond travel? we will ask the ceo of cheap air.com. ♪

mark: what will the evaluation of the when due for china's economic growth?

we will speak to one of behind researchers invention saving water in drought stricken california. mark: the fight over public housing in yonkers, new york. it will speak with the producer. good afternoon, i am mark crumpton. we made it through friday. scarlet: it has an eventful week, to sing the least. you look at the markets, it is us if nothing has happened. is an eventful week, and