stocks plunging around the world. the s&p erasing its gains for the year. pimm: alexis tsipras set to call for snap elections next month. he is trying to cement his authority after a party mutiny. betty: donald trump takes on jeb bush. halls in newtown hampshire. pimm: good afternoon, i am pimm fox. betty: i'm betty liu. let's begin with a look at the markets right now. s&p is down right now by about 1%, raising its gains for the year. sc erasing its gains for the year. we are bouncing around a bit at

the bottom here. housing numbers come existing home sales were strong come up 2%. the selling and stocks accelerated overnight. you might be wondering, since when did we care about kazakhstan? it is in concert with other currency moves we have seen, starting with china last week. let's move over to oil prices and how they are trading. finding a bit of a bottom here. we are very close to that $40 a barrel level. almostupplies the u.s. 100 million barrels above the five-year average. gary shilling saying we may see 10-20 dollar oil. incredible. pimm: let's see how the bond

markets are reacting. not very much. a bit of buying in the tenure and 30 year -- 10 year and 30 year. that much demand for u.s. treasuries. let's look at the currency market. the euro strengthening against the dollar. the yen strengthening against the dollar. the pound sterling also gaining against the dollar. i want to take you look at the wp function. i will circle everything that make sense to me. all of the trending up asset classes. old, euro, pound sterling and japanese yen. , euro, pound sterling and japanese yen. you do see some reversals down. trending down, the oil price.

betty: a crowded quadrant. pimm: let's look at the top stories. greece must pry minister calling for an election in september. -- greece's prime minister calling for an election in september. he has lost the support of his own party after agreeing to austerity measures. he has received the first portion of the bailout money. we have joe weisenthal joining us with the latest on what's going on in greece. >> people thought this was a possibility. recently to votes approve the latest bailout. syriza and lexus interest to rely on members of other parties. hadyriza and alexis tsipras to rely on members of other parties. he isht of those things, calling a new election.

syriza and alexis tsipras are still popular. if he wins, he can re-stack the deck, have a party that is more like him. it's the expectation that he will win reelection. you notice how these headlights came, not a huge effect on the markets. that's why he called the election very soon. he could have done it later. the sooner the better. right now is good for him. he is likely to retain power. if the far left revolts, there have been some rumors and talks that the far left would want to form another party. there will be demonstration in the streets from the people who don't like the bailout. you never know how these things will hold. there is a possibility they could win reelection, come back

with a syriza party that is much more united behind alexis a press. -- alexis tsipras. pimm: former president jimmy carter saying he will begin radiation treatment on cancer on multiple spots on his brain. his first treatment is scheduled for this afternoon. that liver surgery had found cancer that spread to other parts of his body. it is still not clear where exactly the cancer originated. the former president said he will reduce his work for the part carter center to medically. >> we've planned on dramatically percent -- we have not done it yet. we talked about it when i was 80 come again when i was 85 and again when i was 90. to carry outfor us

this plans. pimm: he is 90 years old. his father, brother and two sisters all died of pancreatic cancer and his mother also had the disease. pimm: another sign of strength in the housing market come existing home sales rose 2% in july to the highest level since february of 2007. economists had forecast that sales would fall. he is bullish on housing bradley and seize opportunities in the sector >> if you look at housing affordability, owning a house today is incredibly cheap. it would take a 2% rise in mortgage rates to go back to the long-term average. a very modest pickup in mortgage rates which today are under 4%. that can be handled in an economy which is adding 2.9 million private sector jobs

alone. betty: existing home sales account for 90% of the residential market. card, for the first time, credit card users ranked discover higher than american express. discover over amex. those are your top stories at noon. let's can a check of the markets with julie hyman. big selloff. three straight down days for the major averages. the steepest today drop since late january. as we have come up a little bit -- the dow was down to 47. 200 47. the biggest selloff we have seen -- down 247.onths

the kazakhstan currency -- the momentum indicator we've been watching over the past couple of months, the 200 day moving average on the s&p 500. a measure of momentum, moving below it now. last month, we bounced above it again. we will see what happens this time around. is other line i highlighted the close of the s&p 500 at the end of last year. we had been negative on the air. we dipped below it again today. we are very slightly negative on the s&p 500, down .1%. what is helping pull things down? we are seeing a drop in momentum stocks. netflix is a prime example here. 6.4%.ock is down by this is a stock that has doubled this year, the best performer in the s&p 500.

