the comeback trail in a big way majorday after the selloff that three major indexes are all posting games north of 2%. matt: yesterday's extreme volatility meant huge profits for some firms. with a high-frequency trading firm that had one of its best days ever. goingcommodities are not left behind in today's rebound. oil and metals are leaving the game, commodities are advancing from a 16 year low. ♪ matt: good green afternoon, i am matt miller as stocks rally. mark: i am mark crumpton. let's look at the markets on this tuesday. what a difference a day makes. a day after concerns about slowdowns in china's economy led to a global market selloff, stocks,s are back,

commodities, and emerging-market currencies all extending gains. that's due in part to china's central bank cutting the key interest rate in bid to boost growth. the s&p 500 is now up over 2%. trading at 1931. recall, thehe broader market was in decline mode, as were the other major indexes. apple shares, we should mention are leading the way. apple shares are up 5.5%, trading it 10859. apple, we should mention yesterday, it was rolling around with all the other ones. and one point. numerous investors said they couldn't get in a 92. they couldn't get anything. the dow industrials plunged over 1000 points in early trading yesterday. before recovering. the dow is up right now 300 points, 1.8% at 16,168.

the nasdaq composite is also higher today, up nearly 3% at 4660. oil is rising today, nymex crude still trading below $40 a barrel, up over 3%. 3944 your number there. down nearly are 1.5%. and $.20.ng at $1137 selloff ink at the the bond market. across the curve here with a five basiseld up points, 10 of 10 and the 30th 11 it 2.84% on the long bond. let's take a look at currencies as well. now $1.14 buysht the euro, ¥119 is what you get for your dollar.

156, 157 is a pound, very strong. it's very interesting the dx why index, i have it up on the terminal over the last year. days of last five market turmoil, this is a year-long chart. we have been climbing, climbing, climbing. flatness over the last order. on the last few days, down, down, down, even as -- these are days of 500 point drops, friday and then monday. people were fleeing out of the dollar, finally a rebounds today. one of the reasons people offered was if you need liquidity somewhere, and you can't sell your stocks, stay in china. dollare to sell denominated assets. there was a selloff going on in commodities, which are priced in dollars. and then the fact that people thought the fed would push off the rate hike plans to december, maybe even 2016. let's take a look at the top stories crossing the bloomberg terminal at this hour. sales in july, rising.

a sign the housing market is still growing, the increased 5.4% last month to a seasonally adjusted rate of 500-7000. these are new constructions, the biggest gain this year. the government revised june's data showing a decline of 8%. still a bad number in june. sales account for about 10% of all home purchases in the market. americans are growing more optimistic about the economy, according to the conference board's consumer confidence index, which came in higher than anticipated. with larger household income were most confident because they are so rich, those under 35 years old were more confident than those over 55 years old, because they are young. so rich and young is how you should be. mark: china's central bank stop thep money to stock market collapse. the people's bank of china is cutting interest rates for the fifth time since november and lowering the amount of cash the chinese banks must aside.

the shanghai composite index fell more than 7% today, 7.6%. the chinese stock market is down 22% since last thursday. back in the u.s., shares of best buy or higher, the world's biggest electronics chain sold more tvs, phones, major appliances than expected in the second quarter. best buy said in a conference call today would dedicate more space in its stores to apple products. here's best buy's chief executive. by there very excited early momentum. whichle watch in stores, is the decision was made with apple to have expanded and accelerated rollout. mark: the apple watch will be offered in all best buy locations by the end of september. matt: a prosecutor in france as the suspect in the attack on a videowatched a jihadi

moments before. the 26-year-old moroccan man watch youtube video of quote islamic preaching that urged violent attacks. the paris prosecutor's office says authorities are opening a judicial investigation into the terror related action. exelonthat would make the biggest utility in the u.s. by customer account is now in jeopardy. voted unanimously against exelon's $6.8 billion purchase of pepco. they agreed with the attorney general that said he didn't provide enough benefits for consumers. regulators in four states approve the takeover. mark: think your portfolio got hammered on monday? the 400 richest people in the world lost $124 billion. the biggest losers, bill gates lost $3.2 billion. jeff bezos lost 2.6 billion dollars, and warren buffett was down $2 million. as a look at the tasker's we are

