impact overnight. speaking of china, new concerns over a slowdown, keeping downward pressure on oil prices this morning. for wars fans, get ready friday. a retail extravaganza. kicking off the release of the fourth. ♪ bolivia: good morning, everybody. i am olivia sterns. is, can the rally hold? surging more than 300 points right now. the price of crude right now, still below four dollars per

barrel, down by .25%. let's show you the stories crossing at this hour. breaking news out of virginia. televisiones at a studio, were shot and killed while on the air in central virginia. allison parker and adam moore. at ancident happened shopping center. police say they are still searching for the shooter. turning to some of today's business headlines, the >> china's stop -- stock index. it extended the cheapest five-day slide since 1996.

>> short-term market movements, of course you have to look at , what isou are trading going on in china has little to do with a today trading strategies and everything to do with horrible news. >> chinese stocks have lost half of their value since peaking in june. a huge deal to report today. almost $15ed at billion. that represents a 56% premium through the closing price yesterday. cameron makes oil and gas pressure control equipment. it is the world's largest oil service provider. and job cuts are on the way at the company that makes the mobile video -- video game angry birds pair they plan to let go about one third of its 700 workers. angry birds has been a smash hit.

it has yet to be able to duplicate the success. offering one hour delivery of wine, beer, and liquor in the u.s. for the first time. the online retailer already delivers to the rest of the nation. it offers quick alcohol delivery in london. u.s. clients have started suing the adultery website ashley madison. exposed the personal data of 47 million users. spain's famous festival thlebrating its 70 anniversary. everybody has to the public showers for a much-needed rinse

off. those are your top stories at this hour. still to come, while the selloff continues around the globe, up.deen management is going we hear from the firm passes chief essman officer. waiting to read the tea leaves from the federal reserve conference. a silicon valley figure figured out how to make satellite, one able to snap high-quality pictures below. there may be hope for bullish investors looking for a break in the decline from 2011. maybe a winning strategy. the chief u.s. market strategist calls the winning stock darling and is betting he will benefit from the return prayer jonathan is on set with us for the details. thanks for joining us. the dictation.h

a lot of short clients are losing money. what are you telling them is driving this? >> we were talking about at -- about this before the show started. the real question is, what was the catalyst driving this and what would create such a huge, aggregated pop in volatility and stock prices. somethingnot see seeifying, he would have to a buy in here and hold on and wait for a bounce, the question is, what do you want to hold going into that bounce and the report we put in a couple of days ago. we found if you look at the companies that are winners going a downturn, companies like names,, or many other when the markets correct, they tend to correct by a bit more. once the market turns, they are for a week in a month.

months,old on for six they continue to add value to portfolio. miss the bottom by a day or two or by an late, you still have an opportunity. the things you probably like before, you should like now at cheaper prices. olivia: like netflix, feeling comfortable just because it has been a momentum stock, even though it has still been up double since a part of the year? >> you have a bunch of companies in the technology space and consumer discretionary. and technology. have in commony is these are companies in a slower growth environment, we are seeing it with china now, without needing a strong economy. you do not tend to have a lot of industrial names or financials and things like that in here. cory johnson was saying

in a bull market, everyone likes the momentum stocks because everyone is focused on topline growth. the bear market: everything is going sour, everybody suddenly is concerned about the bottom line. debate is an interesting for the last couple of years, which is, companies are managingg that by margins more aggressively. that has been awarded by the market. the market separates itself into two camps. growth investors need and want revenue growth that value investors without a strong revenue environment have gotten rewarded to focus on margins. it depends on what kind of investors you are. olivia: have you been able to talk into buying some of these groups names in the last couple of names? >> it is hard for me to know that i will tell you we started with yesterday and by the end of

the day, we had a canadian list, a european list, small cap. a lot of interest in this and other strategies. the market turns, it will happen much more aggressively than markets think. two or three months, you should probably make up all of the loss we have here. those who get nervous here and move to the sidelines will lose twice, on the way down and then because they were not able to participate. i know we do not know whether this is the bottom. atn the market fell apart the end, all the signs of a market that was good news. interest rates were rising, a sign of economic health. growth stocks, a sign of economic health. oil prices and stocks were up

