i am vonnie quinn. >> this is bloomberg markets on bloomberg television. ♪ vonnie: we are going to cover stories in washington, d.c., in the next hour. here is what we are watching. a way to start the week. a record $32 billion u.s. deal. virtually every mobile and computer gadget on the planet. plus, the future of m&a and a post exit u.k.. -- post-brexit u.k. we bring you the latest on the look at how the president's policies could undermine already fragile investor confidence. the republican national convention in cleveland gets underway today. this week may be anything but conventional. could events including protests

steal from donald trump's limelight? to theead straight markets desk. julie hyman has the latest. julie: we had a record last week for the dow s&p 500. then on friday we saw a little change. the s&p only up one half of a point. little changed as well today. a little bit of a drift following the game last weekend following the records for the dow and the s&p 500. we will see if things gain a little more direction as the day goes on. take a look at the map, you will see what exactly is going on. half green, half read on your screen. energy shares and materials are the biggest drags on a major averages. tech and utilities are gaining ground -- gaining ground. energy shares, as i mentioned, the biggest drags through. oil prices pulling back today

and energy stocks are going along with them. oil nearing $45 per barrel on the downside. here are some of the biggest energy declines by percentage. offshore and murphy oil all falling. we were talking about the big armed holdings deal. softbank to acquire the company shares. pretty heavily traded in the u.s. at fallout for sprint and alibaba. sprint shares are down that would divert resources from it. earnings, we have got to talk about that as well. beating estimates. there is a slowdown in the boy's business in particular bringing shares lower. the company missing estimates and bank of america falling but not falling as much as estimated. >> thanks. we are about an hour and a half away from the european market

close and about 40 minutes away from the equity market close in turkey. --ant to start with the 100 four set in stubble 100 index -- instanbul 100 index. moving on, we have seen a bit of resilience to the geopolitical risk. we were seeing gains as much as eight -- .8%. pre-much unchanged. european stocks trimming gains. pretty much flat on the stoxx 600. julie was mentioning, this is , right now uprmer 43%, the biggest jump on record and it highest price on record. this is after softbank agreed to for $32 billion, a

43% premium on friday's close. i finally want to take a check on sterling. up .5%. best g 10the performer against the greenback today after bank of america -- the bank of england policymaker said firm evidence was needed on the impact of brexit. vonnie: let's check in on the first word news this morning. now that he has crushed a coup, turkey's president has a demand for a country he calls a strategic partner. he wants the u.s. to hand over a preacher he blames for conspiring the coup. secretary of state john kerry says before the u.s. would agree to extradite him, turkey would have to prove the accusation. bloombergntime, surveillance was told how much of this would cost turkey.

>> they were 100% all in with nato. they hosted the largest nato headquarters and yet at this distraction that comes out of that will make them less reliable. winner in all of this is the islamic state. -- reece entering the country after they flew to greece in a helicopter during the military coup . >> lost confidence in president president francois hollande. some 60 7% of those surveyed said they did not have confidence in the government. the man says his nephew was in dr. needed about two weeks ago by an out year islamic state group. the prime minister will make the ase for britain remaining

powerful player in a post-brexit world. he will argue for renewing the nuclear weapons system and will tell lawmakers a powerful player in a post-brexit world. the u.k. cannot compromise on national security and outsource the responsibility for keeping the nation safe. authorities in louisiana say a gunman sought out police officers and then ambushed six of them. three officers were killed and three others wounded in a shootout in baton rouge. he has been identified as a black former u.s. marine. dayal news 24 hours a powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. vonnie: thanks. arms holdings is surging after softbank agreed to buy a chip designer for $32 billion. it is the biggest takeover of a u.k. company -- company since they voted to leave the european union.

