we will see how nervous it makes the markets. pope francis has been critical of capitalism but some on wall street hope to win him over when week.its the u.s. next high and stores had been down in the dumps, but product earnings could upper sides of a luxury rebound. earnings could offer sides of the luxury rebound. scarlet: good morning. i am scarlet fu and we are 30 minutes into the start of the u.s. trading day with stocks rising in the early going chair with seven out of 10 industry groups by a by energy shares up right better than 1%. you can see that in europe. stocks recovered from early losses but asia closed down sadly, up right .3 of 1%. treasuries, prices falling and results in higher yields. all of this coming before the

fed begins their two-day meeting tomorrow. in currencies, the yen is stronger and the bank of china prefer to hold up after the fed holds their meeting. the dollar yen currently at 119.87. numbers rose for second month in august increase was smaller than expected. you have to like -- you have july numbers that look like a bit of a wash and not to mention that it does not reflect the turmoil in the markets. you can see the dollar makes when it comes to how it is trading versus some of the major pairs. the empire manufacturing number was week, showing manufacturing in new york contracted for second straight month and you can blame it on the stronger dollar weaker economies overseas. all could to beating to that. how it plays out in the commodity complex, you've got oil prices rebounding from a two-day drop, apply -- up by 1.7% and gold futures up slightly at 11.05 per ounce -- 1105 per ounce.

in the meantime, let's get to what is making news and we begin with japan for the central bank on resumption and growth to jumpstart inflation. the bank of japan decided not to add more stimulus. the head of the doj said they see a gradual recovery in the economy but they will not hesitate to act if prices do not rise. all of this taking place before the fed policymakers begin a two-day meeting where the decide whether to raise rates for the first time in nine years. staying in asia, tough talk for says korea, kim jong-un they have restarted their nuclear reactor and ready to use the weapons against the u.s. at any time. today, they said they are preparing to launch a long way to lock -- rocket. they warned that would be a violation of u.n. 5 -- regulations. the u.s. is -- official is confirming that russia arms are taking place at the syrian air base. it is on the mediterranean

coast. u.s. intelligence say that they have seven tanks and artillery units. russians say their weapons will be used to fight the islamic state the day. the prop up well -- the buildable pop up the regime. hundreds of russian troops are trying to accommodate 1500 people and a are already at the point. in germany, they're calling for a financial sanction to be imposed on eu countries refusing to take in refugees. the eu has not been able to unveil a plan to force countries to take in a share of the hundreds of thousands seeking asylum. australia, michael turner ball was sworn in as the country's sixth prime minister in eight years. term ball is up former goldman sachs executive who pledged to revitalize an economy hurt by the slowdown in china and classic demand for commodities. this a there is a one in three chance surely will fall into recession within a year. arnie sanders appeared at

place not known for hosting democratic presidential hopefuls. liberty university, the christian evangelical college in virginia. sanders admitted he and the crowd disagreed on gay marriage and abortion but he said that that should not and their discussion. bernie sanders: there are other issues out there. that are of enormous consequence to our country and in fact to the entire world. that maybe, just maybe, we do not disagree on. the biggest applause came when he praised liberty for being a proudly religious institution. those are your top stories this morning. a lot coming up in the next hour. we will take you like to the point where auto show where hans nichols caught up with the ceo of lamborghini. glance in thencis united states next week, but what kind of reception will be get from wall street? he has been fairly critical of the pursuit of profits.

with theeased earnings state of luxury retail in light of the slowdown in china. those stories and much more coming up on "bloomberg market day." our top story has to be the markets. investors have low expectations for a fed rate increase this week, but rapid shifts in the market may signal they might not know what will happen next. the s&p 500 for the cluster weekly returns alternated between fast gains and just as quick losses. for closer look at what the market is hectic, let's bring in catherine, global market strategist at full tech. she joins us from miami. thank you. catherine: thank you. scarlet: describe it two fed scenarios. what happens if they hold off? two recent the dollar weakens and treasures rally? catherine: i think some of come off the u.s. dollar if they hold on. i know with the increase in the the fed fund forecast, but i do think that you will see

pressure come off, some more percent -- support for emerging markets which has seen quite a hit in recent months. expecting that first high, but i think the company shipped from the chinese government that devaluation will keep the fed on hold. if the fed does hike and it remains a possibility, we think it will be one and done. we think the fed will accompany with language but we think at the end, it will also take pressure off of what has been a very strong full dollar rally. we do not think that is in the benefit of the u.s. economy and the fed does not want to see the consistently depreciating dollar. if the fed hikes tomorrow in the meeting, we think that impact it will signal a very gradual and minimalist tightening process. scarlet: got it. let's get back to the boj that we referenced how they declined to move ahead of the fed.

