happening would equities and oil as it continues its decline. bit: yeah, we saw a little of a turnaround as stocks were down more than half a percent today. let's look at the major indexes right now, because we saw a recovery on the nasdaq. now we see recovery on the s&p and dow jones industrial average as well. the s&p off 17 points -- down, what? half a percent at the open? matt: that's right. the nasdaq fell. now we see stocks up across the board, but very little change, as has been the story over the past few weeks. not the same story for crude. yes, crude down about 4/10 of a percent. it continues it slide. brentlook at rents -- crude. nominally higher. nymex crude -- a shockingly low level, and we

heard chad morganlander this morning say he think's it will go down to $30 a barrel. pimm: yet, so far that has not altered down into the price people pay at the pump. there is the reformulation process in california. we are heading into what may be the peak of the driving season and everyone will switch over -- themselvesornia has to blame for the price of gasoline, right? they have a huge tax burden. pimm: actually the formula of the gasoline is different in california. matt: of course. they have to be different in every way. i think we both agree it is probably a better place to live, right? let's look at the top headlines at this hour. homebuilders have not been this confident in almost a decade. the national association of homebuilders index rose to the highest level since november 2005. the data indicates that single-family home sales and

perspective buyer traffic both increased. and a key measure of factory output fell this month to be lowest level in more than six years. the new york fed says the empire indexmanufacturing plunged. there were big declines in new orders and shipments. all right, and there were big changes at target. john mulligan will become the chief operating officer of the retailer. spent several months as the interim chief executive. the new chief officer will be cathy smith, previously executive -- at express scripts. least 17 people were killed and dozens injured in bangkok'som major --

major shopping area. it has been the scene of protests since the military took over in a coup more than year ago. and apple's new project may be lizard to hitting the road than first believed. -- may be closer to hitting the road than first believed. sites.e looking for test google's self driving cars are already being tried out. honda and mercedes are also testing their own versions. and those are your top stories at the moment. coming up next, the next hour of the bloomberg market day, the thatyork times" reported amazon is a cruel and cutthroat place to work. but jeff bezos disagrees. matt: you don't say. pimm: yes. matt: he is defending his own company. pimm: and taking a look at compton,"outta smashing records, pulling up $55

million in its debut. matt: did you see it? not. i did i waited in line, but i did not wait long enough. this isces falling, but not stopping the largest gold company in north america from building a brand-new $2 billion mind from scratch. all of those details coming up. matt: all right, to china, its currency, the yuan -- its uan -- morgan y stanley coined the phrase fragile five to describe the most vulnerable currencies and now that has climbed to 10. countries tied to china are getting hit by the slow down there. us, stepheng englander, he joins us from his office in new york. steve, thanks for being with us. tell us, who are these potentially troubled 10? it could bel you,

the troubled 110, because only the u.s. is showing any sign of returning to normal. obviously we are debating whether the fed is going to hike. things like the commodity price weakness we are seeing, the a.m., the currency weakness -- the currency weakness benefits areas like the eurozone and even japan. it could be a broader type of move where the g3 or the g4, if u.k. in, ise beginning to look very good. m currency, are a e whatever acronym you're using, in the gthe --aussie 10, they will feel the pressure and lose. it could be the marvelous for. -- the marvelous 4.

we should clarify, when you say lose, you mean those who are long and these assets. the countries will purposefully push down on the value of their currencies. is true they purposely do it, but the reason they do it is because their currencies weak or your inflation numbers are disappointing -- your currency is weak or your inflation numbers are disappointing. you have a narrow policy objective you are trying to accomplish and you do it, but it and not take a bad economy make it a good economy, and so far, it has not succeeded in taking low-inflation economies and getting them back to target. this move by the central bank make any difference to the chinese economy really? no, 3% does not

make any difference to anyone, whether you are em or g10. little pressure off exporters. until last week, the yuan was moving up with the dollar gives the whole world and you were getting massively negative ppi's. their margins are getting squeezed enormously. they may see a little relief. 3% does not buy you much export volume increase. if you look at japan, which has appreciated 3% over the last six --theirhere volumes volumes are dead flat. it takes a great deal of depreciation to get a volume increase. pimm: so why do it? helps your equity market. it helps your exporters. i think the policymakers are realistic about what a 3% or 5%