welcomingt was issued the deal saying it shows the strength of the british economy in the wake of the brexit vote. for more, let's bring in our executive editor for bloomberg news. gets outhat softbank of the holdings? company -- mobile phones made in the last several years. her iphone's and samsung out sees, but they also make the semiconductors also in your homes. is banking andk betting on the future of's march -- smart cars, that might drive you or help you parallel park. you will need more software there. do notlliance is they make semiconductors. they design and create it, but they do not have to send billions of dollars on a manufacturing plant. the margins are pretty robust and that is something i think

softbank is looking forward to getting. vonnie: he has been looking at arm for 10 years. so he is getting a nice deal. talk about the currency fluctuations and whether it was the strength of the yen that pushed the deal right now. there was an element of that. it probably came after the brexit vote, which is interesting. not only the largest deal since, but it may be -- since it came down. offset a really bad deal with sprint. they spent $21 billion there and the shares are trading well below where they were years ago when they put that together. need something that offsets that acquisition. deal.s is an unusual aey usually -- rather than full acquisition. >> as you said, they usually by small companies.

the deal surprised a lot of people because it is not necessarily complementary to softbank. it is not like they had another semiconductor business they will put together with arm. does stand out as an unusual deal for softbank. on friday's'smium close. is it too high? jeff: if you are softbank, it is a deal you thought you had to do to keep away qualcomm or someone else to our moly saw itself as too big to be acquired, but most companies feel that way. the likelihood was someone out in silicon valley would make a run at arm at some point in time but got it in the deal by softbank. >> down another 7% today. what happens to sprint now? why sprintnk that is shares are down today to people are worried, ok, they are trading it for something and they paid seven something a

share. sprint will have to find its way full and it way behind at&t and verizon. they are barely a threat to those two. they have cut back on their money, they are struggling to borrow. i do not know what the answer is for sprint. >> tell us about the bigger picture. i know it was said this was not about moret, is this asian companies making a bid for european and u.s. companies? jeff: i think it is both paired in this case, it is not a chinese company. we have seen a ton of chinese deals, the trend in 2016. both japan and china are struggling with bad demographics. and worriestions about where the future growth will come. you buy arm and get a company

with diversity. 10% come from europe and half from asia. get to play in the broader world and in terms of exit, i would not be surprised if deals happen. where thee deals currency helped the u.s. buyer or a buyer from another country to make a run in the u.k. jeff, thanks. >> coming up, bank of america shares jump on earnings beat. more next. this is bloomberg. ♪

>> live from london and new york vonnie:. you are watching bloomberg markets. lending club has named patrick dunn chief officer. this move comes as the company seeks to restore investor confidence he previously led black rock's san francisco office. he worked with investors and retail distribution partners. company trying to reverse a slump and win back investors. shares down 59% this year through friday. for the first time, volkswagen said it will compensate u.s. dealers hurt by the emissions scandal. to the wallrding street journal. more than 150 dealers met with officials on friday. over andal affected half-million vw vehicles in the u.s. the world's fastest-growing major aviation market is being hampered by infrastructure problems. airports in india have not kept up with traffic growth fueled by

rising incomes and affordable fares. boeing estimates says india needs it hundred new planes in the next -- years. go airlines ordered 72 points from airbus. coming up with, landing and parking spots for all those planes. that is your bloomberg business flash p are let's head to the market desk now where julie hyman has more on the bank of america earnings. julie: i wanted to dig into those in more detail. bank of america, the largest to come out with earnings. incomes fell by 21% and revenue fell by 27%. both of those less than analysts had anticipated. on trading revenue also falling, as we have seen that occur at the other banks as well. general trading revenue was better than estimated. shares were trading higher this morning and if you look at other banks stocks to the how they are

performing, we he a mixed bag here. jpmorgan rose last week after its numbers fell. city and wells fargo are gaining a little bit of ground but we heard from charles schwab. earnings rising, matching estimates. trading revenue specifically down 1%. that appears to be what is behind the little change nature of those shares at the moment. america has been cutting expenses but it is slightly higher than some of their peers. julie: yes. a lot of questions on that. .ake a look the efficiency ratio, the ratio of expenses. bank of america, it is up here, around 65%. versus jpmorgan, city, wells fargo, all in the mid-are -- middle to upper 50's. cut costs, it is just a matter of how much more it can cut. the company is saying it can

of $53an annual run rate billion. it is around $56 billion right now. analysts were asking a lot of questions on the call about how bank of america will get that expense run rate down further. it gained several different answers including perhaps more headcount reduction, and there seemed to be at least a little bit of skepticism expressed on that account but not enough to push the shares lower. it is something to watch when it comes to bank of america. >> thanks, julie. up next, still ahead, markets react to a failed coup in turkey. we will speak with scott next. this is bloomberg. ♪

you are watching bloomberg markets.

