market day. mark: long beach handles about 20% of the tonnage entering the country and we will talk with the ceo. olivia: and with president obama set to reinforce an historic accord with iran, we will tell you what this means economically for the u.s. worthour sports contract the astronomical costs? ♪ mark: good day from bloomberg will headquarters in new york. i'm mark crumpton here with olivia sterns. i think we can say that today was about mario draghi. europeanhe ecb moving markets and we have a little bit of a move in european equities.

the nasdaq is off of the red, pretty much unchanged from earlier. 100 -- nearly 1%. let's show you what is happening to u.s. debt, what is happening in the treasury market. it is a mixed picture depending on maturity. no longer unchanged. let's call it unchanged. let's show you what is happening to oil. oil was catching it a little bit on the back of those comments from mario draghi, who said he would step in to support the european economy further, perhaps extend the quantitative easing they launched earlier this year. rise, oil and risk assets but i guess it petered out. mark: and they are looking at inflation as well, because they have the same target as the federal reserve, the ecb

inflation target of 2%. olivia: indeed, but further to go. mark: yes, they do. olivia: international news, a federal judge ordered a kentucky clerk to jail after she refused toissue marriage licenses same-sex couples. the judge said she would be jailed until she complies. saying that she answers to a higher at 30. -- higher authority. mark: mario draghi said he will work to keep the european economy on track. he also had this to say about inflation. mr. draghi: we may see inflation in the coming months. we tend to think these are transitory effects mostly due to oil price effects.

however as i said before, we will closely monitor all .ncoming information and the council wanted to emphasize the discussion we today, its- we had willingness to act, its readiness to act, and the capacity and ability to act. the: mr. draghi also said stimulus is intended to help get inflation back toward the ecb target of just below 2%. the program is slated to run at least through september, 2016. and hungary's railway company says it has suspended all train west of the capital because of the migrant crisis. officials say it is for security reasons. more than 3000 refugees are currently camped outside the train station in budapest, many of them from war-torn syria, trying to get into western europe. marketre at home, turmoil did not keep the biggest part of the economy from moving ahead. service industries are moving at close to the fastest pace in a

decade. as according to the im nonmanufacturing index. this sector makes up almost 90% of the economy, including everything from farming to retail to restaurants. verizon will add mobile millennia for about $250 million, the latest acquisition aol has made to expand its presence in the market. bloomberg spoke to the ceo, tim armstrong. >> arm -- online is switching to mobile, and in the business is that we are in, we are able to turn aol around, do a verizon transaction, a global partnership with microsoft, and the transaction we have just announced with millennial, all targeted at essentially what a major fundamental shift in the way that media and advertising is can tuned and monetized on video and mobile. mark: let's take a look at how the shares of aol are doing.

let's take a look at verizon. it is up about .8%. up nearly media is 30%. wow, look at that. olivia: and sticking with the green theme, the green giant isn't so jolly for general mills. the company says people are not buying frozen and canned vegetables anymore, so it is selling its iconic brand of for $750etables million. her are working to shed hands in favor of items that appeal to modern tastes. coming up in the next hour of the bloomberg market a, much more, including president obama. he got the votes on the iran deal. now we will tell you what the ramifications are for the u.s. economy. mark: the days of cord cutting are changing the landscape for sports providers like disney and espn. our support contract even worth

it anymore? olivia: and the ceo of north i'm orozyme will be with us. u.s. investors are anxiously waiting august jobs reports. it is out tomorrow. the stakes could not be higher. olivia: it is the final report before the fed september policy meeting when officials will way willigh a fed hate -- weigh a fed rate hike. karl joins us now. let's start with the jobs number tomorrow. is there a number that confirms the fed will move in september, or knocks it off the table? karl: the fed would like to dispel the notion that they are dependent on that one number. i think it will be difficult if we get a strong reading of over

100,000. for the fed to ignore the fact that whatever is happening overseas, there is an immense amount of momentum here, as evidenced in the anecdotes from the. -- the beige book. it will be difficult to dismiss. speaking earlier when we began the top of the hour about what happened earlier today in europe, with the ecb president mario draghi basically saying more stimulus could be in the offing. weigh in to -- the decision at all? carl: i don't think so. first, the european central bank only began its quantitative easing to help us economy earlier this year. the fed has been doing this in slate 2008. secondly, -- doing this since late 2008. secondly, we have very direct sales to china.

