the stock lower for a third straight day. matt: the latest all manufactured to begin work on a car to make driving more sociable on the road. ♪ olivia: good morning, everybody. matt: we want to get to breaking news. olivia: let's get over to julie hyman at the breaking news desk. julie: the numbers are coming out better than had been estimated. 5.59 -- 5.4 3 million is what economists had estimated. we are seeing the highest level since february of 2007. with some ofstent the other housing data we have

gotten recently. it is a 2% increase. this toread through other kinds of spending as people buy things to fill new homes. we talk about new home sales in traction, but existing home sales is still the vast majority of home sales that happen here in the united states. -- to mention and lead economic indicators. worse than estimated. different economic indicators fell and economists were estimating a gain of .2%. i think we will go to a live press conference, jimmy carter and he is speaking right now about his battle with cancer and how he intends to confront it. carter: had a very bad cold. for a physical

examination and the mri showed there was a chance and they did a pet scan. that lights up a bad place and it lit up. so they're pretty sure they are onlynce -- the tumor was 2.5 cubic centimeters. they removed about 85 cubic centimeters, about 1/5 of my liver. they did a biopsy and found out it was indeed cancer. suspicion then and now that it went somewhere spread toy body and the liver. 90% of all melanoma and skinny -- is skin cancer and 2% is internal.

i then came back after that, they did a biopsy and found -- thereid an mri and found were four spots of melanoma on my brain. they're are very small spots , andabout two millimeters i get my first radiation treatment and my brain this afternoon. have four treatments scheduled at three week intervals. that, yesterday, they treated me with a mask that holds my head still, and i prepared for that this afternoon. iv, aave given me an

melanomathey use for that enhances the activity of the anti-means is to impair the medicine has been approved in the ninth date. they have also been tested in europe. they also continued to scan other parts of my body with mri wheret scan to see if and the melanoma originated. that will be an ongoing examination of my body for the next number of months, i presume. the doctor who did the surgery on my liver, he is a specialist

on melanoma. the doctor who is here is a specialist on radiation treatment. they're working very closely with other cancer centers around this nation in particular, the national cancer institute, and others. i have a lot of people: recommend different places. out to get reached the approval of what they decided. for a number of years, we were dramatically reducing our work and we haven't done it yet. [laughter] we talked about this one is 80 years old and again at 85 and again when i was 90. is a time for us to carry

out our plans. i will cut back dramatically on our obligations. a full legal partnership on behalf of our trustees. we approve and vice versa. we have a buildup of a substantial endowment and i am not any longer to raise funds. we have got below $609 in that endowment. to -- letterse and make key calls. i will continue with the funding and trustee meetings, i will continue to attend those.

i would also like to attend regular meetings with our fellows as they give regular withts on what we're doing health programs and so forth. i will continue to do that. i cannot really anticipate how i will be feeling, obviously, but i will have to defer quite substantially to doctors in charge of treatment. i understand radiation treatments and also objections will be every three weeks four times and stop and take a look at what the results might have been. i will try to it here to the schedule as much as possible. the center is well prepared to any panic. without as we back away from the activities we have been doing,

thatve decided last march our grandson jason would take over as chairman of the board. the board of trustees made that effective on our meeting in november. chairman of the board of trustees, a body that makes ultimate decisions about budget matters and things of that kind. if he wants me to give him advice come i would be delighted to do it as i have done in the past. i was a chairman for a while but i stepped down a number of years ago. i will try as best i can to continue my work as a professor and to attend some of the meetings but i will say the rest of my compliance will be determined with what i need to

melanoma that has .xisted it has shown up in four places in my brain and is likely to shop in other places in my body in the future. that is all i want to say to you. i will answer a couple of questions if you have them. to a let's get right market check it we will dip out of that. if you want to continue to watch former president jimmy carter on you will see, or everything you need to know about the presidential campaign there. jimmy carter is unfortunately not running this time. he said what he is doing now is getting cancer treatment here he will start his chemotherapy today and he will get radiation