i am vonnie quinn from new york. >> global markets -- as investors assess -- in turkey. ,e are joined by scott wren senior global equity strategist from wells fargo instituted 1.6 join dollars in assets. scott joins us live from st. louis. we are having a little bit of trouble getting him at the moment. but i have been closely watching what bank of england's policymaker has been saying, so we do have some sound from his speech earlier. we will have that sound in a moment. bit of aning a little increase their it we have the sound now so let's listen.

>> my view is there will be some long-term hit. havehould a long-term hit implications for monetary policy in the short term? coming,e can see that there is a perfectly good argument that they may cut their spending ahead of the long-term hit looming. case, thatthe provides a classic argument for easing monetary policy. vonnie: important comment there from martin weale. a little bit of weakness today but it did rally. the republican national convention begins in cleveland today. the kickoff time. donald trump will make his case and secure party unity. former republican new hampshire senator join bloomberg salience this -- joined bloomberg surveillance this morning. define himself

the way he wants to be defined and understood that is what this is all about. what characteristics, what , and wheret skills he wants to take the country. he wants to make the country great. how does he do that? we can talk about jobs, the economy, trade, hillary clinton's weaknesses, but he will be clear and specific and disciplined in driving that message to an america that will be watching. tom: can he send the message he has sent to four months, does he need to change his rhetoric to this new tone, a more moderate and measured tone? ununu: maybe better language and better rhetoric might help. to me, his strengths are talking about job creation and turning the economy around and his it. in the private sector trade and immigration, that does speak to

people's nationalism. maybe some xenophobia, but it is on people's minds. he hastion is something been talking about. i do not expect him to stop. the fact that hillary clinton is a carry on legacy and people are looking for change. if he focuses on those three topics, he comes out with a clear message and a vision for the country. all over the map, the convention experience will be less effective. to pick up on a point that democrats are coming up next, how does he position himself in advance of the fact that they will be coming after him to make sure he defuses some of the issues? how will he have advantage? he knows what people will attack him on. said. just what you

you get out there first, stake out your territory, and define yourself on the issues. trade oris immigration. be clear on what you are going to do and what you are not going to do on immigration so that others cannot define you. on your economic record, skills, success in the private sector. talk about areas where you have not succeeded and what you have learned from it and define that first for the american people rather than let someone do it for you. in a way, it is campaigning 101. changed theve he curtains when he went into the senate in 2003 it are they going to change the curtains in the house? that is really up for grabs. is the republican house at risk? it is becausehink of the congressional redistricting we talked about. republicans were able to consolidate a lot of support, as so it wouldts,

really have to be a wave for the for democrats house to really be at play. certainly, will they lose the historic majority they have in terms of moving the numbers, yes, probably. toy will still be able maintain that majority. tom: the difficult question, jeb bush in the news this week. should he be in the convention? not if he does, not want to be. no one should be at the convention who does not want to be. even a republican trying to disrupt things or get attention for themselves, that is not what it is about. this is about the party choosing their nominee. we think it will be donald trump tomorrow. it is his show and his opportunity. theepublican should allow -- nominee to get his vision. former republican new

hampshire senator john sununu. agencies not moving that much today. it .1% gain for the dow, .2% gain for the s&p 500. the fix, below 13. the dollar index unchanged. the yen definite weakening, one of five, 67. -- 105, 67. -- 105.67. this is bloomberg. ♪