it is less than 1% of our gdp. we do not have a lot of domestic investors who own shares of china. the commonid, elements of low price of energy and commodities is pushing down on inflation, which the fed would like to see at 2%. if the situation in china does global,ore regional or it would be hard to say that our outlook would not be affected by that. olivia: i think something everyone in the market is trying to make sense of right now as to what it went the u.s. -- to what extent the u.s. economy is exposed to the equity markets and the chinese real economy. what is your take? carl: in that limited context, i would say, very modest. i have read the inflows and the s&p 500 and only 2% are to china. but if you add other emerging markets in asia and elsewhere, suddenly those numbers tend to grow. economic -- recent

u.s. economic numbers have been good, but they predate all of this uncertainty around china, which will affect the outlook for the fed going forward. it will be a lot for the committee to digest, both as they make their decision and as they published the forecast that will accompany it. mark: one of the ironies here, because i was reading some of the mission that you sent us that china's wealth has grown, but it is spending the same amount of gdp as it was five years ago. clearly, that cannot be sustainable. have china has wanted to the same kind of diversity between internal and external demand that, let's say, we have in our country. we rely on about two thirds of our own spending for gdp. they try to encourage that and wealth has been created. but some of the uncertainty and demographics for china have in limiting that spending. when demographics fall, they don't have anything to fall back on. olivia: the economy now, we are

hoping for 7%, growing at the slowest rate is 1990. we just witnessed the biggest equity selloff since 1996. is this the hard landing that we were all afraid of? carl: goodness, i hope not. know we hope that the chinese have the reserves to spackle their growing system and achieve stability. but one of the things that hurt them in the past couple of months is that policymakers seem to have gone back and forth on whether to let the currency slide or let the equity markets find their old level. and they have gone a little bit from the reputation of doing and everything -- doing it with the right to the gang that is having hard time figuring things out. that affect has cascaded through the markets. mark: which markets are the most vulnerable? carl: certainly those who are in peripheral asia bruxelles sell a lot to hong kong have been affected. -- who are in peripheral asia, who sell a lot

to hong kong have been affected. -- sells aelt a lot lot to hong kong. and other economies like venezuela and russia are working to keep their economies from descending further. the ripple effects are there and i hope the fed has a good handle on it when they get together in a couple of weeks. mark: thank you so much. ahead, president obama now has the notes -- the preserve thes to historic vote on iran. we will study what it means for the u.s. economy next. ♪

mark: welcome back. i'm mark crumpton here with olivia sterns. olivia: matt miller joins us. remember when i said stage a rally, well, it looks like it or has done that now. now they can go on a four-day weekend coming up this afternoon. the s&p 500 holding barely in the green, but really unchanged after a 1.5% gain. unchanged on the dow jones after gaining 170 points at a high. and the nasdaq is down. bigs jobs number tomorrow, and i guess the market thinks it's very important. we will see how they react to what they expect the fed to react to that jobs number. we do have a big gainer in frontier communications today, up more than 5%. verizon's wireline business in florida, texas, and california. numbers.roke out those

because of that, mcquarrie said it likes frontier. it is on one of its focus list and that is why you see the gains there. netflix has gotten absolutely crushed over the past week, basically. i want to bring up a two-week chart and show you the driveway seen in the past five trading days, down everything will day out of the last five. we have seen in the past five trading days, down every day i've been -- out of the last five. original shows like oranges new black have driven heavily subscriptions. again, theydo that will return to its glory. are a long-term investor in netflix, you are a happy camper, because it has more than doubled. and take a look at my terminal.

up.will see price has kept the price is this white line here. it has soared and really exceeded analyst 12 month price target, which is the yellow line, until just now. analyst love this stock and can hardly keep up with it. i will look at the basic anr page. 23 guys, 16 hold, and six cells. sells. sell.ix say it is a mark: matt miller, thinking so much. republican presidential candidate donald trump has signed a pledge he will not run as a third-party candidate. the republican national committee had issued the challenge and trunk met with armitage -- donald trump met leader reince protists

