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tv   Bloomberg Markets  Bloomberg  September 10, 2015 11:00am-2:01pm EDT

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health in the labor market. >> credit rating, junk. america's's largest economy makes the deepest recession in a quarter-century. logistics.o of xpo's annual revenue will be taken to $16 billion. the details of the deal. ♪ scarlet: good morning, everyone. pimm fox: and i am pimm fox. julie has got breaking news on oil inventories. up 2.5 7timated million barrels.
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384 thousand barrels. we saw an increase in distal it inventories as well of about 952,000 barrels. , more these increases than had been anticipated by traders, even though we had numbers yesterday here that had raised optimism we would finally see inventories come down. the latest numbers show it is not happening yet. take a look at what is going on with oil prices. we are seeing it make it lower on the back of the numbers. time afterigestion as thebers come out traders try to extrapolate what this mean. immediate reaction was to see the leg lower, a larger than estimated bill, not just in
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crude but also in the refined products. we will see what happens, how the patient continues to evolve as we head into the fall. pimm: thank you. let's get a check on crude oil file -- following this report. up 2%. barrel.e, $48 per perhaps they are still digesting 2.6ly inventories by million barrels. gold futures are up .5%. scarlet: as for equities, it is a blah picture. the s&p 500, 1952. the dow jones industrial
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average, 87 point. a gain at .5% pure the nasdaq is also rising .8%. one reason why there was nervousness this morning is because of what happened in brazil late yesterday. at the see tumbling open. it has come off our lows at 1%. that is when the real damage is being done here. when you see a line up, the dollar gaining strength. you can see it is down 2.3%. at the way of looking damage done by the credit rating downgrade is to look at credit default swaps. if you look inside the bloomberg specialistn ad created this chart, which shows a global credit reaction. that is brazil cdf.
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other is latin american countries. what is interesting here is if you go back to last september, it is cheaper to buy insurance against brazilian defaults than it was against the turkish default. that changed in march. the white recently, line has the -- gone down the line. s&p: seven years since turned the ratings down for brazil. you get out the bible. scarlet: it is cyclical. pimm: let's check the u.s. bond
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market. a little bit of selling going on at least at the longer end of the curb. 21 for the 10 year. too busy talking about the flat tonight and what will happen. let's take a look at currencies in the dollar. let's see the dollar. the euro gaining strength against the dollar, 112. the yen at 120. .trengthening looket: let's get you the at the top headlines. involving more than 1.7 million trucks. from 2012 two 2014. one of the problems is a wiring
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harness and a short circuit of airbags. wholesale inventories increased in august by the most in seven months, trying to keep up with stronger demand. pimm: bloomberg news reports apple is reporting a two point $2 million sale. it has sold millions of dollars of debt in the last years. apple last raise money in the euro debt markets in november of 2014. for more on apple, apple tv no -- taking a backseat to the iphone when it comes to development. apple has now unveiled a major upgrade with siri voice-recognition software, ask gene munster
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if it is really a breakthrough. >> a starting point. a platform for the living room. they are really starting to lay a foundation for more apps and more gaming and better discovery. it is not the apple tv i envisioned a few years ago but an upgrade from where they are at. pimm: the new apple tv is scheduled to be released next the pro football season gets underway tonight. new england patriots taking on the pittsburgh steelers. big media and corporate sponsors appeared to -- do not appear to be turned off by the deflate gate scandal. the nfl will bring in more than $12 billion. the revenue from corporate sponsorships is up 15% this year. those are your top stories at the moment. up in the next hour, after costco cut ties,
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american express is getting a replacement. club will- sam's except next month. colleges choose sports. a look at colgate university and collegiate spending in upstate new york. scarlet: ice hockey rinks specifically. pimm: you gave it away. the selloff today in europe overseas along with some reasons why. the federal reserve interest rate increase. that will or will not happen next week. as we mentioned late yesterday, brazil's debt rating is junk. sending currents into tumbling lows that we have not seen since 2002. add to that noise or someone say perspective, a speech was given in tokyo, saying really worried abenomics in japan could fail. strategist. global
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global risk sentiment. good evening to you and good morning to us. global risk sentiment took a turn for the worst yesterday with a lot of comments and the way asset prices are trading. there is a lot of worry the fed should not go ahead. the imf saying the fed should hold off on raising rates next week. the monetary to policy diversion everyone was counting on earlier this summer? has that just gone away? i do not think it has gone away completely. if you had read the tea leaves of the fed, a tiny 25 basis points from here. a scaryd is quite place. should we go around once more before we try to land the plane, or let's wait for a sunnier day to go on vacation. people who have been
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writing articles, saying please, do not raise rates. incredibly nervous of the concept of raising rates of 25 basis points from pretty much 02 pretty much zero and a little bit. also the fact the fed is thinking about raising rates. the japanese are talking about further monetary easing. relaxing further monetary easing. definitely a different direction of travel, even after waiting so long for the fed to get these moving, we may have to wait longer. wouldwhat asset classes you sell and what asset classes would you buy? >> bond markets would still be mostly comfortable. get terriblyg to inflation.
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as long as the slowdown in china is in place and commodity prices are still unwinding years of strength. like brazil are suffering from. i think that will continue to anchor inflation. times, or not at all. developed markets will be fine. in currencies, it is still too early to get excited about anything and commodity related death commodity related high-yield. not the world's expert of ever being optimistic. i think nervousness will continue to see it chopping around. >> beginning .5%. do anythingined to and also said it would be premature to draw inferences from the turmoil last month.
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would there be any circumstance in which if the fed does not next week, the beale we tighten before the federal reserve? classes seems unlikely that would happen and yet it would make sense in the sense that we have got a labor market, and it is a pretty similar story with the united states. the difference is we have more science the unemployment rate is feeling a pickup in wage growth. stronger market. a persuasive case for the u.k. to raise rates. at least comforted by the fact the u.k. rate hike would not have a devastating impact on global asset markets or china or japan or anywhere else. is what is holding back the fed, then yes, there is a good case for the u.k. to go further.
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i do not think it will happen, unfortunately. if you couldr describe the housing market or the commercial real estate business to you mentioned housing prices in the u.s. -- in the u.k.. >> generally in the u.k., interest rates are very low and the economy is doing well. residential space. the population is growing. it is not very complicated. there is extremely strong demand for new homeowners buying mortgage demand. that is a positive sign. the big recession that hit after is great financial crisis behind us and the economy is moving forward. this keeps a hold of that sector of the economy going. commercial space is pretty volatile but by and large, this will be positive for the u.k. economy rather than negative.
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the cost of money is cheap enough to help, that would be the case. scarlet: a lot of demand probably comes from asia appeared i want to end on a show specifically. taking place in china, people wondering. d.c. the hong kong dollar falling? not for a long time. there are lows to go before .hat happens the hong kong dollar has been in place for longer than any others. i do not think that is the right way to tackle the problems at this point in time. it is a different story. i do think the level of the hong kong dollar is an indicator of perhaps some of the pressure that will remain in place to let that currency we can in due course. i do not think by the same token the hong kong economy can escape the slowdown happening in china. there is nothing you can do about it.
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inrlet: especially rents central district too high now. joining us from london, thank you so much. ahead, we are keeping an eye on markets as we head into the afternoon trading session. let's look at some of the big winners and losers up there. ♪
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pimm: let's go to julie hyman. julie: these fluctuations have become more common.
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we actually think technology .eaves what gains a month technology, apple is down 2% announcing its product update. coming down pretty sharply. we have seen apple start to recover after starting the day very little changed now. at least some of yesterday's losses when it fell by about 2%. the investment group took a look at the changes we typically see before and after these product updates. this is the iphone updates specifically. in the three months leading up half a percent from the
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unveiling to the product -- to the launching of the product. we also point out in this year, it has been quite different. not a typical is the word i am looking for of the changes we have seen, particularly going into the unveiling, if you will. take a look at this chart. here is the record back in february. had a drop of about 15 percent here. it is not we have seen in recent years. -- would think that would
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you are seeing a little bit today. much, julieyou very hyman from the newsroom. another company in the news today is american express, which may have lost cosco and jetblue, but it is getting sam's club. the retailer will start accepting cards next month. it is not an exclusive partnership. sam's club. we arty have that as an issue. -- we already have that as an issue. industryransition the is going through because of discount merchant fees. 2.5% was the discount merchant fee for the fourth quarter of american express. it is likely costco was not paying that, that they had negotiation a lot lower. to make a note, 10% of amex cardholders are costco shoppers.
