we will find out who the winners and the losers are at the iowa state fair. betty: then disney shows off its new star wars theme park. it's one of the largest expansions in company history. you insidell take the billion-dollar mind that goldcorp built despite plunging gold prices in recent months. betty: good afternoon. mark: they don't call them dog days for nothing. it's hot in new york city. with a look at the markets on this monday, august 17.

it's a quiet day on wall street with all the major indices trading higher. you can see the s&p 500 continues to trade in the tightest range and nine decades. up broader market is just one third of 1%. the dow jones industrial average and the nasdaq are up as well. let's move onto oil which is trading at a six year low amid speculation that demand may slip. iran said opec production may climb to a record and nymex ande is down 4/10 of 1% brent crude is down 6/10 of 1%. a gauge of manufacturing, the fed bank of new york state slumped at the fastest pace since the reception -- the recession.

oil is down over 5% in that time3 e. betty: checking on the bond markets, this is across the yield curve today. the two yield is lower and the 10 year is trading at 2.15%. the fed will continue to raise interest rates this year. commodities are looking sour after china d valued its currency and the currency markets, watch the dollar which had been treating at a tor-month high continuing get the safe haven status amid the concerns about the global economy and particularly in china with the increasing worries that the rate of growth there is much less than 7%.

let's take a look at the top stories -- the federal reserve bank of dallas has named robert kaplan is a new president and ceo. he is a harvard business school professor will soon post on december 8 and will replace richard fisher who was president from 2005-2016. he will not be voting on policy until 2017. on wednesday, the federal reserve will release minutes from its july meeting. it may shed light on the timing of the first increase in the u.s. benchmark interest rates since 2006. we talked earlier with the chairman of cumberland advisors. >> i don't know about the fed. i don't think the fed knows about the fed. they don't know what to do with a stronger dollar and weaker oil and spending -- and capital spending contracting. betty: he said he sees a huge boosting consumer spending coming when people begin to accept that the lower oil price

is permanent and not temporary. mark: the federal trade commission are stepping down. since been a commissioner 2013 and he will return to george mason university school of law as a professor. his last day will be august 24. u.s. homebuilders have not been this confident in almost a decade. the national association of home builders sentiment index rose this month to the highest level since november, 2005. the data indicate single-family home sales in perspective buyer traffic are both increased. americans are waiting longer than ever to buy their first home. the typical zillow, first-time or rents for 4 years before buying a house which is twice as long as the early 1970's. renters are having a tougher time saving for a down payment. betty: there is a decision in a case that could change the landscape of college athletics. the national labor relations board has ruled that football players at northwestern university cannot form a union.

that overturns a decision by the regional nlrb director that ruled the players were university employees. the ruling was limited strictly to the northwestern football team but it reverberates around the country. tebow returned to the nfl throwing for 69 yards last night for the eagles and ran for a touchdown for the first time in two years. whent a standing ovation he entered midway through the third quarter. he had not played since the 2013 preseason before he was cut by the new england patriots. that is a look at the top stories. up, we will look at a tough road that the australian golfer jason day traveled in his quest to win the pga championship. betty: what an incredible story and we will look at a new study that finds that blacks and hispanics are not benefiting as much as in and to a from college education compared to whites and

asians. the federal reserve system is welcoming a new member, robert steven kaplan of harvard university will be the new president of the dallas fed. michael mckee is here to talk about what exactly he brings to the table. what do we know about him? michael: he was the head of investment banking at goldman sachs until 2005 when he joined the harvard faculty and runs his own investment firm. he is also on the board of directors. of state street corporation. he has a lot of wall street ties in his written several books on leadership. the dallas fed is very free market and very independent thinking and it looks like they got somebody who may follow that mold. mark: those wall street ties, will critics of the fed see that

as a help or a hindrance? critics will not like the idea of another wall street person going to the central bank but this is a done deal in the sense that the bank board of directors picks the new president and the federal reserve ward of governors can either both them up or down and they have approved him so he will be taking office in september. he will be on the board when they debate september 17 whether they raise interest rates but he will not be a voting member until 2017. betty: how does he lean? michael: we don't know enough of his background. everyone will go through his articles to find out how he thinks about monetary policy. given richard fisher's background, they would think he would follow in the same tradition. mark: you mentioned richard fisher, what is his legacy of the dallas fed? fed is knowndallas as the most independent fed of them all and they are out there