-- reince previous. a judge has signed off on antitrust complaints against apple and google. a group had said they had conspired to avoid hiring from each other. the judge awarded half of what had been requested. has no net orders for its jumbo jet this year. just canceled orders for four of the plane. there has been little demand for the jets in recent years. orders of 29 unfilled the 747. mark: cvs stopped selling -- cigarettes nearly a year ago. they claim they have reduced purchases of cigarettes .egularly 1% in 13 states they said the smoking rate in

the u.s. dropped to 15% in the first quarter of this year. those are your top stories at this hour. olivia: as of yesterday, president obama has done it, secured enough support in the senate to override a potential veto of his accord with a ron. that means iran is closer to emerging from some of the financial restrictions in place through 2012. mark: will this mean for the rest of the world? think petroleum, planes, and pistachios. phil, who are the top winners and how are they winning question mark phil: the obama administration has tried to lay claim on the diplomatic and international fronts. the clear winner is the ron itself. 20 -- is iran itself. 2012 and 2013 were tough years, but by 2016, the iranian economy

is expected to grow by 16% when the sanctions relief starts to kick in. winnerself is the big when the u.s. starts to ratchet back those restrictions. the other thing you have to look at his european nations. they were trading at a level of about $32 billion per year with iran before these sanctions kicked in. that number dropped to about 9 billion dollars. one thing that we should note is that italy and germany in particular have been chomping at the bit to start training again with iran. have already put delegations in the country to start talks with them. the expectation is that european nations will quickly pick up again with that. and then industries is the other one you have to look at. inside iran, pistachio growers, about $1 billion per year with their crop. specifically pistachio growers are allowed to trade with the u.s.

a lot of sanctions that the u.s. currently has with iran will remain in place on a bilateral basis, but the aviation industry is allowed to sell licenses to iran to replace their depleted fleet. tovia: i've actually been iran and you you know what i brought my father home? is -- he is, because he loved them. phil: are they as good -- pistachios, because he loves them. they are they as good as are built? olivia: they were wonderful. these sanctions being lifted are not carte blanche to do business with iran. phil: the international sanctions regime as it stands look him apart. the u.s. sanctions are very much in place. you can point to the aviation industry is one of the few, if not only, industry that will benefit from this. there is not a release of

restrictions most utterly when you talk about technology, and obviously weapons. the u.s. bilateral sanctions with iran do remain in place. but again, it is the european countries and industries that have been pushing for this. that is who will benefit the most when it comes to the international component. mark: phil mattingly joining us from washington, thank you. daysa: still to come, the of cord cutting are causing huge headaches for sports providers like disney's espn. look at whether live television sports are worthy astronomical costs. ♪

mark: big media companies are dishing out big bucks for sports coverage. companies like disney and time warner are committed to paying $170 billion for the rights to

air sports programming like the olympics. live sports attract huge audiences and lucrative advertising deals. but with the media landscape changing, is this sustainable? that is the question we put two paul sweeney. he joins us now on set. the numbers these companies are paying our eye watering. is it worth it? paul: historically, it has been. sports have really been the one source of programming that consistently delivers big audiences. advertisers are willing to step up and pay. you hear about up to $5 million for a super bowl ad, and consumers are willing to pay big fees every month to get the espn ' of the world.

sit has been historically a big model. mark: we did mention many customers cutting the cord. does that affect this? paul: we are starting to see a tv discussions declining in the past year and a half or so. the real canary in the coal mine was several weeks ago at disney's earnings call, when they disclose that espn lost about 3 million subscribers. if espn is seeing cord cutting, what is everyone else experiencing? and you have to step back and see that there is a mismatch expenses,venue and which are fixed. those are the fees you have to pay to the sports next works -- sports networks. olivia: will espn go over the top? paul: a lot of people think that they are. we have seen two of the leading players in the genres -- in

their genres have done it. iger in the last earnings call said no, that he just doesn't see it. the reason he doesn't see it is does he has over 100 million foreholds paying per month espn. there is a lot of money on the table. olivia: people love this stuff. they will pay to watch the game live. paul: yes. mark: paul sweeney, thank you. olivia, i'm out. it is a long weekend. olivia: you are leaving me. mark: it is not personal. olivia: i'm sad, but we have much more coming up on the bloomberg market day. much more with matt miller after the break. ♪