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it is cardholders, and then you things like the revenue generated but also the loans outstanding. likely the loan portfolio may actually be bought went costco ships over, i believe in the spring or summer of 2016 to the citigroup card. i'm cutting my ties. no more $70 fee. also, jetblue and american express. we have got more coming up on the bloomberg market day. a look at the battle of who will be the next chairman of the
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public company. that is a mouthful. pimm: we will tell you what it is. a government job and it pays even more than being president. that is next. ♪
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scarlet: the race is on to land one of the highest rate of zero would jobs in washington. the position, chairman of the public company -- it is a long title. or we will explain what the job is about. it may not be high-profile and you might not be able to pronounce all the acronyms. it pays even more than being president of the united states. we're joined now from washington, d.c. first of all, tell us the name of the job and what does it do? >> the job as chairman of the public oversight board.
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are an entity created by congress after a giant scandal of the late 1990's and early 2000's when i ran another's head coach their books and the others never blew the whistle on it or did not find the fraud. congress created this entity and it effectively regulates accounting firms, audit firms that audit the financial statement of public companies. pimm: who is the auditor of accounting firms currently and why does it taste so much? >> the chairman now is a .epublican the salary over $600,000, the chairman is really high relative to even other wrote -- agencies. it is high because there is a notion you had to compensate the chairman really well and the board members really well in order to keep them independent,
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in other words, to keep them from having temptation to go work for the accounting industry and other industries regulated by entities. -- pimm: who counts? >> the five commissioners appoint the chairman or the other members of the pco be. it is effectively answerable. thank you so much, dave michaels reporting from washington, d.c. scarlet: a lot of people trying to make their case. pimm: i will see you later. more coming up. ♪ we live in a pick and choose world.
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pimm: the defense minister says the base is near airstrikes using jets and helicopters against islamic state militants. bloomberg consumer index was unchanged. the buying about climate were offset by more optimistic attitudes than personal finances. they have been under 300,000 for the six months. a low-level economist would associate with a robust job market. many opponents of legalization
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--coming up here on the bloomberg market day, market overseas. stocks took a hit because of concerns about china passes economic growth and also the potential for a federal reserve interest increase. we will look at the details in europe and asia. how much will declining oil production actually increase oil prices? with robert, who manages over $15 billion in holdings. now, for a major acquisition in the transport images ticks industry. ask po has agreed to by the trucking operator conway in an all cash agreement, bringing the number of deals under brad jacobs to at least 14. before ask po, jacobs used a similar strategy, buying company to build rentals and united way systems into market leaders. he joins me now.
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off with conway. how did you get interested? >> it is a interesting story. a couple years ago, we tried to buy a logistics subsidiary. it has logistics, transportation's that fit perfectly. and i went to europe realized the power you have when as have some assets of -- part of the business mix and how customers appreciate that. said itack to conway makes sense to buy the whole company. pimm: you paid $3 billion for the company. this will bring $15 billion in yourue per year during adding over 30,000 employees. >> absolutely. we will have $15 billion in revenue. billion and we.1 have a clear plan to grow that to over 1.5 alien dollars within
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a few years. pimm: are you prepared for anybody else to come in and say, i want conway? it would cost you more money if they did. you want to buy it. what about the bigger logistics company? for example, in europe. >> that would be a part of fedex. we are number one. conway is a less than truckload provider. truckload, a full you are filling up the whole truck. just pallets, you will add one or two pallets together with 30 other people on the truck. a $35 billion market here in the united states. we are number one in lcl. in spain, england, portugal, and we have a lot of industrial knowledge aboutltl -- about
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ltl. pimm: let me give people some idea of the acquisition trail you have put forth. i said, at is, as least 14 acquisitions. take a look. 16. you probably have the scars to prove it. just looking back here, if we take a look, you have got the bridge terminal transport. you just mentioned the u.s. specialized logistics. oft do you look for in terms size and characteristics to go after? the time being? >> more or less for the moment. we are growing in acquisitions in europe, which is going swimmingly, really well. optimizing focus on and increasing the profitability of conway. it is what we do care we have a management team. it is our job. the market for less than
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truckload compared to the full load business, give us an idea? 300 billionkload is dollars. i will take $35 billion. all of our 16,000 full truckload havemers, all of them also ltl pimm: business. pimm: should anybody in for ?nything about the economy >> no, this is after -- opportunistic. it is a huge amount of synergy to really improve. it just fits very well with what we're doing. like does that mean things layoffs and cutbacks? >> we are trying to grow the
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possibility of the business and we will certainly not lay off any drivers. give a little example of your previous one. as i mentioned in two other instances, you have put together new businesses by making things bigger. tell us about your experience doing that. >> my previous companies, a similar business plan. we bought a company strategically and then put them together and integrated them into a coherent organization that had a unique and differentiated product to sell to the customers. we operated more efficiently and were able to pass along cost savings to the customer. allhe end of the day, it is about customers. buying conway makes us more valuable to our customers. now, it is not more value to the investors. when you do a deal like this, do you go through different scenarios in your head and say, if we do this, the stock will open down x amount?
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let's i'm not focused on with the stock will do today one. i'm very focused on what the stock will do over time. this will add a lot of shareholder value. i'm confident of that. are looking for risks and worries and downsides. everyday is a little out of vogue at the moment. that is ok. sometimes, the most value can be created. pimm: that is a very good point. you bought about 23,000 shares of the company. >> the management team owns 16% of the company. this company, the management team and the board of directors have a substantial stake and we put our money where our amount -- where our mouth is. pimm: the conway operation is based in ann arbor.
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as far as what you're looking for, do you need different types of skills to manage a company of this size? your adding 30,000 employees. it'll keep the ones at conway? managementthe senior team is exiting. i will take charge of first with the day-to-day business. i will recruit best athletes for all of them. could you do this without the advent of the con air technology? >> yes, but technology is an enabler for the evolution of the industry. have over 1000 full-time technology professionals. conwayng here is that spends about 200 27 million dollars per year in technology, which they had to do by themselves. of thetake a lot outsourced technology, a lot of it, and bring it in house. we have the capacity to do that. pimm: last point to you.
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what is the biggest inspiration for you to get up and do it you do every morning? a wantain inspiration is to take that 1.1 may dollars and get up to 1.5, one point six, and $1.7 billion. thank you very much, must appreciated. -- much appreciated. the cost of college tuition keeps climbing thanks in part to an athletic arms race. we will give the details next. ♪
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pimm: the markets have closed in europe. for the latest, let's go to mark
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barton in london. mark. mark: a 3% increase in maturation, stocks finishing the first day session lower. the biggest one-day increase since six years on wednesday. stocks fell because of chinese producer prices. the biggest slump in six years. also into the mix today, can the fed, will the fed raise interest rates? can the economy withstand the rate? latestutes from the monetary policy meeting, saying the bank of england is not deterred by the recent market turmoil. the minutes said it is holding firm and the time for a rate increase is approaching. that was interesting and caused many highbrow is to be raised here in london. supermarkets, one of the big supermarkets here in the u.k.. the chief executive warns it faces a long road to repair profitability.
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the big bank and spain, the big news with regard to spanish banks is what is happening in brazil. generates 28% of its revenue in brazil. according to the rating agency. germany's biggest utility. spin off its german nuclear plants. steny my 7.6 percent. .4 hours ago, it was all green. on thursday come a very different story. every single industry group on the stoxx 600 is finishing the session lower. back to you. pimm: mark barton reporting from london. thes take a look at some of top stories crossing bloomberg right now. jpmorgan says home prices will rise more this year than originally forecast. foraverage price increases .4%. the bank says rising demand and fewer sales will keep prices going higher.
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a second straight month, americans bought more cars in chinese consumers are the u.s. buyers have been encouraged by lower gasoline prices. meanwhile, in china, the stock market collapse has kept potential car buyers at home. the lower gasoline prices may go even lower pay her the governments gasoline prices will holidayther 17% by the shopping season to about two dollars and three cents per gallon. on labor day weekend, the average gasoline prices were less expensive than they were a year ago. those are your top stories. it is back to school for many college students across the country. colleges are increasingly dedicating more resources toward high caliber sports arenas than they are funneling money into academics. who actually shoulders the cost of these athletic takes? wealthycovered by
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alumni donation. sometimes, the cost is guaranteed by current or future students. >> the college hockey season starts soon. are onlynt athletes too happy to show off their skills. this is one of several programs at the school where the aircraft 10 or of an arena posted gains of more than 50 years. colgate may be a small liberal arts college, but it is spending big on its hockey program and beyond. million rank, and a lot of alumni donations. classes you're talking to a prospective student and they come through the front door, it is typically that sports arena in which they will compete. you're likely not to get them.