it sat on its hands. you present the japanese economy will struggle and the boj will be forced to take action before the end of the year? thryn: if they're targeting inflation, they don't have that. we saw inflation come out in zero and the target is obviously 2% and we saw second-quarter economic contraction for private consumption and private thestment both contract second quarter, so i think that the central bank is more likely than not going to ramp up its stimulus. if not in october, then in the coming months. if the trend continues, as we see, japan certainly was to avoid deflation. thelet: they want to do fleet deflation but shinzo abe is now more pressure than ever to come up with a fiscal solution. ryn: the market has been disappointing and they have internalized that disappointment. i think there will be more

stimulus because they have a lot to lose. there is a lot of credibility on the line and i think he will seek additional stimulus from the fiscal side, monetary side to avoid that pernicious cycle of deflation that i think japan potentially is facing once again. scarlet: given where we stand, the yen strengthens as carry trade unwind. i wanted to get to the bloomberg terminal because at home, the big question is whether u.s. stocks are expensive and one measure is they will get pricey thanks to dan credit for sending me the chart. on that prices, or the s&p 500, the multiple is the highest otcom 2000, the d bubble days. kathryn: i think there are more attractive valuations elsewhere. we are bullish that we have seen depreciation. i think the fed will be doveish plotbring down the dot

great, but i think there are other alternatives. we think the quantitative and heating process is not over and we'll get ramped up. we like european equities and they serve violations. if the fed scenario doesn't play out, i think you will see some increase they in emerging markets, which as i mentioned, happened so devastatingly. matter: either way, no what happens, the message from investors seems pretty clear which is brace yourselves for volatility. how did volatility look and feel when you know it is coming? athryn: it is up and down. we have been in a holding pattern expecting the fed hike and anything that happens this week, uncertainty will be reduced and that is what killed the market, so we need certainty out of the u.s. and the fed will bring that this week. you the way, we will have clarity of that direction. i think it is magnitude that matters and not the precise they of the lift off.

also from china, i think you will seek some stimulus come from china and potentially produce that inherent. there the today drivers of intense volatility that we have seen in the markets in recent weeks. scarlet: with ball to it becomes quickwitted the you worried about liquidity in any class? catherine: we have not seen any volumes are equities complaining about this. as was the market in general. i think that you will see increased liquidity as soon as the uncertainties to come down. to seeinitely need greater volumes in the market and i think that is going to come to the floor once was to -- we do haveity more clarity from the federal reserve. scarlet: captain rooney vera, the word is clarity and we are waiting. they come out with their decision on thursday at 2:00 p.m. she is global market strategist. thank you. joining us on thursday for live coverage of that decision, a special report coming out at

2:00 p.m., followed by janet yellen's news conference at 2:30 right here on bloomberg television. for what is coming up, the world's biggest partial kicks off in frankfurt, germany. we take you behind the scenes and show you some hot cars. ♪

scarlet: good morning. welcome back to the bloomberg "market day." i am scarlet fu. stocks are higher end the waiting for the fed to get clarity. we have matt miller is standing by with an update. roughly 45 minutes into the start of the u.s. session and we have strength. oft: we do have a little bit strength. they have been fluctuated but the s&p 500, the nasdaq and dow jones all gaining about .25 of atwith the dow jones average

six 2424. the nasdaq is the one index i want to focus on because it turned positive for a year and it is coming back. the nasdaq had been over just about two months ago, and you can see in july, this is a year-to-date chart so we came down, but we have come back to positive territory for the nasdaq year to date as we seek strength from companies like orb recovery from companies like apple which had a big correction. there you see a little bit of improvement in the tech heavy index. i want to point out when tech stock that is competitor of apple in some ways. fitbit. again today at 33.07, since it went public, up percentage points and they say growth here is ridiculous. a lot of people may remember when we first got the filing for the ipo that fitbit was selling