depreciation does. it is the third decimal point on gdp. it will not help much. it does have an impact on margins and that may be what they are looking for. and there may be more to come. matt: what kind of impact does it have on the currency appreciating or policy moves? for example, the janet yellen, they want to raise interest rates, and now she has to think twice because of what is going on in china. going to befed is watchful of it, but i think the intention of china is not to, grab aw, to try to beachhead in terms of u.s. imports. u.s.are trying to regain territory they have lost to their age and neighbors, to mexico. so, it is less u.s. versus china than china versus competitors around the world. pimm: all right, want to thank

you very much for your thoughts and insights, joining us from citigroup. executiveon's chief jeff bezos refutes claims of " shockingly callous management practices." stay with us. ♪

matt: welcome back to the bloomberg market day. i am matt miller. pimm: i am pimm fox. let's go to julie hyman. there was a selloff in the early morning trade? ok, we'redid, but, not thing and and or miss him out of action today. i do want to talk about what is happening with this big deal, liberty interactive agreeing to buy zulily.

49% higher than zulily's close on friday. they cater to moms, in particular over some stuff for their kids and also themselves. and that has had a detrimental effect on the stock. a quick note about liberty interactive. this is qvca. and is the tracking stock, there's another tracking stock that tracks liberty's in investments and other interactive companies. a you are looking at here. let's look at zulily. back in november 2013, the company had its ipo, and it is down here because it is right around the average of $22 on this chart. and it did quite well. 75 dollars.70, since then, we have seen

declines on the stock going into today. a decline of 83% versus that high it reached back in 2014 before the big game today. so, this stock has really been battered. when you consider the big drop it has had, it looks to be less of a premium. some other stocks we're watching, a couple analyst calls -- a company that provides various technology for vehicles at 6%. the company price target was raised to $80 from $68 over at morgan stanley. the company apparently had meetings with analyst, and this call coming -- meetings with analysts and this call coming out of that. ye is transitioning into a second phase. that will be good news for the company results going forward. and jcpenney initiating a buy

riley. b. the analysts are looking at positive is miss trends despite retailers like macy's struggling , as evidenced by their results last week. have got to throw us a bone every once in a while, jules. opened down 145 points and now it is up 50. on a day with basically no news, isn't that -- julie: sure. matt: something to latch onto? pimm: she said, yes. it's ok. you like the zulily story? matt: what are flash sites? julie: a limited amount of stuff and a limited amount of stuff every day. pimm: so, you see the countdown zirconiumnia and --

, or and you have to call they will not have it for you. it makes sense that qvc is buying it. day, the headline of the zulily. bought. tesla, share price target, unbelievable -- julie: and the dow reversal. matt: the dow reversal, the target management changes. there are some things going on today. it will be for less than it went public at. the ipo price was $22 and this is turning out to be -- it's not great if you got in on the ipo. julie: that's right. matt: well, it's called zulily, right? a company says a lot about a company, and sometime, zulily -- you pick the wrong name. it doesn't work. it doesn't work for me. pimm: ok. matt: i will read the top stories. pimm: you did them so well the

first time. matt: i will see if i have all of the top stories. the cofounders of alibaba are using their own money to prop up the company stock. billionaire jack ma will take part in the $4 billion share buyback. no word on how much of stock they are going to buy. down 28% alibaba are this year. it has been less than a year since they went public. predictions that the chinese will go downe -- further. goldman predicts by the end of 2017, the u.n. will be trading at 6.8 to the dollar. it is currently at 6.4. it fell after the biggest evaluation in two decades. you see it's in that spot. pimm: those are your top stories. we got them all. chiefazon founder and

executive jeff bezos has something about the "new york article describing amazon's toxic environment. memo,says in an internal the article does not describe the amazon i know or the caring amazonian's i work with every day. other executives have come to his defense. that thislo tweeted is symptomatic of a growing reliance on hyperbole to score points. matt: hyperbole. pimm: hyperbole? matt: like onomatopoeia. pimm: you finally made it here. matt: thanks for joining us. i did not get the memo on the outfit. matt: here in new york you wear a tie. pimm: jeff bezos doesn't have to