therapy caught her times a week. doctors identify four tiny spots, two millimeters, on -- melanoma on his brain. he will choose to undergo him -- undergo therapy today. he will dramatically reduce the role he is playing at the carter foundation. matt: we'll take it take -- a quick break as markets go below 1% at all three major indexes. stay with us. we will update you as soon as we come back. ♪

olivia: good morning, everybody. tot: let's get straight over julie hyman right now. we basically have a global useet -- i do not want to

the term meltdown, but selloff is a better and less dramatic term. julie: we're seeing the selloff continue yesterday. the dow and s&p having their worst today performance since late january. the s&p is a racing its gains for the year. it has erased those gains for the year. 1% as we do have a global growth concern, different nations devaluing and kazakhstan doing the same. concerns that if the nations need to take dramatic measures, what does that say about the underlying growth? we have commodity selloffs today and i will offer you a lot more details on this coming up in a half-hour as you look around the globe. i want to mention specific stocks stories.

drug, sproutbido pharmaceuticals is a private company already being snatched fda approves it. pharmaceuticals buying the company for $1 billion. a quick look at the bloomberg terminal, you can see exactly what i'm talking about. this is a 12 year chart of the company's acquisitions. you can see we have had a surge in the past year or so with $15 billion worth of acquisitions in that time. the largest of those at 11 billion but it has made a total of one dozen act decisions altogether. we also want to take a look at a smaller company affected by the technologies. it is only a $62.5 million company in terms of its market cap. big in recentp days because it is developing a female libido drug as well. oftnering or acquisitions

this country, that could be interesting. also saying it's competing drug to treat same out issues has a better safety profile than the one that had approved. olivia: thank you so much. the selloff appearing to pick up momentum. the worst day for the s&p and the dell since january. matt: right. falling below the 200 day moving average. it has got to be the story of the day. factors, market volatility in china, the press 200il hovering just above dollars per barrel. everyone is trying to figure out when the fed is moving ahead to raise rates. onmight have an impact homebuilder spirit we will stick with stocks. homebuilders data out this morning showing continuing strength. we are joined with a look at how recent housing data is related to home stocks. it is incredible.

they are really doing better than the overall economy. what does it mean for homebuilders? >> he it is really where the momentum is now. whenever one leadership group has fallen out of bed in the rally, there is always someone else to step up. not really a huge sector in terms of market cap, but a desperate and important sector. is up about 18% for the year. there is an s&p gauge of 13 homebuilders up about 12 or 13%. some of the biggest names out there, toll brothers, all up 20% or more. it is obviously a strong momentum trade. people are chasing momentum. there are a lot of good fundamentals backing it up as we saw the existing home sales today. free recession levels.

new home sales, 1.2 one million annual rate. tot is also back pre-recession levels. an interesting data point that is backing this up his new itsing -- i like to think of as an index of kids moving out of their parents basement and renting a place, forming a new household. that number has really broken out, along with these data points to the upside. drop ins been a drastic the unemployment rate among younger workers. it is a strong fundamental backdrop. strong profit growth. , will it allis come to an end when the fed raises interest rates? are people getting ahead of that and buying homes now? we will have to wait and he. matt: when you think about stocks, just the equities there, the story about the fact that the momentum trade has turned around and a lot of other stocks and the momentum, there is an index put together as well on

that. do you see these stocks getting caught up in that turnaround? are a lagginges indicator. they let you know who has been leading in the last year or so. enteringcks will start the indexes and the etf's, the longer the momentum continues. that is the giving of about -- about momentum. trying to chase and catch it at the right time is tricky. in general, it has been a trend that has worked for most of the bull market. there is concern it starts to fail when it gets to the latter stages of the bull market like this. that is an open question. sentiment puts is there now? >> many people would argue there or close to it. it has been a long gated cycle. an important thing to realize is how important -- these companies are not your blue chick --

blue-chip companies. olivia: talking about home depot and lowe's. >> just the housing industry in general. earlier sayingt everyone was worried about oil prices and the economy. that the economy is four times more leveraged and homebuilding minute is to oil. the strength is enough to offset the damage for the company if it continues. olivia: how about the home-improvement retailers? >> home depot has been strong. as home prices keep going up and home sales, as we saw a great number today above , ifmate, 5.6 million annual you're going to sell your house, go to home depot. lowe's and home depot.

