vonnie: from bloomberg world headquarters in new york, i'm vonnie quinn. and i'm david gora. star star to the u.s. earnings season sends stocks to fresh highs. volatility is low and confidence is up. jpmorgan beat estimates in its second-quarter report with firm growth in commercial real estate. david: an exclusive interview with house majority leader eric cantor, now vice-chairman of an investment bank, on what he thinks of donald trump's vice presidential picks in this election season. let's head to the markets desk, or julie hyman has the latest. julie: on this record-setting day, as the markets go higher and higher, stock markets, that

is, we have more investors weighing in on whether it is justified. larry fink of blackrock says he thinks the rally is getting head of itself. on the flipside, laszlo birinyi saying he is not yet seeing sentiment indicators that would show that the rally has extended itself. dow and the s&p have mitigated their rally today, come down a little bit. still trading at record levels. we are now on a five-based record the s&p 500. -- five-date streak for the s&p 500. it was enough of a move that we saw again by the end of the day. even though if you look at the trajectory, we coming off of our highs considerably. i have been watching volume, which is lower today than it has been recently. this looks and volume by sector. overall for the s&p 500, down 7.5% from the 20-day average good in particular, drop environment telecom stocks,

consumer staples, tech, as well as materials. also, when you're speaking of groups, it is the financials that are doing the best today . heavily weighted within the s&p 500 and also percentage-wise as well. they did fall year-over-year but writing roger estimates. wells -- beat estimates. what wells fargo and city are out tomorrow. vonnie: monsanto, what is the latest there? vonnie: 1.25 -- julie: 1.25 is the price now. once it is as it will review this deal. it is still not trading at the offer price computer the prior one or the increased one. 104. still some questions about whether this deal is going to get done, whether it is a good fit or get regulatory approval

and what kind of sales the company's would have to do to get it done. if you look at monsanto your to date, is this year it is getting more expensive. it is unclear if this deal is going to happen even if the buyers try to make it happen. david: let's get a check of the "first word" news. mark crumpton has that from the newsroom. mark: conflicting reports over donald trump selection of a running mate. "the new york times" and cbs news saying trump has selected indiana governor mike pence, but "the times" reports that trump could change his mind and campaign manager paul menard report says no selection has been made. mr. trump is scheduled to formally announces selection tomorrow morning in new york. "the indianapolis star" reports that mike pence has dropped his election bid for governor. hillary clinton is on capitol hill, attending a weekly luncheon with senate democrats

and brief them on her campaign. former joined by colleagues as well as potential waste presidential choices including tim kaine of virginia, elizabeth warren of massachusetts, and sherrod brown of ohio. she is scheduled to campaign in virginia with senator kaine later today. u.s. treasury secretary jack lew met in london today with his new british counterpart, philip hammond. after the meeting, secretary lew said he would like negotiations on britain's exit from the european union to produce "a highly integrated relationship between the u.k. and the eu." u.s. secretary of state john kerry is in moscow for talks with russian president vladimir putin. agenda,tary kerry's potential deal that could prevent an escalation of fighting in syria's civil war. wants to share information for targeting the islamic state and the al qaeda affiliated in return, russia would have to keep syrian forces from attacking rebel troops who agree to a cease-fire.

congress will release classified pages about alleged saudi arabian government ties to the 9/11 hijackers as soon as tomorrow, according to cnn, citing multiple unidentified sources. the so-called 28 pages were part of a congressional investigation into the terror attack. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. onnie, back to you. vonnie: for the post-brexit worries behind us? the s&p 500 of more than 2%. our next guest says there still may be painted, including tense negotiations with the eu. and italy facing its own troubles, including a banking crisis and upcoming constitutional referendum. for a look on the impact on markets, i'm joined by kevin nicholson. he joins us from richmond, virginia.