wear a tie. you do not have to wear one if you where -- if you work it amazon. no, but you have to work a lot. matt: and he wants you to wait in line as long as it takes to go through a security check, but he's not paying you for that time. he says, listen, i do not or if it takes 45 minutes to go through the security check. you are clocked out. you are not allowed to leave the building, but i will not pay you for that time. pushes itsn famously workers, blue-collar and white-collar workers, really, really hard. the article in the "new york " telling anecdotes about that. the one that struck me the most -- i know the stories. i have known the stories for more than a decade. that is working at amazon. work there, but

then get out because it is so miserable. it is a common occurrence to walk by a conference room and see a grown man crying sitting alone in a room. dispute the veracity of the story, but there are no statistics. there are no details. this is a company with 154,000 employees. that's not to take away -- cory: it is a date obsessed company that would not provide data about the happiness of the employees. oft: if you have a company 150,000 people, you will see grown men crying at some point, right? cory: i do not know how common it would be. the interesting point, jeff was refuting the characterizations in the story, and i do think there were cheap shots, things taken out of context. for example, in the story there is a quote -- great anecdote, great anecdote -- jeff bezos is with hisven grandfather, trying to convince

his grandmother not to smoke anymore. he calculates how much time each cigarette takes off of her life and the grandmother breaks down into tears. that is the anecdote in the "new york times." that came out of a speech he gave at princeton. speech, heencement goes on to say, the grandfather pulled over and said, anyone can be smart. it's harder to be kind. off bezos used that example you just can't be data driven and mean. you need to be kind as well. matt: did the grandmother quit smoking? cory: i don't know the answer to that story. but i think this piece was a backflip to characterize amazon. i think activism, it's very tough. you mentioned the anecdote about the employees not being able to leave the building, which led to the supreme court case.

a reporter broke a great story. ambulances kept out of a stifling a hot fulfillment -- stifling hot ultimate center in arizona. only after that story did they in thatconditioning building. it's hard to compete with amazon. it's already hard to work there. matt: if they are willing to bring someone out on a stretcher rather than put air conditioning in a warehouse. it's difficult to compete with a company like that. let me first ask -- please. i hear about the "new york times " writing what some say is a slanted piece about amazon. and then i think, weight. -- wait. owns part of "the washington post." is this a hit piece on a competitor? cory: they mention that. i think the washington post

reporters are probably thinking the same thing. amazon employees take less pay to work at the company with the hope of a stock option payoff. it's good, if your investment is company, to recognize the cost of compensating employees could go up if the stock collapses. a lot of people are hanging out for the payoff. if they do not get it, they will be out of it. pimm: we do not know what the option value is. cory: [indiscernible] pimm: that's good for them. cory: for now. pimm: thank you. cory: thank you for thanking me. pimm: editor at large cory johnson. matt: go back to radio now. pimm: coming up on the bloomberg ottat day, "straight of the" was straight out records. we'll be back with details. ♪

"imm: "straight outta compton

topped the box office opening d $6.1, taking in the million in the film did not just -- beat the competition. $2was the first to cross the million mark. matt: because of other films put up. pimm: yes. it may signal to those in hollywood, maybe you do not need a big dinosaur to get people to come to the movie theater. spent $30t, they only million making this movie and they basically made back their money on the first weekend, so everything else is gravy. pimm: it's ironic for a lot of a movie that to portrays confrontation between, in this case, the rap artists and law enforcement officials, this movie has been in the making for 11 years. timely and timeless perhaps.

matt: did you try to go see this? alix: i did -- pimm: i did. matt: you did not make it to see it because the lines were too long? pimm: yes. i probably will. matt: i grew up with in w way -- nwa. it was the perfect time. pimm: five or 10 years ago for you. matt: i wish. it has broad appeal -- tom: i will be interested see what it did overseas. and we do not have the final results because today we will get more details. matt: and dr. dre has a golden touch. golden touch. pimm: i will see you later. matt: i'm leaving. pimm: we've got much more ahead on the bloomberg market day. ♪ ♪

