alix: the price of oil is headed for a third month of decline. up,ing no signs of letting even as the glut persists. betty: serena williams is making history even for sitting on -- on the court to even before stepping on the court. we will tell you why. ♪ alix: good afternoon. betty: we begin with a look at how the markets are trading. verge ofe on the delivering their worst month in more than three years. we are paring back some of the losses today. we're coming off of earlier declines, and often are intraday lows. dial rebounding from lows as

well. disclosing that there is a state increasing his stake in phillips 66, that has the stock moving up a good .mount a quick check on oil prices. they are also rebounding as well . mednax is higher. alix: this was an unbelievable reversal that happened about an hour ago. saudi arabia has been very specific on maintaining market share in competitiveness.

that is a good indication of where they think the market should wind up, but nevertheless, the market is still very short that any of these headlines will have a huge action when it comes to those recoveries. it was at $38 or so last weekend. rebound.ible alix: following the most in a week, with equities declining. correlated to any sort of interest rise. heading towards the highest level in the terms of the end of the month in 2011 as they stack back -- step back due to the potential of increased.

this is after the chinese premier league signal support for the currency. what is most striking is that you have seen a rotation into the euro and the yen as a safety plan, not the dollar. last week when that hit that was very relaxing -- perplexing. now to look at the top stories is our. an analyst who predicted that they selloff came in and around is not quite over right . the wild card is whether the government will be heavy-handed in trying to provoke talks. for the first time we are seeing the government in china outside the market. right now thatt they are trained to influence

the bottom. that does not happen. alix: he has developed indicators to help market turning points. betty: walmart is spending $1 billion to raise wages and increase training. they are cutting some workers hours to keep costs in line. those employees are asked to leave shifts early or take longer lunches. washington dc regulators approved it. they can't than 30 days to request reconsideration. obama is on his way to alaska for the start of a three-day trip. he becomes the first sitting president to visit the arctic. he is also backing a new interior department decision to

rename mount mckinley by its traditional name, the knowledge. he will go through the wilderness with survival expert bear correlative. betty: democratic senator jeff merkley is the latest to say he will vote to support the agreement. the president will likely be tell the legislation aimed at killing the deal. it has not been a good year for endowments that nation's public universities. they are reporting returns that failed to meet industry standards for the university of texas and only a 3.3% return. ohio state indiana university on overall below 5%. alix: those are your top stories. ofis the last trading day

august. nothe housing sector has called fears. betty: but if you're watching bonds careful you might have seen all of this coming and you have been braced for these declines because corporate bond yields and treasuries have signaled a stock tumble in the past. that is what transpired last .eek joining us now is a strategist from wells fargo securities. asked the question, who is right, the bond investors or the equity investors? in terms out, it might be defined investors were correct -- bond investors who were correct. >> i think that bonds leaves stocks, but they can lead by long margins.

sawhe last cycles, what we were spreads and starting writing -- start widening for three years and the thing the 2000.n . have these times of divergence that last a long time. right now we had a pretty significant correction. betty: when credit spreads wind this much, we're down 12% from the cake. past, they have been at a different level. bones,e to the yield on some suggest that equities are fairly attractive with relative value. you look at these things in historical perspective for you also have to consider where we are today and we did have a

pretty significant correction. if we do see economic deterioration on the horizon, i will have to change my mind. economics,outcome of over the next 12 months as a worsening of conditions. we see a financial market turmoil certainly a lot of transient commodity price and turmoil. timeecessarily a broader in the economic situation. when you wind up looking at stocks, after the last , cheap is not always good enough. >> we are growing. we still have earnings growth between zero percent and 2%. i think that is what is

important is that sectors like hell are still seeing earnings are stilllike health seeing earnings growth. see going 12 months forward, is that the worst of the pages done if they do not fall anymore. unless we see the housing market to, the consumer stocks turnover, the pure stocks turnover, and then we have a much broader and deeper correction. for now it is a tale of two world. alix: if you take a look inside my terminal everything this china all the time because it is so telling. it is see oil prices and oil stocks moving in tandem, and continuesaw oil prices to slide while the energy stocks held up. a story of oil prices

