scandal. full swag and admitted cheated on the u.s. it visions test which could be daunting to clean up. alexis tsipras should remain in power but economists say the government has a whole new set of challenges. we will sort through mixed messages. and hbo cleaned up at the emmys last night. did victories strike a blow with cable? ♪ brandon: good morning. we have julie hyman, our senior markets correspondent, who will break it down for us. julie: a larger than estimated drop in existing home sales in august, falling 4.8%. that is month over month.

pace a decrease from the in july, which was 5.5 8 million. .ery slightly lower the number was the strongest since february of 2007. the decline you are seeing is from that elevated level. economists were looking for a drop of 1.6%. the decrease is definitely larger than expected by the economists. in momentum in the real estate market, which we have seen pretty much continuing thus far this year. the largest part of the housing market, larger than new home sales, which we also report on and will get later this week. back to you. we will look at the markets. let's get a data check. stocks on the s&p 500 are flat after the drop friday.

the dow jones, nasdaq, let's look at the debt markets. the two year yield is up. there is movement there. two basis points, the ten-year up four. a little more confidence in inflation this morning. oil, new york crude moving up since yesterday, just 1% in price. find out whatto the future holds there. we will find out what is making news with the bloomberg terminal this morning. taking in thousands more in syria in the next two years. john kerry made the announcement in berlin where he met with the foreign minister this year. the number of refugees being allowed in was capped. >> it is not a ceiling, it is a floor, of 10,000 over the next

year from serious aesthetically, even as we also verse need more refugees from other areas. in the next fiscal year, we will target 100,000. in asn: the jury may take many as one million refugees this year. thousands died needlessly in .frica's ebola break the world health organization andred shortages of staff medicine. it has killed more than 11,000 people. officials say it will not be stopped before the end of the year. iran is making significant progress in operating the nuclear deal. agency has inspected a key facility and said no link to atomic weapons has been found. iran's president is not ruling out a prisoner swap for a jailed washington post reporter.

news president told cbs that it could be freed if iranian citizens have been held. tried on espionage charges. to those americans held hostage by rebels were captured in march overseeing supplies by a u.s. company. face airstrikes led by saudi arabia and that by the u.s. wrapping up his visit to cuba and heads to the u.s. tomorrow. describes the meeting as informal. he drew the -- huge crowds in downtown. the u.s. reportedly may accept u.n. combination of the trade embargo. the obama administration might sustain on the resolution. it that the embargo be lifted.

congress will lift the embargo. the u.s. has never opposed the u.n. vote for criticized american law. the first african-american woman investor on the series, she won in her role. hbo dominated, winning 145 emmys. this are your top stories morning. coming up in the next hour on the bloomberg market day, the city private bank global chief strategist will help us go over the housing data for this morning. plus, global markets do not seem to know what to make of the federal reserve anymore. reelected at the coalition just months after they nearly forced them out of the euro. what will this mean for the greek economy? these stories ahead. an unfoldingith car wreck involving volkswagen. the company admitted to rigging

diesel models with software that she is the u.s. emissions test parity could face billions in fines from the da. the stock plunged overnight. the company lost almost one quarter of market value. hans joins us from berlin. will we see the ceo of vw? we will see him testifying in the next month? >> i do not know. a question for congress. if they did that, they would have a remarkable story to tell. a detail ceo. audi, the volkswagen group, 12 different brands. just interviewed him to he is a hands on auto guy. he would have to answer the question of what did he know and when. this is getting difficult on the political side for volkswagen compared we had the prime minister, the premier, the state where volkswagen is.