kevin, there are the particular pain points you see right now, because it feels like we are confident we were last week. kevin: oh, we get are commerce than we were last week and some of the pain points if you are european investor, like you said in the opening, the brexit comes back to the forefront as people have now -- it had been at the back -- on the back burner, but now that the u.k. has elected a may, minister in theresa it is now going to come back to the forefront because, as you all know, it is a two-year process and people are going to wonder, when is she going to actually trigger article 50 to get the process underway? also, the italian bank crisis is also an issue for the eu because they are in the process of having negotiations right now and i see brexit as being just a distraction at this point, and later in the fall, the italian

referendum to basically shrink the senate from 315 senators down to 100 senators. there is a lot going on in europe. david: let me ask you about brexit. we have this new government. thed davis to oversee transition, oversee the brexit. let me ask you about what kind of certainty that provides. he says he sees an exit by december 2018. inherently that must allay a lot of risk, knowing that is the goal. .evin: i think so it does allay some of the risk in the sense that it at least with the timetable out there for the market to be prepared for. i still think there is going to be a lot of harsh negotiations. the eu -- angela merkel has said she wants to make it a more peaceful negotiation, but you recall earlier in the summer there were those folks in the eu

that said now that britain is leaving the eu, they shouldn't expect to be able to get full access to the eu -- vonnie: right, so this is all behind the scenes political machinations. at riverfront, what exactly are you doing to avoid anything that might become problematic? us, what we for have done is via fullback some of our exposure in europe -- pulled back some of our exposure in europe. we have been underway to the u.k. because we feel like there's going to be more pain to be felt in the u.k. we still have exposure in europe , but it is more to the exporters at this juncture. the low --ed out of excuse me, we pulled out the small cap european companies because they are going to be the ones that will be mostly feeling the pain at this juncture if

brexit does have pressure points going forward. that trade is all with inside the eu. david: the pain and the pressure points within europe. what does it mean for u.s. equities? kevin: i think u.s. equities are going to grind higher now that you start to see stronger financial data, out. comeronger financial data out come economic data. we had strong nonfarm payroll last week. we are starting to have the economic surprise index in the u.s. actually turned positive for the first time in over a year. seeink the u.s., we will earnings surprise in the earnings season so i think the u.s. will grind higher. the biggest risk to the u.s. going higher is the political propaganda that is going on. vonnie: so, kevin, how long will this bull market last? kevin: well, we see that they can last until 2250 by the end

of the year on the s&p. it is possible that it runs a good while longer. vonnie: all right, kevin nicholson, riverfront investment group, thanks for joining. coming up in the next 20 minutes of "bloomberg markets," jp morgan chairman jamie dimon led the back to solid second-quarter results. we will have reaction from two analysts with very different views. company sees gun an opportunity to supply cops with cameras. vonnie: days away from the republican convention in cleveland, donald trump appears to be closing in on a vp running mate. this is bloomberg. ♪

david: this is "bloomberg markets." i am david gura. vonnie: i'm vonnie quinn. david: time for the biggest business stories in the news right now. word from appeals court on a decision that may affect the data security throughout the u.s. technology industry. the ruling overturns a 2014 decision ordering microsoft to hand over messages from a suspected drug trafficker. david: france is warning former european commissioner not to consult goldman sachs on the

brexit from which some consider an act of betrayal to the eu. he is under fire despite taking the job 20 months after leaving his post. vonnie: burberry is putting plans to build a $67 million factory in the u k on hold. the luxury goods maker wants to assess the impact of the country spoke to leave the european union. says therry chairman company still plans to go ahead with the project eventually. the factory will be located in leeds and make the company's famed trenchcoats. that is your business flash update. david: after j.p. morgan reported that revenue beat estimates and we have 2 analysts with different views. rating,hawken has a buy charles peabody has underperformed. results, strong especially in the markets revenue lines from which helped with the revenue beat, as you

referenced before. jpmorgan is always viewed as a strong risk manager and in volatile times like this, this is the type of stock investors want to own. we saw proof of that in the results today. >> what is the trading environment going to be like from here, brennan? we saw fixed income trading revenue of 35% to 3.60 9 billion pounds. billion.of 1.5% to 1.6 what is the county-through from here? brennan: unfortunately, seasonally it will get slower. july and august 10 to be a lot more thin and less liquid and less involvement from investors. seasonally we are going to slow down. from the current levels. but that is what we expected already and it is embedded into our numbers. well.an did remarkably it is my sense that the strength they have in a macro businesses,