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tuition willate ultimately underwrite a third of attendance has jumped 17% in five years. the rest will be financed by former students. >> we have a tremendously connected network. >> rising education precious colleges to increase nonacademic spending. quite a new facility like a hockey rink will really help us recruit students and differentiate ourselves from other students where facilities are so important to recruiting. athletic rates could make an diversity's invest more in products with uncertain returns. >> does a school like colgate need to spend $40 million on an ice hockey rink? >> it certainly does not need to. it brings them more applications. the evidence is not clear that ever happens. reflects a broader
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debate about educational priorities. in 2000 13, dozens of colgate professors demanded the school changed its priority in an open letter written binding with professor. a strong feeling among a lot of food -- faculty that there needs to be a rebalancing of sports culture at colgate. it has taken over a lot more space and a lot more resources than it had certainly when i was playing college sports. >> while some faculty continue to focus on finding that special bounds, hockey players can look forward to the first season in their new home. and if it helps their performance on the ice, the alumni that funded it will receive their own reward. bragging rights. willem marx joins me now.
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in looking at this story, what did you get in terms of the feeling they'll continue to do these kinds of big infrastructure projects? >> [inaudible] pimm: i will just brief you because we will work on the audio. the idea being you give to an athletic projects such as a hockey rink, and the debate is whether that affects anything to do with the academic performance and whether they're are able to hire the right professors and offer then tenure. necessary toe is lower high price academic talent . is it the same in the world of sports? they try to lower sports talent with a new stadium? >> that is the thing. student athletes can play at any one of these top student-athlete focused universities.
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colgate wants to be up there with stanford. by building these, when a 17-year-old or 18-year-old kid come through, they say, this is the place i want to be. pimm: as far as the cost goes, 40 million? that is a lot to the local areas. people in the construction industry, and what goes with having great fans. >> you are a local construction half-hour away. that is something over the last few years, this is a thing for the local economy. one third of the cost is being underwritten by future tuition. that is something students were paying 70% -- 17% more. pimm: would they get you on the ice with a new arena? >> not me, but i'm not much of a hockey fan. pimm: thanks. much more to come on the
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bloomberg market day. we will find out how markets are in the united states and we will bring you the latest and also take a look at lululemon. shares are down after posting a less than stellar earnings report. more is next. ♪
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pimm: i am pimm fox. it is time now for today's options in sight. julie: let's take a look at where we stand now. we have stocks bouncing around quite a bit during the session. atyou look at where we stand the moment, still hanging on to gains. the nasdaq remains the leader, but about .6%. joining me is jim, a derivatives strategist.
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we are above 25 once again on the fixed. this new era of elevated volatility. is that what we should become accustomed to? >> we should for a while. this is the first shock we have had of this magnitude since 2011. typicallyg piece is it takes about five months to sustain a decline back a low 20. earlier this week, they began to fade. people have an expectation they have a linear decline in volatility and an inverse increase in linear fashion in notks historically, that is what happens. the other thing to think about is that, historically, the s&p six-weeks post
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volatility, late december and early october. spread in high and low s&p 500 today. that hangs around for a while. what we decline is a hedging perspective will move. ,hat comes with long volatility that is really played out for the most part. sustained elevated volatility. downside to probably around the 870 level, where the s&p was so, --y, 5% or
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>> one of the grooves that has been battered probably among the most and is now starting to come back in semiconductors, i know one of your analysts upgraded micron earlier in the week. you have an options strategy that piggybacks. >> that is exactly right. micron is honorable to the slowdown in pricing, down 53% in december. we are neutral over that entire time. because of surging fundamentals. it is really just stabilization, we think, in pc's. in acquisition that is historically pretty cheap.
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you can take advantage of inverted term's structure to do that and that is what we do with the trade. terms structure typically over time, time means increased potential for volatility, not just in micron but across inverted. micron, wet to do in look out in october. julie: thank you so much and we will be back with more bloomberg market day. ♪
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pimm: good afternoon.
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matt: welcome to the bloomberg market day. pimm: renewed fears concerning china and brazil. matt: stocks tumbled in brazil. the nation's credit rating is up to jump by s&p. we will look at how bad the situation really is in latin america's largest economy. .imm: we get behind the scenes ♪ matt: we have gains across the board.
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matt: the most, as apple pushes it higher. we take a look at the s&p rating of brazilian sovereign debt. here is the brazilian currency. up 2% but trading at levels we have not seen since 2002. look at oil and commodities. nymex crude up 3% today. crude in europe, $48 and $.50 per barrel. gold futures up point 75%. .75%. matt: the two year yield coming down.
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as we wait for the fed to raise rates. take a look at currencies here. we saw already, you can see the ,uro is gaining a little bit while the yen loses a little bit around -- a little bit of ground. the bank of england says britain's's economic prospects are still upbeat despite market turmoil. to do nothing not to change its benchmark interest rate at a record low up .5%. only one of the nine board members voted for an interest rate increase. to then, and advisor prime minister says the central bank should expand its monetary easing program next month. the bank of japan has been trying to boost inflation to 2%.
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there was no inflation at all. matt: emergency crews in japan say they are overwhelmed i calls for health as flooding spreads. some homes were not from their foundation. an area north of tokyo is the hardest hit. one person is reported missing there. moving back to apple, it is landing a second bond sale in euros. bloomberg news is learning the 25 --will total two point $2.25 million. cap reserves of more than $200 billion. why do you need to borrow money when you have that much? a lot of it is overseas and you cannot wring it back without getting taxed. no more second-class citizen status for apple tv. backseat to the iphone when it comes to
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promotional and development spending. upgrade to apple tv includes syria voice-recognition software as well as video games and an app store. gene munster talked about it. >> they are really starting to try to lay a foundation for more apps and more gaming and better discovery. it is not the apple tv i envision years ago but a significant upgrade from where they are. pimm: companies in the united states are finding it more difficult to fill jobs. they plan to boost wages by more than 3% in the next year in order to attract new workers. that is according to the duke university cfo global business outlook. keeping with the job theme, fewer americans filed front and plymouth last week. jobless claims drop 275,000
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dollars. under 300,000 for six months. that is the level economists associate as we tell you literally every week with a healthy jobs market. teen marijuana use did not go up in the first year that the drug was legally available for purchase in two states according to a new government study. --y opponents say it would the truth is it is hard for adults to get. pieces of news on the energy front today on the upside an hour ago. the department of energy publish fresh industry data. anddepartment of energy oust weaker monthly production levels yesterday. also in washington, household lawmakers today are going to ark up a bill that could lift long-standing ban on crude oil exports. ont: oil prices depend
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strong global growth and nobody expects much of that this year. we are joined by rob, who has over $15 billion in energy holdings, down from $18 billion after it typically cruel august two people who are long energy. thank you for joining us. how are you? >> i am doing pretty well. matt: it does not seem like people are terribly bullish even after the low level. >> when you are a portfolio manager, volatility creates a lot of opportunities. it is kind of like the super bowl. a lot of opportunities out there in the energy's face. you can buy a lot of companies at substantial discounts right now. tortoise capital focuses on whether energy is selling for 45 dollars per barrel. this is your sweet spot. being you cannot get necessarily out of energy.
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that is why people pay you to manage the money. >> that is exactly right but there are a lot of ways to make money and energy markets, even low oil. for instance, the winner has been the suppliers. here is the reason why. the demand response to low oil has been phenomenal. the increase, the miles driven data, the increase in products, gasoline, diesel, industry minister. suppliers benefited from that is here and they have strong reporting stocks. matt: their margins continue to get higher? we do not see the price of the end product really dropping as quickly as the price of the underlying commodity. use a lot of it but so do a lot of americans these days. we're all buying trucks. pimm: that is right. >> volumes are up. refined products, gasoline and diesel, that is up substantial. that is driving increase cash flow. pimm: you heard about warren
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buffett's position in phillips 66. a little bit. matt: i mean, look is that what you get out? if someone says -- everything is a great opportunity, you know, bad things are good things. you have got to sell sometimes, right? >> we think it is a great stock. demand response to the oil prices. it is unique because they have a big midstream business as well and a chemical business. those two businesses will do well in the oil prices as well. petrochemical businesses do well when the oil price is low because typically worldwide gdp grows. if worldwide gdp is growing, the demand for plastics grows as well. businesses, pipelines,
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they are safe and stable businesses. master limited partnerships or just pipelines in general. for alet's hang on there second. i was thinking the same way you are. if you like phillips 66 and warren buffett, who is the biggest billboard for stocks on andglobe, like phillips 66, we were talking about it on bloomberg tv and in the new york times, everybody knows, where is the upside? what kind of upside would you expect? all of ourrowing businesses. they are growing a refining businesses. they are growing in midstream pipeline. they are going to invest billions of dollars. pimm: it is more people buying into the story. stock prices go up because someone else is willing to pay more. people will pay more because the cash flow is going up. that is why people are going to pay more. having said that, what assets, what energy assets do you wish that you had sold knowing what you know now about the market?
