the overnight rally in chinese shares. >> is a dubious distinction for harvard universities and down. they are the highest paid, yet the endowment at the worst performance of any ivy league school endowment in 2013. mark: volatility in the global market is in stopping the ceo of under armour. we hear why he has laying offense with the biggest pension in china. ♪ mark: good day from bloomberg headquarters in new york. i am mark crumpton with pimm fox. it looks like the shanghai composite was the rising tide that listed all the boats. pimm: the s&p 500 is higher than more than 36 point.

the dow jones industrial gaining nearly 2%. the nasdaq gaining over 2% today. let's take a look at treasuries. the 10 year note, the yield is a 2.19 percent. 30 year bond at 2.97%. pimm: a little bit of selling in the tenure in the 30 year. the stake a look at the commodity complex. oil is $46 a barrel. i just want to mention that a lot of this has to do with yesterday being a holiday. clearing of the various trades did not take place. let's take a look at the top stories crossing the bloomberg terminal at this hour. president obama now has enough votes to block senate republicans from passing a resolution against the iranian nuclear deal. ,hree more democratic senators blumenthal of connecticut, peters of michigan, and widen of oregon threw their support behind the deal today. but west virginia's democratic senator joe manchin says he will vote against it. he is the fourth democrat to

oppose. it already have the necessary senate votes to sustain a presidential veto. deal is the first order of business as congress returns today from its summer recess. the house democrat leader isn't worried about hillary clinton and her private e-mail server. spokepelosi of california to bloomberg about the democratic presidential front-runner. policy says the issue is being overblown. nancy pelosi: we all have confidence in hillary clinton and her integrity. confident that she did not receive or send an e-mail that was march classified. i do think the other side is trying to make something of it. hillary clinton spoke to the associated press and said she has nothing to apologize for about the e-mails. the european union is coming up with a strategy to deal with the biggest refugee crisis since world war ii. the european commission president jean-claude juncker will unveil the proposals on

wednesday. he's expected to say the best way to handle the crisis is for all 28 countries to help her it germany has taken and the bulk of the refugees so far. it wants the rest of europe to do its part. >> we can handle the accommodation and integration of 800,000 refugees this year here in germany. but it is clear that it can't be repeated every year. we need a different european asylum policy. austria, and sweden can't be the only countries that participate in accommodating refugees. mark: chancellor angela merkel will spend over $7 billion more on refugees next year. in europe, there encouraging signs for the economy. the euro area grew more than estimated in the second quarter. the european union revised growth numbers for the quarter to .4%. that's up from .3% initially reported. last week the european central the region's economic recovery will continue, i'll be at a slower pace. clowning --ntucky

county kurt -- clerk is leaving jail today. she has been behind bars since there's a for defined the orders of a federal judge. her freedom, however, is conditional. she is being ordered not to interfere with the granting of licenses by her deputies. davis stopped issuing all marriage licenses after the supreme court's landmark ruling in june. pimm: pope francis is reforming the tablet churches process for annulling marriages. the new law, which overhauls three centuries of church practice, allows for fast track decisions just beat up and simplify the process. in omens have been criticized for being complicated, costly, and out of reach for many catholics. mark: the changing of the late-night guarded cbs. the late show with stephen colbert premieres tonight. the former comedy central's the -- funnyman will take on the jimmy's. fallon on nbc and kimmel on abc.

his first guests include jeb bush and actor george clooney. those your top stories of this hour. pimm: coming up in the next half hour of the "bloomberg market day," harvard university endowment had the worst returns in 2013. the chief investor got the biggest raise. we talk about why compensation doesn't match investment performance. volatility in china is in stopping the ceo of under armour. why he goes ahead with a big expansion overseas. pimm: angela merkel says europe is facing a defining moment. she urges european nations to share the burden in taking in the hundreds of thousands of refugees. all that and more coming up on the "bloomberg market day." global financial markets are willing to the green is a late rally in shanghai stocks helped to who we investment settlement.

he spoke about with the bloomberg surveillance seen this morning. >> six months or a year ago, there is a repricing of chinese growth prospects. there's also a repricing of their ability to get their arms around the policy challenges that they face. i think it's legitimate. the challenge that we all have is that china is trying to do something that's really unprecedented for an economy that size, $11 trillion in gdp, more than one billion people. and that's make a transition from one model relying on exports and trade surpluses, to another model relying upon domestic demand. obviously, that's a factor. canerms of black swans, we go for the list of our favorite ones. fundamentally, that's what this is about. repricing your jim growth prospects in china, and longer-term challenges of the policymakers face. >> do we reprice to a new terminal value?

jpm aremichael for leah talking about what you are talking about -- talk about a new normal. with the new lower yield structure. that's one example. is that really what's going on? >> i think the point we and others have made for some time now in the new neutral is that one -- one central banks do begin to hike, they hike in a slow pace into a low destination. that's obviously an important factor in markets as well. you have, for example, the fed is done growing its balance sheet, but you have the ecb and the bank of japan doing massive quantitative easing and 47 central banks cutting interest rates. that's very much going to be the landscape for the next several years. >> michael mckee, we talk about the big stories. is itsexample, sweden own story in itself as it deals with cap in gdp in europe.

>> it raises the question of whether or not the fed is communicating well with the markets at this point. you had build of the come out and say his enthusiasm for rate increase waned. stanley fischer and says we haven't made up our mind yet. today, john williams and the wall street journal comes out and says maybe the rate increases that i called for this year won't happen at all. people are getting whipsawed by this. >> they are. we discussed this in the prior segment. the fed pats itself on the back by saying their data dependent. the data dependence is not a monetary policy. you see stanley fischer's take on his preferred course, john world-classey are economists. but ultimately, the fed is a committee chaired by janet yellen. at some point, sooner or later, she's going to have to get an arm around this and really lay out with her liftoff strategy is. >> does it make a difference if they raise rates to five basis points or they don't?

will you notice other than the headlines? >> the rate increase is trivial. with their concerned about is that monetary policy is transmitted through bond yields, mortgage rates, and currencies. all three of those asset markets , they don't have full control over the market reaction, and over the market pricing. they have much less influence than they did 20 or 30 years ago. that's why there are skittishness about the first hike. not because 25 basis points means that much, but about the way in which the different financial markets that transmit policy are going to factor that in. as i said, because they haven't laid out a real strategy before the exit, that's part of the challenge. of pimco,ard clarida managing director's meeting with tom keene and michael mckee on bloomberg "surveillance and go -- "surveillance." still you how the ceo still manages to get an ivy league a hike. ♪

mark: welcome back to the "bloomberg market day." i am mark crumpton with pimm fox. to look at theg markets. investors came back from the liberty market with an eye to buy. the dow jumping as much as 338 points. we have a little bit of gain, the dow up about 312 points. the s&p is up by 1.9%, the nasdaq is of the most, by about 2%.

