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 a

calm and. end.n -- .he 30 year yield coming down to takeaway, here in the bloomberg terminal. you comes in relative to what economists were looking for. data is topping estimates. 2015u look at the timeframe, like the overall economy's performance we had sluggish that has given away to improvement. i havene of the things

on my terminal, a gold charge. it is the haven that has come back because of what is inpening with the evaluation china. people are looking for a safe lace to park their money. we are heading to a biggest weekly gain in two months. it had gotten slammed so it finally got a little bit of a pickup. mark: let's look at the charts. gold futures. .ll of the intraday it is falling off a little bit right but given where it has been -- scarlet: doing ok. shares of the food company cisco rising the most in more than a year after an activist investor discloses the 7.1% stake in the company. he also said he may seek

representation on the board. history in the making in havana. during ceremonies the stars and stripes were raised over the u.s. embassy in the cuban capital. that has not happened in more than a half-century. wasetary of a john kerry presiding at his very presence was a milestone. he said restoring relations is long overdue. >> we are gathered here today because our leaders, president obama and president castro made the courageous decision to stop being the prisoners of history and to focus on opportunities of today and tomorrow. secret talks between the obama administration and cuban administration were held for a year and a half before the president announced a normalization of their ties. mark: it appears u.s. households

are bracing for an increase in interest rates that could slow growth. the university of michigan preliminary index increased to 92.9. it was 93 and one in july. they have the most optimistic views on wages and the teen years. than analysts productionactory increased along with oil drilling. wholesale prices in the united states clearing that a sire -- claimed at a slower pace in july. affirming than inflation's be on its last legs as oil prices dropped due to a supply glut. teslat: just yesterday,

filed to sell two point one million shares to raise $.5 million. they now see net proceeds of $2.41 billion. they prepared to start selling their sport-utility vehicle. the shares of named 9% this year. mark: those are some of our stories coming up. figures out today revealed a surprising slowdown in european growth r. mark: so much for the sharing investors are running the air and the properties and it is running locals out-of-town . scarlet: we will be one of the top guys using shaved balls in l.a.. balls in l.a.. mark: what is really going on in

china? our economist looking at the wrong data? with mattas oak miller earlier to explain what he is seeing in china. the economy has been slowing over the past two to three years but they do not think there is any new development that warns the kind of person once we saw a earlier this week. the slowing of car sales is closely tiled to the property sales. there is a high correlation, a lot of new houses are in the suburb where there is no mass transit. when people buy a new house, they buy a new car. it is now showing up in car sales. i do not think it is related to stock market development over the past two. matt: do you think it is a bump in the road? there are those that will continue to address because in

the longer term it is a huge growth prospect. extent of car ownership is very low and it will rise over the medium term. have a few soft quarters, but it does not affect the long-term outlook. eric: you instructed others to not evaluate the economy the way it was in the 2000. can you explain why? the big driver of china's economic growth and that was reflected in investments. we are now moving into an environment for consumption as you come the biggest driver of economic growth. the large spending a lot more money on services, education, health, tourism, entertainment. likeraditional variable industrial output is not a good

proxy of what happening in the economy. this is one of the high-frequency numbers that we .et the government there's so much attention trying to get the mediae immediate anas of going on. the pickup of private fix some sentient, the service output. eric: part of the problem is that there are not comparable data stats for private consumption, at least regular ones. have you hope people who look at things like the factors that i cited earlier and others like andghost cities or example draw the conclusion that china is some sort of house of mirrors

at the official data that the chinese government publishes are masking an underlying weakness? what i am saying is i think it would have to take a more balanced approach and not focus just on the industrial sector, which is weak because property investment is moderating, but look at all of the indicators, including what is happening in the service sector. for example, people are seeing freight transportation is down dramatically. people must be in negative growth. but that is because the demand for steel is down. if you look at passenger transport in his domain because there is a lot of this occurs on the rails of them so you did this aggregate your numbers. math: what kind of growth using pharrell of tooth china has -- do you think that china has?