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markets. vonnie: let's get back to market resilience following turkey's turmoil. we are back with the senior global equity strategist for wells fargo investment institute, which manages 1.6 join dollars in assets. scott wren joins us from st. louis. great to have you on the program. i wanted to ask you about this resilience we are seeing in global markets. thesee the s&p 500 ending year even higher than now. what do you think will drive the risk appetite? is it the fact that you do not see a rate hike from the fed this year, or is it simply a hunt for yield with global bond yield heading lower? scott: i think we will end up higher. our official target is 2290. taken six it has years and we finally caught up with fair value. i do not think valuations are

stretched. what you are seeing now and really what pushed us to new more recently is dependability in economic data and confidence from people that this thing is not going to fall apart, the u.s. is not headed into a recession, growth is slow but dependable. i think if you just get a little bit of confidence, that will push us up into the year-end range. it will not take much. i think it is backed by fundamentals and i think the be at is where it should this point in time. people should be optimistic. not wildly optimistic, but certainly looking forward to higher in the stock market. recoverye seen a globally following the punches in the equity market after brexit. brexit is a bit of a scapegoat? scott: i think it is. way overdone on the downside. thought it what we would, but i think brexit, you are going to hear about brexit

not only in this earnings season but literally the next eight seasons or more. brexit is a potential headwind. hasit hurt us and that negatively affected our earnings. the market always looks for skate goats went -- scapegoats when things are growing slowly. i think brexit is a scapegoat that will not go away anytime soon. this thing has a long shelf life. if you are already sick of hearing about brexit, you will really be sick of it over the course of the next couple of years. >> a failed coup attempt in turkey, if that does not rattle the u.s. market, is there any geopolitical event that will? scott: i think it has to be bigger. , turkey is about 1% of global gdp. britain is less than 4%. so you need something that is a bigger impact. eithercrashed by 10% in

of those two countries, let's face it, it is a rounding error on global growth. i think these other 27 eu alltries will be climbing over themselves to sign individual trade agreements with the u.k. it is a great export market. they run a deficit with the eu why wouldn't you want to export into the u.k.? i think they are in a good position. turkey is clearly a big military ally of the u.s. goings where the grind is to be. what will happen there militarily. ,rom an economic standpoint turkey is way less than a rounding error in global growth. "known at then are the unknowns" that might affect the market? is there anything that could push you off your target? topic you bring up a good

in china. there is a lot that goes on behind the scenes in china are you could make some arguments, the gdp number they reported last week, but there are a lot of twists and turns in that, too. china is a system in big one. will continue to revisit in the eurozone countries like greece, portugal, spain and italy, probably, too, over the years. there is financial system? 's china, big events like that that will continue. the modest growth and inflation economy that we have been living with for six years will continue in the states. >> scott, what about oil? scott: our oil team has been 45sing in the 35--- 35 to

barrel range. is a line in the sand and i would say that line is $30 for sure.- 33 or 34. anything below that, the equity markets will start worrying about high-yield debt, start worrying about that bank loans and the energy. above $35, the stock market will probably not pay too much attention to the price of oil. if it looks like we will cross below that level and certainly below $30, the u.s. stock or -- stock market -- $35 to $45 is where we should end the year. , thank you for joining us. let's check in with our you -- new york news desk. ecbn economists think

president mario draghi will take his cue from his counterpart at the bank of england, mark carney. according to a bloomberg -- bloomberg survey of economists, he is going to keep policy unchanged on thursday. expected to add stimulus before the end of the year. last week, the bank of england decided not to cut interest rates. germany has a warning for turkey. reinstating the death penalty after a failed coup would would -- -- a spokesman for angela merkel said a country with a death penalty cannot be part of the eu . . boris johnson arrived in brussels today. he was named the u.k.'s top diplomat after the shakeup in that country. .> great to be here the message i will be taken to

our friends in the council is the --e to -- leaving that in no way means we will abandon [indiscernible] >> johnson said the events in turkey and france underscore the importance of working together. days before he was killed, a baton rouge police officer penned an emotional facebook message saying how hard it was being both a police officer and a black man. jackson wrote, "i swear to god i love this city, what i wonder if this city loves me." friends and family described the 10 year veteran as a friendly giant. killed wasfficer brad, a 24 year veteran. global news 24 hours a day powered by more than 20 600 journalists and analysts in more

than 120 countries. this is bloomberg. vonnie: thanks. still ahead, the republican national convention kicks off today in cleveland. the party will try to unite around donald trump. we will go right there to the quicken loans arena in cleveland for the latest. this is bloomberg. ♪