all of this after a late rally in chinese stock market leading global equities higher. it is gains it brought nasdaq back in a positive territory on the year. and for the month as well. both the dow and the s&p 500 are still negative on the year, as well as for the month of september. dive into my bloomberg terminal. we can see all 10 sectors right here are in positive territory. this is the imap function if you are laying along at home. it's a broad-based rally we are seeing with all 10 sectors trading higher. industrials are the biggest gainers, up by 2.4% with ge up by nearly 4%. 3m up by more than 2%. energy on the bottom though, 1.2%. it still is higher, locking in good gains. financials among the top performers. let's take a look at bank stocks that are moving today. of those, pnc financial, u.s. bancorp, and in and see bancorp. these follow upgrades and

reiteration's from deutsche bank. matt o'connor says investors should add exposure to banks with emphasis on higher-quality, large regional banks. he upgrades pnc and u.s. bancorp to buy from hold. he reiterates the buyout him and see. also, wells fargo. wells fargo got not one, but two upgrades today. one included from the previously mentioned db note. another from a core, boast of grading to buy from hold. trading at about $52 and $.40. the bank's position to increase its share in loan growth, while deutsche says wells fargo's positive include potential added cost savings. lastly, let us take a look at bank of america. bank of america up by 2.25%. getting an upgrade to neutral. the analysts saying bank of america is in the best position

to handle tougher capital requirements of the fed voted on in july. that aside more than $200 billion in capital charges 28 of the u.s.'s biggest banks. the upgrade is boosting bank of america to its best day of gains in nearly two weeks. pimm: thanks. mark: let's take a look at the top stories we are following at this hour. it's a deal that will create one of the largest owners of network tv affiliate in the united states. media general has agreed to buy meredith corporation. the deal is valued at $2.4 billion in stock and cash. the new company will be called meredith media general. it will be headed by meredith ceo steve lacey. pimm: blackstone group is buying strategic hotels. this deal is valued at about $6 billion. strategic hotels owns several well-known properties in the united states, among them, the essex house in new york city. and the hotels on coronado near

san diego. ink: if you trust regulators the united states and europe have approved general electric $17 billion acquisition of all stones -- all sums. general electric ceo jeff emerald is trying to return the company to its industrial groups -- industrial roots. those are top stories. pimm: harvard university's endowment is the largest in the world. it also comes first when it comes to the pay. returnsas the funds trail those of its peers. according to a new bloomberg surveys, compensation often does not track or match investment performance. bloomberg's endowment reporter lauren streib joins us. thanks for being here. outline what was the study and what to do conclude? thing ishe fascinating that it wasn't entirely unexpected. pay didn't always correlate to

performance. it more closely correlated to the assets of management. pimm: the biggest the assess under minutes -- under management, the more money you make. lauren: that's why her pay almost doubled. about $32 talking billion, and growing. this is 2013. lauren: yes. that's the most recent it was available. mark: any surprises? lauren: the guys who have been -- it's clearest there boards are rewarding them for such a long tenured. and because they are long-term investors, the reward is longevity. pimm: as far as harvard's performance, what was the performance, and what does that compare to some of the other may be lesser-known colleges? i noticed are now university

topped university performance over time. lauren: their standout performers. harvard has been trailing its peers for years. $8.3s were you get into million endowment. you are questioning issue worth it, or what she worth it. mark: we should mention there's a quirk -- the pay structure is not straightforward. lauren: it's not. we compare the trailing three your performance to the annual compensation. there's lots of different compensation and bonuses that we are not really privy to. the $8.4 million you just described, that was a bonus that was paid out having to do with performance the previous year. be for threecould years past. it just happened to be the board awarded to her that you're after having deferred for years, which is what we saw with the university of texas. the bonus he had earned years

past have finally been earned. mark: there was a little more to the story. that had to do with an op-ed in the "new york times." what did it say in how did it move the discussion forward? basically said they paid too much to managers and don't give enough to students. the endowments maybe mismanaging their money. this year is interesting because the endowments -- it's one of the best-performing asset classes. pimm: private equity. lauren: exactly. it comes under consideration with cios. they are bringing billions of dollars into these universities. as an adjusting topic. jane mandela was not running the harvard endowments. lauren: she left at the end of last year. pimm: has there been pushed back from alumni group sindelar -- about the pay? lauren: there is consistent push back.

most of the schools, there's a lot of outright push back. from lauren streib bloomberg news endowment reporter. thank you. pimm: coming up on the "bloomberg market day," under armour brought stephen curry to china's basketball market. we hear from the under armour chief executive kevin kline, next. ♪

pimm: under armour is not phase of wild gyrations in china's economy. the sportswear company plans to open dozens of new store locations in china this month alone. kevin plank's with

bloomberg stephen engle in beijing. >> we been making things here, setting up offices. we opened our first store in 2010. today we have a little more than 75 stores in china. we will be adding in the month of september alone, roughly a story day. china is a massive explosive opportunity for us. the one thing we recognize is going about the way a rhythm brand's done in the past is not the right thing. e-commerce plays a different role. we are taking a different tack. one thing we know is this market is incredibly hungry for the under armour brand. i'm bringing stephen curry here with the launch in beijing tonight is a pretty big deal. wrong?did they get it kevin: they did lots of things wrong. i'd rather focus on what we are doing right. what you are seeing is the pace of our growth, acceleration --

we are business that's close to 21 consecutive quarters, 96% growth last year out of the international. the goal is to be a global brand with just about 90% of the business coming from north america today. we have a lot of room for that growth. on a relatively small basis, international growth. china's going to lead the way. second to japan today in terms of the largest market for china's not far behind. >> concerns about the slowing growth and discretion are spending is down. >> we going to term called no loser talk. i don't care what's happening on a macro economic basis. the opportunity for under armour, with the market is shrugging or expanding has no consequence. if it shrugging, we see ourselves building new markets. problem not, we have no taking shares from our competitors. i think we will continue to see that. >> do you see an impact knowledge of reaching currencies? of 2015,he first half

we all felt into an extent. adjusted,ead with it this is what we grew, last quarter was 29%. a three handle on it. if you're looking at what growth would have been in second quarter of 2015. again, no loser talk. curry looked out with mr. is welcome, winning the mbp and the championship. signing away from nike couple of years ago. you wouldn't say it's locked. >> we've had lucky athletes. the getting with tom brady and winning the super bowl, mr. copeland named time magazine's most 100 influential people in the world, and the prima ballerina from the american ballet theater, jordan spieth winning two majors. and then stephen curry. we are very aware you can't count on luck, but when it happens, we had better double down and that heavy. that's what you are seeing is due is bringing stephen on this