$750 million worth of their bracelets a year which was a surprise to some, but they clips $1 billion this year and sales growth according to pacific crest is went $47 a share in the next 12 months, trading at 33.06. take a look at some of the tech companies that have been talked about on the website about the withbility of a merger microdevices and microsoft. some analysts have come out and said it is unlikely. unlikely because it would hurt microsoft relationship with intel. but itel relationship, would help them to do things like streamlined their microsoft services and their xbox services, i should say, xbox is the only thing i think of microsoft because it is part of my life. i also want to point out disney. furtheroving down with risk of cord cutting according to morgan stanley.

skinny pay-tv bundles are becoming a think i guess, scarlet, do you have that? i'm assuming you have everything. scarlet: we have the fact tv bundle because we need the live sports. matt: we need everything, but the kids down. scarlet: that's true. the kids do not but they watch anything. matt: i have everything you could possibly have cable wise, but i watch only the xbox. i get to everything through the xbox, so i guess i don't need cable except for sports. scarlet: thank you so much. we will check in with matt miller shortly. not for look at top stories. flash flooding has killed at least eight people in a utah and arizona border town and five others are missing. the wall of water washed away two vehicles carried 16 women and children in the community that serves as a polygamist sect led by warren just. in northern california, two wildfires have destroyed weathered 700 homes, and most of

the damage has been caused i a fire 25 miles north of napa valley. one person has been killed and 23,000 people have been forced out of their homes. retailers say there is more to worry about than shoplifting. the retail federation says that more and more stores are being robbed by gangs. popular items include high and purses, mobile phones at gift cards. those are your top stories. carmakers arctic taking the wraps off new vehicles at the frankfurt auto show and it is one turbocharged showroom. hans nichols is there with all the action. what is generating the most ooos and aws? hans: probably the most was the new bentley suv. you think of bentley as a car that will be chauffeured around and you will be show forward in, but bentley offering then you see the ultraluxury that had a big moment. some of the offerings for porsche as well with quite a moment but the overall trend or theme is optimism that is

coursing through frankfurt. two weeks ago in frankfurt, the pessimistick gave a field. you cannot find that, the auto manufacturers here, for maserati on the high-end -- lamborghini, asked his me, and all the way to rolls-royce and down to peugeot, a lot of the ceos are not that concerned about china and they think china will come back. a little bit worried about brazil. he said he was quite confident that they could start selling cars in iran for pretty soon. >> the first thing you have already decided his the for premium brand, and automobile brand, this is now done, sign, and we're going to kick off this new partnership with islam in to iran. hans: there are a lot of suvs. one of the stories. the most interesting to me is that rolls-royce is coming out with a new convertible.

rolls-royce and my bikini say they have seen no tapering in 2015. i think of that -- and lamborghini say they have seen no tapering in 2015. if they are feeling healthy about the economy, and auto companies tell us, that could be an indication that billionaires are not as poor as some of the reports we are reading. when we look at those equities and values shaved off the chinese equity, that is not being requested in auto sales. scarlet: we will have to create a special indicator for that. if you take a broader look, yours deals with serious issues, the migrant crisis, right and center. there has been a political tone at the auto show. what are the conversations taking place around that? own, the ceo of daimler, he mentioned that -- let's put this in context -- companies are unveiling fancy concept cars and some bagels are selling for hundreds of thousands of euros and the idea

is that europe could potentially have some sort of opportunity out of this refugee crisis, was raised by mitsubishi and here is what he said last night. he said that it is a great opportunity to repopulate the working class for country that has a demographic challenge. arehere are many people who in danger or in need of support, so that is an obligation. on the other hand, unity for country has demographics for declining population and we need people to support our growth and 50 years ago, we had germans rush out to america and being fueled by millions of people coming from italy, spain, turkey see that people from syria and other places are growing into the future, so it is a real win-win. hans: that has been the story