almost 3% and at the very end, the trade fell away in the market starts up again. i think you will see this take hold. we're seeing durable goods and the like today. pesci give people confidence. olivia: all week long, we have seen john numbers, the fundamental underlying economic numbers in the u.s. strong home sales, consumer sentiment above 100. >> it is surprising. is china weaker than everyone perhaps thought? no question about it, it is probably the evening we have been talking to. it will cause a weaker backdrop -- backdrop. that said, the u.s. economy that's really not going over. the key industrial gauge has been in positive territory. the question is, how correlated our u.s. equities to

what is happening in the chinese market? freefalling,a is more than what we would have thought. the u.s. economy is 15% or and trade. europe is much more than that. of that 15%, 15% of that is exposed to china. more trade with canada and mexico because of the proximity. does this matter, yes. of it is a small part exposure. it should not damage the economy. olivia: it is a great point and one of the reasons you have seen some of pressure. because china is their biggest trading. the same ask me question about russia and brazil, or countries so if tethered on the success of china, part of the same geographic ecosystem, i would be

much less optimistic that they balance as well. final question, i know you are focused on the growth stocks. are you ready to buy energy stocks? i'm a bit more cautious on that. my gut tells me the market will not jump until you have at the very least, it solidifies here and rises a bit. but, i think the underlying only in it is not supply, but we have global demand for energy so i think it will not be a winner as we look out over the next 12 months. much,: thank you so jonathan, joining us here on set. come, a big deal in m&a appeared buying international pair what does this say about the future of oil? we will have the latest. ♪

olivia: good morning and welcome back to her now i look at some of the top stories we're watching for you this morning. james holmes will be sentenced to life in prison today for the colorado movie killing. he was convicted of killing 12 people and wounded 70 in 2012. jurors could not agree on the death penalty. the panel the -- the pentagon trading a new design in wisconsin. they won a contract worth nearly $7 billion or about 17,000 light trucks for the army and marine he was picked as the maker humvees and general.

motorists are stuck in traffic about 5% more than in 2007. committed -- commuters in washington d c lose an average of 80 hours per year commuting. those are your top stories at this hour. big role playing a today. julie hyman joins us now with a look at the names making major moves this morning. julie: we're talking about the big oil field. cameron international 414.8 billion dollars. the price per share 15 636, a 15% premium to the close yesterday. shares are rising not quite to the upper price. what you have here is oilfield services eying claimant providers. ideally, they would be able to offer customers some cost savings. and analyst told bloomberg is the signal that it sees a bottom paired it does not see it

getting much cheaper. what could this mean for the rest of the industry? maybe more m&a. we have not inasmuch as you might expect. wells fargo saying we could see other companies. fmc technologies perhaps involved in some deals as well because of the ability of these service providers to buy technology and be able to offer proficiencies to the exploration and production clients. take a look at the bloomberg terminal. i was looking at the merger and acquisition we have seen thus far. this is a 10 year chart. 2014 was a big year vote -- post. in the volume, the size of deals. have not, we necessarily seen as much as some analysts have been estimating. it could be because in part, smaller companies are going to high-yield markets, to get

funding rather than selling themselves. oil has been collapsing this year. we have seen big oil declines and this chart is oil versus bill services etf. we have seen oil services, at least by this method test method, fall. oilia: all those small producers do not want to sell before. they would rather try to stay a float themselves. thank you so much. now back to the big deal of the day. julie was just telling us about the world passes largest oil services provider, buying for $14.8 billion. it will create a one-stop shop for crude oil, the latest m&a forcing companies to cut back on investments. heavier joins us from london.

he really mentioned the analysts we quote in our bloomberg story. perhaps this is a sign that there is a bottom in the oil markets. what is your take? >> think that is right. signaling that the bottom may be near. side, ifrom the traitor have been talking recently, everyone agrees it cannot go much lower than $55. what we can also see is a pickup in and they are -- activity. we have not seen much of m&a activity. premium versus yesterday's price. 5% now?