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>> we do not own any coal assets and coal has been a that sector all year. we are not going value hunting in coal. we think coal is not a place to be buying. power generation is fine. utilities in general, utilities are fine in this type of environment. we do not have a huge waiting in utilities in general. that is a fine sector. if you are worried about volatility, utilities are a good place to be. energy independence, those have got to be painful numbers to look at in one year. but looking at this, you go in and buy it now? >> this fund's focus on oil and gas producers only a oil is down 50% for the year. a lot of producers, oil producers in particular, are down 30, 40, 60%. that is why the fund is down. pimm: if someone were interested in buying the fund when it was
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high, it is now on sale. >> we think it is very much on sale to oil prices where they are right now are unsustainable. we will have a lot of volatility for a while. they will probably a for a while, but longer-term, oil will go back $50 to $80 per barrel. it is a great opportunity to buy the energy fund in this type of low oil environment. matt: let me try something. i pulled up the commodities price forecast screen. it shows a lot of information there and a lot of numbers you can see. but basically, the forecast for oil is climbing out. i want to just try something and see if the chart makes any sense. this is the sentiment charge -- chart. in red, you can see bullish sentiment in green. bullish sentiment has decreased in bearish sentiment has increased. the priceu expect for of oil going forward?
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>> there is a lot of volatility ,ut the underlying fundamentals supply and oil is going down and we just saw that today in the ei data. by 200,000tion fell barrels. we expect u.s. production to continue to fall for a while. demand is rising substantially. 60% increase in the forecasted demand increase this year. we are usually at about one million. -- one million barrels of demand. when those fundamentals become more balanced, it means the oil price will probably start moving in the right direction, which we think is higher. we think forecast you were showing or earlier is probably a little low. we think longer-term the oil will be -- >> what do you mean? above for the last two years. >> we think longer-term in the next three or five years. stuck in a 50 to 60 dan for a while. it is a good thing for us
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because gasoline will stay lower and demand will stay strong. get lower prices at the pump. prices for gas in this country are already pretty darn low. in the developed world is paying three dollars per gallon of gasoline? nobody. two: they will be down to .03 -- 2.03. matt: when i lived in england, we were looking at $10 per gallon. pimm: thank you very much for joining us. still ahead on a bloomberg market day, of course we're watching market spirit u.s. stocks move higher after a selloff in europe. matt: we will look at the top movers of the day was julie hyman next. stay with us. ♪
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matt: let's get an update with julie hyman standing by. , a gain ornasdaq loss of at least .3%. we have had big swings, not quite as big today. the session is not over yet. the swings frequently have been happening during the course of the session. though stocks are up, i want to look at some of big download wrist today. lululemon, theh shares have in the worst day in more than a year since last june, down about 13%. the company's earnings estimates. it has raised its forecast for the year. what is the problem?
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come into the bloomberg terminal and i will explain. for the full year, it will earn a dollar per share. you're looking at earnings per reported and forecast. the company last quarter reported $.44 per share. this passport just reported this morning $.34 per share. it willany is saying earn $.37 per share next quarter. analysts were looking for more than that. all this means is actually is that it will have to earn substantially more in the fourth quarter than analysts had projected. analysts are looking for $.83. it will have to earn more like $.87 in the first quarter. it was a lot of pressure on lululemon to earn more in the holiday quarter. the holiday quarter tenants to be the best one. nonetheless, it will have to be quite a blockbuster one 42 meet its own forecast. hence the decline in the shares. also seeing a decline in krispy kreme donut shares today, the
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company sales and profit missed analyst estimates. it is also seeing its biggest one-day decline in more than a year largely because of packaged products here it donuts in a bag or in a box that are prepackaged did not sell as well as the company had anticipated. we are also looking at home builders today, maritime she's coming out with numbers after the close yesterday. cutting is forecast, in particular because of delays in clothing. also, in southeastern, not performing as well as it had anticipated. chairs are falling and somewhat of a decline among other homebuilders. toll brothers, all down more than 1%. matt: thank you for that. it makes me want krispy kreme doughnuts. i can only think of one place in manhattan. is there only one krispy kreme outlet? you have been living here your whole life. let's get now inside apple.
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we will talk about the 3-d development. a great story. can see it on the website. we will show you more of how this function works. ♪
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matt: the world is still buzzing . we are still talking about apple's big event yesterday. he unveiled the same products slightly improved. a new one with a special function. pimm: the latest iphone feature.
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this 3-d punch. >> incredibly busy out there. they had a lot of stuff. hardware whatt of they are really excited about is 3-d touch. that was much more in-depth. unusual.d of >> are they right or is it some kind of incremental thing, not really a game changer like the curved edges on the samsung phone? truth is, multitouch,
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which they introduced in 2007 with the first phone, which you are your fingers around, we busy using our thumbs to type on tiny keyboards. now it is a new way to use your phone. i would not say it is that big of a leap but it is a big leap. instead of constantly using your phone to get back home, you are actually just telling the phone through pressure what you want to do and where you want to go. after a couple of minutes, it is very intuitive. what i found messing around with the phones, i was saving a lot of time. the phone was very smart based on previous behavior based on where i want to go. icon, itess the phone told me the most likely people i were to call us, and that was that. >> it sounds the way you describe it like the home button may not be around for long.
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>> i do not know or i asked them. they said maybe, i do not know, we will see. i did not get a sense all the sudden the button is going away. what was really clear was they were obsessed with trying to make the phone, which is pretty easy to use, even easier to use. you talk about that a lot is going on even in odd year. someone in your position visiting the apple design studio , it was kind of like the kid who unwraps the chocolate bar in charlie the chocolate factory, finds a golden ticket, and gets to spend a day with willy wonka. that or are we passed that? >> it is a different company. the steve jobs apple would show up periodically, with a curtain and blow your mind. here, it has a cop kidded company serving multiple ios's serving multiple. it has great resources.
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if you call the companies see consistently, they are working on so much stuff. about,ey are smart inevitably, anywhere there is a touch screen, you can imagine how they are incorporated -- incorporated. how all of this stuff scales in the galaxy of products. what they also describe, and we were very insistent on this, that they are working on so many different ideas and different times. he says of himself, the key is to get designers to learn and try new rings 80% of it may be thrown over their shoulder and not useful. you never know what the right 20% will be. behind the curtain i talk about in my piece, there is an industrial design studio. things will be great and things can be colossal failures. they are costly trying to experiment with new hardware and new software. they have confidence that at some point, confidence will come
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out. josh speaking with erik schatzker. that is it for the moment. matt: i hate when you leave. i feel lonely here for a half hour. you very much for that. brazil has downgraded. the country is already in a recession and on the verge of a political crisis. downgrade, we the will go for the latest. ♪
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matt: it could indicate soldiers will join police trying to control migrants. area police yesterday detained people for illegally crossing the border. operatorsrail suspended service to and from hungry, citing congestion on the roof caused by trains arriving from hungry. make it easier for other nations to hold assets in its currency. mysticpening its to foreign-exchange markets overseas central banks to china has been pushing the u.n. to become another reserve currency at the international monetary fund. pope francis plans to meet with fidel castro on his trip to cuba this month. that is if the former cuban leader's health allows it. senior vatican officials tell bloomberg news -- if it indeed happens, france happened as a
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mediator and the pastor nearly one third of republicans in a supported -- ben carson is second at 19%. none of the party's 15 other candidates in double digits cnn is airing the second -- republican presidential debate state the or on the democratic side, bernie sanders is leading hillary clinton for the first time in iowa. that is a look at some of the top stories at this hour. coming up, it is one of the first websites on the dating scene. how does eharmony compete with popular apps like tender and can it keep data safe, unlike ashley madison.
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brazil is junk again. the s&p agency downgraded the largest economy credit rating director whos the spoke moments ago about why the cut is happening now. the outlookevised to negative, which really reflected our increased perception of increased risk for execution, for the government economic plan beyond the fiscal side in particular, risks stemming from the political environment, the economic environment, that had been impacted importantly by the corruption investigation. go to julia.