five city asian tour we are on right now. pi: that was under armour see executive -- chief executive kevin plank. double down. go bit. mark: sneakers or big business. even if steph curry wasn't with under armour couple of years ago, they get misty copeland, they are getting millennials. the expression for china makes a lot of sense. cultivating nba relations with china in order to do various guest matches and games against local teams as well. mark: i'm sure the nba does not mind at all. i'm out of here. aboutcoming up, we talk german chancellor angela merkel, and europe as it faces a migrant surge. ♪

is the bloomberg market day. baltimore officials have reached

a $6.4 million settlement with the family of freddie gray. freddie gray is the gentleman who died in april while in police custody, setting the stage for riots, arson, and looting in the city. to bettlement is set approved tomorrow by the city spending panel. six officers still face charges in connection with freddie gray's death. they have pleaded not guilty. the sole survivor of a deadly ambush that occurred on live television is back at home. vicki gardner was being interviewed during a newscast in virginia when gunfire erupted. a wdbj cameraman and reporter were killed. stationman, a former colleague, who later turned the gun on himself. ratchetrea is trying to down tensions after a standup last month. they are holding a reunion where

100 people will be sent to a north korean resort next month. about 66,000 koreans are on the waiting list for the reunions. east, aa to the middle thick, yellow fog descendent across parts of israel, palestine, and the middle east as a massive dust storm moved into the region. israel says it is a health risk to some, but tourists still congregated on the mount of olives. first performances in china have been shot through the heart by chinese officials. they were set to play in beijing saysmonth, but a report that the shows have been canceled because the band used a backdrop image of the dalai lama at a taiwan show in 2010. other stars including the five as well as voices have had concerts next after demonstrating support for the exiled tibetan spiritual leader.

those are your top stories at the moment. coming up in the next half-hour, terra firma puts a succession plan in place and brings in a high-profile hire. we will also be hearing from warren buffett, the berkshire hathaway chairman has been having lunch with the winner of his charity auction here in new york city. unveil itspected to latest iphone and other new products tomorrow. we are getting a preview of what to expect during the announcement. all that and much more coming up on the bloomberg market day. is coming upunion with a plan to do with the biggest refugee crisis since world war ii. while china's economy is still struggling to regain momentum. earlier today, richard haas spoke to bloomberg surveillance asut the issues china faces its delegation prepares to visit washington later this month. through is going

structural problems. they far transcend everything you talked about. i don't care if the government intervenes on currency and the markets and everything else. that is tactical. strategic, china faces enormous problems. have the financial system to the underlying economy, demographic challenges, environmental challenges, political challenges. this regime is nervous. their legitimacy is based on economic growth that they simply come close to- sustaining. tom: do you believe their legitimacy is threatened? >> i do. the unrest in china cannot be dismissed. it cannot have business as usual, the model cannot work. they are trying to make a fundamental shift from an export model to demand led. there is not enough confidence

in the economy. mike: two we have confidence in this regime that they know what they are doing? >> they don't. look at the spasms of market intervention. the old chicks are not working. tom: what did you think of the old military parades? >> they trotted out the new toys, the missiles and the rest, but there is a worrisome signal. messages from president obama has to be this. you cannot find your legitimacy in nationalism. you cannot find your legitimacy in china be more muscular in the region to compensate for the loss of economic performance. that has got to be one of the president principal messages. mike: we get a president elected, and that is the height of his political power, and then it goes downhill from there. the chinese come in and they have to build credibility. xi much credibility does jinping have?

>> he has consolidated powers, but for him, that is a risk as well as a blessing. any otherminated excuses. if things don't work, it falls on him. the anticorruption campaign is a political campaign as well. it is strengthening his base, but if this economy does not turn around quickly, you will see significant pushback. you that is why i give credit for being centrist even with a republican heritage. has beenistration saying this and that about the iranian deal. book aboutk to your getting your house in order at home. a president obama had successful policy, he could've written -- read your book. possibly his principal legacy is the middle east, which is

unraveling. you talk about the migration crisis in europe. there cannot simply be a continental solution to the crisis if the middle east is going through something that looks like a 30 years war, if more than half of syria's population is uprooted. tom: do you blame the president for the direct on settlement of syria that has caused this migration? >> i am not saying he is entirely at fault, but his predecessor arguably did too much in unsettling iraq, to president obama, who has done too little in unsettling syria. look at the last four years, the single biggest blight will be what he did not do in syria. possible,here a imposed balance of power in the -- you talk about the 30 years war -- that would bring the fighting to a halt and leave us with a status quo? >> if there is one, there may be

26 years to go. those battle decimated european society around the 17th century, but i don't think so. locals or outsiders do not have the capacity or consensus. you need to have a balance of power and a shared sense about what the rules ought to be. that simply does not exist. haassthat was richard speaking with tom keene and michael mckee earlier today. a look at the dow jones industrial average adding more than 2% today. general electric leading the way, the s&p gaining more than 2%. we will take you through the afternoon with the nasdaq gaining more than 2.25%. this is the bloomberg market day. ♪

pimm: this is the bloomberg market day. been up and down for market investors, buying and selling and volatility. it could be here for a while. the chief investment officer of sky bridge international spoke with us this morning. andolatility has been here will be here for quite some time. the interesting, to look at move on monday, you look at how do we close down. if you are on vacation, it was like nothing happened. you are modestly higher. if you were living there on monday or tuesday, it felt like water around your ankles. that has been the story throughout the year. violent moves up followed by violent moves down but we have been on a path to almost nowhere. scarlet: is that a crowded

trade, being short the yen or euro? more as aare using it hedge against other positions they have. if you look at the:, underlying strength of the economy, people are thinking it makes no sense. the economy is sound, but they had to live through this. erik: you are active investors. what does it say to you that ken griffin and said adel decided to get out of the event-driven business? >> i debate whether they are going to get completely out of the business. there will be times when they are less involved. on the activist side, you can say, are you looking more and mergers and acquisitions, trying to generate mergers and acquisitions than trying to drive them?

it is not all about dividends or buybacks. it is that putting companies together. the m&a boom we are in will rentinue and that is when many of these things will do well. companies need earnings. i believe you see the fed raising in september. what does that mean for activist investors, does that put them in better position? >> we need to put this whole fed rate hike in perspective. we are coming from zero. let's say we get back to 1%. it is silly that we are having a conversation about a 1% rate. a few years ago, people would have said that is to accommodative. trades that worked at 0% work just as well as 1%.