we are seeing some selling in these names that have done well. this is a momentum etf that tracks these stocks that tend to move a lot with the overall market. that is down 1.4% today. we are seeing a selloff in media stocks once again. spiked --elloff sparked by earnings and companies like disney that show down.d sales are slowing today, we had bernstein cutting these two stocks, downgrading them saying we are seeing tv entering a structural decline. we are seeing viewers moving from and supported platforms to non-as supported. -- added supported platforms to non-ad supported platforms. these stocks pulling down consumer discretionary. pimm: you have your pickup

worst-performing groups. you have the tight fitting for today. pimm: a bit of red. -- the tie fitting for today. betty: the owners of the weather channel looking to sell it seven years after buying it. pimm: manhattan real estate selling land and scrapping their construction plans. we will speak with a developer about this trend and whether he will be running from new york the mayor of for new york city. ♪

betty: looks like forces are

brewing in new york. pimm: a shot from the roof of bloomberg world headquarters. let's turn our attention overseas. -- global currency war allowing a 20% plunge in the currency. signaling a new wave of devaluation. developing nations under increasing pressure from weaker currencies in china and russia. plunging prices for commodity exports such as oil. priceswe have not seen for oil this low since the financial crisis. crude falling to just about $40 a barrel. here is what the former shell president had to say about the recent slump. overproducing and nobody wants to cut back because

they want the cash that comes from the sale of oil to either pay their loans or pay shareholders. nobody wants to decrease production, which is only complicate in the problem further. -- complicating the problem further. pimm: joining us now is the middle east director for ashmore group and the former chief economic advisor for the saudi finance minister. some might say that this rests on the saudi's and what they do. where is the pain point for the saudi's? when do they say we've punished everyone enough and now we will pull back and stabilize the market? >> for the saudi's, the pain is there. clearly, they can take more pain because they have a lot of reserves. they can withstand oil at $50 for a few years. someone has to give in. saudisot going to be the

this time around. they're fighting for market share. saudis not be the deciding to cut down production at this point. pimm: i wonder if you could describe who are the winners and who are the losers and what is your estimate for where oil prices go? john: the losers are those who have not saved enough money. that is one. the winner in this situation could be the gulf countries. saudi arabia and russia. they have high reserves. the winners are also in the emerging markets like india where they are importing oil and benefiting from that in terms of trade. also, other emerging economies in africa and latin america who are net importers and places like egypt benefiting from that. crude we've got wti

dancing with this $40 a barrel bubble. gary shilling has long predicted $20 oil. here is why. "it is the marginal cost of getting the oil out of the ground. once the wells are drilled, the pipelines laid and the overhead covered, it is the price of the cash flow for an additional barrel dropping to zero." the breakeven point for the u.s. companies here, which he believes is $10-$20 per what do you believe? >> i don't believe oil will go down to $20 because we have to look at the fundamentals. we have growth, not what we expected -- we will have emerging markets coming back, whether it is in 2016 or 2017.

takingree that we are or pricing an additional supply that might come in from iran. that iran willed be producing a billion barrels of oil. nobody called for oil at 50. now, we have the doomsayers saying it will go down to 20. opec will act. everybody wants to be a conformist. everybody is now calling for oil at $20. i do believe oil will be around $60 going back in 2016. i don't think we will see oil at $20. take what are you doing to advantage of the situation to make money?

john: when we look at countries like india, i do believe the terms of trade are exceptionally good. they are benefiting. for saudi arabia, now, they have to apply fiscal discipline and look at oil more as a neutral play and take it as it comes. oil will recover and they should make their bets when oil begins to recover again. pimm: thank you very much. the middle east director for ashmore group joining us from athens. that's it for me. i will handed over to you. betty: the weather channel exploring its sale. why cord cutting maybe forcing the company's hand again. ♪

betty: this is the bloomberg market day. a change in the forecast for the weather company. you know the channel. ups owners, blackstone come in capital and nbc universal have reportedly held talks with media tech companies about buying its business. they have hired morgan stanley as pjt partners advisors. i asked if the company would eventually be sold. >> are onerous really like our plan pick we have a growing business, a lot of innovation. , thenk in the long run operators need to make a decision on each channel. i don't know where bundling will end up. it is a good value proposition on her own and we are focused on that.

joining us now is alex sherman and david westin. great to see you. this is your debut on bloomberg tv. let's start with you on the details of this. what do we know so far? alex: we don't know that much. we know a lot of companies have been pitched. i don't know if any of them are interested at this stage. think about all your general type companies, your cbs of company in your google, yahoo! type of company. none of these players are particularly interested in buying this. even though david gave that nonanswer, the owners are b ain and blackstone, you will be sold.