saying itminister is is a great matter. he will not provide by consequences may follow from full swag in. that is serious and important because 20% of the seats on the board are controlled by them. they vote the way he wants him to vote. thought it was going to be a mere formality on friday. the vote on friday or whatever happens will be that much more interesting. brendon: we are familiar with vw's friendly fire for new in reputation. what it meanstand for germany. what are the political consequences of this? >> they are taking over toyota. there is not much favoritism within germany because there is mercedes and bmw. national exactly a champion. it is important to know there is

a broader fight about diesel. in some ways, europeans have abided diesel because they have better fuel efficiency standards. they do produce nitrous oxides. in states where you have structure -- stricter diesel, they do not have the pap or the torque that you have in europe. out of anrne investigation. same,, this could be the good torque, good acceleration, with the low and clean air, with low admissions standards. they want to do this for a case on why the diesels which apparently have low admission rates in europe, they want to use it as a champion argument. it turns out they could not replicate it and i found something fishy and shared information with the environmental tech -- protection agency. the swag and, if you do calculations, it could all up to 18 billion u.s. dollars.

brendon: it is an extraordinary story. globallyk at revenue or china is a problem right now with slumping economic growth. the u.s. dollar was obviously supposed to be good for them. are there any bright spots? >> i would not overplay the dollar too much. almost 140. i asked about that. he thinks the current levels, and it has not changed much, 112, 114, that is too low. they expect be competitive at 112. localization, audi plans here, volkswagen there, they think that is the best currency hedge. the broader story is for a brand. it is a brand that has stated a lot of credibility in the u.s. on being green. they have got herman the frog doing advertising for them. they will now face not just negative headlines, but downs she questions. i do not know what your your

votes wagon is. obligations? do you have to abide by the recall? is it mandatory? it is not necessarily a safety mechanism. if there is a recall, what could you do to fix the car to make it industry-standard, to make it compliant? that will probably be an expensive fix. brendon: the cars in the u.s. are still on the road and do not have to go off the road. -- privately.lee i'm in the clear. hans nichols in berlin. thanks. coming up, stocks are rallying on monday. investors continue to digest last week passes fed decision. look at what investors are watching now. ♪

brendon: stocks rallying this morning. julie hyman never has a losing streak here it she joins me now. we see stocks rise today after two days of losses. the fed decision to not lose on rates. been, the fed had is not optimistic about the global economy and what will this mean for u.s. earnings? the narrative seems to have switched to focus on the domestic economy, and the fed seems to be indicating it is relatively strong, at least for today. it could be a reason some folks are buying. stocks rising today. upgraded tos outperform and it is the best performer out of the gate. analogy this morning is

that of goldman as a bumblebee. at the specifically fixed income commodities business and seeing bumblebee's wings are too small, too heavy to fly. goldman, the body is too heavy and the business is too large and important, looking at that business and yet somehow, it just works, it just does own those returns. an interesting analogy that caught that i this morning. look, 63% of shareholders are tied up and now available to be sold. those shares are higher than more than 2%. the question terms to what yahoo! will do and how it will spin it off and will it do so? this let me to look at how have done.alibaba

differences,e dalai lama down a little more than 4%. in terms of the daily movement, it is down more by 25% pair the question of what it will do has hung over. outperformedse, it . brendon: are they more than just a holding company for alibaba. steve whiting, the chief global strategist. chief global strategist. let's look at the volatility that followed the fed decision. is uncertainty a bad thing?

>> the problem often was there was too much certainty in the marketplace. set of a remarkably mild ranges to oil was supposed to be a $115 price. deviation going forward. we moved back to a more normal range of expected volatility in most asset classes right now. we perhaps overshot that a little bit. measure like the vic's does not really capture it. there is uncertainty about what the federal reserve would do. the federal reserve was pretty clear about what the guideposts work. it said it was looking at china and abroad. was the federal reserve concerned about the actual feedback effects of china into the u.s. consumer, or was it really just paying attention to the fed's new mandate, janet

yellen? >> i think it is only because of the concerns in the outlook. if the u.s. could be the oasis of prosperity with the rest of the world sinking, it would be a little harder for them to take a monetary policy course, not to say they're really doing that now. i think you saw in the commentary that fed chair yellen would like to protect financial markets from any effects of tightening. we have a weakening in exit prices and a widening in spread. that is what monetary policy tightening does. financial markets, you tighten financial conditions if something happens in the economy. you start to wonder, when will they at all and that is appropriate? rateok at the unemployment falling 1% per year. whatever unemployment rate you choose, you say, this is not a problem now. it is the trajectory of where we will be in the coming years that matters.