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thank you for spending a few minutes with us. havinghas obviously been well reported economic issues, horrible corruption issues, a scandal involving people at the highest levels of politics. was it inevitable? expected.ngrade was the outlook was downgraded in late july. wasmost surprising thing the timing of the change and the negative outlook that we were not expecting at all. is there anyway to see it differently? if you needed to, could you frame the outlook for brazil's economy in a positive way? >> you could take this as a wake-up call. you could take it as the government finally realizing they need to execute on the things they had been promising
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since doma started her second term in january. this could unite them and make sure they understand this is very serious. we are already junk and one rating and many more downgrades might, if we do not do something. matt: we already see headlines fort jill resisting cuts example to social programs. resisting any kind of real fiscal austerity. doesn't that point in the other direction? >> the government has been going back and forth on this a lot. they started saying they would cut a lot. they started saying no, we cannot cut. they started saying we will raise this tax and that tax. tax cannot get the increases through congress because the economy is in such a bad state. they do not want to increase taxes for the population to pay for the recession. today, doma called another emergency meeting to discuss
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what will be done. or is some expectation the finance minister will actually announce new cuts in this afternoon. we do not know if it will affect the social programs. the finance mr. has been a little controversial. is this kind of what you're saying, it will give him a little more firepower to push through fiscal changes? is the hope. there is not a consensus about whether the downgrade makes him weaker or stronger. one sense, he was brought into a downgrade. he did manage to avoid the downgrade because pushing things through congress has been very hard. -- thisld also give him is how serious it is and this is the time we have to do something. let's stand together and do something. matt: do you get the sense international financial markets
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would like to see them out of power there? with scandalnt notwithstanding, it has been a pretty tumultuous decline as far as the economy is concerned. >> yes. her popularity has taken a toll. 8%, the lowest mark ever for a to whont, even comparing was impeached in 1992. it is unclear what an impeachment would actually due to the market, if it would just create more instability and more uncertainty of what comes next. markets do not tend to like that at all. matt: how long until we expect other means than impeachment? not think there is any expectations of elections being called until 2018 for now. i think the vice president would take over, in case you would resign, which, it does not really seem like she will. matt: we just have 30 seconds left.
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give me your deal as far as what brazil is going through right now, as far as the man on the street, how is the economy? worse economy is getting and worse. we see signs of a recession for a while now. it is really starting. inflation this year has more than doubled the central bank's target. you're starting to see the impact on employment, which is going up, and incomes, and investing orst not not spending any more, which is what has fueled results in the past 10 years for consumption. of sourceing a lot clothing and people just saving what little they can. matt: thanks so much. keep your chin up. brazil. us from tune in wednesday. bloomberg television and radio will speak with bridgewater associate ray in a primetime
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exclusive. one of the world's most excess -- successful -- commercial free for one hour at 6:00 p.m. eastern. tom keene, i believe with mike mckee. you can actually get tickets to go see it live and a lot of people really enjoy it. if you do not get the chance to do that, definitely tune into bloomberg radio or watch it here on bloomberg television wednesday of next week at 6:00 p.m. ♪
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matt: welcome back. i am matt miller here let's get .ack to julie hyman the s&p in the dow post
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gains of about .5%. we have seen already this intraday volatility. earlier in the session, bouncing between gains and losses, now holding onto the gains. things have become more subdued for sure. after the past couple of weeks, big declines in big swings. today in terms of price actions and volume, things have slowed down. take a look. everything is back from school and people are back from labor day. and yet trading has fallen off from where it was in the past couple of weeks in august. , a showing of industry group by industry group, a change of volume in the past 20 days. 5%, a volume gain of about it is the only of about 10 industry groups seeing an increase of volume. financials are seeing the biggest decline here, down about 19%. athave got volatility still an elevated level. take a look at the vic's today. it is above 25 once again.
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even though it is down on the session, it is still at an elevated level that we have been seeing here for the past couple of weeks. let's look at commodities to we have an uptick in volume in the mattel it -- material stocks. perhaps because we are seeing underlying commodities arise and rebound today. crude oil is rising today even after we got a bill of into tories in the weekly inventories report. that perhaps is counterbalanced by yesterday's's production forecast from the energy information administration saying we will see production falling. eventually, the outlook at least is that supplies will start to come in a little bit. gold futures are rebounding for the first day in five and copper is continuing a rebound, though it is more muted in today's session. let's take a look at what is going on in the bond market. we have seen a bump up in yields. 2.24% is where we are in the 10 yield a now -- in the 10 year now.
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we get still ever closer. september 17 is when the fed meets. you were talking earlier about krispy kreme doughnuts. the stock has been down as much as 17% today because they are having problems selling packaged goods. let me bring you into my computer here. not really a terminal screen. the krispy kreme locator. i will zoom in. there isattan island, only one krispy kreme location in all of manhattan and it is in penn station. say, it is the most important city basically in the have one doughnut location in the most disgusting place in the entire city, penn station. >> one of the ongoing issues is it has attempted to break through in the u.s.
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there is a lot of competition. you have got dunkin' donuts. here in new york city, you have fancy doughnut shop on the street corner. there you go. you have answered your question. i am the headif of krispy kreme, i am putting a donut shop and a nicer place than 10 station. what about grand central station and near central park, which is nice? i do not know. thank you very much for that. i want to get a look now at the european market close. let's go to mark barton. three days of gains, european stocks are finishing the thursday session lower. it started in asia after the biggest one-day increase in six years on wednesday. stocks fell because of chinese producer prices biggest slump in six years. also into the mix today, can the fed and will the fed raise interest rates next week?
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interestingly, news from the bank of england today in the minutes from the latest monitor policy meeting, saying the bank of england is not deterred by the recent market turmoil. it says it is holding firm and the time for a rate increase is approaching. that was interesting and caused many eyebrows to be raised here in london. here are some of the big movers today. one of the big supermarkets here and the u.k., the chief executive once it faces a long road to repair profitability. the big bank in spain, the big news of course with regard to spanish banks, is what is happening in brazil. this company generates 20% of its revenue in brazil. you know the news. brazil is junk according to rating agencies. germany's's biggest utility is canceling plans to spin off its german nuclear plant to look at the shares, sinking by 7.6%.
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all at aago, it different color. it was all green on thursday. story.different every single industry group on the stoxx 600 finishing the session lower. back to you. in asia, the shanghai composite split for the third time in three days. ending lower and following yesterday's huge rally, the nikkei sank 2.5%. a good story out of the region comes from the world economic region. china say managing slower growth in the economy is like playing a chess game. david ingles has more from hong kong. >> it is an interesting story, talking about a company that represents china's future. highly innovative he says these are the type of companies that will lift china up the value
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chain in the next decades. it is obviously a rough patch. 7% growth. that even achieving the 7% was not easy. that being said, it is in reasonable shape, the economy, and they do have the tools to manage the transition, coming from an economist by trade. as far as the currency reforms are concerned, it tangible step is that china will allow foreign central banks in the onshore willt, a payment system also be set up and china is not interested in involving itself in a currency war. it is not in their best interests to do so. that brings the try last point, opening up to the world, which will obviously affect everyone else. listen to this. >> we are integrating ourselves into the wider world and china will open up even more. our policy of investing abroad will remain unchanged. these specific policies will continue to encourage more
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foreign investment in china and they will expand access to markets. >> adding to that, as china becomes more consumption driven, they will be importing more from the world. the question is, what will it be importing more of? is about 60% of growth. in other words, all of this, he is seeking to assure the world that the new china, growing at more modest rates, will not -- in fact, peaceful development. let me end on a quote from him. we lived in the same world. not a source of risk. that is his message. matt:. mating in the digital age. navigating the perilous route to love online. we will speak with the senate -- the founder of the harmony. -- e-harmony. ♪
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matt: welcome back.
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i'm matt miller. it is love in the age of tender and marriage in the age of ashley madison. the road to online with has never been so fraught with competition. how can you harmony, one of the earliest players in the online dating space, keep its market share? let's ask the founder. he joins us now. he joins us from l.a.. neil, to be fair, i think of eharmony as an entirely different product than ashley madison or in fact tinder. you're trying to hook people up with real, solid relationships. am i right? >> you are definitely right and thank you for saying that. we think we're in a total different business from ashley madison, obviously. even from tinder, which relates more to younger people, i think that we are looking for a, lifetime relationships. matt: i noted that you have many
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, butrs over the age of 80 if i am correct, your fastest-growing demographic, and i am from this, is 25-35 years old. it is not that you have a shortage of young people using eharmony. lot of youngave a people. we just had, for instance, a weekend in which we had about 80,000 new registrants on our website. are growing rapidly. we are so glad we came back and got focused again on what the mission of eharmony is. we also have some other products that we are excited about. all in all, eharmony has never been in better shape. matt: i want to talk to you about the other products in a moment. i noticed other staff there, 55% of your users are women, as opposed to ashley madison, where it may have been 5%. you actually have real life on your website. these are not lots.