that is the game. paid $3.5 billion for the digital properties seven years ago. -- the channelss itself is the lesser of the business. the digital and data are worth significantly more than the tv channel. which is an independent tv channel. -- thedent tv channels weather channel is not a must carry. you are a lot weaker than you were seven years ago. years we looked at it ago. 2007-2008. if we had bought it, we would be in the news. there was aelieve lot of growth and cable at that point. we thought the digital had been underexploited at that point. we weren't sure if you can monetize it.

betty: nobody knew at that time that those kind to videos would generate that much money. avid: what kind of videos? betty: the viral videos. the early days there was no buzzfeed. david: there is no pricing power. alex: it is not where the bulk come. -- comes from. all of the data is used by airlines and government agencies. and retailers. that's where the value is these days. the consumer facing media properties are not where the value is. that is why media companies have so far said no, including comcast come which owns 25% of

the weather channel. you think they would be the obvious buyer. they don't want to own the whole thing. david coley try to integrate with nbc news and it did not work for them. they are a bit burned by the experience. betty: doesn't make sense to split the company and sell it into different parts? it is the pattern in traditional media company's. it is what news corp. did with 20 century fox. timing being spun off from time warner. time inc. being spun off from time warner. you've maxed out on your growth. that thateresting might be the bad company now. through the 1990's, cable was the place to make money. turns around quickly. >> the weather channel is an

independent network. it does not get the leverage of the espn or whatever disney has to offer or the fox news -- those companies are starting to pull back. betty: do you think it could be worth $3.5 billion? >> we will see. i'm not sure that the owners will sell if they cannot get around that price. betty: thank you so much, alex sherman. david, thank you as well. welcome to bloomberg tv. but more ahead. the battle for the white house is on. dueling town hall meetings between donald trump and jeb bush. we will speak with a friend of both candidates, next. . ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment,

we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. welcome back to the bloomberg market day. let's get a look at the top stories making headlines at this hour. ant has agreed to by the

maker of that women's extract drive pill. they will pay $1 billion for sprout pharmaceuticals and extra if the company reaches certain milestones. we spoke with the sprout pharmaceuticals ceo yesterday. >> it addresses the condition generalized acquired hypoactive sexual desire disorder. that is women's most common form of sexual dysfunction. a condition we've understood for almost 40 years at this point, but not yet until yesterday did we finally have a treatment option for women. betty: sprout will start selling the drug in october. most americans regardless of their political leanings say government should control drug costs. that's the finding of a new poll. three quarters of those surveyed called the cost of persuasion medications and reasonable and one of government to

control prices. coca-cola going on the offensive about its health and nutrition experts -- efforts. the group promotes the idea that people worry too much about what they eat rather than how much they exercise. says the company will publish a list of health and research activities it has funded. scientists have figured out how to keep -- how the genotype obesity makes people fat. fto was related to obesity. experiments reveal a faulty version of the gene causes energy from food to be stored in fat rather than burned up. genetic tinkering in the lab suggests this can be reversed. hour, up in the next half the ceo who raised the salary of everything length lead to a

--imum of $70,000 a year every employee to a minimum of $70,000 a year. the bad news keeps on coming out of brazil. stocks plunge further as the president faces impeachment calls. we will speak with tom shapiro who has significant investment, just bought several hotels in brazil. was hungeritics, it games again last night among republican presidential candidates. donald trump filled a packed room with thousands of supporters while jeb bush drew just a few hundred trump did not let that go unnoticed. trump: i look at what's wrong with our party. the other day -- i say it very strongly -- i heard that jeb bush and marco rubio and who?nor walker --

they will spend a huge amount of money on fighting halls. haven't you heard everything already? it is getting boring. jeb bush has $114 million. hillary has $60 million. i think hillary is in big trouble. [applause] betty: while america looks toward the race for the white house, our next guest is looking to the race of new york city mayor. he is one of the net -- wealthiest black horse in the country. blasting the leadership in new york -- wealthiest black entrepreneurs in the country. , great to see you here. you've been making a lot of news locally. you know donald trump and you know jeb bush and hillary clinton. the you think now, having seen trumppolls, that donald

has a chance here? don: from the day he got into the race, i predicted that he would surge to the front of the polls. he would certainly lead in iowa and likely in new hampshire. expressing very aggressively the frustration that many americans have come especially those on the republican side. -- those against big government, those who want us to nationally oriented than a global trade market. those who want american jobs to come back for manufacturing. betty: does he have any chance with minority voters? it is a misunderstanding about donald in terms of the african american community. -- a successful