i think we just need to get it out of the way, get the fed to take it vantage of the market conditions we have now. the economy is certainly strong enough to warrant it. the only thing that may hold them off is the market level of volatility, where they may want to wait another quarter or so. the inflation picture gives them that excuse. bias would be, let's get it done and move on. does normalization, perhaps it happens, 2016, but more importantly, the divergent paths the fed is taking from the ecb origin -- bank of japan, does that make investing easier for micromanagers? >> i think it does. where it will get easy, and that is a relative term, is once we get this central bank intervention out of the way. markets can back to behaving in

a more normal path. then it will get easier for macro. if you go back eight years, since the crisis, it has been a very difficult environment for systematic and fundamental macro . once you get normalization of policy, those strategies will come back into favor. what does normalization mean for the liquidity concerns we see in the fixed income market? >> there is plenty of cash sitting out there. i do not see a real crisis there. gamesou can see is that developed where you will get sharp price moves. if you look at corporate balance sheets flush with cash, individuals generally in a much better position, if you look at some of the usual fun flow data, it shows people have been building cash positions to run the volatility of the summer. if you look at any of the stats coming out of the wire houses and brokerage firms, their clients still own a lot of cash.

plenty of liquidity, but people just have to put it to work. pimm: that is the chief investment officer at sky bridge capital. let's take a look at how the s&p 500 is performing, trading at its session highs. points19.an 39 . i want to turn to commodities to look at where prices settled in new york trading. west texas intermediate crude closing lower for a second second -- consecutive session. brent crude, european crude, ending higher, reversing a two session slide. that is helping to drive up oil stocks. for a look at the sector, you can look at the energy select ector spder fund.

.hat is not by more than 1.5% the top holdings include exxon mobil as well as chevron and schlumberger a. mark shenk joins me now with more on oil markets. mark, good to have you here. explain what is going on. prices in new york for wti moving higher -- i begged her parting, fell off. brent crude is higher today. what was the reason? mark: there was a lot of electronic trading yesterday in the vti, but we never settled. this is really a two day session. we are closing near the highs of that session. brent settled down yesterday quite a bit, and just took off as soon as it opened. what is the relationship between oil prices moving higher, the dollar selling off mark: usually, there is not a

huge link, but there has been as of late. today it was most definitely oil tracking the s&p. people were looking at the seeing may beand will not fall off the cliff. oil just kept on going stronger. pimm: tell us more about oil in relation to opec and the attempts by perhaps the saudi's as well as the russians in order to change the price of oil in their favor? mark: all the opec members are hurting right now. so are russia, mexico, and other exporters. we will have to see if they get together. opec has made it clear that they are tired of doing the hard work , making cuts among other countries continue to boost output. where they say

they make the cut but only one or two countries actually follow through, and the rest keep on pumping? that is correct. usually saudi arabia does all the heavy lifting while the other members and producers are pre-loaders. see.ve to we are listening for news releases from moscow, mexico city. if they came along, opec would do something, but until they do, opec will sit tight. pimm: i'm sure you will be watching, thank you. some ofs take a look at our top stories crossing the bloomberg terminal. we start in the pharmaceutical industry. mylan pharmaceutical plans to begin its hostile takeover of terror go next week. mylan'ses have rejected offer, but they are trying to persuade shareholders to accept. amazon is getting into the

restaurant food delivery business. they are adding free one hour delivery on food orders to amazon prime memberships in its hometown of seattle. the announcement comes two weeks after amazon began one hour delivery of beer, wine, and spirits to the area. meet the cochairman of zeus entertainment. he paid $2.3 million to have lunch with warren buffett and says the experience is worth every penny, not only for him, but for his native china. mr. buffett is highly respected in china and is very famous. to have this opportunity to have lunch with him is a great opportunity for us. we want to take this opportunity to see him. warren buffett's annual

auction benefits the glide foundation in san francisco. coming up on the bloomberg market day. apple will unveil its latest iphone tomorrow. we have some hints about what it will all look like. ♪

pimm: the apple iphone will be in the spotlight wednesday when apple hosts its annual product launch event. cory johnson joins us from san francisco with a preview of what is in store for all of those lucky people who will be attending. what will be getting in terms of hardware, the iphone? you just answered the question. pimm: what is going to be better

about this iphone? expectation is that they will announce probably to new iphones, to upgrade the 6 and 6 plus. maybe they will be adding an s. we can expect a better camera, and the ability to record even more video, front facing camera making high quality video. that is a bigger deal for this company because the iphone has been such a big percentage of revenues, greater than ever before, where they you look on a quarterly or yearly basis. months, 65%ing 12 of revenues.

principally, this is a company where order nearly two thirds of revenue comes from the sale of that one product. but they have changed the way they have done that. at the end of the fiscal year, 56%. in just three quarters they have gone from 56% to 64% coming from iphones. in part, because they changed the way that they unveiled these products. it used to be first in the u.s. and then spreading to other geographies. a year ago when they announce the six and the six plus, they launched in the u.s. and china, and that led to massive year-over-year growth, but will give them tough comparisons. smartphone growth is shrinking from 20% year-over-year to probably 2%, according to idc. so the headwinds are great in china. pimm: any word on any new watch versions? cory: there is speculation that

there will be some new bands, could demonstrate a new operating system for future watches. -- i dotle speculation not want to print out for them. i want them to have their moment. i am were they won't get enough coverage tomorrow. pimm: what about apple tv? tv has not been updated since 2012. the product has been on the market for almost eight years. speculation that they will be updating the product, which has needed an update, perhaps. and a big question, will they open it up so that other developers can put apps on this product? traditionally come it was a closed environment product. if they open up for development, it can be a more interesting platform, because they could tap the minds of hundreds of thousands of developers, not just those at apple. pimm: they could produce games

for the larger screen. cory: if they launch an open platform, can they use the processing power to write games, effectively making it a competitive game platform? orbe not as good as the xbox playstation, but something that could be powerful. ask you to going to tell us who bill graham is, because it is being held at the bill graham auditorium. he was a legendary concert promoter here in the bay area. ,e did some fantastic concerts a legend of the bay area. he will be wandering over tomorrow. thank you, cory johnson. more on the bloomberg market day. ♪

it is noon in san francisco, 3:00 in new york, and 3:00 a.m. in hong kong. tt: the bloomberg market day.