>> data is not perfect by any means, but i am believe that growing. we will be in the high sixes, low sevens are developing there has been a big discontinuity here. i do not think the stock worker correction is going to have less effect on real economic dividend. the population that has any exposure to the equity market is only about 10%. i do not think we'll see a big wealth effect. when we talk about the devaluation and how it took everyone by some rise, even though there was chatter out there. what gets lost here is that these stocks have stabilized you can see the dramatic drop-off it had in late june, early july. right over here at the end you see that we have settled down up 5.9%.the week we are

the second straight week of gains. things have called down quite a bit. mark: some of the guests we have been speaking to about what is going on in china has said that perhaps it was overblown, even -- thethe valuation second movie is what got people by surprise. when you have the first move, they say we do not see that coming, and then the next day they wonder what exactly is going on with the currency, and what will it do to the overall economy. his is to prevent some sort of felt done in china or are the looking older. scarlet: they are working to be a higher standard member of the .mf as well

maybe this is a move to get the yuan is part of it. we will see how it ways out. -- plays out. much more coming up. mark: not much good news coming out of europe. turmoil over greece takes its toll. ♪

mark: welcome back to the bloomberg market day. usrlet: matt miller is with

for a look at the market. >> claim a little disheveled. i'm coming to the end of a friday trading day. futures were down this morning, and it looks like we're going to close the week a little down. now futures are closed and we are trading real stock rate we are at gains today. we're going to close a week out a half a percent that are then we closed out on a friday week finally gaining back some momentum in the s&p 500 being positive for the year. the dow jones' points right now. let me look at some of the biggest gainers on the s&p.

they have been talking to the ceo and talking to the chairman. they want a real-life figure compensation share performance. they want to give a little bit more leverage get more out of the business. investors like that the shares looking for 375. we have a disappointing real soon. outlly, we want to check mylan. a really interesting story.

institutional shareholder services cannot and said they do not recommend the shareholders in favor of the takeover. a couple of other groups have come out and said we do .ecommend to thehey are left without takeover, then it was all for the. have a good weekend. mark: let's take a look at the top stories where following this hour t. the largest maker of insulin may soon as a facility in the united states. they have lands in north carolina and new hampshire worried makes hemophilia drug.

scarlet: the wall street journal says murray energy is paying for the business. goldman is buying a banking unit for general like. it has a positive of about $16 billion. regulators must sign off on the deal. mark: know your not looking at footage from the 1950's and these are the streets of a van earlier this year the trade embargo started in 19 six days cap buicks, vintage catalase and studebaker's on the street relays. the u.s. and cuba continued to normalize relations. those are the top stories are in default hour.

mark: future growth may be compromised with greece on the verge of eu bailout. china digital tv global market and the evaluation. hans nichols has been a buzz .his week and he dances run a lot of concern about these numbers is that there would be worse than the next order when you saw the greek economy shutdown. two or three only days that we are measuring the show these numbers are davis also the context. never.raghi is those

quarter, wenother will be talking about a french recession, going to a pretty complicated political session. scarlet: here's the other thing. capital controls were not related to the latest gdp numbers. did they have a impact on the rest of the area? hans: for june and july we have really seen that they were concerned. overlay that to the soul of the chinese stock market and you get a picture of a lot of these german next. sellhad expected to 600,000 cars in china. they are no wonder that optimistic. the only bright in all of this is we have progress in greece. the prime minister is wrapping up. they broke for a little bit, it looks like we have a deal. .e potentially have a vote

mark: the strongest economy in the eurozone, why the slowdown in what is happening in germany? hans: while they export out of the eurozone layer so depended upon the strength of the euro zone. they were hurt a little bit by russia exposure. .nd the porsche cells this has to do with general and he would call but the numbers as it comes in the context of a weaker euro which should be helping the export driven economy. scarlet: what is the biggest misperception? mis: the biggest

perception is that they do not want to help greece and there are willing to do a write down as greeceas long leaves the eurozone. if they had a temporary exit, this idea that germany is demanding austerity, they are also the very first and biggest .ne up, it is anng area beyond the gold rush, along with renters not happy about it. ♪

mark: so much for the sharing economy. scarlet: numbers on new orleans which has seen an explosion of free in the offering. for 34% of rentals are rooms or shared rooms. 60% or for entire homes or apartments. hosts operate to rentals at the same time. it is not the shargh economy, it is using the platform as an investment opportunity. buy homes and then renting the mouthful times. a fourth spot because locals are feeling that their sense of community is taken away. it is deteriorating because of this you stay here for a little bit of time and then you're out. is a lot ofre turnover constantly. your people wondering around asking or directions.