>> i hear from you, volatility changes for grown-ups, let's go up. let's look at emerging markets. they are tremendously dependent on china. do you think looking at the volatility of august, that there a pre-fed tightening shakedown? >> there is an element of panic, that you could take a look, it exposed its currency to market forces, and then it pulled back from that and essentially re-pegged the currency. a lot of people looked at that initial move in chinese currency and said, this is the beginning of things to come. look at 1994. all sorts of different economies over years, falling in a trap from that. you cannot just change the story now. do you see a lot of the

volatility is actually related to underlying economic weakness in china? quite fit absolutely matters. the truth about china passes market was they had a massive rally disconnected from the underlying economy. people were having a great deal of difficulty figuring out what the chinese economy was doing. imports are falling 15% in china. almost entirely because of falling prices. things like crude oil going down in price, holding down the number. domestic chinese retail sales 11%.rowing it depends on how you are exposed to china, you get a different view of how the chinese economy looks. it is a little too complicated for investors in the moment. steve whiting, asking for more confident seat. the global chief strategist with city private bank telling us volatility is for grown-ups. looking at the top stories of the morning, samsung began releasing its galaxy in the u.s.

it is similar to one apple announced on the iphone weeks ago. movedss carriers have away from subsidizing smart phone sales. the second-largest us home builder posted quarterly earnings that beat estimates. the new home rental markets continued to have significant pent-up demand. buyers in 17 states. the largest department store company in the u.s. announced its holiday hiring plans. macy's will bring on 500,000 temporary workers. jcpenney will hire 30,000 people for the holidays. those were your top stories. thel ahead, confusing experts. do now those traders that the fed, again, has held off raising interest rates. did you know? it turned out it did hold off. ♪

>> really bearish comments on the economy. she talked about china for the first time, as a reason to not raise rates. the wordtime a or credibility, what a here is the fed is failing to credibly do what i think it should do. >> i think the credibility the bond market is looking for is a clear sense of a path that the fed is on, a way to assess potential thinking at any given moment, that it knows how to read data that comes out about the economy. they are losing that you and all the sudden, we have a new input for what may potentially shake the fed's's ability to raise rates. china, emerging markets. christine lagarde? is this the imf?

so, that shakes fundamental confidence of bond traders. they look at this and are thinking, what do i even look at? brendon: i have read at least three strategists that have quoted the famous philosopher thomas peddie, the waiting is the hardest part. i have been told i am not allowed to sing on television so i will just say it. >> come on. brendon: ♪ the waiting is the hardest part ♪ so that happened. what happens when we all sit there? >> just try to sleep a lot. eat chocolate. hibernate. i honestly think people are looking at u.s. bonds. people are looking at corporate credit in the u.s. and are coming back to investment grade

bonds, which sold off a bit when there were a lot of corporate sales earlier. largely high-yield bond names, particularly ones that have sold off more. bonds, theyity u.s. rushed back to the two-year fedsuries after the announcement, yields down the most since 2009. they are going to u.s. bonds right now. it is the end of the beginning of the hike. coming up, now that alexis tsipras has returned in greece, should you be returning your money to the debt ridden country? ♪ sure, tv has evolved over the years.

it's gotten squarer. brighter. bigger. it's gotten thinner. even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. brendon: welcome back. breaking news, julie hyman, what is going on?