this is the bloomberg market day. matt: warren buffett has been eating lunch with the winner of his lunch auction. is the dawn of a new day for rolls-royce. the luxury automaker showing off its newest convertible. pimm: good afternoon. i am pimm fox here with matt miller. matt: we are at session highs right now. again of three for 59 points on the dow jones. we have not seen an intraday level like this since thursday. we have not seen a close like

this since monday. , if we close back at this level, what we lost last week. gain as500, you see again well. i could go on like this. pimm: the movie in the dow led by general electric, who won approval today of the $17 billion all stem -- alstom purchase. they will have to sell off some of those turbine businesses to an italian competitor. let's look at how u.s. treasuries are faring. a little bit of a cell of going on. the selling continues. look at commodities. oil prices moving higher. we were learning earlier how even though we see this decline in nymex crude, this has to do

with settlement from yesterday's holiday, playing catch-up. as a result, settling new the highs of the trading session. matt: the kentucky clerk jailed for refusing to issue same-sex marriage licenses has now been freed. kim davis walked out of jail short time ago. she had been behind bars on contempt of court charges. a judge ordered her not to interfere with the granting of licenses by her deputies. davis says same-sex marriage violates her religious beliefs. president obama now has enough votes to block senate republicans from passing a resolution against iran nuclear deal. threwdemocratic senators their support behind the deal today, but west virginia democratic senator says he will vote against it. he is the fourth democrat to close the record. the deal already had a necessary votes in the senate to sustain a

presidential veto. matt: former vice president dick cheney is blasting the nuclear deal with iran. the white house is firing back. cheney spoke earlier today in washington. >> i know of no nation in history that has guaranteed the means of its own destruction will be in the hands of another nation, particularly one that is hostile. what president obama is asking the u.s. congress to do is unique. historically and dangerously unique. the results could will be catastrophic. matt: the white house responded by posting a video montage of his statements about the iraq war. the video says cheney was wrong then and is wrong now. i recommend you search it on youtube, it is worth watching. pimm: media general is buying meredith corporation. it will create one of the largest corporations of tv networks in the u.s. called company will be

meredith media general. it will be headed by the meredith chief executive steve lacey. macy's and best buy are in a deal to sell electronics. shops will open in 10 macy's locations. the space will be staffed by best buy employees and feature samsung products. the company will test the concept through the holiday shopping content. period. matt: microsoft is teaming up to boost in an attempt sales of the surface. microsoft has just a fraction of the tablet market, obviously. jovi's first ever performances in china have been shot down by chinese officials. shanghai set to play and beijing later this month, but now are not happening. because thently

band used a backdrop image of the dalai lama at 82010 gig in taiwan. ask include maroon five and oasis who have also had their gigs in china canceled after showing support for the exiled tibetan spiritual leader. those are your top stories. matt: he even recorded a song in chinese, so the chinese people will be very depressed when they realize -- if they are told -- that he is no longer allowed to play in china. let's take a look at u.s. stocks , following the lead of chinese equities. the stock market trading you the highs of the day. dow jones adding 2.25%. the s&p, 1964. the nasdaq, a gain of 2.5%.

technology and industrial stocks leading the rally. more onining us with the markets is jeff kleintop, chief investment strategist at goldman sachs in boston. let me ask you if we should be following -- it seems like every day we do whatever the chinese markets do, even though they are clearly being fixed by the chinese communist party. it is not even a very important stock market, so why? china's biggest export these days seems to be volatility, and it seems to be what we are buying up. i think we are trying to attribute these up and done moves to originating in china. i think there are more fundamental factors at work, a battle between the bots and the buybacks. tremendous amount of authorizations in place for more buyback activity. have been buying shares all year, no reason what

they would not be buying at these levels. that is part of the reason for this up-and-down movement, but it is something we have to get with all of this associate volatility with the global economy. tom: take us through november. what should people be focused on in terms of putting your money? >> the most important thing, i think, are the service industries. we do not get as much data on them. for traffic, commodity prices. tied to services seem to be doing the best. that has been a sweet spot for the markets. manufacturing has been weakening while services have remained strong globally. that will be important data as we continue to get the service pmi numbers. look for that to benefit service oriented areas of the market. matt: and we put in a bottom, are we going up or down? >> we don't think the bull

market is over yet, but may be due to a pause. volatility around these rate hikes, it is not the first one that matters so much, but how soon the second one comes along that will matter most to the markets to gauge the rate of pace. what about investing in small and mid-cap stocks focused on business in the u.s.? it's an interesting idea. i am not so pessimistic on what is going on outside the u.s. caps a bitlike large more. look at europe. economic activity is improving. we just got upward revisions to the last two quarters in gdp growth. maybe 2% gdp growth over the course of the next year or so. japan also beginning to pick up. maybe large-cap exposure is the way to go. pimm: so what would you not touch?

sectorsry about those sensitive to interest rates, telecom and utilities. interest rates have been low for some time. some of the news we got out of china this morning, moving money out of foreign-currency reserves into investments. this is money that used to go to u.s. treasury buying. now we could see interest rates on the long and drifting higher as well. utilities weigh on and telecoms, so dependent on the interest rates. matt: do you expect the fed to move now? we could see a temper tantrum in the equity markets and that would boost the dollar, change commodity prices, probably to the downside, maybe exacerbating problems. >> we felt a lot of that already. i don't think when the first one happens does not matter much. it is more about when they follow on.

certainly, if they are tighter together, one meeting after the next, or even one meeting a part, that could raise concerns related to commodity prices, certainly would push the dollar higher, then what is currently priced into estimates. active management or passive management, mutual funds or etf? >> i think both can work. you have some major macro themes that will continue. also, we are in an environment where volatility picks up, and that favor some type of active management. both can work. thank you, jeff kleintop, chief investment strategist at charles schwab from boston. coming up, a lot of winners today but what about netflix? 3.75%ares are down nearly , while everything else is higher. we will explain why the selloff continues. ♪

pimm: this is the bloomberg market day. i am pimm fox. matt miller. stocks are on pace to wipe out all of their losses from last week. julie hyman has the latest. raising to there highs of the session, the nasdaq on pace to be positive for the that it is, not very old thus far. also positive on the year. the dow rising to pretty much it size of the session. up by 350 points. all of this being driven by a broad-based rally among the different groups in the s&p 500. in terms of individual stocks lending the most to the gains, apple is a by nearly 2% ahead of

its product announcement tomorrow. microsoft is higher after announcing that it was going to make some content available from disney. general electric, after getting approval of its acquisition of energy products. tico energy is having its best one-day gain. up 25 percent after being agreed by a purchased canadian company. the total value of the deal is $6.5 billion. there has been a lot of opposition to utility deals recently from regulators, but some analysts say this one has a pretty good shot of going

through because canadian firms tend to be a little more hands-off in managing their u.s. power assets. the one-stop not keeping pace is netflix. the worst performer in the s&p 500 today. you can see it is down by 4%. bere does not seem to anything in particular driving these shares lower, but it has hit a number of different milestones, none of them positive. isyou look at the stop, it the second worst performer on the s&p 500 for all of last week. the seventh straight day of losses, it's worst streak since march of last year when it also had its worst performance on a monthly basis. at its lowest level in two months. we have been talking about technical levels a lot lately. netflix is also falling below its 100-day moving average. that is on the bloomberg terminal. the 100-day line is moving average.