specifically the fx businesses, were probably really helpful. when we think of how that translates to the rest of their peers, citi is the most likely for them to show thick results this quarter. -- gethat extra that next week. vonnie: there are a few things that were tailwinds that will be around in the next quarter. lower than forecast legal expenses. what is the global economic environment -- does jpmorgan suffer? brennan: so you are correct that there were some one-timers, but even if we x out those one-timers, jpmorgan's results still beat estimates. the tax rate was a headwind which almost completely offset that. the benefit only added about a nickel. still better than expected

results. if we see the slowing economy, thanks is usually cyclically dependent businesses. if we see slowing macroeconomic environments, we are going to see negative repercussions on bank earnings and velocity from here. vonnie: that was the ubs securities analyst brennan hawken. is not asabody optimistic about jpmorgan's earnings performance going forward. he spoke to alix steel on bloomberg. i think it can last for over two but it will still be a difficult year and i'm still expecting earnings to be down over year. alix: in terms of where jpmorgan is now versus seven years ago, the are we just 13%. they have not seen a return on equity since the third quarter of 2007. what indicators did you notice that showed the shift in jpmorgan in the last seven years? charles: in terms of the roe

today, that is better than anybody in the industries producing and it was driven by strong capital markets revenue. that is what has to happen. you have to have starter capital markets revenue and higher rates to get roe's back into the midteens. alix: has jpmorgan kick to the financial crisis to the curb? charles: there were 2 pieces in the last couple weeks. one today, jpmorgan had a recovery from the litigation reserve of 140 million, .8% share to the earning. if you look at the range of possible losses going forward, that is the lowest level it has --n the financial crisis since the financial crisis. it is telling me that the financial crisis is behind them. the other thing is the regular three decision to unleash massive amounts -- the recoveries from litigation reserves and the capital return tell me the financial crisis is over. alix: when we talk about how banks can be profitable when interest margins will be so low,

how they will be profitable, how return come isat that the right question to be asking after this quarter? charles: it still is. the revenue environment remains challenged to when you look at the revenues from it was week in asset management. mortgage banking was not as strong as we hoped. even the top line is weaker than expected because of margin pressure. we still are looking for where the revenue is going to come from going forward. trading,ding, trading, trading, trading. the other part we have to talk about his where we are in the credit cycle,, 20% off for bad loans. charles: the 2008-2000 and crisis is behind us but we are entering a new credit cycle and we have seen the inflection point in credit. if you look at the net charge us, they bought the end of the core to run $960 million and they have been creeping up, $1 billion in each port of the and creeping up.

the debate we are all having his how rapidly will they rise and how far will they rise. our position is that there is --ng to be entering links and earnings recession but it will be as bad as test cycles. david: still ahead, will cameras on cops make us safer? one company think so. ♪

david: this is "bloomberg markets. time david" gura.i am david vonnie: i'm vonnie quinn. a taser stun gun company, season opportunity to provide cops with cameras that you can read about this story in "bloomberg businessweek." karen weiss joins us.

it is not very publicly palatable, if you ask me. the body camera movement to put cameras on cops started in force after the shooting in ferguson, missouri, in 2014. there was a shooting of a young man from african-american men, teenager, basically, and no recording of it and it is contested what happened. that started a really broad national call to put cameras on officers. there had been only limited research into another time that indicated putting cameras on officers good reduce the use of force and complaints against officers. the federal government put a lot of money towards this. they had been working on a camera solution for about half a decade at that point, trying to figure out ways to document police interactions. they have come to grab by far the largest market share in his rush to put cops on camera. just yesterday they announced a --l with the city -- pardon