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(don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. pimm: welcome back to the bloomberg market day. am him fox. let's look at the top stories

crossing the bloomberg. the owner of qvc, liberty interactive, is buying retailer zulily. they will pay about two points for millions of -- two point million dollars for zulily. what the shares sold four-way zulily went public in november 2014. and the parents come of all of garden -- the parent company of all of garden restaurants -- a new chief executive today. the reit will these properties back to darden. is beefing up its security team in a push to defend against hackers and on -- itsices and employees offices and employees. it will have quadrupled the size of its security stuff by the end of the year. staff will be in charge of

everything from data security to vetting drivers and backgrounds. those are your top stories. markets are closing in europe, so for the very latest, let's go to manus cranny in london. manus. : what a difference one hour makes. the push and pull. he push came from the u.s. flat manufacturing data which disappointed, but the pull comes from greece. 35% below the average we have seen over the past 30 days. out a gain as we go into the close. we see breaking five days of decline. under pressure from the china story. keep in mind the dax. movingbelow the 200-day average. i mentioned greece. if you are a depositor in greece, things are fine. if you have money in the bank,

you are a senior bondholder, you could be at risk -- you could be at risk -- when it comes to the capitalization of these banks. greece is never far from our attention. keep an eye on this energy maker. it looks like they will get their -- the tire maker down 1%. back on those bad news headlines from china. i will leave you with this. look, if you want to understand contagion in emerging markets, this is turkey. that is the news from europe. pimm: all right, thanks very much, manus cranny. coming up, we will take you to pebble beach where people are bidding on the most expensive

automobiles in the world. and could tesla be working on its own uber business? we will tell you about it. and jason day's record-setting win.hampionship after years of injury and personal challenges, the newralian golfer sets a record. yes, 20 under par. let's look at gold. gold prices down since january, miners are struggling to cut cost. in québec, above the 52nd parallel, the largest company in -- gold company in north america has built a new old mine -- gold mine from scratch. danielle bochove has more. ofielle: there is no sign

human presence, at least from the air. there were no roads. at there was no airstrip. minds.ere no just what you start with a camp and trailers, and is exploration continues, you need more people and equipment. it's just a continuing challenge. danielle: it takes a lot to build a mine in canada. it always has. infrastructure and environment are always considerations and the rights of first nations. >> they just want to have a say in the way it is developed. national the former cheap obviously a first nations, he is known for leading international effort to stop a massive hydroelectric project think it back in the 1990's. today he is taking the stage to orp'she ribbon on goldc

newest mine. the profits are expected to benefit the local creeks. promised to has remove virtually every trace. this kind of investment does not come cheap. orp has invested $2 billion. the expectation is over the life of the mind, it will get that back and more -- life of the mine, it will get that back and more. but for now, gold prices keep falling. >> we will be producing at prices well below any reasonable prices, so we have margins. we will be making cash. we will pay back that investment. danielle: at this point, it is all about the numbers. $11 an ounce roughly where gold is trading today. but when construction began, it as 1900.gh

to produce an ounce could be less than $800, which gives goldcorp quite a bit of wiggle room. but any veteran of the industry knows it's not a slamdunk. >> i remember seeing $264 and ounce. but i also know how much value we have created since that time. and i expect we will do that again. if they are right, it will hit its stride just as gold prices bounce back, making it one of the strongest, lowest in their portfolio. if they are wrong, it may be cheaper to leave that gold underground. pimm: bloomberg's danielle more fromins us with toronto. thank you for being with me. if you could describe this idea of how much it costs to get out of the ground.