olivia: for comparison's sake, the homebuilders, just to show the difference between retailers and the builders. of only 1.5% year to date. >> one of the really standouts a homebuilder that went public just this year, 43% since the ipo. in general, it is a lot about miss him. you cover stocks when you're not covering the homebuilding sector. what do investors think about this market as far as coming to the end of the bull cycle? have retail investors got in? is that the last stage? >> it is hard to say what is the last stage. thet of strategist leave

bull market has some likes to go. days like this are tricky because you have an odd event where pakistan devalues its currency in the market goes nuts and you're thinking, why? a one off. not we saw it happen in vietnam and china appear saw it all across asia. people start to freak out. >> that is exactly what we're seeing. the real question is, is it a where youisk thing have trades unwinding and you have to pair back risk to get ahead of that? it is not necessarily an ?conomic problem it is starting to look more and more especially with emerging markets, compared to u.s. stocks, the ratio between the two is about a 10 year low. emerging markets are having problems. how long the u.s. could decouple from that and keep heads above water, it is tough to say.

olivia: i like what you brought up about what tom lee said that economy is lever to what is happening in housing to what is happening in oil. thank you so much. a look at some of our top stories this morning. of most serious exchange artillery fire and five years. a rocket fired at a south korean position. the prompted south korea to release a barrage to her no word on whether there are casualties yet. south korean soldiers were wounded by landmines in the demilitarized zone. greases itsing the first chunk of $95 billion bailout but most of that money is already spent. getting about 14 point $5 billion today arriving just in time for greece to repay money to central bank. that money is due today. the rest of the cash is also

spoken for by suppliers who have not been paid yet. co-ceoe bank's new getting a revamp. a committee that advises the day lord turned their under pressure to shore up profits. those are your top stories at the hour -- at this hour. matt: four's latest patent. plus, a look at oil, teetering on breaking the $40 mark. more on that is ahead. ♪

matt: your average sedan might feel like a private jet. it can also transform into a lounge while driving, adding swiveling speeds that created a more comfortable setting and an ottoman for your feet.

i think we are a long way away from this happening. the ceo was asked about this when mercedes was showing its driving lounge. he said they are still quite a few years out and there is no rush this product. first, we have to get the lincoln continental. that is what i'm -- i'm excited about seeing from floyd -- from fort and then we will worry about not paying any attention to the road. they are driving in the left lane when they should not be there. olivia: that does it for me. stay tuned for more. ♪

matt: welcome back. in the sign of strength

housing market, existing home sales route -- rose to the height level since february of 2007. economists have forecast the sales would fall. the two front runners in the republican presidential race are duking it out in new hampshire here sometimes minutes from each other on the campaign trail. donald trump drew about 2000 backers in the towns that town hall style meeting. that jeb bush appears 20 miles away, close to 200 people showed speak.ear bush if she had to do it all over again, hillary clinton might not have used the private server for e-mail while she was secretary of state. her community desk communications director implied -- interviewed on the bloomberg degrom "with all due respect." her own e-mail account and others have done it before. it was more convenient. that is the thing.

she did not really get through. she has said had she, she would have done it differently. matt: the fbi now has clinton's private server. what a classified material was mishandled. clinton's eight said she did not reclassify the e-mails off the system though she deleted tens of thousands before handing over the server. most americans, regardless of political events, say government should control drug costs. that is the finding in a new poll from a group. nearly three quarters of theicans surveyed called medications unreasonable and more than 80% want the government to control prices, especially for seniors and a seriously ill. i guess we not a libertarian country. major change by a movie chain, regal entertainment group, is now checking bats nationwide -- bags nationwide.