>> you are looking at the quicken loans arena. there will be many hundreds, a couple thousand delegates in there. the convention beginning today in cleveland. donald trump faces a challenge to his limelight in the fallout of sunday's's killing of three

police officers in baton rouge. protest to take place around the convention. bloomberg is told those could actually help donald trump. >> if you report it as dominating, it could have an effect, but that effect will frankly probably help because it will show again a lawlessness, a lack of respect for political discourse. >> bloomberg's senior reporter for national politics now joins , mike bender.and the protests would help donald trump? mike: it depends what you mean by help. it is hard to imagine any voters still undecided between trump and clinton. hard to imagine protests helping trump sway those folks. see if there are protests, him energizing his base, that is what we're seeing

this election. that is the direction we're heading in this election. how many diehard clinton supporters will she be able to turn out and how many of trump's will he turn out? in that sense, it could be right. the protests outside the venue, inside the venue, there is expected to be some kind of -- we are not really will takeformat it but delegates say there will be a protest there, too. mike: i am sorry, inside the convention? vonnie: right, a minority report. mike: i am not so sure about that. i know at the breakfast this morning and trump was patting himself on the back for more or less a week about quelling the toernal rebellion to join -- dump trump, never trump, free the, whatever you want to call it.

the movement has never had much success. the fact that they were not able to get their rules passed, enough rules last week at the republican parties meeting -- party's meeting, that says more. how much focus will there be on trump's recently chosen running mate, mike pence question mark he did not give him that much time to speak. didn't., he even when mike pence was asked questions by reporters, trump stepped in. that has been trump's mo all along. even the fellow republicans we know he likes, like chris christie, newt gingrich, trump attends to try to dominate on -- tends to try to dominate on stage. we know pence is arriving in

cleveland and will be here all week. the reason trump picked pence is to satisfy the wing of the party, which he will need to win in november. do not expect many headlines from mike pence coming out this week. >> who might we get headlines from? mike: that is a good question. we will hear from maybe half a dozen trumps. tonight we will hear from donald's third wife. his children are scheduled to speak throughout the week. obviously, trump himself. that will be the focus. week to showe the

that side of trump, as the family man. his daughter is widely respected on both sides of the aisle. she will be introducing donald trump. while people know who donald trump is, the trump team sees his interactions with his family , we will be hearing a lot from them. we will not see a lot of politicians. later int, ted cruz the week, bob dole will be here only living, the republican presidential nominee who will be in cleveland at all this week. >> thank you so much. mike bender. prime minister theresa may is making her first appearance in parliament since succeeding david cameron arguing about a private nuclear weapon system -- for more on this and this week's agenda, i want to bring in bloomberg's john.

good day to you. what can we expect from theresa may today and this week? it is clear she obviously wants to support a renewal. this as anso use opportunity to split the opposition labor party, which by most recent camps, is split three ways. the real news for theresa may this week, it will be the first -- hert of the u.k. first trip out of the u.k. since . i think the main news is likely to come later and it will be these two meetings. >> how do we expect her to manage that? john: it is interesting. the politics are very important and it is important she gets on well and has a good working relationship, especially with angela merkel, as we saw through the crisis.