in minnesota, capital minnesota. david: minneapolis. karen: minneapolis, thank you, sorry. and put their tradition relationship with police forces in the stun gun industry and moved it to the body camera business. david: we are looking at pictures of the device. is this the point where many police department's cap afford to do this cheaply and easily? karen: the main driver of cost isn't actually the camera, which is a couple hundred dollars. it is the consort of the footage . -- cloud storage of the footage. documentingng about not necessarily whole shifts but whole incidents, which could be amber from five minutes to two hours -- anywhere from five minutes to two hours if you are on the scene for a long time. it could be stored in the cloud for decades, potentially, depending on what state law requires. taser is making money by selling these cameras just for a couple hundred dollars, but kind of locking in a typically five-year

contract for the cloud storage. they started all this with a little camera that is attached to the taser gun and trying to document what happens when someone got tased and overtime they developed a standalone body camera, chest mounted, pretty stable, but doesn't provide quite the same view as one that you often see that sits on the officer's glasses or lapel that is trying to provide the view that the officer has. vonnie: karen, is anyone competing with taser on this? i mentioned it would be easy for go pro to outfit cops, too. karen: tasers as we are not just gopro and the cloud storage, the data management side of it, this footage, while we think of it in the context of police reform and accountability, the vast majority of the footage is going to be used in prosecutions in court, in bringing cases. and that means it needs to have certain levels of storage, kind

of the department of justice says is sufficient for criminal evidence. it has to have an audit trail to show who has access to it and to show it wasn't tampered with. it means it has to be able to be redacted to be released for public records. it has to be shared with prosecutors. that whole suite of evidence management is what taser is really selling two different forces to say that we are thisrent than just taking and uploading it to the basic cloud you and i have on our own. david: karen, thank you very much. you can read her story in the latest issue of "bloomberg businessweek." we get down to business and politics with former house majority leader eric cantor. this is bloomberg. ♪

david: from bloomberg world headquarters in new york, this is "bloomberg markets" i'm david gura.

let's go to the markets desk julie hyman is taking a look. julie: one of the notable movers to watch in today's session. yesterday, they drop following disappointing inventory reports that show a decline in gasoline and distillate inventories but there is a bounce back in oil prices today. also being helped by the declines we are seeing in the u.s. dollar today. but it has been a very volatile week for oil prices the past five days, you could say, since we are not quite at the end of the week yet. it traded sideways and then had a decline -- big climb and today gaining steam once again. it has been a zigzag few days. also, we are watching gold prices as we have seen risk appetite, back into the markets. one of the casualties of that has been gold, as you might expect. gold trading at about a two-week low. look at the five-a chart for gold as well because we have been seeing pretty steady declines here, down about 2%

over the past five sessions. if you look at this week alone, gold is set for its first defining week going all the way back to may. people concerned about the global economy but now that move is losing some steam, guys. vonnie: all right, julie, thank you. david: let's check on the headlines with mark crumpton in the newsroom. mark: donald trump is closing in on his running mate selection with for boards went to indiana governor -- reports pointing to indiana governor mike pence. a last-minute change of heart is still possible. spokesman jason miller says mr. trump hasn't made his decision yet, and the campaign is planning an announcement here in new york city tomorrow morning. the "indianapolis star" reports mike pence has dropped his reelection bid for governor of indiana. a close political ally of new jersey governor chris christie

has pleaded guilty to a federal charge of soliciting a bribe. prosecutors have been looking into david samson, a christie appointee who was chairman of the port authority in new jersey from 2011 to 2014. officials say he got into to withhold funding unless united airlines agreed to provide direct users to make it easier for him to get to his vacation home in south carolina. the money-losing flight was ended three days after samson resign. the united ceo resigned after an investigation into the service. the republican convention gets underway monday and it features a lineup of politicians and celebrities as well as some notable absences. mayal cofounder peter thiel be the first openly gay speaker featured at the republican national convention that other speakers included four of mr. comes children, senate majority children,mr. trump's senate majority leader mitch mcconnell, and house speaker paul ryan. notable absences including george h.w.dents