catching up? >> and probably is. we will see a lot of change over the next six months. a lot of it ended up on how rapidly energy sector estimates fall relative to analyst expectations. right now they are extremely low. for earningsprice on the energy sector is somewhere around $50 a barrel. i do not see it doing too much higher on oil in the next 12 months. oil prices fall further, saying we are pressing $30, they will have to correct because the analyst estimates will have to fall. that will affect the estimates even more so because analyst can perceive the price betty: but not the sign of a healthy market that we are so dominated by what happens in one or two sectors? maybe it is time to bail. >> it is certainly a symptom of

a market that is running on very few legs. that has been the case all year. it is not just now, it is not just 30 in june or july. , health caree year and consumer names have led the market higher rate sensitive stocks have liked the market for this this year. what i would worry about is we start to see a much bigger consensus leader searches -- leadership start to take hold. what's worse, if the consumer starts to lose leadership, then we have a bigger problem. in the way it stands now, you could move in the others, and see the market hang in there. my sense is a lot of that is actually passed. do i think this is the absolute bottom? i don't know.

we will see some volatility, until we see oil prices stabilize, and still we see china stabilize. time: i feel like half the -- i was able to finally get out and walk around and enjoy your vacation. i was with them off, my kids, back-to-school shopping, and they could not notice that help but notice that there will several stores that were closed. we were counting them. it was enough for me to say our week in some sort of retail recession it is that a signal that the consumer is turning over? >> i do not think if you looked at the retail aggregate he would tell you that but if you exclude

prices and vehicle sales you have a pretty stable pace. what you're witnessing is a broader transition in shopping behavior and spending patterns to online retail and away from brick-and-mortar. the retailers themselves are migrating their praise -- business models for the online mobile trying to appeal to the way the consumer shops today. you're not feel the one stuck in your office all day, too busy to get into the world. we are doing long hours in today's economy, and part of the result has been a lack of time to actually move ourselves to the location to do the shopping needs to be done. alix: interesting stuff. good to see you. still ahead, stocks are following. betty: other stocks moving the

market, right after the break. ♪

alix: welcome back to the bloomberg market day. you're looking at new york city on this hot day. it is 95 degrees outside. betty: let's get a quick check of how the markets are. matt: i was just looking at gip and an intraday graph of my terminal. , and really off on

the s&p. -- still't list for itn on this nine plays, but is now and line the dow. there is one big turnaround we saw with health care today. way, they have, with a drug that cuts cholesterol the same as a whole bunch of other companies that make a ton of money selling .rugs that cuts cholesterol

a general the health care index and as an a bunch, result, the price of the underlying commodity has fallen as well. see a huge spike here after the opec announcement. we are down to dollars, and now up two dollars and last week we were down $10 from this. that is pretty serious, a $10 move and oil in just a week. and a lot of it coming today. that is why he see a big game in the energy index. every chart that showing people earlier. it shows you over the long-term. here today, the white is the price of oil.

can see this big bounce at the end. you can also see in the orange what has happened to refiners right they have done quite feel while the oil has done poorly. you see big gains for refiners today. i will hand it back to you. betty: warren buffett taking the big stake. we will talk about that in a moment, but he does not have been best luck in the oil and gas fields. alix: we will stay on oil after the break. leaping late last week and erasing all of august slices rate can you trust the reb ound? ♪

betty: this is an bloomberg market day. alix: now for a look at the top stories. at odds inill silicon valley need first with new technology. their operating system will make it easier to block ads on iphones and ipads. that could hurt publishers who want to generate ad revenue from a growing global audience. betty: do movie releases from her about and lions gate to fueling for the first time. develop original movies rather than stick with films it has to share with others. alix: a supergiant. lies just off the coast of italy, and they say natural gas revenues will help the company offset slumping oil prices. billion euros oil.