goodthink it is a very price. ,f you look at other companies at least compared to what we have seen recently in the sector, it is a lower price. olivia: how about this specific deal? what do you see in the takeover? case, proposing in november, that was actually getting to this big players together. what bloomberg is doing here is helping oil companies into finding the oil and understanding what is underground. equipment that will be

used by exxon and bp. alongside.hat goes a stop shop. we can provide you with a wide range of services. you could come to us and it is she for -- cheaper than the competition. one oil started falling a year ago or more now, we are all wondering if you would see more in the megamergers and oil is still crude below $40 per barrel now. when will we see big megadeals? >> we look back to the big oil crash we see the oil

generated two new big companies in the sector. now bloomberg is buying cameras. we had two big deals. deals, we have to go to the previous crash. are we going to see more deals in 2016? absolutely. the historian and renowned expert, he said we will's see a lot of pain. aslan they will start arriving. . look at october, november, december of this next year for a pickup in activity. much, ourank you so cheap energy correspondent for bloomberg, joining us in london.

still ahead, even a rate cut could be volatile. we will ask the chief investment officer at cio that manages have to join dollars in assets. ♪

olivia: welcome back. we have breaking news, shares of month ends up and swiss pesticide maker halted in u.s. trading right now. we are awaiting news of a potential deal. takeover $247 billion. that is about 25% above where it is trading right now. scrambling.e falling commodity prices and equity crashes are making headlines. one of the most attractive in theto park your money

environment, we asked the global investment officer in aberdeen. >> we see a lot of companies starting to come into more attractive territories in terms of valuation. companies with good dividend prospects, that have a reasonable market, they tend to continue to perform quite well. >> where do you see the value if i may interact? >> in individual companies in different parts of the world. given the degree of correction we have already seen, some parts of the emerging market, for example. we continue selectively to top out on some of the stocks we think have been overwritten -- overly corrected. we see the stocks down.

we see the degree of outflows in emerging markets, on par with the outflows we have seen in 2008, and yet the fundamentals do not report that degree of pain, it does not mean he will , but thisd correction could go on for quite a long time. are being a patient and -- -term investor, olivia: that was and richard, the chief investment officer of aberdeen investment. update, figuring out oil markets. ♪

olivia: welcome back. a sign that consumer spending rose the most and more than a year, looking for military -- orders forr all durable goods expected to last for three years, in -- plenty to discuss when they meet in jackson, wyoming. they will meet there for the annual conference. the question now is whether the officials get any hint about the timing of an interest rate hike. the chief economic advisor has an opinion on that timetable. >> there was a window. the window was open a few weeks ago, when you had strong domestic it connie, which you still duped or you had mutual international economy, and you have the financial markets at work that were in very good shape. that window has now closed. areia: future traders betting the federal push back on a september increase, fallen to

just 26%. shares of abercrombie & fitch are soaring today after the retailer posted a surprise -- profit in the second quarter. abercrombie has been retooling its business since the longtime ceo left the company in december. ford may return production of an suv to thekup united states because demand for those tracks is booming here. bloomberg news reports those to those models will be made in michigan. models may eventually be built in mexico. the subject of an iconic image from the 9/11 attacks in the twin towers has died. of cancerady died monday night. a former tank of america employee was on 80 for -- 84th floor. she found refuge were the famous photo was snapped. she was just 42 years old. those are your top story that this hour.

let's take a quick look at the markets. bloomberg stocks are bouncing back after the biggest selloff in nearly four years per the s&p is up by 33 points. the dow is up 280 points right now. seeing a return to risk assets, at least here in the u.s. youking of, we will show what is happening to the price of oil. oil is falling again today, actually, down by -- about one --rd of 1%, trading just 39. $39 per barrel. hard to believe. the last hope for oil bulls right now. juneas been dropping for -- since june. next will be important to , danarket to explain why patterson joins us from denmark. thank you for joining us. spending all of our time

on slowing economic growth, slowing demand, and searching supply to what you think action on the market should be following what the fed is doing? so far this year, but talk of the oil market has been this positive supply shock, with opec changing a strategy market share, and the reason we have first, the shots, iran nuclear deal, and recently over the past couple of weeks, demand has hit the oil market as well. . demand,se this week and below market will lose the fed because it might take a postponement of a fed hike for the oil markets to really gain some confidence. olivia: what specifically are you listening for coming out of jackson hall? dan: for any comments from central bankers in terms of