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>> we do not have anybody on a website that is not real and live. we take great pains. when people answer 250 questions, they are taking our process very seriously. women love that process. they like answering questions about themselves. interestingly enough, women like men who are willing to answer those questions. matt: women like men who asked the question. 80% of contact is initiated by men. the women are not going out there and tapping the men. they are just putting their profiles up and then just waiting for the most part. isryone's data though susceptible to a hack attack and i believe you had a password breach a few years ago. you are online. how serious are you about security? have never been so serious
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about security. we are spending several million dollars per year to make sure our security is just as solid as it can be. recognizing that even the s -- the fbi has been hacked. a lot of places have been hacked. sony was hacked and other people. we do not want to get too prideful, but we think we have got the most privacy that anyone could possibly have in this world, and now, in which people try to break into your privacy information as much as they do. you also have the most in-depth profile information on world, tothe romance put it broadly. are converting that kind of data or those kinds of skills you build up, identifying people and making matches to the jobs industry. tell us about that. >> thanks for asking about that.
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we think one of the most unrecognized dilemmas that americans have is only about 30% of americans like the job that they currently have. they wish they could have a better relationship with the person to whom they report. they wish they could have a better culture fit with the company they are working for. they wish they felt stronger about their own fit in terms of skills, and qualities for the particular job. we are trying to do the job we have done for matching people for marriage. we think we have had a doubt 2 million and may be slightly over 2 million marriages now. we have a divorce rate of only 3.86%. we are trying to do the same thing for jobs. if we do, it will be a revolution in america. if 100% or 80% of americans could really like the job they have, that will have a big impact on the marriages they
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have and on the rest of our i am sure jobatt: seekers will love this. will you have to take rates from employers that you have, say for women on you harmony? interesting. we will have to do something in the business-to-business range that will be slightly different for you harmony. we have to learn how to relate to hr groups in large groups. iny are 800,000 companies america and we want to have 1000 of those companies on board before we even release this product. matt: thank you for taking some time with us. the founder of eharmony. a quick break and we are back with more.
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matt: 10:00 in san francisco and 1:00 a.m. in san francisco. investors waiting for
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the decision on interest rates in one week. matt: china's currency rises the come --er the rifle tumbles after they cut the credit rating to junk. look at new features and upgrades announced by apple. matt: good afternoon. i'm matt miller. mark: i am mark crumpton. thank you for joining us on the bloomberg "market day." stocks are rising this afternoon, a week before the fed decision on interest rates. u.s. government report showing fewer americans applied for jobless benefits last week.
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that is also giving stocks a boost. the broader market up half a percent at 1952. apple, talking about apple yesterday. we noticed after 1:00 new york time when the prices of some of these items were coming out, the apples talk had dropped. today apple making a comeback, 1 over 2% trading at 11243 -- 12.43. crude oil leaving the gain in commodities. nymex crude up 2.8% trading at 45.40. brent crude also up at 48.41. gold trying to end the five-day slide at $1109 $.80 per ounce. $1109.80. matt: pushing the yield on one basis points.
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the 10-year and 30-year yield climbing. sellers there and the 10 year yield at 2.21%. as far as currencies go, check real, therazilian r weakest the currency has been in some time as the credit rating is cut to junk on a faltering economy and political scandal there. if you take a look at the rest of the currencies, you can see the euro's strength against the dollar, as well as pound strength, although the japanese yen showing a tiny bit of week this against the u.s. dollar. now a look at the top stories on startingberg terminal, with jobs. fewer americans filed front of claimant benefits last week. initial jobless claims drop to 275,000. they have been under 300,000 46 months.
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housing, j.p. morgan says home prices will rise more this year than originally or cast. the average rate type 4.4%. rising demand and fewer distress cells will keep pricing moving higher. will keeped sells pricing moving higher. mark: airstrikes using jets or helicopters could be launched from their against islamic state militants. the disclosure is the latest sign russia is trying to pop up president all all a sharp -- the president's government. more than a quarter people have died in the four-year long civil war. the u.s. senate pushing toward a critical vote today on the nuclear accord with iran, with democrats in position to hand a major victory to president obama. this afternoon they are planning to put up the 41 votes or more to block the resolution with a
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filibuster that would prevent it from reaching a final vote, making a presidential veto unnecessary. nearly a third of republicans are supporting donald trump's presidential bid. trump is at 32%. ben carson second 19%. none of the parties 15 other numbers.s is in double cnn will air the second presidential debate next wednesday. bernie sanders is leading hillary clinton for the first time in iowa. the poll suggests a percentage ahead, well within the margin of error. for: mercedes ousted audi the first eight months of the year to take the runner-up slot. bmw is still leading the pack. mercedes was the only one of the top three luxury carmakers whose sales rose and china last month. the nfl returns tonight.
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patriots hosting the steelers. big media and corporate sponsors do not appear to be turned off by deflategate and the other cheating scandals that have rocked the patriots. the wall street journal says the nfl will bring in more than $12 billion from revenue of corporate sponsorship up 13%. that is a look at some of the top stories we're following at this hour. mark: coming up in the next half hour, the ipo market has been riots, but that may be about to change. firstdata could be the ipo. -- the ipo market has been quiet. getting into natural suppliers for perdue. is how long its took twin bill the newest devices at apple. here is a roundup to mr. cook himself. >> huge morning. fornew models and new bands
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ios2pple watch with watch bringing creative visibility right to you -- right to your watch. the ipad pro. the future of television, apple tv. and the most advanced iphone's we have ever created and the most advanced in the world, 6s and 6xplus. the new phones do not hit stores for a couple of months that brad stone got his hands on one yesterday in sanford is the. >> remember the old iphone that you bought a year ago you were so proud of? that is now the outdated model. iphone has just introduced the new model.
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they are designed unchanged from a year ago but under the foot is a new engine. it is 70% faster than the iphone 6. it is touting a new feature called 3dtouch. touch,perform a deep something new happens. you get a series of shortcut. press hard on the mail app and rite an options like w e-mail. apple calls this live photo. the iphones cameras getting an upgrade. the back facing camera is 12 megapixel. generation can rejoice. the front facing camera is getting a huge boost to five megapixel. it comes in silver, greg, gold and a new color they called rose
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gold. let's just agree it is pink. 6s plus goes on sale in a few months. matt: 40 from apple's event in san francisco. mark: bringing in guy kawasaki. currently the chief evangelist of an online graphics design service. he is also the author of "the art of the start 2.0." give us were assessment of yesterday's event. did it meet expectations? it met the expectations of apple fans, and also, irritated the people who thinks apple copies whatever microsoft and samsung has done before. it depends what side of the chasm you live.
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big apple fan. i am heavily invested in the ecosystem, and i think the pastny is -- has in the revolutionized products but that is over. the company introduces nothing new. even features are standing on the shoulders of previous features. and has changed from a growth company to a consumer electronic company that is just defending share now. guy: what side of the bed did you wake up on? [laughter] matt: no new products. isn this new 3d touch force touch. what is new? guy: it is deeper, richer features. hopefully features that drive adoptions or upgrades. if you are a gopro enthusiast, there is an apple watch working
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with the gopro. i think it is easier to control with a gopro -- apple watch and gopro itself. his live photo is facebook supports it -- this live photo, if facebook supports it, that is a huge teacher. there has not been a macintosh since macintosh. the question is, what is the next day curve? that is the $350 billion question really. mark: what about this, i don't know if you can call it a partnership, but yesterday on page at apple talking about microsoft, there were a smattering of boos, did that catch you by surprise? guy: you are talking to someone pe in the poke ip macintosh religion. ishink it represents
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microsoft will be successful, you have to be supporting office. that is the way it is. on the other hand, my perverse perspective on this is at some point, i don't know about the right words you want to use, but at some point microsoft copied apple for the uniface -- user interface. copied microsoft with the tablet. maybe the world is now back at the right equilibrium. is such anple incredible company for business school students because it was a growth company that lost it then -- lost its mojo and became popular again. that is something almost unheard of in the literature. once you are done becoming a growth company, all of your super cool growth guys like you let it go to greener pastures.