bush and george w. bush and the most recent nominees, john mccain and mitt romney. phil mickelson has become the 26th player in major championship history to shoot 63 and he had reason to be disappointed. putt --oot birdie 16-foot birdie putt road the edge of the cup without dropping. as a small consolation, mickelso n will have to settle for the course record. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. thanks, and, backing out to donald trump's search for a running mate. it is winding down as reports point to indiana governor mike pence as his choice. the former congressman could help trump boost his standing with social conservatives. for more on where things stand, let's go to mark halperin, who is in cleveland. what is the latest on the vp

pick? mark h.: several news organizations are reporting definitively that it is going to a coupleand republicans have told us that is the direction they believe it is headed. ence adviser responded today on a flight from indianapolis to new york city and was asked what he was going to new york for and he said "some meetings." as mark suggested earlier, all nce andoint to pein neither newt gingrich nor chris christie, the two finalists, have heard anything, they say. unless trump changes his mind at the last minute or is missing with anybody, it is going to be mike pence. vonnie: what is he missing without newt gingrich or chris christie? mark h.: what is he missing if he doesn't take them?

all three of these guys have strengths and weaknesses. ence is seen as the safe pick. he is a consistent performer on a lot of issues and he builds bridges to parts of the party that come could use bridges two. -- trump could use bridges two. what he loses, in one way he could be less safe pick then gingrich or christie, although pence has been on the national stage for years and he is not on the "time" magazine cover level. somebody who is into the fire, as joe scarborough said this morning. that fire is something mike pence has not faced. he thinks he has, but he hasn't. he will be facing the kind of thing -- i will switch to a sports metaphor -- christie ending which had hit major-league pitching and pence thinks he has.

bit of a risk. vonnie: we have the list of republican speakers. was its rising, the lack of star power in it? mark h.: there are big-time republican speakers but people likemark h.: condoleezza rice and marco rubio and some of the big stars in the party aren't there. on the other hand, donald trump, donald trump's family, will be the stars of the convention and that would be true no matter who else is on the program. a lot will be made of the absence but there is enough to fill the programming and the trump family, the running mate, will fill a lot of the slots and a lot of the attention that is going to be required to make this convention people pay attention to. vonnie: mark halperin, managing editor of bloomberg politics, in cleveland. the announcement from donald trump is due tomorrow at 11:00 somewhere in manhattan. david? david: turning to weigh in on the white house is a man who understands leadership in politics and business. eric cantor served as house majority leader from 2010 to 2014 and is now a managing

director in new york. you look at these men looking to be frontrunners for vp. mike pence in front. he is someone with whom you serve more than 10 years. are you happy with that as a pick? eric: listen, mike is a solid guy. he is a consistent conservative. lement to thecomp trump candidacy and will provide a moral compass that might always provided in the house. if it is mike pence, it is a good pick. your: donald trump wasn't pic any famously that he wouldn't win a primary. now he is the presumptive nominee. is there something he could say it now to make you more comfortable with him as the nominee? eric: i was cochair for jeb bush and i am a big fan of jeb's. he had served in office and demonstrated ability. we will have to see with donald trump.

donald trump -- he doesn't have a record in public service. being a businessman myself and congress,ved in business is different in public service. effective results is about working with people. the jury is still out as to how many of those results will be realized and whether he will achieve results through the limitation of conservative policy. we will have to see. david: we have the list of speakers of the rnc. you are not on the list. i wonder if you will be in cleveland and what you make of the convention. eric: no, i'm not. this is the first time i will miss the convention in a long time, but i will be watching with much interest on television. david: paul ryan as said he hopes trump takes a movement conservative. i think right now there are many in the party and in the movement who question where donald trump is on a lot of issues. everyhas certainly been week news about a position he has taken that he is no longer

taking. mikenk a selection like a pence would signal that there would be a consistent conservative on the ticket. david: you have been out of office for about two years. cantor'd has become a word for somebody beating an incumbent. as you look at the recent history of the republican party, do you see your defeat in the house election as the turning point, the beginning of seven? --s beginning of something the beginning of something? eric: some have said it was the canary in the coal mine and there is some truth to that. with what is going on a policy today, not just on the republican side, but as we've seen with the sanders movement on the democratic second there is a large portion of the calculation who feel legitimately so, that they have been left out of any kind of growth. what i'm hopeful is that my party can speak up and affect some solutions to the problems these people are facing.

