scarlet: i am scarlet fu. response, coming at a meeting with senior security officials. also as another spasm of deadly attacks occurred. israeli authorities say they shooting bus and began

and stabbing passengers. the white house calls a dutch report on the downing of a ne a milestone. it says a russian made missile brought down the jetliner. deputy prime minister said it was an attempt to make a biased conclusion. it also said ukraine should have shut down the airspace. pentagon officials scanning sites in colorado as possible alternatives. for prisoners held in guantánamo bay. the search is part of a long-delayed effort to shut down u.s. detention centers in cuba. the u.s. is holding 114 prisoners at gitmo, including some cleared for release. and joe biden has not said he is

running for president, but that has not stopped a super pac from backing him. mr. biden thought the initial spot was too personal. it focusing on the 1972 car crash that killed his wife and daughter, and the ad airs on cnn tonight ahead of the first democratic presidential debate. and that is your news. back to you in the studio. scarlet: thank you so much, mark crumpton. let's go back to jpmorgan. the company reported adjusted earnings-per-share of one dollar 32 cents, missing the consensus estimate. it also represents a decline from the same time last year and from the second quarter. keep in mind, over the past months, 21 analysts have ratcheted down there estimates for jpmorgan, so a lowered bar.

and also a decline from last year, jpmorgan blaming the banking revenue that fell, and having said all of that, capital markets and trading would be a real sore spot for the bank. it turns out all of that manage d expectations that jpmorgan did leading up to the results did affect things. the equities revenue topped analysts estimates. in addition, also better than expected. and in terms of credit losses, the bank set aside millions for bad loans. that is down from what was put aside last year and in the second quarter. alix: which was amazing. scarlet: all of the energy credit, right? alix: right, in breaking down jpmorgan.

and cory johnson has more on a stock that is up in after-hours. cory: joining me now a guest from the intel headquarters. stacy, when you look at the interesting moving parts, what i was really struck by what was going on in the pc business, and the continued declines we see. both in notebooks and desktops. what have you seen? mr. smith: the business has been offset by what you saw in the pc segment. the pc segment came in actually a little better. the quarter was a little better than we thought.

cory: you saw better pricing in your chips sold. you were thinking that the lower volume, it would be tougher to get price. mr. smith: for us, it comes down to innovation. we launched in the quarter the architecture. we saw today apple making an announcement with the imac and macbook pros, so that is giving us a bit of an uplift as we go into the third quarter. cory: the macbook is an amazing machine, working on an intel chip. mr. smith: yes. cory: you saw increase in the average selling price and also in volume. what is going on?

mr. smith: yes, so we saw 12% revenue growth. the first half was closer to 15%. generally what we are seeing there is very, very strong cloud market, and that is significantly outperforming expectations we had at the beginning of the year. it is being offset with the data center. this correlates closely with overall economic growth, and that is what we thought when we started the year. to your question, that is consistent with what we have had for several years in the data center. we also see people buying richer configurations, and there is less space, and so you have more computing power per square foot.

cory: interesting. the gross margin march, if you will, after taking a big hit, the guidance for next quarter was for a slight degradation in gross margins. mr. smith: i think you have to take a longer-term view of gross margins. our normal gross margin range is between 50% and 60%. as we have done more innovation and have focused on cost and efficiency, 355 and 65%, or what we're seeing over the course of 2015 is the high end of that range. down in the fourth quarter. we are manufacturing more of our product, but it is still a bit more expensive. that takes it up a little bit, but it is pretty normal, and in

the higher range than we have seen. cory: as you pointed out, better than you have seen. the internet of things. i have been trying to talk about it without being too height -- hype-y about it. mr. smith: it is hard to not fall into hype, but we're seeing more and more devices that are intelligent and connected that are now becoming intelligent and connected. it is growing fast. but i think different from a lot of people, we see this being a tremendous growth opportunity

for the company over the next several years. many that were not intelligent and connected are. that is good for us to sell products. cory: altera? mr. smith: when that closes, it will give us the ability to take programmable logic. cory: you can get tech-y as you want. we can take it. mr. smith: their secrets, their algorithms, and program it. that is going to be huge in the internet of things and at the data center and will allow us to have devices that will provide real value to customers. with the integrated product, it will be really, really cool. cory: thank you, we appreciate it.

mr. smith: thank you. scarlet: a selloff in stocks, currencies, and bonds. performing manager, next. ♪

scarlet: i am scarlet fu "what'd you miss? third-quarter earnings beat analysts estimates, helping to make up for a slump. the largest railroad in the eastern u.s. had earnings per share ahead of analyst estimates of $.50. in addition, csx reaffirming its forecast in the mid-digits.