central bankers committing to keeping a hand under the economy, to ensure markets that they will not allow growth to weaken and a commitment to do what is necessary to achieve that. it take for will oil markets globally to rebalance? dan: right now, it is about the reaction to the turmoil will be. will we see a softer tone from the ecb at the meeting next week? how about the fed in september? need to postpone the previously expected rate hike. they might have to do even more at least in terms of communication and accompanying markets, that they are here to support growth going forward. olivia: finally, what is your year-end target?

dan: for brent, we are targeting , price of 54 or barrel because that is a bit higher than where we are now because we do have the people's bank of china, that they will deliver for the markets and that will lead to a rebound in oil prices, along with demand and global growth expectations. thank you so much. we have breaking news, speaking of the fed. i want to get out to julie hyman in the newsroom. julie: we are getting fed commentary from phil dudley. giving a conference talking about puerto rico but also talking about the economy. he says a decision on the september lift off is less compelling. what hasly confirming started to become conventional wisdom over the past several days of we have had the china devaluation of the rate cuts and

the swoon we have seen in the markets. bill dudley saying a decision is less compelling, though he says it is important not to overreact to the market development at he says the data has been pretty positive recently. that that is not just about economic releases, but everything, he said. the fed is concerned about everything that affects the outlook. international and financial the moment can impinge the outlook. financial market moves can affect u.s. growth or but really, again, the most important of these is the decision on a september lift off here he says it is less compelling. olivia, i know you have been watching as i have, the fed funds futures. a way for traders to bet on when we will see a rate increase. the latest i saw was a 28% chance that the market is pricing in an increase in september. 35% for october. now about 51% for december. we will see how significantly after theses change

headlines. again, he is essentially confirming, or giving a little more credence to the idea that we will not see in increase in september. in terms of any market reaction we are seeing right now, looking at the major averages, we are definitely still higher here. the s&p 500 is now up by about 1.7 points. we are doing breaking news, let's make it a two for and talk about monsanto, which now says it is no longer pursuing its proposal for syngenta. stocks were halted just moments ago pending news. we talked yesterday about how monsanto had considered raising four for syngenta. the proposalng increase in reversed break up to $3 billion, but syngenta i guess the counter proposal not meet

expectations. we will keep looking at the situation and bring you an update us and as we have appeared month-end of says it will resume its share buyback as soon as it is practical. let's see if the shares are halted still. it looks like both stocks are as the news still comes out. we will give you an update about how they are trading and more details on what exactly monsanto is trading -- is saying. olivia: investors were clearly skeptical because they had upped the offer to 476 francs. shares were still trading in the 300's. not a lot of optimism out there that a deal would get done. month-end to say they will no longer pursue the proposal. i just want to bring you back to the deadly comments. of thent voting member som say. what he says really matters. sayingust e-mailed september data. i want to bring you to the bloomberg terminal for a second. the fed fund futures rate and

the price move, the probability that they were pricing in. you are looking at 28%, which really set. this is where traders are betting is the likelihood that the fed will move in september to raise rates. let's go back three months, may 26. 46% likelihood the fed would raise rates. clearly a lot of investors are reducing their vet -- their bets that the fed will tighten monetary policy, most recently because of everything happening abroad, the global financial volatility. still ahead on the bloomberg market day, we will continue the conversation about markets and will be back with the latest on the monsanto deal. do not go away. ♪

olivia: we are one hour into the trading session in the u.s.