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they have done it twice. is it possible for a company to do that three times? i can't think of any examples. guy: it is difficult to think of has done ithat i twice. i was stupid enough to leave apple twice. [laughter] maybe the right thing is asking what i think and then do the opposite. mac, andst with the then they came back with the ipod. what else is there? is the car the next frontier? can they do that? god help us if apple makes the car. it will take a special connector. none of the charging stations will work and there will be a special adapter that cost $5,000 or apple will decide any this shall type of electricity that is not made. god help us. , because ae to ask
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lot of the conversation yesterday aside from the iphones was about apple tv. does apple really need to take over people's eating rooms? is that the next strategy going in a sense apple once it all just like amazon once it all. i happen to be the tv watcher that i looked at the siri demo and it is really impressive, all cool and great for the demo, but i have to tell you, maybe i am the only person in the world, but when i decide to watch tv, the last thing i want to do is optimize my in. and interact with siri, i just want to turn it on and watch. not fiddling around. just, you know, give me " house of cards" "24." i have to take the other side there.
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i love working with apple tv. i got the xbox and then talking to it all the time. tom verbally commanding it change channels. i think that apple experience will be even better. what do you think about the watch? i thought it was funny tim cook announced new bands for the watch. seems a bit ridiculous. [laughter] is this really the next new growth area for apple or drop in the bucket? and apple never comes up brags about how it sold more watches and the first day than any other in mankind. so if you're reading that he leaves, you have to say maybe ins are not going as expected. having said that, i was really skeptical about the watch. i thought the battery life was going to be too weak. but i bought one. honestly about the cheapest one.
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i really liked it. i liked it much more than i thought. a big mistake i made. i let my daughter used by apple watch, and i cannot get it back. matt: that is a pretty incredible product. big slacker. thank you for joining us. apple's chief evangelist -- former chief evangelist. , we are keeping an eye on the markets. here is the check at some of the big names. mark: you know i worry about you. ♪
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matt: welcome back to the bett :
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bloomberg "market day." mark: a check of the markets. looking at some of the biggest losers on this thursday. ramy: kicking off with lululemon, one of the worst today.ers on the nasdaq the athletic clothing company down right now by nearly 15.5%. the worst in more than a year since june 2014 -- the worst day in more than a year since june 2014 erie and you will need a really blockbuster second quarter. are pessimistic. lululemon is still optimistic the dividend. dollar tree the second-worst performer.
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the discount store chain down by about 3.25% right now. one of the reasons could stem from a downgrade by credit suisse to underperform from neutral. it also cut the price target by $10 to $60. the biggest concern is the acquisition of family dollar may have not been so good. wiese is cautious about the company's ability to turn around the perennially poor performing asset. ynn resorts the w worst performing the s&p 500. down by 4.5%, this after susquehanna cut its estimate on gaming stocks. there is no sign of stabilization on the other side of the world, macau, the world's gaming capital. two-year gaming trends continue to deteriorate. head to mying,
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bloomberg terminal for a technical to will want to note. over the past year wynn has stayed with the 50-day moving average, but in august heading into turbulence, falling below the line three or four times. you can see the deeper slide into august. interesting technical if you are a bloomberg terminal subscriber. matt: i am a subscriber. mark: yes, you are. look at the top stories i got from that subscription. some news crossing the bloomberg terminal, ellen pao has decided to end her lawsuit. she will also pay the legal cost in the gender discrimination case. she lost her case against the venture capital firm in march. finer perkins said they would not make her pay the $276,000 legal fees if she dropped her
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suit. if she does pay now, she is doing it to be nice. for two dollars gas. gasoline prices will fall another 17% by the holidays to $2.03 per gallon. over the labor day weekend they were one dollar cheaper than they were a year ago. matt: on the subject of gasoline inic the democratic governor california has promised to cut the gasoline use in half. the legislature had objected too far.coming up, another mega ipo . seeking to data raise $2.5 billion when it goes public. those details next. ♪
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mark: welcome back to the bloomberg "market day." i am mark crumpton here with matt miller. matt: it has not been a
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blockbuster year for ipo's but we may soon have this year's biggest ipo. firstthat comes courtesy data, which plans to go public by the end of the month. how much money are we talking about? >> at least 2.5 billion. it would be the biggest this out tallgrass energy that went public earlier this year for 1.5. very small compared to what we saw last year. we saw a massive 25 ipo. we have a lot of three billions in there as well -- three billions in there. after such incredible market volatility, what is book building want to look like for the ipo? monday, itat scary
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seems things have calmed down a bit. jack dorsey is planning on going public in the fourth quarter. momentum inre is the ipo market. right now paying attention to the fed decision and volatility in general. mark: what do we know about a potential roadshow? what do investors want to hear? >> it is a company that has not turned a profit since it was taken public by kkr. lots of debt. 20 billion in debt. lot of the equity will go to paying down law -- bonds and loans. matt: who would want to buy ?omething like that >> this is a payment processor that works with the majority of the banks.
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they make credit cards and all of your payments work. they work with a lot of the banks that are underwriting these. it is a lossmaking company. mark: the volatility in the market, could that throw a wrench into all of it? >> is definitely could. they will pay attention to it. matt: finally something to do for alex she is and i feel reporter and has been just chilling out in the office. right now.to split alex and i are both leaving. mark: coming up in the next half hour, china's currency rises the most on record in the offshore market today. ♪
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mark: welcome back to the bloomberg "market day." i am mark crumpton in new york. the hungarian army is conducting exercises near the serbian
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border today. it could indicate soldiers will join police in trying to control of arriving migrants. hungarian police yesterday detained or than 3300 people for illegally crossing the border, the highest daily figures so far this year. austria's rail operator suspended service, citing congestion on the route caused by trains arriving from hungar y. emergency crews in japan say they are overwhelmed by the calls of help us earnings rights. heavy rain is pushing livers over their banks and causing lands lives. an area north of tokyo is the hardest hit, and at least nine people are reporting -- reported missing. bank of england says written's economic prospects are still upbeat. -- the bank of england says spectsd's economic pro
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are still upbeat. pope francis planning to meet with fidel castro when he visits cuba this month. that is if his health allows it. the senior vatican official says there will be little advance ,oting -- notice of the meeting it happens. the pontiff has acted as a mediator between the united states and cuba. he will visit new york, philadelphia, and washington. coming up in the next hour of the bloomberg market day, perdue farms acquiring natural group holdings. we will look at what it could mean for big customers of organic food like chipotle. why the u.s. is enjoying some of the lowest gas prices in the world and why some countries are paying more than seven dollars per gallon. in one week u.s. federal reserve will announce its decision on interest rates. this comes at a time when china is striving to maintain growth. will join us from the
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san francisco bureau. always good to see you. starting with the latest developments, china saying it will open the domestic war and exchange market to overseas central banks. will that make it easier for the other nations to at least at yis point hold assets in uan? >> i think everything happening in china is to appease the imf to make it possible to have the added to the world reserve currency basket. they are just playing games. obviously the banks would like to buy the you want. that is a big that to opening act capital account. as part of that, the currency has been weakening. i do not think it is a debasing of the currency. this is really about trying to open up the markets.
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it has been nearly a month since the chinese made the move august 11 two devalue the currency. we have asked several people will who appeared on the network whether or not they believed the -- they believe the global market makes its reaction. what is your sense? >> the markets have been long overdue for a correction. i have said with hindsight we will be able to blame somebody when volatility strikes. clearly china is important. they want to do something. the stock market is a bit odd. the currency move really has to be seen in the context of moving to a more open system. like the move today we had, that huge of move in the markets likely due to
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intervention. the volatility is introduced to rein in the leverage. that is heart of a maturing and growing up process, not outright devaluation policy. growthhina, the prospects flowing. central banks cut interest rates five times. that goes back to november. spending and stimulus measures about 200 $40 billion and rising. is china in danger of another debt overhang like the one in 2008 and 2010 jacob some believe it continues to be a drag on the economy. there are a bunch of issues. i'm not suggesting everything is perfect. what they need to do is move toward the friendly reforms. the other thing they need to do is allocate credit more efficiently. -- taking steps in that
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direction. we have an economy slowing down. much of the stimulus is not ending up where it is supposed to be. we are creating debt overhang but those are problems china can manage. again, what markets are due for a major correction anyway? money correction throughout the world does not really work and being highlighted that the slowdown in china. investors will look at the markets have empty, and china is a big market to blame. jenna will move along and not do it perfectly but i think they are prudent steps to be joining the club of the big boys. talking about the federal reserve. 38 of 78 economists surveyed by bloomberg are predicting the fed will raise rates when policymakers meet next week. what is your take, and will the volatility we have seen in global markets as of late cause them to reverse course and put
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off a rate hike until later this i thinkperhaps 2016? >> the fed will do exactly what it has been promising since april of last year, which means they will be behind the curve. even as inflation goes back to normal, rates will be lower to normal. i think most people agree the one thing central banks have achieved is compressed risk premium. risky assets did not agree -- a pair risky anymore. volatility in the stock market was slow. asset prices are inflated. that genie is out of the bottle. i think investors will look at the bottle being half empty, not a longxt week quite time. asset prices will be lower. what the fed will do is just as along the road of the past. do the events in china
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concerned janet yellen and policymakers gekko >> they are concerned about anything and everything. they do not want to be heading in the so-called data dependency where they are reading the tea leaves. they need a course where they want to be. as long as they do not have a course, they will be scared by everything out there. will take a step back. that is a very unhealthy environment to be an. that is the fed we have these days. always a pleasure to have you on. thank you for your time. still ahead, defending marissa mayer. is she the best person to be at the top of yahoo!? her former board members are saying today. that story coming up. ♪
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mark: welcome back to the bloomberg "market day." i am mark crumpton. ramy standing by with details. the volatility continues. after broad selloff tuesday, we are currently at session highs with the nasdaq the biggest gainer. the nasdaq up by 1.4%. the dow also about the same. in 11 of the past 14 sessions, the s&p 500 has closed with the move exceeding 1.3%. we're very nearly there because of quick shifts in investors system -- sentiment.