in terms of the focus on inflation and the focus on free markets. richard fisher was proud of the fact that texas led the nation in job creation because of the oil business. mark: the king of segues. opponent has implications for the economy, inflation, and commodities. commodity prices are taking it on the chin again today reflecting investor fears about weakness in emerging markets specifically china, saying they are hitting the lowest levels of the year does not do the drop justice. the last time the commodity index all the levels was 2002. what have we learned about global economics this year that is causing this crisis of commodities confidence? betty: you should ask michael. he is the economist.

michale: i like your enthusiasm. olivia: if you look at the u.n. evaluation and what it does to china, perhaps it will help jumpstart exports and maybe they can export their currencies. that doesn't not do anything to commodities brief 70% of copper is used for construction and infrastructure. you don't export that and 30% is used for consumer goods like cars or washing machines. you don't actually export that. it does not have any tie into the literal commodity import or demand when it comes from china. barclays says there may be signs of demand. the actual demand of bonded warehouse inventory fell and there were draws for the first two weeks of august and will he do that when you need the metal. it's not all doom and gloom you just have to find the right data. at what point is the

commodities drop going to be helpful to the global economy? if you are talking about a continual drop in prices, that may be just about over but they are not going up anytime soon especially with oil prices and the ability to produce at lower cost. as long as china is in a slower growth mode, we will have low prices and in the long run, that should help out but it keeps inflation very low and it keeps central banks on watch for disinflation impossible deflation. mark: we have been talking about oil first so long, the last couple of months, how does that intertwine into all of this? we continue to see a lot of supplies a you will continue to see lower prices. citigroup had a note out that sees brent falling to the mid to high 40's in the fourth quarter and wti into the 30's.

this is in part due to the massive supply. we hurt iran came out and said opec could produce $33 million of iny which is unheard an oversupplied market. it speaks to the competitiveness. at some point, that will wind up hurting and you will wind up seeing production pair back. opec is producing so much now at the expense of its spare think of it as a pretty bank for oil. if you keep reaching into it to produce oil, you will eventually run out. are notow come we seeing this reflected in lower gas prices? alix: it does take somewhat of a lag time. we have not seen it and my interpretation is that the pump suppliers want to keep the profit. michael: we had just come through the heaviest driving season and i will drop off

dramatically after labor day. of unplanneder refinery outages that have not gotten a lot of news but some of the biggest refineries in the midwest have been down for unscheduled maintenance. they going to mention this in the fall the this is earlier. that tightens the supply little bit as well. we should see lower gasoline prices. some people of said we could get to two dollars per gallon on the national average by october. we have not seen the massive gasoline demand we usually do over the summer. so is this seen this --ecasting and negative fall a negative fall? mark: thank you. still ahead, there is fantasyland, tomorrowland, a venture land, and soon there will be star wars land at disney parks. get excited, mark.

mark: we will tell you what it means for the disney bottom line next. scale back on the coffee. ♪

betty: welcome back. williams companies is the best-performing stock in the s&p 500. julie hyman joins us to tell us why. julie: it looks like the company has put its up for sale. we knew that already and we reported friday that they got a bid from spectra energy.

this is after williams companies had rejected an offer from energy transfer of 48 billion come -- of $48 billion saying it was not enough. the idea that it's potentially getting another bid could be good news. we have seen a pickup in these midstream energy deals for the year to date. williams companies as a pipeline operator. we did analysis and looked at the midstream m&a action. you can see the uptick we have energyen though the stocks have not been as high as some might estimate given the decrease in commodity prices. this is the five-year chart of m&a. the blue is the volume and size of the deal. line is the number of deals. even though this quarter is lower, over the past year and a half, we have seen an uptick in this activity.