following at this hour. coming up in the next half hour of the "bloomberg market day," netflix has been giving wall street what it wants, but now the party may be over. we take a look at the company strategy of growth pursed, profit second. second.h first, profit doug joyce's later in the hour. mark: it's easy to understand why investors may be worried or confused. matt: joining us from connecticut with insight on how retail investors are reacting is liz ann sonders. chief investment strategist at charles schwab. under yourstomers command it, so to speak, with $2.5 trillion of assets. what are you telling them today, what did you tell them yesterday? messages first and foremost, don't panic. we believe in long term discipline. environments like this do give

you opportunities, it reinforces the tried-and-true processes of diversification and rebalancing. opportunities like this are for rebalancing, where you get massive moves in asset classes the college to get out of whack from an asset allocation perspective. it forces you to buy low, sell high. when you have equity asset classes imploding, you can take advantage of that and bring that up to the appropriate allocation. the message is consistent. it's not that different. we dusted off the report i wrote back in 2008, which we dusted off in 2011 and dusted it back off again which is called panic is not a strategy. mark: panic is not a strategy. is there generational breakdown? are your older investors more in tune to the vagaries of the market, as opposed to the younger people who might say we want to hit a home run now, we don't have the patience to wait? liz ann: the demographics conversation one is fascinating,

and what we don't have time for today. at least temporarily, there's a geographical divide, a demographic old and wide. it's a function of many of the older investors, which i would consider myself one, have not only gone through the most recent financial crisis, but went through the tech bubble as well. they went through that lost a decade, where it through the beginning of 2009 you actually had no returns for the prior 10 years on the s&p 500. of course, you have the related impact on the economy. think some of those investors did get burned by the situation, they are less interested in moving a substantial amount of money back into the market, not to mention the fact they are getting a little bit older. watched from afar. they didn't have a lot of exposure, they tend to take a different approach. i wouldn't write them off yet. bigger, theyillion have vehicles like 401(k)s which allow them to invest automatically at a much younger

age. i think it's an interesting conversation to have about demographics, but i'm not one that views now the baby boomers are retiring, that's it for the stock market. we had to cash on, who claims the market is broken. there's a very zero hedge feeling that high-frequency traders d ruinedverything, and ever since basil three and dodd-frank, it's become an for individual investors to make money. do you think that your investors, as long as they have a plan, watch expenses, no that noisecan avoid and worry about flash boys? the advent of high-frequency traders in short momentum investors out there do contribute to the kind of action we saw not only yesterday, but today. these wild intraday swings and dislocation. i think that's frustrating for investors. for an investor that feels like

they have to try and play the , dramatically shorten time horizons into nano seconds try and figure out the intraday moves and make decisions based on those, i think that type of investor will not be served well. they will not be successful. i still strongly believe that over some medium to long-term and stockamentals prices, fundamental the markets actually remain connected. if anything, environmental like this should tell people lengthening not shorten time horizons. changed?it is still five to 10 years ? many investors tie automatically their time horizons to retirement. that's not necessarily the case. you can be an older investor that is close to retirement that wants to take the risk, understands it, isn't going to freak out at the first correction in the market. that is a higher risk tolerance shorter time horizon investor. other investors might have a long time horizon. you could be 24 years old, not retire for another 40 years.

if you're going to panic and sell everything at the first 5% or 10 percent correction, your risk tolerance does not match her time horizon. turn the mirror to yourself and saying who am i as an investor that really defines how you structure your investment. matt: if you're 24 years old and you are thinking about a strategic dollar cost average investment plan, good on you. liz ann sonders. she's going to stay with us, from charles schwab. still ahead on the "bloomberg market day," the stocks that are moving markets right now. mark: best buy, sharply higher today. the retail electronics chain reported its latest results, that story and more after the break. ♪

matt: welcome back to the "bloomberg market day." i'm matt miller with mark crumpton. mark: julie hyman has a look at the markets. what a difference a day makes, lots of green today. sellingfter all of the we had, we are seeing some buying today. it has abated to some extent, but as the session has gone on, one of the differences i wanted to point out between the selling and buying red and green is that the volume numbers are different. in other words, over the past couple of sessions, we've seen volumes in the major averages that double or even triple the 10 day, the 100 day average volume. today we're up about 60% in the s&p 500 in terms of that 100 day average volume number. we are seeing less volume, at least on a relative basis on the