entrepreneur. betty: he has also had bankrupt companies. world, justbusiness like life, we don't have to bet 1000. -- bat 1000. no one will get it right 100% of the time. he made bad decisions and got out. betty: you are saying that being an on-chip nor is attractive to minority voters -- an entrepreneur is attractive to minority voters? we started off so far at the bottom through slavery and segregation. we are very aspirational. you look at someone like donald trump, there is no resentment. there is aspiration. they want to emulate him because he is showing the dream as possible. african-americans, unlike other progressive aspects of democrats, actually admire

success and want to emulate it. betty: do you think they want to vote for him over hillary clinton? the gap between the two has narrowed. do you think they would gravitate to him? don: the polling numbers are showing that. the fact that it is a narrow gap , 6% between him and hillary clinton, reflective that he -- that is not all white voters. it is a true rainbow coalition on the democratic side. black and brown people reflect the majority of democratic priorities. betty: what about jeb bush? don: he is the ceo kind of person. he is more methodical, morneau actual, more cerebral. he does not have the charismatic personality. -- more intellectual, more

cerebral. outspoken, is aggressive and expressing the frustration that everyone is feeling, he will resonate. betty: who will you support? don: i want to sit back and enjoy this. i have more important things to worry about. i'm running for mayor of new york city. betty: are you thinking about it or are you going to do it? you were on the front page of the new york post. what is going on? i know you've talked about this before. they are saying please run for mayor here. why? when? don: i supported buildable on deblasio.l i thought he would create a better environment for minority and women-owned businesses.

i thought he would improve education and make a big dent on affordable housing. most important to the city together and he has done the opposite. he has divided the city along economic and racial lines. his affordable housing plan has no possibility -- betty: in what way? julie: don: you look at his pre-k program. the governor of the state said we have the money and we will do it and we don't want to support a tax increase. the governor provided the money for him to do it. he said here is the money. ,nstead, he went to new york the state legislature and lobbied to increase taxes. that is anti-achievement. he is anti-success.

he is trying to push more successful new yorkers out of new york city. ve the problems by taking money from those who are productive. betty: when you look at the numbers, the economy is still roaring ahead, rent at skyhigh levels, people are coming to new york city to work. -- crime is still relatively low. relatively speaking, it is still humming along. not the expression. look at the average new yorker look at the polling. more than half of new york city residents believe the marriage not be reelected. more than have to not believe he is capable of performing his job. -- the mayor should be reelected. quality of life has declined.

it has. upders and shootings are significantly from prior years. the cost of housing going up is not a good thing if you want to make housing more affordable for more people. housing prices should stabilize. the reason they keep rising, because of this horrible policy uneconomic. development.c he should be promoting economic helmet. -- economic development. i'm engaging in discussions with new yorkers across the board. respectple who i deeply have encouraged me to announce now, but i will not do that. i will take time and engage in discussions with a broad spectrum of new yorkers. betty: you are not going to take

outside money. why are you going to do this? you have this great business. the post says you are worth $700 million. you have a great life. why go into politics? don: my financial success is far greater than i ever dreamed or aspire to have. i go back to my family. my grandfather was a janitor in a segregated south. my maternal grandfather was a orman. he raised his five daughters. my father was an auto mechanic. grew up in a segregated south. my mother had me at 19 years old. environment that promoted equal access to economic at opportunity.

i want the american dream to be available to all. i have an obligation to give back. if we look at this dramatic wealth disparity that is unfairly borne by people, i cannot do anything about it. i have a responsibility to step in and do something. i will challenge this mayor every day about how he can do his job better. he needs to bring new yorkers together. much forank you so joining us. don peebles, good to see you. much more ahead on the bloomberg market day. stocks near session lows. we are watching the markets closely today. anxiety over global growth hits wall street hard. ♪

betty: let's get straight to julie hyman for the big stories on the market day. the global route we are seeing spilling into the u.s. julie: not quite as bad as it was earlier. still seeing a lot of bread today. the dow about 10 points above its lows of the session. today.ng a lot of red the worst two-day selloff since late january. not quite as bad here, but the nasdaq is the worst of the three, down by 2%. a lot of concerns about global growth. in china and vietnam and kazakhstan.

take a look at the bloomberg terminal and you are seeing the imap of the various sectors. utilities the only group up today. financialsetionary, tend to be more vulnerable to any kind of town during the downturn. the economic data we got today on the housing front is better than estimated. existing home sales at their highest rate since 2007. the economic data here in the u.s. seems to be outweighed by these concerns about global growth and concerns about the fed. take a look at oil prices today. we have seen an interesting trade, close to $40 a barrel. we've been seeing it bounce today. it has been pretty volatile. in the same way, not seeing the same risk aversion in the oil market we are seeing in the stock market. let's look at the dollar. feldman is yesterday, may be

more willing to hold off on raising interest rates. -- fed minutes yesterday. the dollar is down .4%. we are seeing rates down as well. the 10 year yield the lowest since april 30 today. estimatedtter than existing home sales. more worried than confident in the u.s. economy today. betty: much more ahead. the ceo raised his workers minimum salary to 70 grant. why? >> i was with a friend making $45,000 a year. thinking about how hard it was. there are people at my company that i feel like are the ceo -- they are decision makers and energetic and they are in the exact same situation.