you also end up pricing people out who actually live in the city because if you are an apartment owner in aches more sense to rent out things constantly to short-term renders them to long-term renters. in some of the problems there are that they are being priced out of the rental market. the people in new orleans cannot. is one of those issues that city officials continue to grapple with. local governments. much more coming up on bloomberg market day. we will speak with someone who is running the rolled out o9d .

to the: welcome back bloomberg market day. let's get straight to the stories making news at this hour. the greek finance minister

is in brussels today to speak to his eurozone counterpart. they will talk about the latest bailout. nightebated through the and approved it today. it is the third bailout since 2010. the dutch finance ministers says euros unless to make sure this $96 million effort will succeed. >> the debt sustainability is still a major point of concern, especially for the imf and the imf will look at that as will look at it closely in october. hopefully we can make sure that this is sustainable by men. scarlet: debt ridden greece desperately needs the money to pay the central bank in just six days. learning that is the company will delay is live television plans until next year. they were aiming to unveil an

early next month but what we're finding out that they do not have enough content or computer network capacity yet. apple is in talks with cbs, fox, and other networks for programming. the still plan to unwrap new set-top box on november 9. jcpenney posted a second-quarter loss that was smaller than analysts had expected. they boosted sales by 2.7%. jcpenney is in the third year of a turnaround following inattentive reinvention that drove customers way. -- away. the stock is up 25% this year. and president obama still on vacation but that did not stop them from tweeting links to this daytime and evening summer playlist the white house launches an official channel on spotify. y he listens during

aretha franklin and by night is frank sinatra. crude oil has for the longest since weekly behind january. gary shilling gives us his take . americans cannot get enough of their dairy products. enstar producer david simon is miniseriesnew p for eac hbo. all of that and much more coming up on bloomberg market day. as california battles a record-breaking drought, los unusualhas found an solution. small plastic balls that slows evaporation and the growth of our -- algae.

they will prevent 300 million gallons of water from evaporating. worked with him and joins us in los angeles. .i for joining us -- thank you for joining us. we described them as the size of an apple. can you give us more detail? what are they made of? do not want with you? >> they are a four-inch diameter ball made of the stick. they are made of high density polyethylene, the same you would find in a gallon the junk. does not break apart in the sun.

original ones we had were filled with air and they floated under the surface. this is a windy area we did not let them flying out and hitting the drivers. they are filled with water so they of the weight of the water to hold them in place. scarlet: the original balls were hollow i did not have water and this began in november of 2000 12. you have done this elsewhere in the city. what did you learn from the early years of the project that you have some supplies to this iteration? when adjustments did you make along the way? >> the balls to move in the wind. that is one of the challenges you only buy enough all to cover the reservoir one time, as soon as a breeze blows art of the reservoir opens up. we went from 80 million balls to 96 million balls so that we had enough that when they tried to go in the wind, we wanted to

make sure that the reservoir would remain covered. we know from the results that the reservoir stays covered and that the sunlight reduction has a benefit across everything. it is really hitting all the marks. scarlet: one thing that people question is wire they black? it absorbs heat. >> i get this question all the time. one color in carbon that keeps it from deteriorating in the sunlight. the other thing is that we cannot use a color where the dynamite leach into the water -- themight leach into water. this is a foodgrade plastic. that is why they are black. as the one chemical that can be used that is compatible with the drinking. because they have air in the ball, it does not warm up the