falling below that level today. it is interesting on a day where everything is rallying. by the way, netflix is still one of the best performers to date, but interesting it is not participating in the rally today. 94% year to date, so you are still happy if you bought december 31, but if you stopped watching amazon prime, you may have stopped watching netflix. blue, yet was a new service, so there is a lot of competition. a united nations agency says it is mounting a worldwide campaign for equal pay for women . the leader of the united nations women's agency says female employment matched male employment per capita gdp would and 19% in southeast asia, 27% in the middle east and north africa. on average, women in asia make

30% less than their male counterparts. blackstone group has agreed to by strategic hotels and resorts in a deal valued at $6 million including debt. $14.25one is offering per share in cash. strategic owns high-end properties across the u.s. holidays areigious the latest victims of finland's austerity program. the holidays will be turned into working days, according to the prime minister. he says the move is designed to lower labor costs by 5%, and they will propel the economy, hopefully, out of recession. those are your top stories. matt: it's a big week for the big three presidential hopefuls with hillary clinton and john bush both pressing reset. donald trump winning big in the polls. for what we can expect, we are joined by mouth -- mark

halperin. hope you had a good holiday weekend. is jeb bush still in the race? >> he is still in the race, he has the most money raised. his first ad going up in new hampshire today. making a couple of apparent references to mr. trump. why won't he attack indirectly? >> too soon and no mileage and it. the question of who would go after trump. media is a lot of chatter among republicans. a you are the first to run negative ad against trop, he would come back with his own. that may take down trunk, but it may take you down as well. matt: you must have enough to say about yourself that you do not need to attack the reality tv star. not mention by name,

but there are two clear references. you think about all the crazy way that trump would have discombobulated the campaign. no one would have thought that would make his first television ad about him. tune in tonight, 5:00 p.m. eastern for "with all due respect." berkshire hathaway's chairman is in new york today making good on his lunch commitment to the winner of this year's glide foundation auction. warren buffett is now standing by with david westin from smith and will and skis steakhouse in new york. you.ank we are here with more and buffet. thank you for your time. lunche having your annual which you auction for the glide

foundation. tell us about that and why you are involved. and -- inas a church san francisco that was dying. bunch of white parishioners, then a black minister was sent there, and the rest of them quit. he turned a really defunct church into one of the most remarkable social institutions you can imagine. he has helped probably hundreds of thousands of people who have given up on themselves, the family has given up on them, society, but cecil never gives up. they give a couple thousand meals a day, thousands of volunteers, big a vocational they take ins, battered women, you name it. everyone as ifh they were the most important person in the world. >> and your wife susie was involved. actually sort of beat up

on me to go there one time. athought this was probably phony of some sort. i am a skeptical guy. i probably should've been in the news business. i went on a sunday and i was blown away. he was for real. these people were having their lives changed. thing, that she convinced me to go there. i cannot do enough to help. >> through these lunches, you have raised $20 million for glide. i guess they thought it was lucky, but they won the lunch this year. >> the chairman of a chinese videogame company. warren: he had his wife and a few friends, and we had a terrific lunch. ofthere has been a lot turmoil, lots of ups and downs in china. you have been pretty bullish on

china. as this tempered your enthusiasm, the extent of the government intervention in equity and fx markets? time.: not at this this country has gone through a couple of world wars, the great depression, civil war. we have had lots of ups and downs in the country, but overall we kept moving forward. >> long-term you are big on china. warren: they have a long way to go. >> any opportunities? you have done some investing. warren: we are open to ideas, we have a number of factories there. but capital travels. what extentina, to are you concerned that there may be indications of a global slowdown? china is slowing down, we are not sure by how much. brazil has enough problems. it will be there for a while. u.s. numbers are fair to middling. , bute is growing some

slowly. should we be concerned about the global turnout, and what, from a policy point of view, can be done? is unlike the world will have a slowdown, but it can. it has not been a straight line here or any other place. what i look at is 10, 20 years out. there is no way america will not make progress, china will not make progress, europe will not make drivers over that time. i cannot predict the ups and downs in between. i don't know how to do it. i do know that the tide is really with humans. we learn more and more about how to unleash human potential. we are the same people we were 200 years ago, but look at how we are living compared to then. rule of law, market systems, equality of opportunity -- none of which are perfect -- but as we push on those, the world moves forward. >> you have written on income

inequality in "the wall street journal." you think this is a very big issue for us. warren: this is a huge issue but we are moving in the right direction on that over time. an enormously rich economy, well over 50,000 gdp per capita. six times, in real terms, what it was when i was born. it blows her mind. if you told my parents in 1930, eren i was born, that th would be this amount of poverty, they would've laughed. >> and the disparity is going the other way. of an: the natural forces market and capitalism will drive that disparity, unless government does things to help, and they have done things to do that, but more needs to be done. increasing the minimum wage, it

is nice to get it, but it also causes more people to be unemployed. the clearing system for labor will leave a lot more people out of $15. the real thing people need, if you are poor, is not a higher minimum wage, they need money. if they are willing to work, the earned income tax credit is the way to go. >> tell me about organized labor and if this can play a role. the president is having a summit in october about income inequality. michigan --flint flint, michigan. uaw really helped. maybe that does not work now, but what do you think about organized labor? no question, in certain industries, the workers are doing better than they would have otherwise. successes inme other places as well, but the real problem is not that evil

that fit in well. it is the people whose skills do not command much of a market price. them all organize and it would not do any good in terms of making their skills worth more in this economy. but they are entitled. if the best they can do is be a cleaning lady, god bless them, they should have a reasonable life in a country this prosperous. if you say the minimum wage is $15 an hour, my cleaning lady probably will not have a job. but if you change the earned income tax credit, were if you work 40 hours, you will have the income of some of that got $15 an hour -- >> that skills disparity goes back to education. it is not the u.s. education has gotten worse but the rest of the world has gotten better, as the demand has gone up in the marketplace. education has to be a part of it. warren: you want people educated

to their potential. will not work for some people in a highly developed system. if this were a sports-based system, you could give me a phd in football, i could practice eight hours a day, and i might --able to carry the water not onto the field, but from the locker room to the bench. some people just do not fit well into a highly skilled market-based economy. you still want them to get the most out of their abilities, but if their ability leave them unable to earn much more than to doverty level, we got something additional for them. we have the resources. >> come back to the here and now in the media. merging with meredith. you have a slight interest in that. they are the largest shareholder. we all must than 5% now.

