by the u.s. justice department. prosecutors are scrutinizing whether fiat chrysler violated u.s. securities laws. at thesem looking stock now. it has taken a leg down. it is still showing green for the day. it is still up about 3/10 of 1% at 677. they had been up 2 1/3%. so investors not really selling off the sales. >> and the spokeswoman for fiat chrysler did not respond to a call seeking comment. we can tell you a chicago area dealer alleges fiat chrysler inflated u.s. car deals by paying dealers to report more car sales than they did. chryslergain, fiat under investigation by the u.s. justice department for fraud, according to people familiar

with the matter. matt: headlines coming out from imf chief christine lagarde, giving a speech at the new york fed. she is saying that small nations are at risk the of you banking regulations. big banks have curtailed riskier often ints that are small countries. they are pulling out their operations, leaving small countries with a lack of credit. she will be giving us headlines throughout the next hour. then we will hear from christine lagarde. scarlet: because later on, bloomberg's exclusive interview p.m. --ame lagarde at 1 1:00 p.m. today. let's get to the markets now. we are halfway through the u.s. trading day. on whats been checking

the markets are doing. what can you tell us with the indexes all higher? i want to mention, going back to fiat chrysler, and the news that the doj is potentially looking into the company for securities fraud. you mentioned the stock -- it has now taken a leg lower. down by about 2%. we will keep monitoring. it may have taken a few moments for people to see the headlines. it had been up, so it is a directional change. people are trying to figure out what this means. i want to know it is more deeply in the red. the rest of the market here, stocks opened little changed. they have gained a little, but definitely a little bit. just a gaine with of half a percent, and s&p in the tightest range since june 8.

the point swing we have seen has wen quite small, even as have a reversal in direction. individually, we are seeing more movement. bank of america's profit following at a smaller amount than estimated. america says its annual run rate of expenses will fall by 2018 from $56 billion now. amidst those questions, the stock is gaining. we are watching shares of wynn resorts. those shares going higher. a favorablewon ruling from the massachusetts department of environmental protection, which may clear the way to open a new casino in massachusetts. we are watching chip makers and other technology companies after

softbank agreed to buy arm holdings. good stuff. and we will talk more about the m&a deal later on. the: we want to check in to bloomberg first word news. for that, we go to mark crumpton. the republican national convention goes underway today in cleveland. the chairman says it is donald trump's chance to convince americans he can be presidential. many top republican officials and donors will not be in attendance. french officials concern -- confirmed the attack in nice was premeditated. called lastsecutor thursday's attack a terrorist attack. six people are being detained, one of them allegedly receiving a text from the man police say he drove a crowd of people. there is no evidence yet linking

the man to islamic state. louisiana state police are calling it an "ambush." the gunman who killed three officers and wooded three others was "certainly seeking out police." the shooter was identified as a former u.s. marine, and he was killed in a shootout. state johnary of kerry is expressing concern with turkey's response to a failed coup attempt. turkey, which aspires to eu membership, that it must uphold democracy and human rights as it pursues those behind the plot. : we support bringing the perpetrators of the coup to justice, but we caution against a reach that goes well beyond that. mark: turkey's government has

rounded up about 6000 people, including hundreds of judges and prosecutors's. global news 24 hours a day, powered by our 2400 journalists -- 120 than 150 countries. i am mark crumpton. this is bloomberg. matt: time for the bloomberg markets deals report. every monday, we zero in on the m&a business with insight and analysis. scarlet: today, we are examining forbank agreeing to buy arm about $32 billion. as always, we are joined by jeff mccracken, as well as mark thierfelder. let's start with you, jeff. there was concern that the brexit would put a damper on deals holding, but this could have come about because of it. jeff: this is the biggest deals and spreads it. -- since brexit.

it could have even started after that. was shoppingke arm themselves around. they are a pretty high-profile company, which is brilliant in that they do not have to spend orey to make the chips products. they designed them, others make them, it and they get a cut. the revenue has quadrupled since sue thousand six -- since 2006. they will increasingly be in your cars. matt: the deal is fascinating -- the companies are fascinating. by the deal is driven huge swings we have seen and currencies. story wegth, that is a have seen before brexit. by the 10% discount now when you buy anything in england, at least from the dollar perspective, has to be a driver. mark: certainly the dislocation