it did not seem right. i thought in the end, if i did not take care of this problem, it would impact our clients and our company. betty: how is it all going? we will check in with him, next. ♪

betty: welcome back to the bloomberg market day. shots of the new york city skyline. looking a little cloudy today. once after walmart raised its minimum wage, private had been hit. -- profit has been hit. the consequences are beginning to take hold as these companies report plans to raise prices on consumers and cut jobs. , themonths ago, dan price ceo of a payment processing company, controversially raised

salaries to a minimum of $70,000 a year. not all of the attention was good. here to talk about the aftermath is dan price joining us from seattle. good to have you back with us. there was the big piece in the new york times that talked about the aftermath of what happened, your brother suing the company leftou come employees have that's one of your star financial planners left the company because he gave raises to people who have the least skills and are the least equipped to do the job. what is it like now? i think it has been a great improvement. we had people that were not the least skilled. they were working really hard, very entrepreneurial.

they were not good at marketing themselves. with corporate profits at an all-time high and wages stagnant for so long, at some point, this will come back to bite us. you pointed out some examples on a quarter by quarter earnings and short-term thinking where this type of strategy can hurt a company and create short-term obstacles. by dealing with the problem proactively, you have a chance to build a better company in the long term. betty: will you be able to stick to this, stick to paying each employee $70,000 a year? dan: i'm 100% committed to it. our job is to make credit card processing fair. we want to reduce the headaches of accepting credit cards for independent businesses. there's no circumstances under which we will either raise the price or cut their services or cut the number of people that can serve them. hypothetical,a those are the most important things.

we believe 100% that they can work in harmony together. when you give somebody a better job with more tools, more resources and fewer distractions , they can be more productive for the company. betty: what about the employees, the financial planner who quit? what about those employees who quit? dan: macy made some really good points. i appreciate what she highlighted. what she highlighted was, what if you are making just over $70,000 and now on a relative basis, it doesn't seem fair. there is no plan that is perfect. for me, it's a challenge for us atinvest in those people that level and try to get them up to a higher level so they can be in a better financial situation and continue to progress. betty: she said she felt like she was being selfish or felt like she was being portrayed as

being selfish by saying instead of $70,000 across-the-board, why not we give a little bit of a bump and then as people get work spirits, give them a bigger pay raise? dan: i don't think she was being selfish at all. that would be a good way to go. at the end of the day, we need pace that income inequality is growing or turn the tide on that growth. i'm not somebody that can control the whole economy. i was singing in my own company. -- seeing it in my own comedy. there are psychological consequences. -- human consequences betty: like job cuts. having to drive one hour each way to work is not really a good situation for somebody

helping your customers every day. basics like being able to have reliable transportation and running water is not a good situation for somebody serving your customers every day. for me, if you value your , we have, which i do to show that we are investing in the people most closely helping them and making their life better. lucas stillbrother owns 30% of the company. he sued you for this move. you have paids -- your self millions of dollars ahead of this move so that you will be ok living on $70,000 a year but others won't. dan: no one got a pay cut. i want to make that clear. our distribution did not go down, there were no pay cuts instituted. i wanted to take a pay cut to do

this to make it work financially for the company. for me, the margin for error was going to go down a lot in that transition from having people making $30,000 a year working for our clients to now making $70,000. that would be costly. to satisfy that quarter by quarter margin for error, i took the pay cut for that reason. it wasn't to make up for anything or to make a political statement. we will leave here. thank you so much for joining me on this. dan price, ceo of gravity payments from seattle. much more ahead on the bloomberg workday. the housing market has been hot this summer. about to get hotter. ♪

betty: 10:00 and san francisco in 1:00 a.m. in hong kong. u.s. stocks are sliding

for third straight day in the u.s. erases the gains for the first straight day as concerns intensify for global slowdown. increase inexpected supply adds to the global oil glut. snap elections as he tries to retalix -- a tackle with alien and the latest deal. at televised live address in the coming hour, and we will bring you the headlines as they roll across. betty: good afternoon. i am betty liu. i am at miller. the s&p bouncing around a little bit at the bottom of the range down 1.5% in 2047. dow jones down 273