and we will look at these cakes and tires. difficult to steal a car from a not a show. security and that would probably lose my job but it would make a fun story. scarlet: it would make a fun story. thank you. const nickel's joining us. we will go more car and be your way, including a look at that bentley's first seb and matt miller sitting down with the company ceo. ahead, pope francis expecting a warm welcome in his u.s. visit, but what about his critique of capitalism? how does that play on wall street? our next guest says better than you might think. ♪

scarlet: one week from today, pope francis will arrive in the united states. billions of catholics expected to drop -- to draw crowds and he will make a pitstop in new york. ground zero of the can do for a capitalism of which he has been critical in the past.

michael moore has been talking to wall street executives, will we see push back or protest from top executives? michael: i don't think you will. wall street defended themselves in the past against critiques, but it is hard to go against the pope so i think they will take the conciliatory approach, welcome him, i think some of the leaders will try to show him the philanthropy that is done in new york. scarlet: including the $175 million restoration of patrick -- st. patrick's cathedral. michael: the pope will be leading prayers there, so that will certainly be an item on their list to point out. i think they are hoping for probably a more neutral tone for the pope. i don't think he will come out praising wall street but perhaps a more neutral tone will be a win. scarlet: maybe he will dial it down. when has pope francis said capitalism on wall street? incometalked about

inequality, but has he attacked the pursuit of profit specifically? michael: he is talked about being over focused on profits, he has talked about reining in the speculative practices, he has not gone to strong at wall street but wall street is tied into the capitalistic system that he has said has brought too much inequality and left too much money to hands of to fear. i think it is tied into a broader thing. scarlet: tied into a broader narrative. when you reached out to some of these wall street executives, who did you talk to? michael: we talked to a number of people. we talked to a well-known figure in new york -- and -- homeet: cofounder of depot. did they say anything about what they hoped they could share with the pope or what they take away from him when he does address

new york, the home of wall street? michael: there will be a number of topics that the pope looks at, but on inequality, i think they are hoping that he takes away that this capitalistic system does lead to a lot of good and philanthropy. i think they are hoping he gets a little bit more balance on that front. scarlet: they also see some of the leadership qualities that he exhibits. michael: for all of the strong related to were very his leadership abilities, humility, a lot of strong words for him from the wall street. scarlet: michael moore, thank you so much. he has a great story on the pope on wall street and -- ♪

scarlet: welcome back to the bloomberg "market day." i am scarlet fu. moving 500ctric is jobs overseas. the company says blame congress

because it has to do with the refusal to allow the export-import tank to provide financing. they state the new agreement with the french export credit provider would be to some of the jobs being moved to france. call this twitter's constitution to collection process. they now have a tool that lets anyone in the u.s. make a political donation to a tweet. they're teaming up with square, square ceo jack dorsey, also twitters ceo interim, and you see the synergies working. appearance on the stephen colbert show, >> what is it like to be a supreme court justice? is it a good job? >> the biggest benefit of the, particularly as you get older, is that you take every minute very seriously and it calls for you to put forth your best every single minute. [applause] scarlet: breyer said that when he is deciding a case, he

decides for the 350 million people who are not in the courtroom. richard branson wants to take more than passengers into space. his virgin galactic is beefing up their rockets to take small satellites into orbit. a company called one web hired for urgent to deploy a global internet satellite system. those are your top stories at this hour. a quick check of the markets as we are about one hour into the start of u.s. trading. ames have accelerated with the dow jones up 98 points and s&p 500 gaining 10 and the nasdaq up by .5 of 1%. if you take a look at how my bloomberg terminal, you can see the ticks of the three major indices. the white line being s&p 500, the yellow the dow jones and the great the nasdaq. we are pretty much at our best levels of the session. coming back a little bit. if you look at the volume breakdown by sector, you can see that there is actually increased volume in consumer staples.