olivia: welcome back. i'm olivia sterns. let's get straight to the stories making news at this hour. picking king of saudi arabia will meet with president obama

tomorrow at the white house. the king of saudi arabia will meet with president obama tomorrow at the white house. an advisor to the saudi throne talked about the goals of the trip earlier on bloomberg surveillance. from the political side can mother has to be continuous understanding as to what happens to iran. side, from the political there has to be continuous understanding as to what happens to iran. if that there is agreement, we see a violation, as well as the west, we will act and take measures. and there have to be security measures, as always, that the u.s. will provide and protect the region, something it has done in the past. that needs to be a reassuring point. olivia: the king took the throne just eight months ago. he was scheduled to visit in may, but it was postponed because of tensions over the

iranian deal. president obama now has the 34 votes in the senate that he needed, and that will be enough to sustain a presidential -- a potentialto presidential veto if congress tries. aprosecutor in paris says wing part that washed up on the indian ocean island did, indeed come from malaysian flight 370. that is according to a french news agency. it is the first trace of the plane to be found since it vanished in march, 2014. and the guatemalan attorney general says she will ask the court to jail the president during a probe of alleged fraud and bribery. he resigned at midnight and congress has accepted his resignation. a probe of corruption led to the jailing of his vice president. those are your top stories in this hour.

more to come in the next half-hour, including with the extreme selloff of commodities, we will tell you which ones are vulnerable to shortselling. alix steel will join us. that and the port of long beach, one of the busiest container ports in the u.s., find out why u.s.uest thinks the economy is strong. and inside the trump empire. that and much more coming up. if you are applying to business schools, you have just one week to polish your application before the september 9 deadline. the roughly 900 seats in a harvard business school class are rising. the dean is working hard to give it that way, even though fewer industries aren't actually fewering harvard mbas -- industries are actually demanding harvard mbas. i think the mbas perhaps

even more wicked than ever before. if you think about the expanding lifespan of most people who are in their working careers, most by 45, thered reality is that most people have to work until they are 75. you have to prepare yourself for a world that has with and turns and new industries that form, and new organizations and industries that are created. having an mba is a great preparation not just for your next job, but for a lifetime of leadership. betty: i can accept that, however some people say, why does it have to cost so much? why can't we make it more equitable? >> we have tried to make the mba at harvard much more affordable. students,5% of our based on their need, financial aid. 40% student gets about

financially, so basically one quarter of our students get half of that off. said, more than 60% of people are on financial aid. the rise of silicon valley and you have seen it as well, and online courses. again, is having an mba as crucial? fromf the graduates wentrd business school into finance compared to 2011. 17% went into tech, interestingly enough. versus 11% in 2011. what is also very interesting is that half of those went to small companies, versus 31% in 2010. what does that tell you? >> it just shows that right now

in the world, the extraordinary opportunities being created by entrepreneur's are very exciting to our students. they have always been opportunity seekers went there were opportunities in finance a decade ago. that is where they went. today, into entrepreneur ship and silicon valley and this extraordinary tech revolution. we have more students than ever before starting new companies. betty: but if they do that, are they getting the same return on their degree? >> i hope so, and in fact, i would argue that they are getting a ring -- a great return on their education. after ouryears students graduate, 50% of them become entrepreneurs. even though there is a session about what our students do with a first graduate, because those are the statistics that are reported, everyone who joins our school has some dream to create a company. and 10 years later, a larger percentage feel ready to take the plunge.

it may be right for some people right out of college, and thankfully we have many of our students that are taking the plunge. but for others, it may be more appropriate after they have gained experience. that 39% from 2011 to 33% of those going into finance, should wall street be worried about those numbers? >> i don't think so. large -- 32%a very is still a very large percentage. it is not like wall street has to worry about picking up the dregs. some of the most talented people are going into that sector. i am delighted that our students are in that sector. up in a country in which the financial system didn't function very well. i grew up in india. isave seen how important it to have a robust and vibrant

financial system. yes, there are times when a system like that can have excesses, but for a person who did not have a great financial system to begin with growing up, we should be happy with what we have in this country. the dean of the business harvard school speaking earlier. is theup, it second-biggest u.s. container port by volume, long beach of what enters0% an exit the u.s. ♪

olivia: welcome back. i'm olivia sterns. we are having trouble with cameras, but it is time to see