upside than we did on the downside. also we are looking at this bank of america, merrill lynch index. this is where we were yesterday. reaching the highest we've been since 2012. in that cross asset volatility, we talked a lot about the fix -- the vix, but really it was across assets. we look at the advance today on the back of that exhaustive volume on the downside. in the back of volatility. we sort of got to the rubber band breaking point, if you will now, we are snapping back. that's what it's looking like today. you guys mentioned best buy in the first block of the show. a wanted to reiterate the move we are seeing 16% it its best day in two years after coming out with earnings that beat estimates. growth is coming back, at least it did last quarter for the company, that's something they have been working

on his part of the turnaround plan. he also made positive comments about apple. this is the best performer in the s&p 500 today. it is driven, at least in part by fundamental news. the other performers doing the best in the s&p, not so much. that reflects what we saw the downside as well. as you take a look, on a percentage basis, these the other best performers. ,onsol energy, down 60% participated in a massive selloff that we see in cold companies. netflix is trading higher. just as we saw yesterday, wholesale selling of the best performers and worst performers, it didn't matter. today we are seeing the buying of a company that hasn't done well this year versus a company that has done quite well this year. senior markets correspondent julie hyman, joining us. let's get more insight on the market, back with us from stamford, connecticut liz ann sonders. matt: chief investment strategist at charles schwab.

strivinge things that equities and currencies is the expectation that the fed was going to raise rates in september was fairly strong. everyone thought you have to be along the dollar and piled in over the last few weeks and months. all of a sudden, over the last 45 trading days, it looks like the fed may have reason to push off its interest rate increase decision, and the dollar index tanked. equities obviously along with them. maybe also convincing the said maybe december, maybe 2016. what do you think? liz ann: expectations dropped for possibly moving in september. and of the gets off the table, a lot depends on what happens to financial commissions between them. the jobs report that we're going to get. you see the cutback in expectations. we point out some thing about the dollar, the dollar index you have been referencing does not include emerging-market currencies. the fed looks at the broad trade

weighted dollar index that does include emerging-market currencies, and that is actually up to read you've seen a divergence between the two. as it relates to the dollar, not that in and of itself is it mandate for the fed, but the one they continue to accelerate is the one the fed keeps a closer eye on. if financial markets: down, particularly if this rebound continues, if we get a particularly strong jobs number, especially if it had a wage bump to it, i think the fed still has a september hide -- september hike on the table. expectations are lower. expectations lower, but is this or has this already been priced into the market, notwithstanding was been going on with china and the devaluation of what happened in the market yesterday? worry investors already pricing in the expectation the fed would move in september? liz ann: it's hard to say when you look at the extremes of moves. it also begs the question, what

does the market want? that depends on each investor's perspective. there's a camp that would like to see within the fed that would like to see the fed push things often launch another round of quantitative easing. i don't happen to be in that camp. i think it would be appropriate for the fed start lifting interest rates, it would send a message about confidence and economic recovery. there are different camps right now. i think to try and pinpoint exactly what is priced into market using the last couple of days is a proxy for that is such a free-for-all right now. this of what led into hasn't changed in the last couple of months. weather is china's growth story or the weakness and commodities of the strength in the dollar. i think we just got to a real extreme where you had some crowded trades, particularly in equities. those have been unwinding. i don't think it's over, but we have gone through a good of the crescendo. mark: liz ann sonders. joining us from stamford connecticut, always a pleasure.

matt: coming up on "bloomberg market day," netflix is one of the darlings of wall street, but that may be about to end. we will tell you why. ♪

matt: netflix shares are up today, erasing losses from yesterday. it was a wild day is netflix sought all over the place, but remain for the most part in the red. the stock is down about 15% over the past week. bloomberg editor at cory johnson is in san francisco. why is netflix the poster child for the way down? no stock better reflects what's going on in the market becauselast year, netflix sort of amazingly among all of the companies among the s&p 500, was the one company that was of the most in the last year, and the same company down the most on thursday, and again on friday.