they say it is a convenience for moviegoers. those are some of your top stories we are following at this hour. a quick look at the markets. that is really the top story today. we have got tell a underway around the globe. the s&p 500 has now turned negative for the year and has moved below its 400 day moving average. the dow off 236 points, 17,111. the nasdaq is down almost 2%. the second day of big losses for indexes. europe is getting crushed as well. take a look at the dax and the stocks 600 and all down more than 2% as we speak. of 231 anda loss losing more as i talked here. oil is also very low, near $40 a barrel here in new york. onlynd 68 is the level now

.3%. holding well under 49 barrels -- dollars per barrel. commodities and equities have taken a beating around the globe. coming up on the bloomberg market day, kazakhstan becomes just the latest to unhinge its currency. other countries may follow suit as the fed gets ulcer to raising interest rates in september. insurance plans are no joke. how the general electric ceo amassed 26 my dollars of coverage so far and who is paying for it. in oil prices are teetering at $40 per barrel. we just showed you the former shell president weighs in on how low they can go. to thiso get back morning positive economic data. existing home sales rising 6% in july to the highest level since 2011. the number of americans filing for unemployment benefits remaining at and historically low level. discuss, the

senior economist at wells fargo. thank you for joining. he forget to the housing data, i want to ask about what we are seeing happen in asia and how concerned you gentlemen are. mark, let me start with you. what do you think about the 27% drop we saw in kazakhstan currency overnight? and the other dominoes falling in the area? mark: i think a lot of folks look at the drops in currencies and the drops in stock markets and they say, what does that mean for us? what i think we should be looking at is, what is causing those currencies to drop? what is causing currencies to drop? there is much slower growth in the emerging economies. it has meaningful impact for the u.s. economy. exports to china and words to the emerging world have been an

important source of economic growth since the recession. going to be diminished greatly or reversed. matt: what do you think about this and how much do you think the fed minutes yesterday are behind the move that we saw in kazakhstan overnight? >> i think when we look, it comes out to, there is still a lot of uncertainty and the committee is still divided on september. the sentiment in terms of the markets is it is either september or december and a matter which one, a country like that, are going to try to get their currencies in line, head of that. in terms of fed policy, you know, vice chair fisher spoke right after the employment

numbers came out a few weeks ago. they emphasized it is domestic consideration that motivates the to we are still seeing pretty good trip -- job growth and we are seeing inflation hanging around between 1% and 2%. i think you are seeing a domestic economic background still holding up despite the foreign weakness. here, we still think the odds slightly favor a september rate increased. does the housing figure prove that out? things look good in the housing sector almost no matter where you look. does that mean it should push janet yellen toward an increase? >> they look better. still not quite good in the housing market. certainly better than where we have been. demand in the united states, if you look at the mastic demand in

the u.s., it is growing in a private sector of three percent annual rate. consumer spending and housing both look ok. worried than more the general consensus. mainly because the weakness in the global economy hits the factory sector and manufacturing is where the cyclical impulse for the broader economy comes from. if manufacturing slows in a major way, the economy will wallow. we are holding onto a september rate hike mainly because it will not get any easier for them. we are looking for third-quarter gdp growth to be just 1.6%. if they are saying, well, we december, itath in will not be any easier for them. it may be better for them to just rip the band-aid off and get on with it. matt: markets seem to be

signaling a readiness to punish the fed for any move. you make good points about the u.s. economy, maury. maybe janet yellen already should have raised rates from zero, but yesterday, when the minutes seemed to show a fed that could waver, markets recovered here it today, when we are back to a concern about a september increase, markets are getting thrashed her you saw it happen overnight in asia or will we get a taper tantrum? i do not think so. the reality is we're talking about 25 basis points, raising money market rates to a still very low rate. i think the money market rate will still be so low, you will not see a stampede out. i think there will be a bond market reaction. it will be muted because the fed in all likelihood, when they do tighten, whether it be in december, it will emphasize that

they will be going very slow on the tightening. it is nothing like past tightening cycles. i was listening this morning, talking about 1.9 and 2% as the terminal interest rate maybe in 2018. increased may be an every other meeting? how does this work out once we get liftoff? if they go every other meeting, and start in september, that would take us to 1.5 at the end of 2016 and 2.5 at the end of 2017. i would say that is the feeling. i do not think the terminal rate would be higher in this cycle not unless we have a very long business cycle. i doubt they will be able to pull that off. if they go in september, think the growth over the next year will be weaker here in the u.s. than if they do not.