that is higher than a 20 day average. more as trading and the rest of the sectors, nine out of 10 sectors, is below average. notably health care, 37% below the 20 day average. an interesting breakdown as consumers take up some consumer staple company. coming up on bloomberg "market day," a lot more ahead. the best performance industry group with 12% and a light update from london on trading. miss --t eli roth you you have brought you may of the new opening in los angeles. that and much more coming up on "bloomberg market day." volatility may have shaken investor nerves and shaken up consumers as well, but not necessarily stopping them from shopping. retail climate for the second check month in august, indicating consumers may be the turmoil in currency and equity markets. sales rose .2 of 1% in august. luxury retailers are feeling the

pinch from consumers. lookingearnings not lecherous, net income down nearly .25 in the first six months through july. they're blaming slow demand in china for that demand -- but that the. we bring in brian and from they joinia, lori and us for a roundtable discussion on the state of retail. too many stores and not enough product seems to be the reason they are struggling? how do they turn that around? brian: absolutely. they need to get better control of their own inventory and better understanding of the current consumer. one of the things we track is the overall global consumption of emerging markets and international consumers like chinese consumers. what we saw it prada was a build. ahead of demand in china and in substitution for actual demand which means chinese consumers travel to europe and japan and they don't necessarily ada in china pr

and they spent a good amount of time trying to sell in china. scarlet: laurie locks come away in, is this a problem specific to prada because other companies like gucci, louis vuitton or hermes are doing a little bit better in terms of managing inventory. it is company specific because some of them like gucci have overbooked a network like product did whereas hermes had a slower approach. the pricing of french up before the currency swings let's pretty good. up to two times as much as what you could buy outside of china. there was a time when the chinese could not travel as much. as restrictions have budget, they are traveling in terms, especially given the currency swings. you are seeing big decreases in china and europe purchases by chinese consumers up somewhere around 80%. it is a very dodgy and dynamic

situation and i understand why they thought he wanted to build therefore the long term because they had strong brand equity but it looks like a bit too far. a little bit too much. brian, was it not the case that a lot of these luxury brands were starting to charge higher prices in their home countries across in europe to sell to these chinese consumers and make up for the fact that sales were taking place in europe rather than in china? brian: great points. they have tried to change the pricing dynamic, but we found that prices are relatively small part of a larger pipe. why do chinese consumers travel to europe, japan, north america? they want to guarantee that the product is real. second reason, quality. there was a perception that if they buy in europe, there is higher quality than in china, even if it is the exact same item. also, the experience of travel is becoming more important to the chinese consumer. master, 100 million caps on

trips by chinese consumers and only about 6% of the overall chinese population has a passport. re-think this is an under leverage and underpenetrated area of what should be a big part of the retail market for the next 10 years to 20 years. scarlet: let's talk about asia as a whole. once upon a time, japan was a part of these luxury company portfolios. that has been overshadowed by the rise of china but if you look at tiffany's latest numbers, japan sales up 21% while asia-pacific sales were up 6%. why is japan doing so well for a company like tiffany's when you have a week yields -- weekyen? to do withof it has where the chinese customer is now traveling. japan has certainly been a beneficiary of that. scarlet: that makes sense. what about the fact that in the united states it is still fairly flat for tiffany's? how come the chinese consumer is not picking up as much of the united states? ori: again, much of it is a

function of the exchange rate. the u.s. with the weaker dollar was the years, this destination and we have really saw that start to trail off about one year ago when the u.s. dollar strengthened considerably. you hear companies like neiman marcus say in gateway cities we are feeling it carried luxury goods are still doing fine in the u.s. when you look at the numbers and it is bring up a few percent versus when you see it in europe running up 20%, you can see people are really following the exchange rates. scarlet: one of the gateway cities is hong kong. to what extent do you worry about the hong kong currency being under pressure or disappearing him and all the turmoil we have seen in mainland china? brian: there are a lot of concerns in hong kong. the political unrest, the overreliance and under appreciation for chinese tourists visiting hong kong created a certain glut of inventory again and retail

stores that now no longer match that consumer demand. the consumers saying, well, hong kong was my original point of entry to the market but now i travel to tokyo, number trouble to solve, london, paris -- london, parisl, and these are big issue or offensive become staying in hong kong. scarlet: especially as luxury brands try to renegotiate them down. he why so much brian and along withlor -- and along with lo ri. much more coming up, japanese consumers turning away from fish and that is changing the landscape of the major industry. one of their biggest exports. that story, next. ♪