that is a look at the top stories of this hour. a pretty huge discovery. type of project, is the one that saudi arabia wants to put out of business. story reading the earlier, i'm surprised that there is even feels left to be discovered. you would think that we have already gone through them. and apparently the arctic is now up for drilling. betty: crude rising to a work toh high as they compare their prices. that we shared concerns

strength may not last. >> global demand is much lower than was anticipated when the companies spent all that capital to try to increase reduction in decisions made in 2011, 12, 13 and 14 were intended to meet demand. we are not going to meet that demand because global growth has been much less robust and was expected. obviously, much more optimistic view, saying that we need the oil demand will pick up. theis credit, we did see .ickup betty: they came up with the report a few weeks ago were they to have ado expect supply sometime in the next year.

signalght be another that we may be in the bottom here. warren buffett has gone back into big oil. petrol, made three point $5 billion, but then he bought into conoco phillips right , he did not lose money, but the timing was bad. him tryteresting to see to gamble again and get back into the market. alix: the distinction is that this is a refiner. their margins are awesome. they are going to buy and sell. as long as there is it is virgins and the two prices, these guys are making bank. they problem is at some point margins are so good and they make so much product and we see

a product lot. glut.t but they are diversified. they are not just a pure refined r. alix: that is great. that is another part of it as well. is a hint as went to those merchants will actually get enough. -- margins will get eaten. much more ahead. ♪

betty: welcome back to the bloomberg market day. the so-called deflategate dispute goes on.

backrady and roger goodell in court today, failing to reach a court agreement. game is fighting a four suspension, and a union representative said that they tried. >> and think for us it reinforces the desire and the need for an independent arbitrator. betty: the judge says he could announce a decision as early as tomorrow, but no later than friday. tropical storm your account brought high wind and rain on friday. the obama administration is drafting potential sanctions aimed at punishing china and other countries for hacking computer networks. bloomberg news says the measures have not been decided on yet. concern that the news

could trigger more online hacking attacks. samsung has lost 40 $4 billion in market value since april. shares were down 8% this month. a galaxy is being undercut at the high end by the lower phones. that is a look at the top stories at this hour. we have some breaking news right now, more from the department of justice and the currency rigging investigation. matt: the department of justice is looking into a couple of banks, specifically deutsche bank. there are other banks, for rigging of currencies. we are talking about the brazilian really all, the argentinian peso, and a couple of others. we hearing this from people million with the matter, not a named source within the justice

department. it is under half a dozen investigations, and it is cooperating. the department of justice using this cooperation to interview traders and fund managers and analysts about the possibility of rigging currencies. probe are talking about a that is involving deutsche bank, and other banks as well. it is about currency manipulation, incurring the brazilian reality including the russian ruble, which is a big part of it. bloomberg news just rigging the story. we will bring you any details that come along as they appear on the wire. betty: thank you. defense secretary ashton carter was in silicon valley last week offering research this that the antagon views the industry as big part of national defense.

we should mention that bloomberg lp, the private company of bloomberg television is an investor in andreessen horowitz. emily chang sat down to see what he thinks is behind the market volatility. >> the markets have been trying to adapt to a new economic data coming out of china about issues in the chinese economy. and you have covered this extensively, global currencies have lived against american multinationals in the last six months i think wall street was slow to adapt to the reality. when of a company comes and says we missed our numbers because of currency changes, is that it is destined reception perception as well as an excuse, but it has been shown to be true. the u.s. is doing really well, grea.at is showing

emily: how do you think the shakeout looks when it comes to private tech? >> situation normal. some of them are going to work really well, some of them will not work at all. it makes sense to prepare for environments in which you need to raise money. it company should figure out its own strategy. sequoia, the headline in sequoia, what does andreessen horowitz a? 2000 eight was not are good time. a general attitude is the measured, be cautious, careful, but also invest in growth. push forward and take down the

emily:. emily: kagan founder ceos. what will you think will happen will happen at twitter? >> at the be great. betty: we want to bring in emily chang with us. , in that private meeting with the secretary of defense before your interview. what was the take away from that conversation? it was really interesting because secretary carter has been out here four times meeting with silicon valley leaders, because he is dead set on having the pentagon become a place for innovation, integrating new technologies. andreessen is a huge investor and a number of different securities.