back with breaking news. julie. thee: i wanted to recap headlines from the federal reserve bank of new york. most notably, he is making these, then a press conference where he said the decision on a september liftoff is compelling. a rate increase in september. bloomberg just ran a story this morning, saying that now traders are looking to october as the time we would see a rate increase, even though formally, that was not really under consideration because there was no press conference at the meeting. it was said that is no barrier to a rate increase. the fed could always have on in the last moment. you want to see data unfold before liftoff. the fed has been saying that. clearly, china has a challenging task ahead. he set the large drop could have

large consequences. he said we, the fed, look at the -- the china slowdown has -- ificant i believe we do now have some sound from his comments. listen in. perspective, at this moment, the decision to begin the normalization process seems less compelling to me than it was a few weeks ago. normalization could become more compelling by the time of the meeting. kind of coming out and confirming or giving more weight to the idea that we have seen in the market and among market participants that we would indeed not see a rate increase

in september. he is still speaking and he says that china has quite a few policy tools to help it. it has been implementing many of those policy tools, including rate cuts. he says he is reasonably confident that china could handle the challenges. the first time we have heard from the fed official, tovia, since we have begun see market turmoil over the past several sessions. even as we speak, stocks are coming down off the highs of the session per we saw a strong rally yesterday to begin the day. it then melted it -- melted away and then some by the end of the session. you might have thought some of the more dovish comments coming from bill dudley, a voting member of the fomc, might actually boost appetite for stocks, but that is clearly not happening. the dow is below 16,000. up the most in the benchmark

averages, 82 points. let's get you caught up on all the market action going on around the world right now. i want to start in asia. shanghaii, hang seng, composite here's what happened to those benchmarks overnight. another 1.25%. gaining strength in tokyo, up by more than 3%. whattors just are not sure to make of the central bank of china's latest move to cut rates. it is a 15 time they have cut rates since november. in hong kong, it is said chinese stocks did not know where to trade. >> a roller coaster ride once again for chinese mainline investors. stocks wobbly wednesday, trying to weigh the impact of low interest rates on the economy. it was hard for investors to keep up on the benchmark

shanghai composite, which slow down over 1% after rising as much as 4.3% at one point during the session and falling 3.9% earlier. chinese equities have five chosen -- lost five clean dollars, over half of their value, since mid-june. japanese stocks rallied by more 22 fiveand nikkei coming back after the biggest two-day plunge since 2011. olivia: bill dudley is actually speaking at a press conference in new york right now. i want you -- i want to just listen to what he is saying. dudley: i will emphasize the technology sector is one that does not appear directly in the data. you have to go find it. again, we had a definition that we came up with, and it showed there was a lot of growth in new york city, but there is also the presence of the sector in other parts of the area.

>> what can the fed do to help the situation in puerto rico right now? mr. dudley: we tried to be helpful in terms of writing two white papers in terms of outlining the issues and what some of the options were to help improve economic reform. i think at this point, i think the most important thing would be not something that the federal reserve could do, but if congress could actually pass legislation granting the to do a chapter nine bankruptcy filing for puerto rico, which they do not have today, if puerto rico actually had the legislative authority to do chapter nine bankruptcy filing, i think that would be because it could help facilitate an orderly restructuring of their debt, which we think will probably turn out to be necessary.

>> speaking about the new york city economy, we know you emphasized that the average salary in the tech sector is 100 thousand dollars. we heard from city officials concerned that some of the job growth in other industries are theas high paying as securities industry. when a job comes back in another industry, though it is a job for a new yorker, it may not be at the same pay level as something and securities. can you speak to the wages in other growth sectors and maybe the group -- maybe the impact on the economy? mr. dudley: i will take that. one of the reasons we highlighted the tech sector, in addition to the sectors that have really contributed a lot to growth, it is the fact that

wages are high in the sector. read before, we talked about the tech sector, we were noting that fed retail trade, restaurants, things that are geared toward, as well as education and health, those tend to be lower paying jobs. atre has been job growth both the lower and upper end. these techany of industries we are looking at comes close to the average earnings in the securities industry. but keep in mind the securities industry, though it has not contributed in terms of growth, as it usually has, it is still a big and important sector. you have average earnings of hundreds of thousands of dollars. it is not an insignificant sector in new york city. looking forward, which i guess your kind of focusing on, i think there is a lot of potential for growth in the

technology center. one of the things that may not have been obvious because we were just looking at levels, new york city's technology sector has been growing rapidly. we did a blog post on this weeks ago. what is interesting is even though it has been growing rapidly, it is relatively small compared to silicon valley, compared to the seattle area. there is a lot of room for potential for the growth. that seems tongs be characteristic of the tech industry recently is that a while back, and this also pertains to the long island it has become more of an urban phenomenon. one of the reasons new york is seeing the growth, and we are seeing the same thing for example in san francisco versus silicon valley, it has been much more of an urban phenomenon recently. to things like manufacturing and so forth.