think at some point, it will cause them to pause. i do not know when. maybe in the spring and maybe in the winter. there is some talk maybe they want it done. rather than a taper tantrum though, i think we will see the opposite effect. long-term deals will come down further because there will be even less expectation for growth and the strengthening we have seen in the dollar will slow core inflation over the next year or two. matt: are you concerned a fed hike no matter how small may affect the u.s. economy? will it affect housing, for example? maury: no. these rates are so low and affordable, he raise them 50 basis points, and money is still relatively cheap. when you are starting off from these low levels of rates on fed tightening, it is not at all similar to what you have had in previous cycles where the fed was trying to slow down the economy. these are very low rates.

you raise them somewhat and they are still low. it will not have much affect on the economy. the important thing is for the towardget on track normalizing the fund rate so that next time the economy really is in trouble, they have something to do in terms of lowering the funds rate. matt: thanks so much for your time. i appreciate it. with that in concept that yes, we need to have higher level interest rate or but raising interest rates in the u.s. at a time when they are coming down around the world, the dollar is going to surgeon that will have a negative impact on u.s. manufacturing. matt: we will have to discuss this during the commercial break. i appreciate your time and your thoughts. as we go to break, we will watch oil. we are getting down closer and closer to $40 per barrel. more than one forecast out there says it couldn't fall below. stay with us.

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matt: welcome back. we want to get top headlines for you. prosecutors in california have againstup the battle luby's background checks for drivers. the screening veiled to prevent it from hiring sex offenders, a kidnapper, and a murderer. cooper says it disagrees that passes do a better job of screening than it does your the weather channel may put itself up for sale. channel's owners have hired bankers morgan stanley and partners. owned by nbc universal, blackstone group, and a and k

option is to sell only the business that has a higher value than the cable channel. two days ago, netherlands, a dutch artists celebrate george orwell's verse desperate they are they put on their best -- best birthday hats. george orwell is best known for the book 1984, a dystopian society. say they want to create awareness of how many cameras really watch us nowadays. surely, they do not have that many hats. those are the top stories we are following for you this hour. i want to start in asia where there is red across the board. payei fell by more than .9% the shanghai composite dropped by 3.5%. andhang seng is down today 20 percent since its april peak. it entered a bear market again. this report was filed from hong kong.

>> it is not funny that sounds like particularly good news to say the least. how could it be anything but the opposite? it is the average level of the index closed to dropping. this is something that happened six times in the past 10 years on the hang seng. every time it has occurred, hang seng has fall than average of just over 50% until the next market love. if the opposite happens and it goes above the 200, and you have a golden cross. further bad news for those investors who had sought from china cut his route in local shares and better the clock to run out on that trade. let's get to carolyn in london who has the very latest for us. carolyn: the perfect storm is still growing. you have got storm clouds coming over from asia, from the emerging markets.

you are just hearing that market selloff. your hearing commodities selloff and the worry about currencies as well. only twon germany spots are currently rising in germany to it only two on the entire benchmark. similar themes in spain. in italy, we have seen but to on the rise in the stock market as well. selloff.ass as if we could not get enough, by 3.5%.urrently up thanks a falling in particular. ecb being we see the repaid, suddenly, that feels the fire. speculation we could see. . that is causing a selloff in the greek market, a significant

downward trend in terms of greek stocks, worried about political stability. he is trying to fight that revolt in his own party and trying to push through tough bailout reforms he will have to partake in. let's look at stocks that cover every single industry group currently down, off by 2%. a flight to safety. you are seeing money getting into german debt. think about arlington cost coming down for basis points. they are getting out of greek debt. up 17 basis points. 10 year greek debt. lastly, want to show you the reaction. the u.s. dollar is on the downward trend, pushing our euro .7%.r, up gold has been influencing us a lot here it up 1.3%. i know you have been keeping an ion commodities in the u.s. we are suddenly seeing the likes of oil stocks and gold stocks, all of those companies reacting.