of course, selling off quite a big yesterday as well. hadever drama the market is , it is the market was catching a fever. initially the fever had it hot for a year. the last two days or so, it has reflected what the market has done a little bit of, it's an a lot of. i think it really shows you not just what the stock was trading like, but also changes they made a netflix business so the stock would perform in an accelerated pace of whatever the market had to bear. i wonder about what you saw as far as breaking it down, you look at your model and see that they are raising marketing expenses, boosting sales, obviously not worried about profit that much right now. you also see other companies doing that, like amazon, for example. cory: amazon is sort of the fair-haired stepchild, everyone wants to be like amazon. i have an aspect of not having

any profits but still growing on wall street, even though it's profit free. beot of company's want to that. interestingly, netflix made a decision to change their business model a little bit. you can see that when they dialed up the marketing expense after flat stop performance, they dial up the marketing and they spent a lot of money on content. things like daredevil. they've spent vast fortunes when they're competing with the likes of amazon and hbo. the big spends, whether it shows up or doesn't show up in this advertising, spending to make the shows like daredevil really led them to change their business model, to focus on top line, to ignore the losses in the bottom line, and it worked. sales growth increased. it helps them boost sales, sales were falling a little bit in 2012, 2013. now you have big growth principally because international. even of profits or less in the market has reported that or had reported that with a big move in

the stock. as i mentioned, the biggest performer in the s&p. the question is, what do they do now? wants toerent market reward profits, can netflix change forces in the middle of middle of -- in the the stream nba profit based business? cory johnson and san francisco. mark, that is it for me. break, the the company cashed in on yesterday's market swing, doug joins us coming up in the next half hour. ♪

mark: welcome back to the "bloomberg market day," i am mark crumpton in new york. thanks for staying with us. to the top stories.

stocks are on the mend today after monday's global selloff that raised $2.7 trillion -- erased $2.7 trillion for the value of worldwide equities. more pain could still be on the horizon. spoke with mike mobius. >> we had a down more because people are so pessimistic and so much money has been withdrawn from the market that sellers are forced to sell. people are running funds, being forced to sell into this foreign market except those who are sitting on cash. we probably have more to go before we see stabilization. volatility is tremendous. commodities, and emerging-market guarantees all expanded gains after china's decision to cut interest rates. more signs of growth in the u.s. housing market.

the case-shiller s&p index says home prices in 20 american cities rose 5% in june on a year-over-year basis. nobel laureate and yell economics professor robert schiller spoke with bloomberg about the housing market. have not been protecting a recession in 2016, it wouldn't be a surprise if there was one. i don't know that there would be particularly strongly connected with the housing sector this time. home prices have been going up, it's a better market for building houses. is anotherthere recession, it will probably come from consumer confidence flagging, from a general loss of confidence. mark: nationally, prices rose 4.5%. stronger demand and limited inventory supported prices. all 20 cities showed a year-over-year gain led by a 10.2% increase in denver, colorado. the u.s. budget deficit will be lower than previously forecast in the year that begins october 1. the congressional budget office shrink fromll will

$426 billion this year to $414 billion. the good news one last long, the cbo says the fiscal situation will get worse by 2018 because of more entitlement spending. ceo johnrgan stanley mack has a new mission. he is trying to dissuade general -- persuade general electric to move from connecticut to new york, according to politico. he is an informal adviser to new york governor andrew cuomo. geez that in june in my lead connecticut because of a change in the state's tax laws. new york, georgia, and taxes are among the company's potential suitors. those of this hour. coming up in the next hour of we --"bloomberg market day," look at what this could mean, the democratic presidential sweepstakes. home priceseported, in 20 major u.s. cities climbed 5% in june. we hear more from your professor

bob schiller, the cocreator of the chase schiller home price index. but first, high-frequency trading firm for two financial along with exchanges says early beneficiaries of heightened volatility in volume. for more, let's go to the newsroom, my colleague erik schatzker and their ceo doug cifu. eric: certain type of volatility is good. from we transfer risk buyers to sellers. in volatile times, the bid offers start to widen. our services are more needed on a day like yesterday than they are today with a markedly trade six or 7 million shares. erik: do you care of stocks go up and down? assuming the same volatility in the same volume, do you do better on down days were up