to the definitely look tech sector as a potential strong source of growth among other areas. wondering if all the job growth numbers in new york city are very positive. another story underneath those numbers because wages may not be matching those numbers. >> wages within the tech industry, wages within these different industries tend to be growing at roughly the average rate. what goes on is, for example, low-wage industries were growing relative to high wage industries, the change in the mix would have an effect on average. then of course you have the issue of polarization. the thing about the tech industry and at least some of the growth areas, not all of them, is that they do tend to be in the middle of the wage distribution or you are seeing a growth in middle-age jobs.

insofar as come if you're looking at just total income in the city, the fact that it is not seeing the rapid growth, it is definitely having an effect. typically, state and local government tax see the, when they securities industry growing, they are relieved because that is a part of their tax base. what we are seeing now is such strong -- billa: you're listening to dudley saying that the market turmoil we are seeing is not about us, and also, a decision on the september liftoff now seems less compelling. i want to get out to julie hyman, in the newsroom with more. julie: we mentioned fed fund funded, as they already diminishing likelihood as seen by traders, that we would see september lift off just before dudley's comments came out. anures were pricing in about

8% chance of an increase in rates and that has now fallen 24% following his comments. it is now 32% for october. that is just one measure of when we might see a rate increase, based on the perception of traders, not on when we will definitely see rate increase. those of the making these comments and talking about the decision of september lift off being compelling. he says the fed's concern not just about the economic data that comes out but about everything that affects the outlook. says inflation has remained benign. the fed has said things like lower and higher oil prices are transitory and the fed tends to look at inflation excluding

costs, ask living other of food, things have bounced around a little more. he does say do not ask that oil to fall and the dollar to rise indefinitely. all of these comments coming out at the press conference. he is also speaking about puerto rico. the new york city economy as well. about china ak little bit. he said china has a challenging task ahead but it has a few policy tools and he is reasonably confident china can handle what it faces. olivia: thank you so much, julie hyman and bill dudley, the only voting member of the fomc. what he says carries a lot of weight. on september rate hikes is to be less at the moment. breaking in the past couple of minutes. monsanto saying it is no longer

pursuing its current did. jason joins us now on set. why did the deal fall apart? jason: this will be the fifth year of lower incomes in the u.s., lucrative markets. a tough moment to be raising your bid. the deal was extremely challenge from a regulatory and political standpoint from the get-go. you're seeing a surprise that syngenta is up on the cancellation. in every got quite near the offer price and so, some relief there. olivia: we were just showing shares of syngenta down, in fact trading below where it was in april when monsanto first made the offer. there is an overall concern that this hunger for evermore scale was representative of a weaker organic growth story in the whole business. olivia: that seems to be the

logic of most. jason: right. that is driving the concern all along. monsanto had good and solid growth, and then in order to do that, it looks increasingly like they would have to buy that growth. apart, you see a little bit of relief from shareholders, i think. olivia: thank you so much. thank you for running appeared to help us break it down, that monsanto is no longer pursuing is fit for syngenta. still ahead, tiny eyes in the sky are helping investors make more informed decisions. we'll tell you about the outerspace adventure. i will be back with pimm fox in just a moment. ♪

♪ olivia: pimm: welcome to "bloomberg market day."

♪ olivia: good morning and welcome back. pimm: we are 90 minutes into the trading day. let's take a look at how markets are trading right now. a rally going on in stocks. the s&p gains 1.5%. dow jones also adding more than 1.5%. the nasdaq up one and three quarters of a percent. also moved higher for monsanto. olivia: before we get to the broader markets, let's check in on monsanto and vi syngenta. men cento is walking away from its bid for syngenta. they were higher on news that bloomberg reported that they had upped its offer for syngenta and syngenta shares