it got diluted down when they made an earlier merger. we have lust and $75 million in the stock. >> you originally purchased the newspapers. it looks like media general is ruth.into the broadcast meredith has 17 affiliated stations but they have more magazines. is that a change in their strategic direction, is this a television broadcast business? is the tv isess the primary motivation. i don't know, i have never talked to anyone with media general. i have never had a conversation with anyone at media general. >> you have been invested in television before. we owned a station in miami, doing pretty well. my old boss.

do you see that as a growth business, at this point, broadcast tv warren: i don't see it as a growth business, particularly. the world is really changing, media and communications. i love newspapers, but that does not mean that they will do well financially. >> the big advantage of broadcasting is it is a cash is this. warren: exactly. >> you are the preeminent value investor. -- i was at cap city as a young general counsel. you invested in tom murphy as much as anyone. warren: and dan burton. those two may have been the best management duo in history of the world. >> i felt blessed to work under them. warren: and among the best human beings.

>> agreed on both points. you pick ceos fairly well. you want hillary clinton to be the ceo of the country, essentially. how concerned are you about how she is handling this private e-mail situation? warren: it you do not want to have too many of them, but i do not consider that determined to of all decks at all of who should become president. i believe she has a vision to similar tot is very mine. for everyone to enjoy the prosperity we enjoy. i think she would work very hard getting policies implemented that would lead to that. that is what really counts. i have made so many mistakes. unless we will put on a four hour special, you will not get to them all. [laughter] >> she will still be your ceo.

buffett: sure. >> donald trump. buffett: i would not be surprised if i agree quite a bit with his economic program, just from what he's that. he thinks the rich should pay more. he thinks the carried interest should be treated instead as regular income, just like they would be with investment advisors. in terms of tax policy, i have not heard him say anything yet that i disagree with. >> energy. you have been involved in the energy business for quite a while. you have exxon mobil only for a couple of years. pretty short. back into 66, a different kind of company.

how much of those decisions is averned by your view on long-term oil prices as opposed to something else? mr. buffett: i do not have strong views on that but i did aboutss enthusiastic crude oil prices. felt the future was not going to be as good as people would think it would be. >> your anticipation, what might happen a crude was part of the decision. how much of that is driven by possible connections with northern santa fe? warren: none. question, breaking bad. you are a big fan. is anything there to replace it for you? "better call saul" is a

great program. -- theg bad will go down writing, i wonder how in the world you could end this thing right and they ended it right where the talent that was on there. there were half a dozen really outstanding actors and actresses. i do not think the world will see anything better than that. vince gilligan got four stars in my book. >> ok, great. thank you very much, warren. back to you. tim: you have been listening to speaking with david westin. at some of thek other top stories we're following or you this afternoon starting with north and l3 of trying to wrap -- ratchet down tensions. unions of families divided by the war in almost two years.

each side will send 100 people to a north korean resort next month. 56,000 south koreans are on the waiting list for those reunions. the biggest names in private equity has announced the higher of one of the biggest names in british as is. he broke the news right here on bloomberg to test bloomberg. hasjohnson, justin king been named as vice-chairman of his company. they also discussed the investment climate in today's global markets. investmentdifficult landscape, probably the most difficult in my lifetime. what that means is in terms of private equity, there are opportunities, quite short term. you really have to grab them and be able to execute them very quickly. he is looking to kickstart in the tmi takeover bid.

--e big higher the: meanwhile in pharmaceutical industry, a $27 billion hostile takeover next week. executives of the over-the-counter drug maker -- shareholders to accept it. uber's rival in china has raised nearly 3 -- another round of financing according to people familiar with the matter. uber says it has raised $1.2 million so far. they announced they would give away $161 million worth -- against other players in the industry. those are your top stories. i will leave it with you. pimm will split now and i

will stay with you. we will hear from the ceo next. ♪

matt: i am matt miller. rolls-royce is out with a new model and the company describes it quite simply as the sexiest rolls-royce ever built. i spoke to the ceo about why don't was unveiled on the internet. >> you see more and more

happening. you see blogging. demand and tosay really stream information world, it isthe raising and raising. you have clients getting younger and younger as well over the years. also very much used to modern devices, online media, and all that stuff nearly are catering basically for a new niche. to really unveil. matt: this one has apparently more legroom. the rear end kind of reminds me of an old -- an old boat. what do you think are your favorite designs on this?

definitely where we have put it outside onto the roof but also down to the interior of the car and that is gorgeous. that amounts to what i would call professional crafting in yachting. that is exactly the feeling when you are driving that. it is gorgeous. imagine sitting in this car, driving down the pacific coastal highway. note better place on earth. matt: with as much power, i am sure it is a lot of fun. we read that you are aiming toward getting more female buyers as well as younger buyers. does the dawn head in that direction for you?

>> definitely but we already made what i would call quite a lot of changes in our customer base over the last year's. the race changed massively the demographic- profile spirit young customers in our base. the reason we were able over the last five years. cater to what i will call lovely female customers. that is clearly our intention to grow in that field even further. matt: the most important part is the engine. the 6.6 liter v 12 engine. look at the markets. let's head over to julie hyman. julie: stocks rising nearly the highest in the session as we had to word the closing bell today.

rising about 373 points at this time. the nasdaq also rising, the highs in the session, as well as the s&p 500 are extending the games that have really been in place or at the day and accelerating toward the close. interesting, we have seen the spark that ignited the rebound, the chinese late session rally overnight. we are seeing a late session rally of our own. you have got the map. various groups. it is a broad-based valid -- rally. health care materials, all leading gains and pretty to therate contributions games overall today, even energy, which is lagging, is up 1.4%. the rally we're seeing today is on lower volume than the declines we have seen recently. one way to look at that is i looking at the volume by industry groups. the same groups we were just which shows the

change in volume in the past 20 days. the only uptick and i am is a utilities. we have got agreed-upon .cquisition for all the rest, telecom, volume in the telecom stocks and the s&p down 24%. energy down 19%. for technicians looking at this rally and seeing the volume that the down day, that might not be an encouraging sign going forward intentionally. let's look in other asset classes, for example the 10 year. the treasury market, a big movement upward, the biggest into this weeks. closer to the fed meeting on september 17, even though most futures traders are not pricing in an increase in that meeting here at we have been watching the fix rather closely, holding above 25 for 11 straight sessions.