scarlet: welcome back. we wentscarlet: today you caught up on action around the world and we begin in asia where japan's nikkei rose about .3 of 4% and the hang seng declined .5 above percent and the shanghai composite -- .05 above 1% and the shanghai composite closed down. instead, betting that the economy will turn around on its own. this report from hong kong. juliet: bank of japan governor said the central bank will continue with its policy into inflation target is stable. they resisted pressure to boost stimulus, even after they showed economies in china shrank last quarter. production for machinery is in this-- is the latest event failed in july, but they kicked the target of expanding

the monetary base and an annual pay of 80 trillion yen or $666 billion. japanese stocks had gains closing moderately higher tuesday. scarlet: let's head to europe or mark barton stands by. they had in session highs. mark: what a funny day. i love that word. possibly, i could say 100 but you might find it less than interesting. what has been going on? disappointing weekend day that we are awaiting the fed on thursday. automakers are the best performing industry group today after european auto sales rose by 12% last month. second-best monthly gain in one year because of the improving domestic environment in the area right here. w'sstors snapping up, the m -- bmw and they're probably looking at some of the other

cars that have been grabbing my attention today. i'm fixated on sterling, down for a third day. we have no information in the u.k. no inflation, it basically fell to zero last month. what does it mean for the bank of england? economists say they will be a raise in the rate hike. limit on the with these prices, including what is happening in -- will a change for me? in the bond markets. yield market, spanish yields performing today have been rising for four consecutive days ahead of the regional elections. disappointing investing confidence out of germany. feltber the german day, it for a sixth consecutive month. the concern is exports, emerging markets, china. you remember? germany? before i satmember

next to you in london. i have back here in the u.s. are we have seen markets vacillate back and forth this morning as we wait the fed decision on thursday. we are pretty firmly in the hours -- hour or two one hour into trading. the s&p 500 up .75 of 4%, the dow jones up and the nasdaq gaining almost .75 of 1% as well. but take a look at the biggest the biggest loser on the s&p 500. chevron up today as it brings in 350,000 euros from venezuela. the first time it could get oil in from venezuela in a long time. taking it to its refinery in el do, where you may have left your wallet. disney put out a note saying that cord shaving is becoming a concern. 3.5 million people will do some sort of court shaving get skinny bundles of pay-tv which means

they won't take the entire offering. two point 5 million people will not take espn which is a huge moneymaker for disney. morgan stanley has lowered their $108, price target to right now it is one of 2.85 and they said basically, watch out. -- 102.85 and they basically said, watch out. take a look at the lack of all human. all of these columns are sectors on the s&p 500. industry sectors, financial, telecom, energy, they are all down as far as all human is concerned. even consumer staples which is not down that much. this is the fine compared to the average the last 20 days, the second day of rosh hashanah, the and not a lot of people into trading. those who are into trade right now are selling bond, the 10 year yield is rising and maybe they are expecting the fed to move on thursday. there you see it. the 10 year yield, 2.23%.

back to you. scarlet: thank you so much. i'm trying to europe which consumer staples stocks are piling into or out of given that that volume is higher than average compared to other sectors. matt miller with the latest on the markets. for decades, japan fishing industry counted on demands but they have changed. japanese consumers are eating more pork and beef, so what are fishermen to do with leftover fish? tim fox joins me to talk about -- pimm fox joins me to talk about this. it is about $11.5 billion industry. as you noted, because of the referencee taste of for pork and meat and other sources of protein, fish is kind of going on sale, in terms of japan. what have they done? you have focused on export markets. and a, they, -- a

have added more cargo flight to ship seafood. you can see world marine catch is up 3%. japan's catch is actually going down and the amount of fish that the japanese people eat has declined from something along the lines of about 40 kilos down to about 27 kilos. that is about a one dozen years, so combined that with the following i/o of the japanese of automobiles and the 6% annual increase, that is in china, and they are eating more fish in this country a good export market for the japanese fish industry. scarlet: cures japan's shrinking food -- seafood industry, it is $11.5 billion now but the number of fishermen has been shrinking, down 42% since 1995 the competition from cheaper imports