alix: anheuser-busch has agreed to buy sab miller, and sab miller has rejected several other offers from ab inbev. scarlet: wells fargo is buying ge assets, and among them the corporate and financial distribution business. they had been shrinking the finance arm to focus more on operations. alix: and sandisk has apparently received interest from two arrivals. western digital and another are said to be in talks with sandisk about a possible acquisition. about a possible acquisition. and that is your bloomberg business. scarlet: the last wave of the global financial crisis? we have a chart that shows how

emerging markets happened caught in a tailspin that now threatens global growth. pablo deals with emerging markets at blackrock. pablo, where are we? would it be the second inning? fourth inning? mr. goldberg: this is important for emerging markets, because it is mostly correlated with prices. there are some that are behind that, like china, and also manufactured. joe: one of the stories we have seen is that obviously analysts have noted it is not as big of a deal as it looks because so much of it is domestic that it is not as important as it was in the

90's. what is your take on this? the debt markets are much stronger? have much more depth? mr. goldberg: i think both statements are true. it makes a big difference. prices in the 1990's, or going back to the 80's. now you have a tool, exchange rates, and you have way less rigidity than you had before. alix: currency pegs are not as rigid as they were? mr. goldberg: back in the 1990's, almost every other one was paid to the dollar. right now, that is not case.

even 30%, 40%, 50%. not as much on the debt side. it is the beginning of a solution. joe: you were at the imf meeting. what are the big concerns there? mr. goldberg: it was whether or not there's something in the market that was bringing them the slowdown. it was really surprising. you know, there is way more talk about the fed right here. everybody just waiting for this to happen. alix: talking about the credit and the debt, we have seen asian banks starting to de-lever, and they have a long way to go with the developed markets. what about as credit markets do

seize up? mr. goldberg: fueled by debt, it became more intensive, the growth that we had. it is not in the sense -- they are slowing down the pace. but that means there is less fuel into growth. you are going to have to find growth somewhere else. a lot of it depends on what happens in china because they are integrating, and that is why this morning it generated a little bit of noise. but, yes. productivity has to come back. scarlet: there is noise, stresses. which is the easiest to quantify, and which is the hardest to quantify? mr. goldberg: it is very much

concerned about the pace of capital outflows. i think some of those risks have moved away, and some numbers are better than expected. this is a little bit better. that will take a little more time, but some of the worst risks that we had are probably now gone. scarlet: all right, we will get some more specific recommendations from you. pablo goldberg. and about the fed moving interest rates.

alix: i am alix steel. "what'd you miss?" we are back with pablo goldberg of black rock, and they were talking about turmoil. >> investing in the emerging markets, brazil, india, colombia, and a lot saying we're going to invest in the u.s., as crazy as the world is, but it is much better than it is anywhere else. joe: pablo, i want to get your take on brazil. we have seen one company come up , still elevated. what is your take on the situation?

mr. goldberg: 400 basis points. i am not necessarily more bearish on the outlook. the beginning of the movie is continuing, but what is very confusing is the crux of the whole problem. the opposition does not want the government to do well. they want to continue to do something that people like. and then you have the judicial investigation. it keeps the whole discussion. it is very confusing what is going on, and if the climate does not clear up, it is very difficult. for the sentiment turns around. joe: so we will have to wait.

it is unlikely we will see much of a turnaround. mr. goldberg: there is so much going on, congress, structural reforms. a tax to get things going. there are too many things going. in brazil, it is not that important. petrobras. what they had in their revenues. the government is biting the bullet on that. scarlet: if you look at how brazil does, versus other bric countries, brazil is the only

bric country that has seen a decline. russia, by the way, has done better. in the recovery in oil, and there is little change in china data. so russian fundamentals. overlooking the political angles ? mr. goldberg: how politics affect investments, and this probably has stopped being the case. we at blackrock, we took very important decisions. and then we realized that sanctions were never going to get to the level, and then we came back. one of the reasons we like the country the most. to the point of what is different right now from the 1990's, it is what currencies

can move, and currencies can do a lot. this is for the first time in 10 years probably. joe: one of the things we have been talking about this year, the trouble for emerging markets, is there anything that is not priced and? i know you are saying down in lima, people were talking about the fed. can we just ignore the effects of the fed? mr. goldberg: the first rate hike could potentially bring some noise. i like the way the governor put it. get it out of the way. do something that reduces volatility. very slow in time. alix: so a good rate hike, helps with volatility.

that is a good contrarian view. pablo goldberg up blackrock. we will be right back. ♪

bank of america shares down. we are also going to get some earnings from netflix. it really about the --ernational scope scriber subscriber growth. they have been growing overseas. number, retail sales, excluding auto and gas. they're looking for a 3% rise in september.

that will probably get the most attention. : are we being affected? a debate special on the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.

emily: intel beats ministry with invested earnings, it is the -- is it enough to keep investors happy? i'm emily chang, this is "bloomberg west." coming up, twitter announces plans to cut 300 jobs. twitter suspends the accounts of leading sports sites as the nfl complains about copyright violations. i will talk to the cofounder of