i also want to look at foot locker. the stock is not up that much but what's notable is it's trading at a record with a gain of about 1%. the price target was raised to andreiterating a buy rating when the company reports friday, analysts expect strong results in part because of the strong trends in footwear, athletic footwear in particular. mark: thank you. betty: another company we are watching is disney. it is launching an aggressive expansion at its theme parks to capitalize in the upcoming star wars film. mark: they will build a star wars land in california and betty cannot contain herself and that florida. the ceo spoke at a disney fan concert over the weekend. >> we are creating a jaw-dropping new world that our largest single

themed land expansion ever. [applause] the expansion comes as comcast pours billions of dollars into the universal studios theme parks in joining as with more is cory johnson was also so excited, he flew in from san francisco. corey: without a plane. mark: talk to us about the significance of all of this. corey: it's a huge deal. they are facing a new competitor. universal has had some big success with their harry potter development in orlando. looking at that and saying there is a new player out there. mark: did they force their hand? corey: this is part of the plan of what made the star wars property valu valuable to them. this announcement was a long way coming.

we suspected when they acquired lucasfilm. when they got a deal with the city of anaheim to promise to invest a certain amount of money , like $1 billion, to get a break from the new ticket taxes in anaheim, that was a big sign that they were going to put more money in. before they release the new big movie over christmas. time, they are trying to dial back expectations on the movie. they want the movie to do well but they don't know it will do big numbers. betty: this is part of their expansion in other resorts? they are betting big in china? corey: shanghai may be a bigger bet because the additions to disney world and disneyland are just additions were shanghai is going to be huge for them. one of the things you see them doing is looking for the kind of

stories in their movies that can translate well into theme parks that are not so controversial so they can get themselves into shanghai and mark: grow that market. it sounds like a no-brainer, not much of a gamble. corey: it's a big gamble if the rides are not great or if they are not done well, we saw a similar dynamic with michael eisner when he rushed to the disney world/hollywood. happened when they had universal coming in and they rushed to get it out but was not very good. it is an adjacent market is further south in orlando. it's not hot spot. star wars will replace that. the rights have to be great. betty: mark is a star wars grouch. mark: i like the originals.

corey: i'm trying to picture mark crumpton on a ride in a suit and tie. they are re-creating the bar? corey: yes but i don't know if they will have real alcohol. one of the big hits it universal on the harry potter park is the butter beer they drink in the harry potter books. there is a nonalcoholic beer. i think this is clearly a reaction to universal. disney is a behemoth. we will see if this is a success. we bet it will be. mark: i will see you at the bar. cory johnson from san francisco. up on the bloomberg market day, history is made on

the shores of lake michigan as jason day wins the pga championship in record-breaking fashion. betty: it was not an easy journey for him to the top of the golf world. his hard-working story is next. -- his heartbreaking story is next. ♪

betty: after a string of near misses, jason dakin finally call himself a major pga championship. par setting ar new record for the lowest score ever in a golf major. mark: it has not been an easy road for jason day. we look at this weekend's championship. talk to us about some of the challenges jason day faced. >> he is not what you consider to be a typical golfer. he did not come up through the e kata mays was not classically trained. he came from a rough and tumble beginning.

he said they grew up kind of poor and his father died when he was 12 years old of cancer. jason himself said that threw him off the rails. 12 anddrinking at age getting into fights and basically getting into trouble and then he found a mentor and that mentor turned out to the atten, his caddie and coach and a father figure to him. it's a boy done good coming from a bad crap -- coming from a bad crap -- a bed background. tiger woods has been part of his journey as well, right? >> yeah, tiger has a small circle of friends and has people onto for he admires. he does not say it too often but considering how hard jason day works and where he came from, tiger respect him and the two of them have exchanged messages and talked a lot and played practice rounds. as faras leaned on him

as how he can believe in himself and stay calm under pressure and getting little bits of information from tiger woods who we know had 14 major wins. considers tiger woods to be a winner in golf and wants to surround himself with winners. central to see if tiger has graduated to someone like jason and considers him a friend. he feels that way because of how hard jason day has worked. mark: thank you. wonderful story. i am signing off on that note. mark: in the next half hour, presidential candidates are descending on iowa we will have that story next. ♪

mark: welcome back. thank you for staying with us. let's get straight to the top headlines.