and domestic demand being done as well. marketk about the export looking at the rest of asia and it has been importing salmon from norway. pimm: i knew you were going to pick that. the norwegian salmon industry. for about three decades it has been on the campaign to convince people that the taste of norwegian salmon, the fatty what,e is and has taken the triumphscarlet: of marketing. japan can supply i think 350 -- pimm: i knew you would give me that data. scarlet: it's making me hungry for lunch. it to much and you will be back at the top of the next hour. still ahead on bloomberg television -- really wanted to broadhis -- el i

wanted to share his art collection. we will take you there, next. ♪

scarlet: welcome back. really -- he has one of the most private -- biggest our collections in the world. they wanted to find a suitable home, so he built his own museum. the new structure in downtown los angeles and bro gave david gur a private tour. gave david a private tour. david: another spectacular looking building. it will house some 2000 works of art. concrete bails cover the building and the natural light that slips through makes sculptures gleam. [indiscernible] >> that has this quality. eli broad is a self-made billionaire who ran to

fortune 500 companies. what is it like to come here and see them in this kind of space? >> it looks great. my wife wishes a few of the pieces could return home. david: they have amassed one of the world's most viable collections of contemporary art. it includes andy warhol. photographs like cindy sherman and paintings by jasper johns. it is a collection many major museums coveted. eli: we talked and we said, you know what? we're going to show these prize of more than 130 works. they will just end up in storage or elsewhere. david: that did not appeal to spent millions on his own museum that would be free to the public. a place where paintings at that are not on display are still visible to visitors. >> this building literally is

about that interplay of capacity and transparency and those of viewing windows are the most obvious examples of it. is to she says the goal make contemporary art more accessible. >> i know this will be an amazing popular piece of visitors. it is delightful. it has multiple layers of meaning but on one level, simply a delight. david: and the museum is designed to delight. the main gallery is up a long escalator. the first piece in this hee is a sculpture by jeff koons. ili: this is one of our favorite pieces. of his workown more than any of the collector. [indiscernible]

apart is the broads how much time they spend with the artist whose work they collect. >> we were always interested in thiseople thought outside space. i usually spent my time with other business people, lawyers, bankers, and artist have a view of what the world is really about. once in his museum to be just as eye-opening for visitors. scarlet: david joins me now. you got the chance to pick his brain. what motivates them to collect on? david: he is -- he is really experienced in the experience -- interested in the experience. it is such a viable asset now that that is something into what -- and how they collected. i: i'm not sure these prices are good thing.

them for like $5,000, $6,000 and they sell them for millions now. david: does that make you look at them as investments? eli: i get slight income from it and i tell people [indiscernible] david: i find that fascinating. despite the high prices and that your collection is depreciating so much, you regard them primarily as a psychic investment. that has always been the case. eli: if i go back and say, what could we have done? of the startups in silicon valley would be doing a lot better. david: he has done very well and his philanthropy -- he gets stored education, science, and art. is free.and the museum david: he has endowed it with him was $2 million to be open for free and gratuity of course, kind ofendowment is

copper bolts of that museum. he wanted to be free and a place people can be able to come to for a long time. scarlet: and shot in the arm for downtown l.a. david: they are having this big renaissance of museums next to walt disney and they're calling series ofing buildings. he wants it to be a real hub for culture. scarlet: it looks incredible. thank you so much. david on the latest on this broad art museum. much more coming up on bloomberg "market day" because a special primetime edition of "surveillance pimco discussion with ray dalia. ♪

scarlet: it is a 11:00 a.m. in new york and 4:00 p.m. in london. pimm: welcome to "bloomberg market day.: " the federal reserve's day of

reckoning is approaching. scarlet: as prices decline, and a shift in the world oil. how the market may finally strike a balance. pimm: and if you like utility with your luxury, low, we have a bentley automobile for you and it comes with a big price tag of $260,000. ♪ scarlet: good tuesday morning. i am scarlet fu. pimm: i am pimm fox. we are 90 minutes into the trading day. let us take a look at how architect trading right now. let us take a look at stocks. scarlet: up near sessions highs and it follows as european stocks have come from losses. asia