julie: they rose to quickly and then they halted it and then they rose it again. it is up by 11% right now. explain what i am talk about, if we could soon in on the stock and see exactly what is going on. we get a sharp rise in than they halted and then a sharp rise and then they halted again. it appears to be that has to be doing with the copyright royalty board that determines what radio broadcasters pay to publishers and writers of the songs, various music companies. pandora has been in dispute with some music labels over how much it pays. we have got no news, we should be clear, no news on this. it looks like that is one of the potential explanations for big boosts we have seen.

it is also on very high volume. double the daily average already and we are only an hour into the trading day. back to you. straight to the rest of the morning passes top headlines. the central bank could raise rates as soon as next month. james told a tv interview today that he would have dissented last week when rates were left unchanged. one rates do rise, the top strategist says it will mean less risk. >> clients that need income cannot find much, so they have been forced to find income elsewhere. you take a lot of risk do that. when the fes that's the fed does start to raise rates and you get rate hikes behind us, the clients will be able to transition back into sabr assets for income. that is where those types of alternative income can face headwinds. brendon: janet yellen could shed

more light on the thinking thursday when she is set to make a speech. a takeover today in the semiconductor business. buy for $4.4eed to million cash and stock. makes chips for the iphone and the ipad. those were your top stories at this hour. coming up, president obama's affordable care act has health care investments at the highest level since 2012. plus, did you catch the emmys last night? i did not because i was sleeping. we will tell you which network took home 14 trophies and how newcomers like amazon and netflix fair. as tensions sicken on cyber hacking, we have got the scoop on what to expect. alexis tsipras has returned to power in greece.

the party received 35% of the vote. submersible again formed a coalition. they will have the mandate to carry out the harsh austerity they campaigned against. joining me now is tom mackenzie in athens. first, remind us what the new -- looks like. there are people missing who are no longer part of the new coalition. >> astley. the good news is he managed to get through and get a coalition. he initiatede tomorrow morning, without having the rebels. 25, they split away when he sign up for the third down. he has now got a more consolidated base. he joined up with the independent greeks as well. he has got a majority but he has got at least the loyal grouping

around him, which should make his job in the short-term somewhat easier but he has now got to negotiate with the bailout and the creditors on a bailout. details and reforms have to be applied as part of the deal. 50% of those as part of the deal. brendan: i will ask you a question to what is the timeline right now of their laptops? what is the next review? the end of october is the next review. it may be pushed back if there are delays in getting the coalition together. away onarts to wiggle certain things like labor market reforms, things that his former finance minister, we spoke to last night, said could be things they might push on. currently where the review will be, that is where the credit will come here. ecb's segment of

the banking sector this year. that could open away to the euros of the recapitalization of the banking system and possibly qe, quantitative easing from the ecb. a well regarded economist who had difficulty negotiating. what is the verdict so far? if he is continuing on his ability to negotiate with the rest of europe? >> there are reports coming through in the last few hours that they will be reacquainted tomorrow. ..5 hours will be made my morning, the cabinet will be confirmed. much more moderate in temperament and appears to have a much better relationship with credits. he famously ruffled feathers. , thoughe of a diplomat

he said to us he will continue to push for some kind of a relief in the four or five areas that he said creditors agreed to put on the table, and still up for negotiation. 50 million euros is part of the creditor's plan. it seems ambitious too many analysts. they have more faith in him than they do on he who caused a lot of attention. brendon: thank you. for more in greece, i'm joined .y hans, let's go right to tom's last point, right to the privatization authority. is there a sense now that there are enough assets that cannot actually be sold to meet

demands? >> no question about it. you have got the airports, and you have what will come out of the bank recapitalization. close to 40 billion dollars in loans there plus, non-core assets. you have got probably a lot of opportunities in terms of private investments, like something as simple as government bonds, still yielding a good 600 basis points of spain and portugal. equity valuations are extremely low. the national assets will create good investment opportunities as well. the most important thing to take away from the election is that greece does not have much latitude but to follow through on the compromise they have with europeans. will be runeconomy from frankfurt and russells, not athens. ofre is a lot