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here all of the sectors are higher today led by health care, as well as information to knowledge it. apple leading the way with a rise of 2%. digging into commodities to do one oil check. it is up to date a 3.7%, pushing past the 45 per barrel mark in new york. the biggest nuisance august 31 and helping to snap a three day's -- three-day losing streak. there is speculation it could fall which would help alleviate the global got -- glut. metal heading for the longest rally since june. trading up by half a percent here. there is speculation outlook increaseinors will supply and push prices up there.
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this is copper's third day in a row of games and the highest since july 21. gold is higher, breaking the five-day losing streak. it is trading up by .75%. volatility making investors jittery. futures headed for the biggest gain in more than a week. a look at the 10 year note. investors are pulling out as they head into a haven. 2.22.eld is up by the highest since august 5 20 song yields of 2.23%. back to you. taking a look at the european market close. after three days of gains, a 3% increase, european stocks finishing this earth -- the thursday session lower. rough start in asia after the biggest one-day increase in six
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years. stocks fell because of chinese producer prices biggest drop in six years. also in the mix, can't the fed, well the fed raise interest interestingly news from the bank of england today in the minutes from the latest monetary policy meeting saying the bank of england is not hurt by the recent market turmoil. the minutes said it is holding firm that the time for a rate increase is coming closer. that caused many eyebrows to be raised in london. william morrison supermarkets, one of the big supermarkets and the u.k., the chief that it up thinks there is a long road to repair profitability. the big bank in spain, the big news with regards to spanish banks and to spanish banks into what is happening in brazil, because this company generates
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28% of its revenue and brazil. you know the news there, brazil is junk. germany's biggest utility canceling plans to's been off the german nuclear plant. share his thinking by 7.6%. 24 hours again it move to a different color. every single industry group on the stoxx 600 finishing the session lower. mark: now taking a look at the top stories we're following. consumer attitudes and united states held steady. the bloomberg consumer comfort index was unchanged. weaker perceptions by the fighting client -- climate where offset by personal finances. the company that makes oreos going on a health kick. they said nutritious snacks on make up half of the product line within five years. the company said it is making a response to consumer
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demand. google launches android pay, the new apple pay competitor. best buy, macy's, and mcdonald's among the competitors. google wallet being transformed into a money sending at. that is a look at the top stories at this hour. stock has dropped after news broke that alibaba spinoff as not work off -- work out planned. investors seem to be losing patience with the turnaround. scott galloway gave a scathing review of marissa mayer on television saying she is the most overpaid ceo in history. the activist founder served on the board in defended meyer on bloomberg " surveillance." thatwas part of the board hired marissa mayer. what is happening overall is the tech company with the best technologists wins hands down. she is the top 10 in the valley.
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she has made huge progress. over a quarter of the revenue comes from mobile. she has brought and great people. the fact is users love it. turnarounds in tech take a long time. steve jobs took five years to be able to show progress. whitman is still grinding along. here you have someone he was extremely visible, and it is easy to take potshots at her. ceoow do you suggest to a with a plan that the best process is to be taken out? should yahoo! become a candidate? >> -- merger candidate that come >> at the moment they are best off being a standalone company. the core business will start to grow again. it is easy for investors and professors at nyu to try to make
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calls from the sidelines. that, there is a tax bill due on alibaba. should the tax ramifications affect the thinking of the board and marissa mayer? >> i really cannot say what is going on within the board. i let the board a couple of years ago. ultimately the shares are double than what it was when she came. is that because what she has done more people looking for a the corespinoff? that >> business is still throwing off hundreds of millions of dollars already youh, then have a difference in terms of where it is trading and where is the value. mark: that was former yahoo! member -- boardmember michael wolff earlier today. still ahead, got meet? chipotle's largest supplier of
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pork is being required -- acquired by perdue farms. what they say about the growing demand for organic nude in the united states when we continue in just a moment. ♪
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mark: welcome back to the bloomberg "market day." i am mark crumpton in new york. and a supply of organic in premium meat produced farms is acquiring natural food holding and its brand. it is one of the primary pork suppliers for chipotle. purdue plans to remain true to the animal practices nyman has a list. this comes as global food prices slim to the lowest number in more than seven years. for more on that session, i'm
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joined by reporter from chicago. let's begin by talking about demand. how much demand is there for organic and food -- farm raised food in the united states right we know is supply is not keeping up with demand right now. we have large harvest coming. we have record pork production in the u.s. when we are talking about things like organic, antibiotic-free, these are the areas where we are seeing the highest supply for demand. mark: what would this mean for both companies? purdu is a family-ownede company. the third-largest chicken company in the u.s. and the largest producer of organic chicken in the u.s. and their
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push has been to expand into premium meat. they purchased a company called beef.n, premium pork and this is the second leg of expansion into that area. it can mean a lot of different things. it can mean scaling up what they are already doing. what they want to do is stay true to the practice that nyman has done a reputation for. being a reputation for very progressive company when it comes to sustainability, humane treatment of animals. it could mean continued growth in that area and building a reputation in the area of purdue. nyman includes more than 700 independent amalie farmers. do we have any idea what this ?ight mean for them gek
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>> perdue has said they want to expand the number of farmers and that network. it still remains to be seen. as far as i can tell, they want to expand the network. like why our suppliers this coming to the forefront right now? talk to us about the timing. >> i think what has been happening is consumers increasingly are becoming more aware of what is in their food, and they want to know more and have a say in how the crops are grown. what feeds the livestock that has turned into their stake in vacant and chicken. andt now -- their steak bacon and chicken. consumers are thing i do not want in the biotic in my chicken. mark: is this radically change the food industry landscape? no, i think this is just
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another step in the right direction we have been headed and. in termss made strides of removing antibiotics from its chicken supply. you have other restaurant companies moving in that direction, to. this is just another step in the journey we are on. can suppliers keep up with the change in demand for these particular types of products? the million-dollar question right now. when i talk to farmers what they tell me if any to be paid a premium, incentivize to change the production practices. whether you were core and farmer or raising some other type of food, they have to pay their bills, to. they have to be able to tell the accountant and bankers that they will be able to pay off these different investments. a tractor can cost as much of a house. new types of pay housing can
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cost millions of dollars. mark: does one of these things on, consumeres education. are they really up to date on what is in their food? are they paying attention? >> i think consumers are increasingly paying attention. there is so many confusing types of labels. as a consumer, you have to pay attention to what you are buying in. you have to really educate yourself. joining us from chicago on the perdue story. thank you so much. appreciate it. wednesday.t we will talk to bridgewater associates. that story coming up. prime time surveillance exclusive. breaking news at this hour. avon shares halted for volatility after a sale report
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according to the journal, discussions about a stake sale with private equity firms according to " the wall street halted. shares have been . as you can take a look, shares are up over 12% trading up $5.08 per-share. we will continue to follow this story and bring you more details as we get them. stay with us. ♪
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the "bloomberg market day." mark: s&p cuts the credit rating
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to junk. what is next for latin america's largest economy? >> look hide the scenes to learn about the latest development of the iphone 3-d touch. mark: the cost of college tuition keeps climbing thanks in part to an athletic arms race. we will have the details. good day from bloomberg world headquarters in new york. i am mark crumpton here with olivia sterns. olivia: we are two hours away from the close. you can see some green on your screen. all the major averages up i more than 1%, the dow up 172 points right now. next week we do get the september fomc meeting.

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