for too long the party has been focused on theory without application or execution. i think that is what is so badly needed now in our country and many other industrialized countries. what happened with brexit. are feeling left out and it is up to the leadership to begin to connect with those people. david: how much do you in a new capacity reckon with the future of the republican party? how important is it you still, identifying as republican? eric: i'm very dedicated to our country. i believe in america, i believe it's leadership is integral to global growth. i see now being in the world of business and our clients, advising clients on the things that are going on, they look to our country for leadership. it is very important for us to see leadership elected that can come down on the policies of progrowth to put the fact of

economic opportunity first, johnston and to be a strong jobs,to politically -- and to be a strong force you politically, globally, in the world. david: how do you regard things differently now? i remember when you were in office talking to republicans in new york, you were kind of -- they were kind of book when they saw the obstructionism on the shutdown. they thought the folks in washington didn't get it. now that you have some remove from washington, do you view politics differently? eric: it is a difficult time right now because there is frustration and people feel left out. we need strong leadership to step up and say that we are going to bring some people together to forge solutions to problems. that does take cooperation, it takes compromise, and it is difficult to stand up and say "i am a true conservative," or if you are a democrat, you want to

say the other, that you are true to that party's principles, and then go in and make a deal with the other side. that has been the difficulty. i think we have got to get back to a situation where you have a vision but there has got to be incremental progress, each day can each week, each month, you eventually get the ball down the field. problem of leaking washington to even effect that kind of execution. we have got to get back to it because we need to make the progress that is so necessary for all these people feeling left out. david: you mention you backed jeb bush and have raised money for chris christie as well. when i interview republicans in office and out, how difficult it is for them to articulate explicitly "i endorse donald trump for president."they say they endorse the party's nominee. eric: i've said consistently i will vote for donald trump and mike pence, if that's who it is. many of us have difficulties with the conduct of the campaign , and the demeaning nature of

some the comments, the bullying. that is not leadership could when you have kids and you try to teach them against that kind of behavior and say that is not the way we should conduct ourselves, that is a lot of the issue, and clarity on issues and where he stands policy-wise, that will come to the floor. again, this is a binary situation. if it is either trump or clinton, no question in my mind i will be voting for trump. david: you travel a lot and you mentioned brexit. this is a funny moment where you see politics and economics coming together. what is a greater significance of this moment when you see the populism that led to that vote in the u.k.? eric: i'm sure there's a lot of temptation on the part of europe to say we need to be punitive in our actions against the u.k. i would say the leaders and policymakers in those countries, they may be susceptible to the same political forces that have arisen in the u.k., and before they are quick to go and do that, we ought to be focused on how do we go and face the new

challenges, the political realities, and we should focus on economic growth. that should be the focus for europe, the united states, those in asia. we should be focused on how we can best achieve that. i believe it is achieved through conservative policies that are out there. we need to do a better job of communicating how they affect and help people. but for those in europe, it is a real question. david: thank you can appreciate the time today to eric cantor, former house majority leader. we will have complete live coverage of donald trump's vice presidential announcement tomorrow at 11:00 eastern time on bloomberg television. vonnie: thank you both. coming up in the next 20 minutes of "bloomberg markets," jpmorgan beat all the important estimates but there might be trouble brewing below the surface. we look at the bank's latest report. unveils its first product since the departure of its controversial ceo could we will size of its new home gadgets. and coming up next hour, the

citigroup chief equity strategist on where stocks are heading and what is concerning investors today. this is bloomberg. ♪

david: welcome back to "bloomberg markets." at first glance it is hard to find much knew about jpmorgan's latest earnings report. analystsell less than expected. vonnie: too early to give the post-brexit outlook but jpmorgan says it is in a position of strength. let's bring in bloomberg gadfly columnist michael regan, who always find something -- david: rain on the parade. do with what i love to