water at all. scarlet: what are the drawbacks? >> they are not a permanent cover, so they are not something that nothing can get through. a worker marketed to keep birds off of bodies of water. we adopted that to use it for drinking water. wildlife of the reservoir but it is not a solid cover. you do have to compete with other treatment downstream. but it does a fantastic drop of deking the water underneath. scarlet: is this a year-round solution? there is talk of a godzilla el niño that would come this winter brady would have to contend with questions about that? deploy and could you remove these? >> they are easy to deploy because we have manufacturers working seven days a week, these

are delivered a m&a day out. we will not actually remove them. if it does rain a lot about the water will fall through the voters of become drinking water in the reservoir. if we had a fixed cover it would have to be pumped and then be lost. l.a. obviously not the only city that is suffering from the effects of the drug. in other city officials reached out to you to get your expertise? >> we have had a lot of calls. coverage of this we have had a lot of calls from new york and other neighboring cities in california looking at one of the applications you can use. when you look at the amount of water that is lost to evaporation to reservoirs and all of the conduits, there is a lot of water we're losing that could help us out.

scarlet: how much is each call? >> $.36. mrs. 10% of the cost of what we were going to do to solve the problem. scarlet: very innovative solution. this has just blown up on the internet. coming up, americans are finally falling in love with area again. stock up on your ice cream before the prices soar.

scarlet: welcome back to the bloomberg market day. oil headed for the longest run of weekly declines since

january. prices will to their lowest in its years the average price of oil over the past 10 years has been $80 a barrel. it was the talk of bloomberg surveillance this morning. he thinksing told us wti will go even lower. >> it is based on supply and demand. ae point is, when you're in price war, like we are in now, because opec is saying we are not going to cut production, we're going to see who can stand lower prices longest, you're really talking about the marginal cost. texasrginal cost in west or the persian gulf is $10 or $20 a barrel. i think that is where we are going. at some point, somebody chickens out. they are playing the celebrity game of chicken. a major producing company backs out. but i do not think this will happen to american fractures. >> bring this to assets in the

fed and when will be fed begin to raise interest rates? will this affect the september? i think logically, if they came down and looked at this without their previous biases they would hold off their may have painted themselves in corner because they have been saying they are going to raise rates and saying the economy was --ng to revise a thing is a as saying is so long they have a credibility problem. but i say the odds are they will probably wait. i'm not sure they will raise rates this year at all. shamelesst you need a plug on your books on deflation, what we're talking about is was and fisher, and marker and you do not want to talk about which is gary shilling has been right. when do you assume that central bankers will adapt to the

oversupply, the supplies i did it makes across all asset classes? >> is a good question. 24%, and thed encrypted down to 2%. for 2013, 2014, 2015. they would say sometimes is is not working. but they have a credibility issue right now. bankers, if they really looked at the facts, they would say that this asian deleveraging is still with us. growth. slow i think that is continuing for number of years. >> i want hans nichols to join us. of the euro talk talks about will consumers feel

richer? what time do you see this affect consumers and have them start spending? one data point is that the german consumers are actually spending. is there a trickle-down effect? this wealth effect is surprisingly small. one of the reasons is we have had this income polarization. income has moved to higher income hands. those people do not adjust their spending that much in relation to their assets. this hope for a real wealth effect has been surprisingly small. scarlet: that was gary shilling on bloomberg surveillance this morning. look at how other commodities are moving as we settle -- look at the settling in new york. for its biggest itkly gain in two months and

was relatively neglected during an greek debt crisis languishing you're a five-year low rate there is news that it boosted its reserve. you are looking at week. it is set for a second straight week of gains. forecasty trimmed its by 6/10 of 1%. that is your commodities close on this friday. we will stay here with us afterities three because decades of eating less ice cream, americans are once again extra scoop. surging demand for dairy frights has tightened supply and has kosted cost across pea season. mint chocolate chip is my

flavor. i want to hear what yours is. is that wethe news seem to be embracing our fat. fatike all caps -- whole dairy products. , sales of 17% in the 12 months through july. in restaurants, your pure butter, butter with himalayan salt. a lot of other things, people say what is that? butter is butter. betty: whole milk, up 3%. and ice cream is of 2.7%. frozen yogurt sales are down. pop ice to mom and