the pentagon is looking for a new place to house prisoners now being held at guantanamo bay, cuba. in the possible replacements are fort leavenworth, kansas and the navy brig in charleston, south carolina. it is part of the controversial plan to close the detention center. angela merkellor is signaling she is willing to consider debt relief greece. with regards to an extension of maturities, the setting of definitely weates have room for movement just like we had in previous times. we extended maturities and moved forward the repayment rates. it's always possible to do something else but there is a clear statement that the eurozone cannot allow another haircut. mark: she made her first public comments since area finance ministers endorsed the third greek bailout and she's

confident the international monetary fund will join the bailout. the united states is betting on los angeles to keep it a dream of hosting the 2024 summer olympics aims alive. last. withdrew its bid month due to a lack of public support but after a failed bids from new york and chicago, does the u.s. stand a chance of winning this time around? we spoke with the former u.s. olympic committee member. >> they presented three things stable government, security, and the ability to activate their sponsorships. when you combine those things, they will be very competitive except for the fact that paris is back and it's lost only by a couple of votes to london and they are a formidable opponent. mark: he told us he doubts los angeles will lose money if it hosts the olympics. republican presidential candidate donald trump is taking a break from working voters to

go to court as a potential juror. with bystanders as a report for jury duty at a manhattan court. he arrived in a limousine and walked up the courthouse steps waving to the crowd. the real estate mogul has been called previously but did not appear. a spokesman said he never got the summonses because they were sent to the wrong address. those are your top stories. candidates descend on iowa. heilmiller asked john an about the winners and losers of the iowa state fair. >> i think hillary clinton is a big story here at the fair. yes, donald trump overshadowed everything including her with ish appearancea-i on saturday. hillary clinton was on the fairgrounds and everyone around

her looked up in the sky. he is overshadowing everything. spoke later on saturday to the biggest crowd anyone has seen here at the state fair. anti- doing his patented oligarchy speech and he was the big story saturday as well. hillary still refuses to answer your question or some of your questions about her e-mails and servers and all of that? does not look like this story will go away soon. >> not with the fbi involved. by every reckoning we can discern, the fbi is taking it seriously and is looking into this. we got news last week about the possibility of a second e-mail server with all of her private

e-mails backed up on it. it might be somewhere in new jersey but the fbi is looking into that. with the fbi on the trail, that guarantees this is a serious thing and something that will not go away soon. deflect byan easily trying to link other republicans to the new donald trump immigration plan? places she has lots of to go in terms of deflection and the otheren attacking republican candidates often and with gusto but the questions do not go away and the way she answers -- answers them seems even a sieve to many people. -- seems invasive to many people. - evasive. she will have to answer these questions directly but the question is when. the near a gift to the vote in iowa and new hampshire, the worse it could be for her. ask you about the

donald trump immigration plan that goes over well with insurgents but it does not seem like any politicians agree with him, that we need to deport 11 million people. this is always the question for people with tough immigration policies. -- what arean it you going to do with the 11 million people question mark is talking about deporting them and some people who are supposed to be granted citizenship, children of the dreamers, you want to send them back to mexico and figure out who are the worthy ones and bring them back. it's not only a draconian immigration policy but an extraordinarily expensive one to implement. i cannot imagine anyone will get behind it. for the people who like donald trump, there is no doubt he will like this immigration plan because it speaks to their concerns. it's consistent with a kind of posture he has had on the issue. estimate ofd a cost

$600 billion for that kind of action. just taking random people on his helicopter? he took your friend mark halperin up there along with martha raddatz from abc. other than that, he took some rides with some kids who had gathered. they heard he was giving out helicopter rides. he took kids and some families. the helicopter took some of the kids without donald trump in it. they were not random but they were donald trump fans. it was certainly a magical experience for those who had it. still ahead, a college education typically boosts income and wealth but it has not

been working out that way for many african-american and hispanic american students. we will tell you what a new federal reserve study found when we return. ♪

mark: welcome back. let's check on the markets. julie hyman joins us. julie: we are seeing a recovery and it is sort of holding. the major averages are all in the green. they have been extending the gains. the s&p 500 and the tao are up about 0.5%.