we might not make it for a 12. it was holding above 25 and it is now showing a little bit of a drop-off and volatility. finally looking at commodities today, we have seen a rebound and commodities particularly by china. copper has been higher by about 5%. higher.r, brent crude that is a technical matter here. brent was trading yesterday in london, and we have got crude hauling versus friday's brent is rising versus yesterday's close, something you also pointed out earlier. matt: thank you. i love that function there. now i look at the top stories making headlines at this hour. verizon is making a run at millennials. unfairek, verizon will three ad supported video services.

of that age group watches video on mobile first, verizon says. amazon is providing free restaurant delivery to seattle prime members. looking to compete with aspanies like grubhub america's favorite eateries over supermarkets. spending at u.s. restaurants and bars overtook grocery stores for the first time ever in march. disney is adding amazon and microsoft to its movies anywhere cloud service, which lets customers store movies for multiple -- multiple vendors to watch later. moreervice now includes 450 digital titles. those are just some of the top stories we are following for you at this hour. now, back to work for lawmakers on the hill who returned today for summer recesses. a lot is on the agenda for congress, including tackling the budget debate and ongoing discussions over iran's nuclear

deals. pelosi in her hometown of san francisco, amalie joins us now. about what ms.t poulos he had to say about the tech boom impact. it has felt destin felt there incredibly in pricing and houses. >> we spoke to congresswoman poulos he at the premiere of her daughter passes hbo documentary, which offers a scathing critique of the tech industry and how little they are doing to help the community here in san francisco as the income inequality gap widens. that was the focus of this conversation. this is where nancy pelosi's constituents are. we see this all play out in her district. these are companies creating jobs on the one hand here on the other hand, we them increasingly removed from the communities in which they lived. toe a listen to what she had say about what companies can do

to be more responsible to the community. tech community, it is a tremendous advantage to san francisco. it has always been through the creation,nd job innovation, and if all of that is good for the community, as long as it does not change the character of the community. -- emily: a very politically correct answer from nancy pelosi. donors to her come from the technology community. certainly walking a fine line. very interesting to hear her this rising tension between tech and basically everyone else. matt: the candidate she supports for president seems to be tech savvy herself. hillary clinton using a private server or her e-mails and then deleting thousands of them and then wiping her server clean before turning it over to the

state department or the fbi and what does nancy pelosi think about this? asked her, is she worried and at what point did this become a concern for the democratic party, and she was very confident this is not a concern and will not he a concern. listen to what she had to say about hillary specifically. ms. pelosi: i feel very confident she will not receive or send an e-mail that was marked classified. i do think the other side is trying to make something of it. up with, butowed wait, are you at all concerned this could play out badly for the democrats? she said again, i have confidence in hillary. i think she can get the job done. matt: once you have already given your support, you cannot turn around and take it back to you asked about the iran deal. i am supported -- i am assuming

she is supportive of that as well. emily: right. nancy was critical, somewhat say the work she did you get that -- to get the democratic party on the side was breathtaking. she gave a lot of credit to the president can i asked her, did you have to make any promises to get the deal done and she said no. it was really a matter of asking other members what you need, what questions will you get from constituents that we can answer. it certainly works -- looks like in washington today, democrats have gotten the support they need so this measure to potentially block the deal will not get past so the president will not have to take back that deal. matt: no political wrangling necessary. emily: no promises at all. matt: thank you so much. tune in to bloomberg west later today at 4:30 p.m. eastern to see more of emily chang's bloombert west.

much more will be ahead on the bloomberg market day. stocks are holding to session highs in the last few minutes of trading get we could get back all of what we lost on friday and then some. ♪

matt: u.s. stocks are heading higher today but the dow industrials are still lower, fairly substantially year to date. joining us now with more on what is happening in the markets, lisa abramowicz, follows the bond market, and bloomberg stocks editor mike reagan. it is interesting. i have been hesitant to say, this is a massive rally, put on my party hat, and get all the toys out. i have lived through the last few weeks. we were down so much last week that this did not seem like a huge and significant rally to me. it now seems to be pretty good. >> for a row -- for a one-day rally, it is great. you cannot really pin it on a short rally.

you are absolutely right it is a switch on and off, every day or every two days. when you look at the chart pattern, we are still stuck. you have got to wonder if we will get stuck in another range a little lower down. until we break out of that, two days after the big drops a couple of days -- a couple of weeks ago, we almost -- still no were there. still gravitating toward that 19.5 level. [laughter] matt: she is itching to get into the conversation. beenhave got to say i have shocked about the volatility in stocks that we have seen. interestothing of except there is not much going on, especially compared to the stock market.

he would think some of the volatility you're seeing in stocks would trickle out if not ifn in the vonn market, also volatility has been applied. it is coming down. even as we wait for the fed to say they are amazing and well -- cipated next week matt: which will be what? i can do w.a.r. p and fed funds futures saying there is a 28% chance of a move. i do not buy this function. i love the function on the bloomberg terminal. futures think fed funds are a great predictor. >> it is not treated it -- it is not consistent with wall street projections. a lot of analysts still expect the fed to move in september.

that is not the only communication tool. they will possibly ratchet down expectations for the long-term, like target yields. basically, they will not raise rates all that much. we realized the trajectory is going to be low. we get what they are saying. before it saying would be like this and than they would come out and say it would be like that. >> this is the hazard of data dependency. you cannot dry line that will stay in place. be data is tough to dependent when you're itching to raise rates. >> why do you think stocks have been so volatile while bonds have been pretty much flatlining? >> i do not think bond market is

quite at the level of trading that we have in the stock market . there are all sorts of debates about which types of strategies are going back and forth. no one can come to it a consensus. it is not one strategy that is doing it. of electronicsm trading going forth. it will be tough to really say. matt: when you have them all marching to the beat of the same drummer, you will have huge swings in both directions, at onst not very often with trading. lisa, thank you for joining us. i will take a quick rake and we will be back with more on the other side. ♪

-o we are momentse:

joe: we are away from the opening bell. matt: i am matt miller in for alix steel. ♪ joe: stocks sent equities in europe higher. matt: plus, the $72 billion debt map. enough and will there be a ripple effect? so-called liar loans. are we back? ♪ matt: let's kick it off with the markets. i have been hesitant all day to cry massive rally and put on a celebratory hat