unpredictability that will be taken away. most investors would be more comfortable, i would think, with a victory than they would have been with a new democracy. he is the people's man and he will be able to sell these reforms much more easily than a new democracy, i would think. i would the small favor be safer for is consistency in the economy. >> yes. , it wouldhe reforms take place overnight. you will see paying taxes, corruption. the real issues long-term or structural. here --sense he have >> they were not factual or

they're looking back at the last several years. the retirement age is getting pushed back. an they80, greece has have gone in return quite a bit of structural reform, highways, and you will see they will just .ave to manage the economy questionsng anyone greeks have a strong worth -- work ethic. brendon: it is too complex for me to understand.

think of him, beyond just voting for him? to, andpeople i talk that there is a recognition that he stepped in and had play ball with the big boys. in many ways, what he has become is a sense of hope. a young, charismatic guy who sold a vision of a new greece and of course had to do an incredible about-face. he still seems to grab confidence and give us a sense of inspiration to people. i would say for implementing it is better than a right-wing party. i think the people like tsipras are he is young and energetic. he's going to be able to sell to the population better than old conservatives. in the second term in france,

or tony blair in labor, prime minister. for bill clinton. -- for bill clinton. bill clinton. brendon: still ahead, three years after the implementation of you for the care act, we will look at what it has done. ♪

brendon: welcome back to her time to get you caught up with all the market action around the world. we will start in asia where they finished down 2%. the hang seng down three fourths of 1%. and a rise of 1.9%. one big story out of asia.

this report was filed from hong kong. visit to washington to china's markets showed a bit of optimism in an otherwise dismal stock market. the shanghai composite advanced as industrial companies rallied. at boeing. fell from aes one-month high on concerns about china's growth slowdown. investors across the continued and that set a currencies lower on the day. bond markets remained closed for a holiday through wednesday. over to europe where mark barton is standing by. a huge story. what is happening elsewhere? big one.a stocks are up today. they fell friday after the fed

did nothing. three fed officials suggest there will be a rate hike this year and stocks rise and make sense of that. that is the hue of the european stock today. that is an interesting one. stocks lower today. a nice stat for you. since august 24, were global stocks sank by the most in four years, greece is the second best-performing stock market in the world. the best, let the o's benchmark stock index. let's look at some currency moves today. goldman sachs says the euro could fall up 10% because the ecb is going to expand its qe program. the euro will fall down to 102 against the dollar. comments for credit today. a big, sterling bull out there.

do not take too much notice of the fed's -- comments because the bank of england two months after the fed, the fed will raise in december. say the bank of england will go in the second half of next year. a look at the bond markets, stocks are rising and bonds are falling. an interesting bond market is of course greece. up eight point 5%. portuguese bonds rose earlier or credit raising was raised one notch to raising below investment grade. of country, a good example bailouts actually working. over to you. >> if you look at u.s. stocks, we are gaining traction. the rally underway is accelerating. part at least what markets are talking about, a two-day selloff followed by fed officials saying we could see an increase in

rates in 2015, maybe reassuring investors the pace of economic growth is indeed on track. look at my bloomberg terminal on what is gaining the most you can see a lot of green on your screen. discretion doing its best today. thebound from some of groups really hit by that it talked earlier about an upgrade from goldman sachs helping that particular financial stock. and then each trade, one of the worst performers friday on the outlook for global growth, and the fed's decision to not raise rates. they are helping to lead some gains with in financials today. you heard mark talking about what is going on in the bond market. we have got to point out what is going on in the treasury. we could so's -- still see interest rate increases this year. yields go higher up 2.19%. movee upward after the big

downward to her the dollar's having a similar reaction. helped in part by what markets are talking about. they move up about 1% for the dollar index, a broader basket of currencies. though the dollar is up, oil is trading higher as well. they tend to trade more inversely. wti's up about 3% today. we saw the weekly count go lower on friday. late friday, we got those numbers. this seems to be a little optimism we could start to see supply come down to some extent. are the mostnds bullish they have been. brendon: thanks for mark barton, julie hyman and i are leaving bloomberg to start a hedge fund in all box -- all baltic equities. moretors are becoming