basis, the s&p 500 turnaround happened between 10:30 a.m.-11:00 a.m. before that time, we had the national association of home builders index of confidence and that is at the highest level in almost a decade following him in heels of a disappointing manufacturing report from the new york area. after that report, we did not see stocks turned positive right away. that seemed to be one catalyst on this relatively light trading day. if you look at the various we only have one group in the red and that is energy. everything else is in the green. consumer discretionary is the best performing group today. starwood hotels is one of the best performers in the consumer discretionary group. the john paulson hedge fund

became the biggest shareholder in the company. they have been exploring strategic alternatives of the thinking might be like with someone like john paulson on board, he would push them further to explore alternatives, possibly a sale. we are looking at the home builders today on the back of that home building confidence index. the etf that tracks home builders is up about 1%. of mediaaw a lot stocks that a couple of weeks ago and some of them have come back today. mark: thank you. let's take a look at the european market close. mannis: european equity markets are squeezing out a little bit higher into the close. it seems to be the push and pull. the push was for the new york manufacturing data but the old

-- the pull seems to be from greece. $.35 below the average of what we have seen over the last 30 days. the u.k. is breaking five days of declines. the miners are under pressure from the china story. below thee on the dax 200 day moving average. i mentioned greece and if you are a depositor in greece, things are fine. they are going to encourage you to bring your money back but if you are a on holder, you could be at risk when it goes to recapitalization of the banks. greece is never far from our attention. seen train makers and energy makers drifts a little bit higher.

down onemakers are percent again. the focus is back on those bad news headlines coming from china. want to understand contagion in emerging markets, there you go -- the turkish lira is at a record low as their economy minister says no need to intervene at the moment. mark: let's take a look at the top stories at this hour -- nbc says tracy morgan will return to television in october. he will host "saturday night live." this is 1.5 years after a truck smashed into his limousine during a traffic backup on the new jersey turnpike. one person was killed and he was severely injured. he was on "saturday night live" for seven years and appeared on "30 rock." a wonderful surprise and washington, d.c. -- -- in washington dc --

♪ ♪ music legend stevie wonder performed ap concert at the d.c. armory mall earlier. along with the music, the first 1000 people got doughnuts. it's part of a promotion for his songs in the key of light performance tour. at the box office, " straight out of compton" broke the box office for in r-rated movie. it took in more than $60 million in north america. debuted inom uncle" third place. behind "mission impossible." many of the issues of racial inequality raised by straight out of compton are making headlines today. one report comes in the st. louis fed that found that a college degree is not very

effective in providing financial security for minorities. scarlet fu joins us with more on the story. i was not surprised by this. for certain minorities -- conventional wisdom is you get a college degree as a worthwhile investment because it increases long-term earning potential and helps whether you from economic downturns like the great recession. the st. louis fed look through numbers and i found that while this is the case for white americans and asian-americans, it's not as applicable to hispanics and blacks. have two charts that are pretty stunning -- the first one is from 1992-2013. it shows the average net worth of black college graduates of dropping by more than half during this time. for hispanic college grads, it fell by almost 30%. by contrast, you look at the white and asian college graduates on the left and they saw their net worth rise by at least 86%, almost double.

for blacks without college degrees, net worth fell only 2.8%. perhaps one reason is because they had much less to lose. hispanics without college degrees were the only group that saw their net worth increase. i'm not sure why that is. mark: there is a great report about this in "the new york times." report'susion of the higher education alone cannot level the playing field. part of it is because of what you have to pay to get that higher education and what you have to put out. in this day and age, it is debt, taking out loans and taking out loans to buy a home and all of that adds up. been out of that that many black and hispanic seven accumulated is an issue especially during a financial crisis. this is a snapshot of 2007 before the crisis and you can see the debt levels across

ethnicities and see for blacks and hispanics, it's higher than for whites are asians. part of this story also suggests that an african-american families and hispanic american families, they are less likely to inherit money which can help as you pay for college education. scarlet: that's a good point and that does not come up there he often. that means they are already a step in mind when they get started. need toe all things we look into as policymakers look into how they make sure the population gets more access to education and employment. let's follow up on something from earlier -- we had a conversation on friday about the social media tool thatbeats introduced. ameme for you. you are straight out of cru