things like this is going through the growth: and see what line of business has really grown strongly. one of them is commercial real estate lending. now, still a pretty tiny portion , but it is's book interesting to see this growth when there has been a crescendo of people predicting upcoming problems with commercial real estate. obviously, people have been waiting for the credit cycle to turn for months if not years now with low interest rates, fear of a bubble being created somewhere. short seller was talking about subprime auto. honestly, people are worried about -- obviously, people or read about credit cards. there has been a lot of focus on commercial real estate lending. a very small part of jpmorgan book with -- jpmorgan's where the growth is really huge and is an interesting read into the rest of the industry. a lot of scrutiny from

regulators, that sort of thing. david: i wonder how endemic this is. column, then your dance on jpmorgan. will we see this across the board? we will see. you try to simply for goldman sachs, morgan stanley -- you try to extrapolate for goldman sachs, morgan stanley. is it a one off because of the brexit? is it a sign of recovery in bond trading? obviously, too early to see. the big take away is consumer trends still seem pretty big. there was a bit of an object with credit cards but nothing really to get to startle the startledonnie josh to get --nothing really to get startled about. david: you can read all of his columns. coming up, more "bloomberg

markets." ♪

you can see the humidity there. vonnie: i was just going to say, on the hudson river. david: all right, we're going to talk to emily chang. camera usesutdoor artificial intelligence to other homeowners went trespassers are on their property. "bloomberg west" anchor emily chang joins us from san francisco with morbid -- with more. it seems like we've had products

similar to this already on the markets. emily: it seems like an old nest product marketed as a new product. this is a camera built for the outdoors. said one thing they have learned is that 30% of users were putting the camera outside anyway. aremember asking tony fadell number of times over the last few years when they will make a security camera. it seems like something customers really wanted. it has a waterproof exterior. one thing that customers are complaining about. you have to plug it in. battery-operated camera. that is easy to do when you are inside, but outside it is a little more difficult. whyou are an intruder, but wouldn't you just unplug the camera? they are battery-operated competitors out there. it will be interesting to see if that takes away from this product. i think the most and port feature is the artificial

intelligence that is built into the app. when there isyou somebody on your front porch. it can differentiate between an orruder and delivery man child or intruder. this is the big selling point for the new camera. i'm amazed by how organically this came about. sou mentioned tony fadell' departure from the company could remind us what precipitated that. emily: tony fadell, a mislead the founder of -- obviously the founder of nest and before that worked at apple, it was his vision for the company. strong known for a very and pronounced leadership style people didn't think that was the right style for nest.

there was criticism that he was too much of a perfectionist and it would get stuck along the product roadmap. nest was criticized for not releasing new product. in sort of an exit interview he businessweek,"rg he addressed those particular concerns, saying we have a established and we have a lot of products and services coming. in addition to this criticism that nest was slow to release new products, there was criticism about his leadership style in particular, especially from the founder of a company that they bought that has now in thatn outdoor camera particular camera criticized idolizingl for qualities of steve jobs, the worst qualities of steve jobs, and indicated he just wasn't a very good leader. left,, when tony fadell

there wasn't much of a statement. larry page didn't say anything could it was sort of un ceremonious. it is insisting that this is the first new product coming out under a new nest. vonnie: you can catch emily's interview on "bloomberg west" at 6:00 p.m. eastern, 3:00 p.m. pacific time. i'm looking at them on google and you can buy them for $200. david: coming up in the next the of "bloomberg markets," chief equity strategist with the big questions on investors minds. this is bloomberg. ♪

>> it's 3:00 p.m. in new york, 8:00 p.m. in london, and 3:00 a.m. in hong kong.

>> welcome to bloomberg markets. worldm bloomberg headquarters in new york, good afternoon. i am vonnie quinn. >> and i am david gura. here is what we are watching this hour. what might happen to treasury yields if donald trump wins the presidency. >> investors are hungry for mobile messaging. a founder androm ceo. david: and we will hear what mark carney is thinking. bonnie: -- theie: we are one hour from close of trading. >> we are near all-time s,