i want to could we you how oil is currently lower. actually, turnaround. that is turning up. gold is all about the gold-mining rising today. interesting the fact that swiss watches, they are doing very poorly in china. iran hand thinks back over to julian the u.s. julie: we're watching the china fact and emerging-market effect it all of this weighing in on the session. steep declines for the major averages. the worst today performance for all the major averages since late january. trading innow february. at my bloomberg terminal and matt brought this to my attention earlier. moving prettymoving pretty shard move in july and bounce above. this is essentially an indicator.

the s&p 500, if you're looking at it versus the end of december, we are slightly lower. a number of this times. take a look at the map on my bloomberg terminal. everything is red. very broad-based. utilities the only group gaining a little bit of ground. chipmakers and media stocks are selling off sharply today. more details in about 20 minutes. we talk about commodities. oil prices, really interesting action and oil. it is now unchanged, not something you see too often for we have volatility in the past hour or so in oil prices. you just heard caroline talking about the dollar and how it has been trading. note. withe 10-year utilities trading higher, we might look at bond yields down

to point the -- 2.09%. what is really interesting here is we have economic data. the market is shrugging that off. infected by what we have seen around the globe. matt: we saw signs of the fed may not be confident enough to lift rates in december. what does that mean, still at 0% interest rates? these dominoes continue to fall. stand, itd -- cosan was not good for the global market. >> it is interesting in the statement because they expressed awareness in the global economy of what is going on. but not necessarily that would influence them unduly in terms of what they will actually do on rates. matt: there are two concerns

were basically inflation is one of their mandates, but what is going on in china is before you devalue currency. the chinese are not doing a good job of propping up there's either. julie, thank you very much for that. still ahead, the general electric ceo, the insurance plan is no joke and neither is the price tag. stay with us. ♪

matt: welcome back. i am matt miller pyramid company boards have scaled back in the wake of increased disclosure requirements. general electric is not one of them. alone, general electric paid $300,000 for the ceo's the life insurance policies. the 100 for a ceo in

index to joining me now to discuss the $22 million life insurance -- more than 300 grams is what they pay out, more than what most people make any a year, just for the insurance policy. >> actually had two policies that will pay out about $22 million. matt: i thought, well, jeff is very important to general electric. they will want a conversation if he passes on. this will not even pay out to them. anders: no, it could be family members and wife and cousins. matt: i heard this as well. it could just cover the taxes on his estate. anders: yes. that is a common way high net worth people use life insurance. they said their surviving beneficiaries as the beneficiaries. that will essentially help to pay these state taxes.

matt: none of the other boards in the s&p 500 have this kind of perk? apple does not do this for tim cook? offer: a lot of companies life insurance. it has become less to offer big life insurance policies with big payouts. .t just does not look that good for your executive, it might not be kindly looked upon for shareholders. much.thank you very we will take a quick break here. stay with us to we will be back with more. ♪

it is 11:00 a.m. in new york. global stockmarket selloff. u.s. stocks opening lower according to declines in asia

and europe and oil prices continue to drop. givingpresident of shell the future of oil prices. matt: dick fuld's estate is on the auction block, set to cellrate record place -- sell for a record price. pimm: could health insurance eventually pay people to kick the habit? insight from an e-cigarette executive. matt: good morning. pimm: we are 90 minutes into the trading day. let's take a look at how stocks are performing at selloff today across the board. s&p 500 down by 1%. .he dow falling 200 points nasdaq dec