days? doug: we do better on updates. we are more volume driven. provideare there to offers to the market, we can create volatility or volume. we need natural buyers and sellers, people that want to take risk, to show up in the market place. volume really is the key driver. erik: if you can create volatility or volume, able accuse you of being wrong. doug: people don't understand the modern function. we started 30 years ago. floor at the the new york stock exchange, we have a booth. we have all through the use of technology and risk management become a global market making firm providing goods and offers across 11,000 financial instruments and 225 markets. erik: can you not create volume in the sense that you will buy one some of the also selling on the excitation that you can turn

around and immediately sell that stock. doug: there needs to be a natural buyer and seller. erik: you need to have a balance sheet. doug: we are willing to buy in sell all these at these prices. you want to come in and say i want to express an interesting go along on ibm, want to sell jpmorgan. generally you are buying and selling from guys like us. of correlation is there between the vick's and the daily trading. correlationf a between volumes. volatility certainly can provide a good spike for earnings, the long-term wear much more volume shop. you are making more money day in and day out on volume of. the stock with the most volatile days like yesterday. are you making more money on the volume? 14 billion shares traded on u.s.

exchanges, or are you making more money per trade on the brief widening of spreads you can exploit is a market maker? doug: we are doing both. we are taking more risk. we traded 60 million times yesterday. a lot of those trays we lost money on. we are taking more risk, the bid offers whiter, we are being rewarded in the winning trades, we are actually losing more per trade on the trees where we lose money. we are taking more risk on a volatile day. there are certain types of volatility that are helpful to the business, but real sharp movement is where market makers can get run over as well. the wall street journal reported yesterday was among the most profitable days in your firm's history. how much is you make? i don't know: where he got those numbers from, he has brought that she is probably speculate. 100 billion shares traded in europe, we are a market maker in singapore, in hong kong, in

india. all of these markets, we are very active and very volatile. if we were managing those risks and managing those positions globally all day. erik: a good day, but not one of the most profitable in history. doug: good try. erik: 2011 was an extra nearly volatile year. way more than this year has been. example, from securities filings made with hundred $63 million that year. the following year and made only $16 million. i have to assume the 2011 was good for you as well. was a goodt 2011 year for us as well. there was a lot of volatility in the marketplace. was a very nice month for us as well. let's talk about dislocations, the widening of spreads that takes place in volatile markets. specifically as it concerns eps. i want to draw everyone's

attention to the spider s&p dividend etf, it perfectly illustrates, we're going to put it up, it perfectly illustrate what happened in the first half hour of trading, there was effectively no price discovering. who is this good for besides the market makers? for the's not great market makers either. we have a hard time rising these uts when the components are trading irrationally. the only way we can price an etf is my reference. ,herefore there is more risk we're going to the wider spreads in the market place. more not sure what's going to end up happening, where that etf is ultimately going to end up trading. not?rade a true value were we are taking the risk by widening two-sided -- we out when there's uncertainty. erik: what should the regulator rethinking? should the c.t.s. be suspended or halted?

investor who puts in a order is getting killed. doug: the thing flattened out. bob had a great idea this morning. we have volatility, we have up and down, over 1200 of them went off yesterday. a suggestion was to tighten up limit up limit down around the open so you won't have situations where people are concerned -- we support that idea. erik: i will extend the question to liquidate yes. qs, db why, i jh, there are in liquid etf's. what purpose to those instruments serve when investors can't trade them at the most critical crucial times. ask theu should issuers. we're a market maker. we are part of the ecosystem, and we encourage issuers of uts to issue etf's where we can get access to the components. inare not a big market maker

fixed income etf's, for example. we don't have access to the underlying components of corporate high-yield bonds that make up the high-yield bond index. in that situation, you will naturally have wider spreads and a lot ss liquidity because the market makers in this instance, the firms that are doing that are taking a lot of risk. erik: earlier this month he talked on a conference call about finally entering the chinese market on a very limited basis in commodities. a lot transpire in the chinese equity market. who is to say the chinese will do the same thing to their commodity markets? why would you want to be there? marketplacenk all is will a vault was the summer would can provide meaningful and important two-sided liquidy. erik: the rules of the game won't change overnight? doug: we're going to watch that closely. we put our towing the water, providing some liquidity in the marketplace place in a limited fashion. we are very interested about the events, we're going to watch it