cream retailers around the country and they say what pay the bills is ice cream not frozen yogurt. see givenresting to our healthy food trends that we are embracing this. scarlet: my favorite ice cream flavors, a mix of bourbon and cornflakes as the main ingredient. honey hollow paleo vehicle ice cream. and snap, mellow, pop. what is your favorite flavor? scarlet: ben & jerry's chubby hubby. the picture on the carton as a guy sitting in a chair with a big belly. note, i lovel giving people ice cream for gifts so that i do not have to

eat it. cream in ohio. a shutout for them. betty liu, thank you brady will be back at the top of the hour to go through everything we need to know before the market closes. betty: and more about dubai. -- cuba. scarlet: if you're a fan of the wire, you'll want to hear about the latest project.

scarlet: four years david simon baltimore sun that he created a wire and became one of the biggest names in television. he focuses on the biggest albums in america including drug and education.

his new show, show me a hero, premieres sunday. it is a true story about a fight over desegregation in public housing in yonkers, new york. >> i am in this weird window at hbo where they read the iripts and say do this area say yes and then i go back and do them but then there is a little part of me thinking more they really thinking about what they just did? i think they are in some respects. , it is a of a brand wide brand, and i am a little pbs part of it.

>> how hard is it to make something like this now? >> they are all hard in their way. i think we're getting better at it right the execution on the last few projects, it is stronger every time. part miniseries about race and politics and urban planning. exactly point in television. much of recent events are influenced about how the scripts come together? >> it was before ferguson, before baltimore, before charleston. it was not before any number of other stories that highlight our unique american mythology when

it comes to race and class rate this stuff is ongoing. ago, itmitted two years would not be ferguson, but there would be another dynamic that would raise the same questions and this is the perennial fight . we are in our adolescence when it comes to raise issues and most of us now know we cannot fling around a racial epithet. vernacular that allows us to play the same games, but it is now about personal 3m, ,iberty, and my property values and not in my back yard is in. what it comes down to is fear. >> do you find yourself now were people want to hear what you have to say? or not? do you embrace that? >> i do not think in terms of i was worriedight

for people who were very close friends of mine who lives close to baltimore areas that were on fire. we stopped losing population of years ago. happened inhat baltimore, the validity of the riots. that was very disturbing because come to baltimore and say that. that is a very cynical thing to say when you live there and the fragility of the city is -- our recovery is not a sure did any sense. >> you talked with the president about some of these issues. i'm curious about how it is to have that audience, being able to address them. >> it was not easy that day. and you are in the middle of a sentence, and there is the president of the united

states. there is a little moment of -- >> ivy huge fan of the wire, i think it is a great piece of art and television the last couple of days they -- decades. >> the ability to do it lands itself to advancing the most seminal thing are covered as a reporter, ending the drug war and incarceration. >> what do you think what the future of television and your place and it? is it someone you watch avidly? >> i to invoke the image of the wandering jew. i always have one bag packed because a you do not know when it will go south. point i bet someone to expectne -- i will

someone to come to be in say we looked at your ratings and you have not had it. years i worked on some pilots, but i never quite believe it. scarlet: not a bad credential. that was david simon, the producer of the wire. ahead in the bloomberg market day, the u.s. flag flies over cuba today. we will talk about the spike in tourism. are people searching and buying the tickets? ♪

scarlet: it is noon in san francisco, examination a.m. in hong kong. throiks is the bloomberg market day. stoirlt he has been tweaking

the short of a lifetime. betty: and it is a historic day for u.s.-cuba relations. tourists are ready to flock to the island. scarlet: and a new picture of a and file d its rank employees. good afternoon, everyone. friday. i am scarlett fu, and she is betty liu. b.h.p. let's get straight to how the stocks are looking as we are about an hour away from the closing bell. it looks like we are headed on the s&p for a weekly gain here. remember that in the middle of the week we turned lower for the year on the s&p