the pentagon has become a place that is already old and dodgy, but secretary dodgy does have these things online. and recent things we are facing entirely different threat landscape. it is more dangerous than ever behind -- before. , we wereggest threat against organized crime, and now they are against nationstates. the threat profile has changed dramatically. it is inherently asymmetrical. the defender has to be correct 100% of the time. so defense is always good to be a challenge. we're still in the process of

catching up to that. emily: if you look at their portfolio there is a lot of that in this space. betty: they are also invested in number of cyber security companies. is there a bubble in cyber security investment? emily: many think that there is a separate security level happening, because i is getting out of control. valuations reach higher and higher. the interesting thing is you .ave a lot of niche companies but marc andreessen things we live in an online world, and this is a place where a lot of

innovation can and should be happening. it certainly feeling a lot more optimistic. betty: thank you so much. emily chang of bloomberg west. apparently it is not easy being a millionaire. the billionaire behind minecraft says he has never felt more lonely, even walking out with celebrities. ♪

betty: welcome back to the bloomberg market. let's get to matt miller. one big stories that we look to mb. continuing our cli

matt: 16,000, 609 level on the dow. it is more evident from my imf, if you come into my terminal and take a look at this bloomberg function has been one of my favorite functions since we developed it right it shows you a picture of the entire s&p or whatever index you decide to put in here. this morning when i pulled this up and was red across the board. and only a tiny bit of green and health care. well.s starting to do we can take a look at oil and you can see we have had an amazing rally in the later part of the trading session so are --

so far. here is what you see, because most of the members of that index are producing oil and trying to sell it. 4755 a barrel -- $47.55 a barrel. opec cannot a statement saying that it is now going to talk to other producers about trying to oil back to a fair price they will be doing a little collusion and the market likes collusion, andong as it is not illegal in this case it is not. the -- that helps the refiners index you can see that this morning we started out in goes onn, and down it concern that there is a newer and cheaper way to lower your

cholesterol and that is going to makento the profits that the older more expensive way of producing cholesterol. -- reducing cholesterol. back to you. betty: thank you. now i look at the european market close. here is more art from london. mark: 8%. the biggest monthly drop since august 2011. every single industry group on 600 fell in august, led by oil companies mining 16panies, chemical companies billion euros of value disappeared from the chemicals industry and the oil and gas industry lost almost 16 million

as well. and next on the she month to the -- an astonishing end to the month. ?hen will the fed raise rates that is the question now. the french mobile telecoms reported weaker than expected profits. plans to widen its cost cuts in his generation unit, according to people familiar. and the italian oil company said it has discovered a supergiant natural gas field offshore egypt europe, 900 billion euros of value that has to sit. performing best stock in europe in august? the betting company up by 20% that plans to merge with others.

back to you. betty: now a look at the other top stories this afternoon. along salefive-year streak may be coming to an end. they increased sales for 64 months in a row. it is in jeopardy because of a calendar quirk that pushes labor day weekend and the sales that come with it into september. last to the holiday weekend made up 20% of august sales. suzuki will not go it alone. arbitrators have upheld requests withrminate an agreement volkswagen. site, video streaming more than 400 channels of facebook for free. he will get the most popular tv shows, but you will be able to programs like the best of john stewart. that is a look at the top stories this hour. meanwhile, investors are not the only one dealing with anxiety.

minecrafthind broadcast his stress on twitter. string of melancholy tweed, he wanted to everyone to know it millionaire. a last year sold his videogame company to microsoft for $2.5 billion and tweeted out when we sold the company the biggest effort went into making sure the employees were taking care of, and they all hate me now. articles about my depression, i'm sitting here having a nice day. joining me now is mark crumpton. mark: i am glad you and i did not speak about this beforehand. really?