the dominant politician of the age in europe. to a certain extent, that masks the real challenge ahead, months and perhaps years of torturous negotiations over brexit in the details and nitty-gritty of what that looks like. level, ares at one almost the easier part of all of this. the real hard work lies below the surface. but we are still a ways away from those actually beginning. this week, the mood music between her and marco rubio -- import into watch. -- important to watch. asbritain might want to wait long as possible, but there are other surrounding company -- countries that have to prepare for the worst. a fascinating story about ireland, for example. john: that is right. hasident francois hollande been keen on this being

triggered as quickly as possible. a goa merkel is much more slow attitude toward it. the country's massively impacted by this, we spokeor example, with the former prime minister violent -- of ireland. this is probably the biggest foreign policy crisis ireland has faced in years. huge issues in terms of the border. the irish question, last week, the first day she was prime minister, she spoke with three key leaders, merkel, that just goes to show you how important and crucial for the u.k. this is. i would not be surprised if you saw a meeting between theresa may and the prime minister in the days ahead. allowedis britain even to try to start negotiating

trading's with any country within the european union? john: no, it is actually very difficult. that is an interesting thing we have seen in the last few days as well. mixed -- the brexit minister in charge of trade , he was saying yes, we are making progress. but it is important this point, and we will see this for the weeks and months ahead, to distinguish the politics from the policy. try to make this sound like they are making progress but actually, they are not really allowed to make any, not allowed to open any formal and negotiations. a long way away from here. it is very important to distinguish between the politics and the policy. >> thank you. ahead, david is best known

for designing cable bracelets and dark in rings. is selling a handmade motorcycle. we will tell you why when we come back. this is bloomberg. ♪

>> and prosecutors begin right now on the attack in nice. six people are currently in custody, currently being held in custody, and the nice attack was premeditated. messageon got an sms before the attack. there was some coordination. six people are in custody currently. >> now to bloomberg pursuits. known for dark pearl earings. now, it is toughening up its

image and putting a handmade motorcycle for sale. great to have you on the program, hannah elliott. tell us about this bike. how unique is it? very unique. he hand makes of the bikes in his studio in new hampshire. is a known, big motorcycle enthusiast. he went and said, i am working with this new material. can you make a motorcycle out of it? and he said yes. so we have the spike. tag.$48,000 price how does that compare to other bikes on the market? hannah: it is extremely expensive. -- can get one for 2000 $10,000 and that is considered expensive. so this is very expensive,

although i spoke with evan and that is basically the bike for cost. they are not making money on the bike and if they were, it would be close to $200,000. >> it seems like a bargain. evan would agree with you on that. he would say yes, absolutely. is carbon fiber, not the woven stuff we are used to. basically compressed and held together, which makes it even lighter and stronger. the thing is this is a one-off bike. they had to make all the molds totally unique just for one bike. .hey could not use old mold this is completely new, completely singular. will they keep making

these singular motorcycles or is this just for fun? is a good question. evan says this is one and only. he did not say never again. he loves motorcycles. he was really happen -- happy with this one. you can read up more about luxury including the motorcycle. up on the european close, it is a major m&a story of the day. softbank agreeing to buy british chipmaker arm 432 billion dollars. we are diving into the details on the merger. wheretake a look at european stocks stand. 30 minutes away from the european close. the stoxx 600 up .3%. the ftse 100 up about .5%.

the cac40.wer, despite the geopolitical risks and be attempted failed coup in turkey. tech stocks leading the gains in europe. later today, tom keene is going to sit down with managing director christine lagarde in an exclusive conversation from the new york fed. that is 1:00 p.m. in new york, 6:00 p.m. london time. a must watch interview. you are watching bloomberg markets. this is bloomberg. ♪

>> it is 11:00 a.m. here in new york. i am vonnie quinn. >> live from london. you are watching the european

close on bloomberg markets. ♪ we will take you to istanbul and tokyo in the next hour. here is what we're watching. soaring on the news that softbank will acquire the company for $32 billion. the 43% premium pay. bank of america posted higher profits in each of its four main businesses. bond trading revenue increasing. we will get an analyst's take on the recent quarter. then, focusing on investment in turkey. failed coup attempts over the weekend. whether it is time to buy and sell amid the latest tmo