very closely. erik: you concerned about what chinese regular readers are doing? to be regular to and understand what the rules of the road are. we are black and white, we want to follow the rules of the road. we're going to watch the situation closely, we have great business partners during the government of singapore invested, and they are helping guide us in the marketplace. we are optimistic they will see through this crisis and understand that having more well articulate a rules of the road is ultimately better for the investor and better for the marketplace. erik: thanks for coming by. that is doug cifu. mark: erik schatzker, thank you. u.s. stocks are in rally mode. the s&p 500 pulling back losses from yesterday's global route is that the benchmark into a correction admitted to do drop. -- in mid-to do drop.

"bloomberg market day," continues in just a moment. ♪

mark: welcome back to the "bloomberg market day," i am mark crumpton. stocks of taking a leg down, though the rebound is firmly in place. julie hyman joins me now with an update. in placelatility still here, even as we are rising in the stock markets. major averages of come off the highs of the session, nasdaq versus earlier having the best day in almost four years. it's now paring some of that advance. for the major averages, we could still see the best a this year, although it might just be since february. we see how things that allow as we have this volatility. if you take a look of the nasdaq on an intraday basis, you can see the moves we're talking

about. we have been bumping around a little bit, and a little while ago taking a little bit of a leg downward here, coming down from the highs of the session. let's take a look at the sectors as well in the bloomberg terminal and see where we might be seeing now some areas of weakness start to creep in to trading. he pointed out earlier that utilities were down, but they ine doubled aloft, down 1.2% part because of higher rates today, in part because we had the acquisition blocked by the d.c. regular exelon trying to my apco. telecom services of turn down as well, that tends to be another rate sensitive with consumer discretionary and tech are still leading gains. let's take a look at what's going on there today at the 10 year earlier, yesterday, stretching below 2% for the first time since april is well above 2% again today. as people sell treasuries and my stocks. i mentioned utilities tend to be rate sensitive, their relatively high dividend payers. and a relatively high debt.

when rates go up, that tends to be more negative for these stocks. let's take a look at currencies today, the dollar has been strengthening versus the so-called safe haven currencies. the euro is down versus the dollar, the dollar rising versus the yen and the swiss franc. reversing moves we saw yesterday. we can check on commodities and where they are today, crude oil rebounding, copper rebounding, gold is trading loader. it didn't get a break when people were selling stocks, it's still my getting a bit today is the other commodities are coming back. hyman, thank you. let's take a look at the european market close, bloomberg's hans nichols has details from berlin. have fields of green, all the major equities are up across here. take a look at the stoxx 600, up more than 5%. the dax also up more than 5%, trading in frankfurt. you have to go all the way to

the ftse 500, the cac 40 up more than 4%. trading has been a little later today that it has been the past few days. you take a look of the 10 day average as germany were see the most action. as at about 85% of the 10 day average. take a look at the biggest gainers in germany, infinium by 9%, they were hit hard yesterday. you also have the auto companies making a strong comeback. bmw up more than 7%, volkswagen of 6%. even deutsche bank, which has had its ups and downs for the year is up around 6%. on the fixed income side, you have great bonds are rallying. they are up about 45 basis points, dropping interest yields there. everywhere else, yields are increasing. rants and germany both up about 16 basis points. united kingdom 10 year is trading up about nine basis points. back to you. hans nichols reporting

from berlin. vice president biden will have a major factor in his corner if he joins the presidential race. ,edge fund manager jim chanos what does this say about his willingness to jump in? that's next. ♪

mark: welcome back to "bloomberg mark crumpton.am as vice president biden considers whether to run the presidency. he would have a big name in his corner if he chooses to challenge hillary clinton. jim chanos says he would donate it binds campaign and raise money for him, as many democrats remain uneasy about mrs. clinton, has questions about her use of a private e-mail server well secretary of state don't seem to be going away. jen epstein joins me here in the studio. in washington, bloomberg

politics reporter phil mattingly, thank you both. let me start with you this news about mr. chain us willing to give to a biden presidential campaign, should that materialize, does that change the balance of what we are seeing on the democratic side at all? phil: it's important. joe biden, as he goes through this process, and we're looking at a couple of weeks before he makes a decision, he's going to need money. is not just donors like what jim chanos said, but also fundraisers, which is the more important aspect of what jim chanos said he would do. hillary clinton raised $45 million and has another 15 million from an outside group already in place. joe biden has a lot of catching up to do. the more big-money people he can get to commit, the better position you will be in, and possibly the more willing he will be to run. money is absolutely a crucial component. jen, crucial component.