that is the only thing i have to say r. betty: it is hard to feel sorry for him. he is living the dream. mark: are the employees not happy? this deal asail in well, i believe but it is interesting because couple of weeks ago we interviewed the ceo of gravity entertainment who had employeesof his $75,000, because you do not get much more happier after that. money does not buy happiness. mark: it is something that our parents told us, something we learned at an younger age, but it is true. thenssion one minutes, and wonderful the next minute, there's something going on in do not understand. is a very fortunate man and a very blessed man to be able to

have that much money. you are doing pretty well, sir, that is all i have to say. betty: their articles about him and his quirky personality and how he is an introvert. i cannot imagine anything worse uck partying. and what to do whatever i want, and i never felt so isolated. i hate play amateur psychologist, but i'm just wondering why. you do not have to be partying with these people. betty: do you do not gre. speaking of vacation,

where were you? it reminds me of something that warren buffett said one time which is, he is richestd's third w man, and the levesque african time again what it is like having so much money? that moneyething should not change you, and if it does, it makes you more of who you are. if you're already a jerk, it makes you more of nature repkerk. with letterman asked him, do you ever feel guilty about having that much money when so many people do not? he said it is a guilt i'm more than happy to bear. betty: the grateful. mark: we have to talk about politics. hour, up in the next half

,emocratic and national polls and phil mattingly will join us to talk about the bloomberg politics. we will have that, coming up. betty: i will see you in a little bit. much more ahead on the bloomberg market day. the u.s. open is underway in queens. we'll look at how serena williams is making street even before her match begins. ♪

betty: u.s. open is underway here. serena williams been going for title. she has already made history. the women's singles final

tickets sold out before the men's final. interest? this >> you know why. it is not just serena, one of the most dominant athletes in the world, she is going for the calendar slam. like to say i was there when. this one of those momentous times. tole not the easiest path the final, who would bet against her? betty: how is she playing right now? >> very well. she is winning lots of turnover. she is the dominant player. she does have those matches where she might lose the first set. the gl of herself, and she is out there and wins.

howy: give us an idea of powerful she is off the court businesswise. >> she has no maria sharapova. she has had some issues on the court with her temper. but this career slam, and where she is now, a spokeswoman for women's tennis, i would not be surprised if more companies come calling for her. not only strictly athletic, but outside of tennis as well. she is a role model for young women. betty: that is the curiosity. what happens to an athlete when you get the grand slam and those titles? what changes after that? >> there is a halo effect. anytime you win a major, dispenser in a different category. she art he has a casual fan recognition.

useis all about how do you her. it is not just serena the athlete, and serena the person. 10 said, can you give me minutes, i dress for espn, i would like to dress for bloomberg she has an understanding of what her messages, who her audiences, and how to best convey it. she has lots of opportunities. betty: on another topic, football. they are back in court. they are done. then failed to reach the settlement. >> the judge was happy with the effort, but there was no deal. so now we wait for as late as friday, and we will find out whether tom brady will suit up, or not. betty: 20 think is the likely

outcome? >> impossible for us to determine. it is very high standard that he is trying to overcome. a chosen arbitrator. did he go outside of what was it the scope of the collective targeting agreement? that one be what he has to prove. betty: good to see you. much more ahead. a formere hearing from number one women's professional tennis layer. that interview is coming up at 5:00 p.m. on all due respect. ♪

mark: this is the bloomberg market day. stocks bounced off the lowest but could still be headed for the worst month in three years.

oil is higher following a new statement from opec. quite a new poll shows bernie sanders is now within seven percentage point of hillary clinton and i will appear we will look at what it could mean in the rate -- in the race to the white house. the island passes governor gives advisors another week to come up with a restructuring plan. ♪ betty: good afternoon play -- afternoon. mark: let's look at the markets at this moment. stocks on the move after the worst month in more than three years. the s&p's teary that some of its losses today. nearly .4%,own trading on $1981. the dow jones industrial average is also rebounding from its lows. the dow is down 1 -- one third of 1%.