mpton. thank you for that. are at all the fun you missing because you do not have to better. does this convince you? mark: it really does not. my mom is in north carolina shaking her head. scarlet: if anybody wants to tweet their contribution, go ahead. mark: what's coming up in the next half hour? scarlet: i will speak with a former talent executive. we will talk about the article in the new york times about the amazon working environment and hasrast that with what ge done which is abandoned its performance policy and does not use the ranking policy. mark: is this a seachange? ge has been shying away from this for a couple of years and abandoned it completely and you look at amazon that is very

successful in moving into all kinds of businesses and employing a specific corporate culture that some people might describe as rank and yank on steroids. it feels like that sometimes. there has been pushed back from other people. on all of social media which we will discuss. mark: i will see you in a few minutes. thank you for everything! -- what about straight out of fu? why the largest company in north america is building a new mine from scratch? ♪

mark: welcome back.

let's take a look at the market close in asia. the survey of economists shows what many have long suspected, that the chinese economy is growing more slowly than official data suggests. stephen engle reports from hong kong. economy likely grew at 6.3% in the first half which is a median estimate from economists and contrasts with the 7% reported by the government. the official full-year target a 7% at the same economists said be 6.6%.th would the chinese economy is headed for its slowest pace of annual growth in a quarter-century but the discrepancy in forecast helps explain why policymakers have stepped up stimulus including d valuing the yuan last week. the economy may be at worst shape than early reported. mark: gold is headed for its first gain in three sessions

showed again in gold prices bring one company is making a different bet. above then quebec, 52nd parallel, the largest gold company in north america, gold corp., has built a brand-new $2 billion mine from scratch. ago, this sub arctic landscape for no sign of human presence at least from the air. airstrip, no roads, no mine. >> you start off with a little camp and a few trailers and as the exploration continues, you need more people and more equipment. it's a continuing challenge. >> it takes a lot to build a mine in canada. infrastructure and the environment are considerations and in the north, so are the rights of first nations.

>> i believe the majority of first nation people are not anti-development. they want to have a say in which development takes place. this is a powerful figure in development. the former national chief of the assembly of first nations, he's best known for leading an international effort to stop a massive hydroelectric project in quebec in the 1990's. today, he is taking the stage pelter to cut the ribbon on the newest gold mine. he's on board because the profit this is expected to make will benefit the local tribe and when the mine is exhausted, beyond 2030, goldcorp has promised to remove virtually every trace. this kind of development is not come cheap. goldcorp has invested more than $2 billion in the mine and expectations over the life of the mind, it will get that money back and more. right now, it costs more than twice as much to produce an

ounce of gold here as in the rest of the company. gold prices keep falling. >> we will be producing gold here at a price well below any reasonable gold price in the future, certainly well below $1100 per ounce. we will be making cash and pay back that investment. >> it's all about the numbers. $1100 per ounce is roughly where gold is trading today. 4 years ago when construction on began, it started at $1900. once the mine hits full capacity in 2018, the cost to produce an ounce of gold could be less than $800. that gives goldcorp quite a bit of wiggle room. any veteran of the gold industry knows that it's not a slamdunk. >> i remember specifically sitting and looking on my screen and seeing $254 per ounce. i also know how much value we have created since that time as the market moved. i expect we will do that again. right, the mine

will hit its stride just as gold prices start bouncing back making it one of the strongest, lowest cost mines in the goldcorp portfolio. if they are wrong, it may be cheaper to leave that gold underground. mark: coming up, we will speak with the ceo of market field asset management and we will get his insight on the chinese economy, its currency moves, the recent plunge in the shanghai composite index. bloomberg market day continues in just a moment. ♪

♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...)

man snoring (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. mark: it's 11:00 a.m. in san francisco, 2:00 p.m. in new york, 2:00 a.m. in hong kong.

what is the best way to measure employee performance? let: millenial seem to shine transfer -- public transportation as they opt for luxury leases. mark: may the force be with his knee. we will talk about the company's -- with disney. we will talk about the company's plans to tackle a galaxy far, far away. mark: good day. bloomberg world not quarters in new york, i am mark crumpton, here with scarlet fu. quiet monday afternoon. modest gains with the dow and nasdaq you much at session highs come up on when you look at volume, down by at least 20% for the three annexes compared to the 10-day average. all you need to say, really.