$800 an ounce, that is their projection? the projectionis for 2018 when they ramp up to their -- they are estimating 5000 ounces a year. there are economy skills. when you start, it costs more. the more that you get out of the cheaper it becomes. -- there are economies of scale. it is quite good relative to the company's peers. be $978. number would this could be a very good mine. have shares of goldcorp lost about a fifth of their value so far this year. is the company going to need to raise more money to get to that projection -- production target? no, they are telling

me they have done their major capex spent for this project. it was about a $2 billion project. as far as the stock being down, it is. it's sort of in the middle of the pack in terms of where gold companies are right now. gold prices have obviously been hit so hard. but, no, most of the expenditure is out of the way on this one and now it is a matter of ramping up to full capacity. does the development just highlight the cyclical nature of this business? it takes a lot of time to put things into place? and you do not know what the price is going to be. it is challenging, isn't it? you have to make these infrastructure commitments so many years in advance and no one knows what the price is going to be. ian talked to me about getting the timing right. if they get it just right, they will have spent all of the money

just as prices were falling and they will ramp up to full capacity as prices go back up. the question is whether or not that is going to happen, and one of the things you do not hear when you interview gold ceo's, you do not hear them speculating we might see what happened in 1980 happen again, where we saw gold dropped to below $300 per ounce and stay there for 30 years. they are a funny group of people. pimm: thank you for that report, bloomberg's danielle bochove, joining us from toronto. still ahead, i'm pebble beach, shopping for their dream car. but these classics are not inexpensive. we will go to pebble beach and find out. ♪

pimm: welcome back to the bloomberg market day. fox.pimm we will give you some stories, i beg your pardon, at the top of your. there has been a deep jump in traffic fatalities since the first of the year. 19,000 killed and traffic accidents, a 14% increase from a year ago. an improved economy and lower gasoline prices have led more americans to drive. and millennials are developing luxuryarents' taste for automobiles. are taking out less expensive leases so they can afford them. and in golf, he only finished second in the pga championship, but jordan spieth received quite a consolation rise. his finish was enough to make

him the world's new top ranked golfer, topping rory mcilroy. he is 24 years old. those are your top stories. different drivers were found on the links of pebble beach. drivers came to bid and spent on the most alluring automobiles in the world. bloomberg reporter hannah elliot is there an joins us from carmel. -- and joins us from carmel. jay leno was there. who came? give us an idea of what goes on at pebble beach? this is the premier car show in the world. global wealth. car shows the premiere in the world. we are talking entrepreneurs, the american wealthy, young people from silicon valley. it is a wide swath of the worlds

top, top collectors. pimm: tell us about some of the specific automobile models. ferraris the-- are apple of everybody's eye? hannah elliot --hannah: the answer is yes. seven of the top 10 sellers were ferraris. ferraris early 1960's at auction. our took a little over $17 million this past weekend. but we are also -- in 1960 ferrari took a little over $17 million this past weekend. pimm: this year's option totals -- what do they tell us about the high-end margin? hearing, andwe are this is preliminary, about $400

million, $410 million for all the options over the weekend. million. was 450 we are still seeing incredibly high prices, but it's a little bit of a plateau this year. again, ferraris are very strong. but we are also seeing cars from the 1980's gain momentum, the porsches especially. right around the $400 million range. pimm: i wonder if you can describe a little bit about the automobile -- the best in show. tell us about that. hannah: sure. this is a 1924 model. owners and his 4 entire life, and that is so rare. it is owned by a man in louisville, kentucky, actually, joe patterson. he brought it to the united

states last year. before that, it was in france and switzerland. this is its debut for the americas. it is a very rare, rare thing. very exciting. bespoke.s totally really unique. 99 -- 1924. almost impossible model to find. and it was, i think, in 1955 mercedes also at the concourse? yeah, this one again, it shows that there are some movement for the non-ferrari brands. you will see the mercedes move up again. such a new model. it has stayed strong regardless of the year. pimm: there was also a great arrow, i believe. show. not win in best in did you get to see it? that one.did not see

i did hear it was a very special car. i did not see that one. to thank right, i want bloomberg's hannah elliot joining us from pebble beach. still ahead on the bloomberg market day, is tesla creating its own uber? we give you the details. ♪

pimm: welcome to the bloomberg market day. tesla might be building its own called tesla mobility. chief executive elon musk refuses to comment, but the news is sending shares higher. joining us to tell us more, make a host for the next hour, betty liu. tell us more. betty: he was asked -- pimm: he did not say very much.