how commodities prices have turned in new york. oil, the rally earlier today, there you see crude. a nice pop after we heard mario draghi saying he may extend quantitative easing in europe. that provided a little bit of optimism that it could boost global demand. market,he rest of the so, too, has will come down. let's also show you what is happening to gold. what we used to think of as a safe haven asset, it really just as -- hasn't found a bit. now i want to bring in alix steel. a note out today talking that sentiment in the commodity asset class. ,till pretty negative shortselling the bottom of the ranges. which commodities are the most

vulnerable to short coverings? fundamentals are only funny about 60% of commodity moves versus 90% in july of last year my meaning it is technical. it is those that are short covering rally that we have seen. they look at those that are most honorable, most oversold -- most full verbal, most oversold, and they highlight oil, sugar, gasoline, natural gas, and kansas wheat. they all fit that model. and they say there is a 60% probability that the price of one of these commodities could be higher one week from that over -- from entering that oversold zone. we saw this play out in the oil market in the last two weeks. if you look at the short positions versus the oil price, you see the -- you see that as the shorts climb, the prices did come off, and then as the rally did klein, the prices were able wereme off of where they

in may. a direct correlation there, in some ways. olivia: obviously, i know a stronger dollar, cheaper oil, and a commodity is traded in u.s. dollars, almost all of that affects us. alix: i almost want to take a look at the brazilian royale in relation to copy prices, and there is a complete inverse. right now, the royale is around a 12 year low and copy prices are of about 12% this year. the idea being your experts are more competitive the lower your currency is. you are more likely to flood the market with that product. i love that part of the story as well. olivia: interesting. clearly, alix steel knows her stuff. we are both digging through the terminal yesterday and we found some amazing data, this time on ports. it really does give some insight into the health of the economy.

what we were looking at is the cars, of volume, the tvs, t-shirts that arrive on our shores from around the world stop the data paints a compelling picture -- from around the world. the data paint a compelling picture. if you look at los angeles, long beach, new york, new jersey, and savannah beach, all for our clearly recovering and all four are seeing healthy growth. areing us is john kline among the ceo of the port of long beach. from your vantage point, how strong is the u.s. consumer right now? strong, and i mean, clearly, prices out of asia given our dollar, we are seeing record volumes. we were seeing similar months this -- similar numbers this month. everything that has happened from a consumer standpoint is

prompting this activity at the ports. alix: if you look at savannah versus long piece -- long beach imports, savannah got a big boost from the west coast strike . now you guys are coming back. what is this patent demand versus the underlying growth ?tream jon: i think these heavy double digits are just the return after the crisis on the west coast. the reductions that the east coast is enjoying right now, they are coming back to the port. tovia: i'm just trying quantify the currency effect on commodities. how do you think about it? how much of the." in imports is due to a stronger u.s. consumer and how much is due to the

stronger dollar? on: it is more the dollar. you have to look at china in particular. of what comes to our ports on the west coast. we were counting on china to grow much faster than it did. rely moreaving to heavily on the export economy that they were trying to wean themselves from. focus moreng them heavily on exports and given the imbalance in their dollar and currency, it is a bargain. olivia: how much has china slowed right now? on: only slightly. the exports to china have slowed dramatically, 10% for the year so far. but imports are not slowing down. lastare about the same as

year in terms of what we are seeing from china versus other asian countries. alix: and aren't they supposed to by less outside and domestically growing it seems opposite -- domestically growing? it seems opposite of what they want to do. : very much opposite, yes. we took the numbers at core sales and edit those two the u.s., which has been's extremely high since the recession. s it cars? jon: everything that you buy from an apparel standpoint, electronics, sporting goods, all that is doing well. we are seeing is a tremendous

amount of parts for cars, and other materials related to electronics supply, equipment, so forth. olivia: this may be unfair, but i want to ask you a sort of political question. when you hear donald trump talking about how the chinese and japanese are killing us, and he has been to the ports and seen foreign cars rolling off the cargo container ships, what do you think about that? n: i don't think that is a problem because what you really have to look at are the numbers particularly for asian car imports, they are down quite a bit. a substantial reduction in cars coming from japan particularly. imports from japan are down substantially this year. we are seeing the impact of those asian economies and the fact that they are domestic option is not making up for their exports. you mentioned japan and china as well. can you quantify other areas