what does this say when a man of mr. chain was a stature comes out and says joe biden, it even if you were willing to run, willing to help you out? jen: this is something we've heard rumblings of for a while, there are some democrats who just are not drawn to hillary clinton for whatever reason if they don't absolutely dislike her, which is also a possibility for some. there are people out there who are looking for another alternative. we're talking about the rigors involved in the hedge fund world, they're probably not going to be a bernie sanders supporter. they're looking for somebody else who is going to kind of be that electable democratic candidate. gettingn potentially into the race could be that person, especially for some people who really got engaged in politics during the obama era, have been obama donors, there's an thing very palatable about having the guy who obama chose

as his partner to be his number two. mark: what situation does this but the president in? we've been hearing of the vice president does jump into the race, he has reportedly been considering this, if you johnson, what type of predicament does that for the president in? phil: it's complicated. duringtch josh earnest the briefing yesterday as reporters try to pin him down on this. the president has said come and his team has said over and over that thinking joe biden as vice president was the best political decision the president has ever made. i think if you talk to people the white house, they have long assumed that hillary clinton would be the democratic nominee. a lot of them have cast their lot in hillary clinton, upholding what the president has done in his 6.5 years in office, should you take the reins in 2017. the big split here is the loyalty to vice president biden is sincere and extreme within the white house right now. this caused a lot of problems

not just in the oval office, with staff. it's important to note a lot of obama's team that have left the white house have started to migrate towards hillary clinton. there are some people i've talked to that of actually held out saying it joe biden get thin, he is the better alternative for them, at least on a personal level. jen, the personal level notwithstanding, where does this put democratic donors, when they hear the vice president may jump into this race, does that really swing the balance at all, where is mrs. clinton still presumed to be the nominee going forward? jen: a lot of donors that have given to her, are not going to be swayed by him getting into the race. but there are people who either haven't engaged with any candidate yet or are sort of holding to see who exactly will get in, may be drawn to biden. in may think about going that way. ,ou may see some defection

there will be people who at least have given $2700, the maximum to hillary clinton, who might then move over to fundraising for joe biden. and you will see big fundraisers, people like mark razr, they are in it for the long haul. mark: let's talk about the republican field, it seems the donald trump is gaining momentum , much to the consternation perhaps of some of the gop establishment. what are we to make of mr. trumps not resurgence, but what seems to be his ability in the face of criticism for, whether speaking ill of megyn kelly, whether making comments about immigration, what are we to make of the fact that mr. trump is still showing strength at this point? phil: that it is real. if you were talking about politics, predicting which misstep would end up being donald trump's downfall, what would cause his poll numbers to

fall off the table. at this point, nothing has. we have the latest polls come -- 15 pointsis 15% ahead of the nearest republican candidate. the support is real. that raises the question for other candidates in the race, most notably people like jeff push who has all the money and , howstructure, -- jeb bush do you go about taking donald trump on? he's got more aggressive attacking donald trump. the big question is does that actually benefit him or make donald trump stronger? mark: and jen epstein, thank you. coming up in the next half hour of the "bloomberg market day," mike mayo will join us. ♪

mark: it's 11 a.m. in san francisco, 2:00 p.m. here in new york, and 2 a.m. in hong kong. alex -- olivia: welcome back to

the bloomberg market day. selloffina has a market , but is the buying here to stay? olivia: and you will be interested to see what heavyweight banking analysts mike mayo has to say about jpmorgan. mark: in pimco twitching of how he executives. -- pimco is switching up how it pays its executives. more on those details next. ♪ mark: good day from bloomberg headquarters here in new york. i'm mark crumpton here with olivia sterns. olivia: a little bit of a relief rally, but stocks are off session highs. the dow of 240 points. or 1.5%.f 28 point in the nasdaq up the mos