the speculation was more weather tesla and uber would partner up, and what an incredible idea that would be. tesla would sell its electric cars to go over. that's a very straight and interesting idea, but kind of hidden in that question a little bit, that did not get picked up as much, what about tesla building their own entire cooper companies? uber company? just went forward. they may as well hire this guy because he's thinking of these ideas for them. a raise to be price target -- new one. is the adam named it tesla mobility. the company has not said anything. he is just speculating. if they created their own on-demand car service where they had the tesla model 3 cars,

their own fleet, this would create the demand, the charging network, across the country -- pimm: he's creating a customer. betty: he's creating an market. yes, creating a customer and creating a market. the energy demand would be a vigorous from a service like this. what adam predicts is tesla could triple their revenue by 2029. the revenue now is it about $5 billion, if they stay on track. they could triple this, you know, in a few years. now have doesn't tesla difficulty just meeting the demand for the automobiles they already have, and they can't get on timemodels out and in big production numbers? are having, and they trouble putting out their new models. the new model has had delays.

it looks like it is on track for the ball. other analysts say, everybody take a big deep breath. let's step back and realize the tesla stock and the company itself is really not going to accelerate or prove it self until they get this model 3 out, which is not expected for a couple years. pimm: it is supposed to be -- car,: the more mass-market the one that everyone is going to drive. that is going to be part of the demand for that factory in las vegas. pimm: to build the battery. the lithium ion battery. all of this -- you're putting your bet on the future. that is really what you are doing when you are buying tesla. pimm: we have some oil news coming across. betty: i like it. pimm: thank you. time for the options inside. let's go right to julie hyman. julie. julie: thank you, pimm.

we're coming up on the top of the hour. we had of a -- a bit of a swing in the major averages. they were lower. now they are higher on this relatively light trading day. joining me, a derivatives holdings. at mkm as we get into this lower volume expect --at do you volatility tends to fall in august as well. perspective,ading what do you do during this time? guest: it is worth pointing out we have been in a historically tight range. there is only been five years when the s&p 500 did not decline 5% during that year -- it has only happened once in the last 50 years. it has not happened so far this year. what we have talked about a lot is having concern out into the

fall. there's still a more than 50% chance that the fed titans in september, the historical seasonal peak of -- the fed tightens in september. .he historical seasonal peak and cyclically, we are still really on the back in of that run-up to volatility that we had in july. so, the u.s. equity volatility is a little lower. the vix futures is relatively stable. that should be good, not great. the big news could be for the fall. julie: gotcha. and later in the week, you are looking at walmart earnings, which will be coming. the stock is down 16% year to date. underperforming, not only the broader market, but really underperforming retail, which has been doing quite well.

do we see any change in this earnings report? no, we don't. but anotherl rated, lackluster quarter is expected. we represent that in our trade. so, a little bit of eps pressure. fx has not helped these guys, with other-- as retailers. certainly pressure in some of these larger retailers. what we want to do though, we want to look out over the next several months, real or factors thato could help not just walmart, but other retailers. number one, the yuan's elevation -- devaluation. them,ronger dollar helped an important factor. and real or perceived, that

could be helpful to the stock. julie: interesting. what is the trade that you are doing? jim: i'm sorry. the other point is gas prices lower, commodity prices lower. --want to buy a call spread if you look at august imply volatility, these options expire this friday. implied volatility is almost 40%. if you go out to december, they are about 20 volatility points lower. not totally unusual, but we want to ask with that. we want to sell the 75 spread call that expires friday, turnaround december, and you pay six cents with the expectation that there is not a lot of moving close to earnings. julie: ok, we will keep an eye on it. we will be right back. ♪

pimm: 9:00 a.m. in san francisco, new in new york and midnight and hong kong. bezos, iszon cia jeff

he having a good monday? reports that the company fosters a prison culture that leaves workers - -- a bruising culture that leaves workers crying. subsidies. an expanding justice department probe of citigroup. pimm: good afternoon. i am pimm fox. liu.: i am betty starting off monday with stocks slightly in the green. equities, and the earlier morning, the futures reacted dimly to the empire manufacturing