that are worse off question mark -- worse off? jon: china is worst off. japan is next. korea,the same there as and now china. they work to stabilize their economy, a lot of manufacturing is moving to locations where there is cheaper labor. olivia: you are the second busiest port in the u.s. angeles is number one. what will you do to catch up? we will await and see the numbers. i think it will be pretty enlightening. we are less than 1% of what they are. the numbers will come out. thank you so much for your time. john kline europe, the ceo of the port of long beach. slangerup, the ceo of

the port of long beach. know donald trump, we have just been talking about him. what about the other side of the donald? we will go inside to see how trump invented trump. ♪

olivia: this is the bloomberg market day. i'm olivia sterns. first-time claims for an employment and if it's rose more than expected last week. the labor department said the start of a new school year may lead to volatility in the job status. the number of claims was still below 300,000, indicating employers are holding on to their employees. the latest jobs report comes out tomorrow at 8:30 a.m. tune in tomorrow.

andrts of mobile phones pharmaceuticals fell, while exports were little changed. they are expected to fall in the coming months because of the stronger u.s. dollar -- u.s. dollar. and consumers grew less confident in the economy last week. the bloomberg consumer comfort index fell slightly from the week before. about half of the interviews were conducted during the stock market fall off. asked how he meets his own company, donald trump himself spoke about how he runs businesses and deals of people. >> people have this imaginary aads that he is just a sham, guy that plays a businessman on tv. but honestly, it isn't true. he has a big organization is

profitable -- that is profitable. i got to wipe away the noise and only focus on what the organization looks like and how it makes money, and the answer is really fun. for the first one, what it looks like, he has these deputies and his whole body guard is his chief operating officer. hecklersuard tackled at a tennis match. trump was very impressed and hired him as his bodyguard. but this guys really fun to be with them on that calamari. with, natsfun to be calamari. is what led them to hire him. he is not a traditional hirer and that is what they love about him. it is an out of the ordinary group of people. call donald coo

trump mr. trump? >> a lot of the people do. everybody lined up around waiting to audition for the apprentice called him mr. trump. now that you think about it, i think i was calling him mr. trump. it is magnetic. you cannot resist. greatesto not the elder living in the world, which is how he has presented himself to the united states as he has risen politically. you want to build a wall, i'm the best builder. he calls himself the biggest and best developer in new york. he is not those things. he always wanted to put up the biggest skyscraper in manhattan and failed three times. or also in chicago.

is that of being this vast elder, he is this landlord, really, with a fascinating real estate portfolio. forpe the piece is fun people to read. a fun part of the piece is my trip to this golf course. it is bizarrely lush and perfect, if you are into that sort. and he does license his name to buildings and products. and he does more things as well, like managing hotels. but when you put that together, it is not being the greatest builder, nor being a sham. olivia: do you think this will translate well from the private sector to the white house? max: was i spent time with the people around him, and the big thing that you get from spending time around him is that he gets involved in the most minute details. he would be involved in picking out the chandeliers above us. or he picked up -- picked out the fountain, the marble.

not to give away one of the conclusions in the story, but it is just kind of hard to imagine how that micromanagement and his sort of disregard for hierarchy as it normally exist in corporate america, how that could or would translate to the white house where micromanagement is kind of impossible, and ignoring hierarchy is inefficient. be -- picked big urns, likelihood for the golf course, and the street that to the united states. olivia: my conversation with tim armstrong, the ceo and chairman of aol, on why he is spending $200 million on the lineal. ♪

>> and it's noon in san francisco, 3:00 in new york city and 3:00 a.m. and hong kong. alix: this is the bloomberg "market day."

olivia: good afternoon, everybody. i am olivia sterns. look atnting to get a the markets. a little bit of a roller coaster ride -- right for the markets. we are in positive territory, but we definitely rolled over, is ashley after european markets closed. olivia: we thought we were going to get a little bit of a reprieve. -- especially after european markets closed. the chinese markets are closed. earlier the dow was up over 100 points. the idea is do you want to be long going into jobs friday when u.s. seen so much volatility in the market? a super sweaty hot thursday before job state. i do not know of traders are heading to the beach or biting theiil