comfortable with president obama's's affordable care act the are we see health care investment highest level since 2012 joining me is the bloomberg news manageable -- municipal bond reporter. are we looking at the end of uncertainty with the affordable care act? rp or it we are seeing the most nonprofit hospital issuance since 2012. ever since the aca turned into a reality, to something we are seeing in d.c., hospitals stepped back, unsure what that would mean for finances. was very little investors into that sector. this year, you're seeing a little more comfort and security and certainty. you're seeing the most issuance since 2012. rate,the lowest uninsured around 12.9 percent right now.

if people are feeling better, more money is coming in, it is looking better. moreso driving more and practices. the hospitals are becoming not the dominant health care providers but in many cases the dominant health care providers. thingt is another huge aca has done. are seeing the giants and health care do wonderfully under aca. it is all about the utilization trends. how can you diagnose that person. the small regional health care center that does not have technology, does not have the massive resources. you're seeing a huge bifurcation of that market. the small have-nots, if you will. memorable for amazon as

transparent for two emmys. what doesn't mean for streaming television? -- what does it mean for streaming television? ♪

brendan: welcome back. the 67th primetime emmy awards were handed out in los angeles. all,work 114 trophies in including four for game of thrones. a victory for traditional cable over the broadcast networks and streaming services like netflix and amazon. this alligure out what means. lucas, let's start with the most important things. andy samberg, i remember when he was an infant on "lonely island." lucas: it establishes him as a leading man. he stars in one of the fox shows

, which is why he is hosting. he is on "brooklyn 99." the gradually made the transition from just someone who did comedy skit videos with lonely island to the star of a major broadcast show. hosting the emmys certainly elevates his profile and introduces him to viewers who might not be tuning in sunday nights. i am having a hard time figuring out whether there is a meaningful difference between what amazon does and what hbo does. is it still worth drawing a distinction between cable channels and streaming only providers? you can getbecause hbo through a traditional cable package, and that is where most customers come from, whereas with amazon, it is all online. we seem to be moving toward a world where hbo, amazon, and netflix are all playing in the same sandbox.

the netflix ceo is famous for saying we want to become hbo before they become us, and the iscess of netflix and amazon a big reason hbo and showtime have started offering that works over the internet. difference there a in the way these operate as studios, in the way they green light shows and work with talent, or can we just look at them as columbia? lucas: there is a very big difference in the ways they operate. hbo, i mean, there are a few different ways. hbo owns and produces everything on its own. that is a subject we will in futureelve into stories and we have written about it to some extent. i think the big difference for a show runner and creator, netflix tends to give a one season or two season commitment right off that that. hbo sticks with a traditional

pilot process, they have one make an episode and i decided they want to pick it up. amazon is in between where they have an unusual pilot process of letting other people watch it and make their decisions basically somewhat on user feedback. they all approach slightly differently. nightn: best actress last , in a drama, i was really surprised that was a barrier left to fall. is this part of a long-term change in l.a.? lucas: she certainly hope so. that's something she spoke about. incredibly important topic, but i have got to jump in there. lucas shot in los angeles. ♪

york,n: 11:00 a.m. in new 8:00 a.m. in san francisco and 4:00 p.m. in london. julie: welcome to bloomberg "market day."

we are going to give you insight into the issues the two will discuss. a glimpse into my special "china: behind the wall." brendan: housing numbers are outcome of it could be better. betty: as carly fiorina rises in the polls, voters want to know more about her time at hp. it is perhaps her one achilles' heel. we take a look at her record. brendan: on brendan greeley. betty liu. 90 minutes into the trading session. let's look at how stocks are trading. we are near highs. disappointing existing home sales numbers. s&p up by 1%.