in currencies is going to drive investment activity. the one thing we have been noticing is the only thing that has become certain since the june 23 referendum is uncertainty. so it is uncertain what is driving this transaction. clearly, the underlying asset is one with a high value. but what the other trends will be. it is also interesting to note in the press this morning is talking about how arm has little to no operations inside u.k. whether this is a proxy for a post brexit world or not -- matt: but you still have a negative view of m&a? does that vote to leave her at to leave hurt- the m&a scene? mark: absolutely. we still have political,

regulatory, and economic uncertainty in the u k and other parts of the year. what the effect of that will be -- it will be, at best, a gradual process. example of an asian outbound deal into europe. we have seen a lot of chinese outbound deals. this is another example. what is going on inside asia? your firm is global and does a lot of work with asian buyers. what is going on when the look to the u.s. or europe for acquisition targets? mark: if you look at the data, chinese outbound m&a is up 150% inrall chinese outbound m&a 2015. that is likely to continue. what is driving the growth is looking for acquisitions to come back into the chinese

marketplace, a way to exploit those assets in the chinese marketplace, and interest in other parts of the world where there could be more valuations in a more stable growth environment in china. scarlet: given the collapse in commodities prices, commodities with the a natural place for the chinese -- this chinese money to flow to. mark: that is right. and we have interesting trends seeinghat as you are strategic chinese investors pairing up with private equity investors from china and getting a unique combination, where private equity firms in china provide deal savvy, but the strategic investor provides capital. it also provides a distribution platform across the chinese mainland. itt: when i hear about this, think the chinese government outgoingoncerned about

capital. is there any regulation there clamping down on these deals? jeff: yes. but their biggest deal, the government is behind it. other concern going on, both in japan and china, is the concern of demographics. they have bad demographics. more older people then younger people. more diapers are sold in japan to adults than two children. still aat is fascinating fact. a lot of people do not know that. i think a lot of people find it shocking. more adults are buying diapers in japan, or are using them in japan, then a child. frightening,t is if you're a company. in buying arm, they are buying a company that is very diverse.

they are also buying into the u.s. and other parts of the world. scarlet: how much longer before we see china buying u.k. multinationals to take advantage of the pound? mark: on believe currency dislocation -- i believe currency dislocation -- when i look at chinese outbound m&a, it is looking more long term. it is looking at asset classes, to go on jeff's diaper point. they are looking at healthcare services. what do sell to an aging population? they are looking at automated services, technology investments. are priceplays that incentives in the short run. the regulatoryof concerns about chinese companies buying u.s. or eu companies, and

the strategic or national security concerns, chinese buyers are often more willing to pay a higher multiple when auction, in part because they can exploit the giant chinese market place to sell these assets. one of the issues you will grapple with in an auction is execution risk, do i get approval? versus the higher multiple that a chinese buyer may be willing to pay for some of these key assets. scarlet: great points. mark thierfelder, you will stay with us, along with jeff mccracken. meantime, live from the new york federal reserve, ims madame christine lagarde taking the stage to begin speaking. coverage of more madame lagarde with tom keene in the next hour of. bloomberg -- of bloomberg. ♪

matt: you are watching "bloomberg markets." i'm matt miller. scarlet: i'm scarlet fu. we are back with jeff mccracken and mark thierfelder. matt: he has led teams on over with a, including one significant stake in ancestry.com. our topic -- how legislation -- regulation is shaping the m&a landscape. increasingly, we see private equity help with the funding of deals, instead of banks. you mentioned in passing that chinese companies are partnering with private equity companies. my thought is is that because

finding is easier to get from them than a bank? separatere are two threads. ,hen private equities specifically chinese ones, partner up with chinese strategic, that is not to drive the capital of that -- effect, opportunity to execute contracts and get the deal done. you are looking at capital and capital raising -- you are getting a movement away when you are financing with debt finance is a rise of what we call alternative lenders or non-bank lenders. that started in the mid-to thousands -- mid--2000's. credit funds, business development companies, and other started to rise to fill the , particularly as the m&a

market started to recover in 2010, 2011. that is an increasingly vibrant source of finance in the u.s. markets. in 2014, this market led 55 billion dollars. a huge increase. recently, we have seen movement into larger spaces. a deal we were involved in, american seafoods, was led by business development companies, led by ares capital. privately equity deal, the acquisition of quick technologies used over $1.1 billion of debt. no banks involved in that process. matt: and the apollo-adt deal, lended abrothers

couple billion dollars. do you think this will migrate into europe? they do not have what is going on here with the federal bank trying to knock them out -- the banks out. mark: absolutely. we have a huge formation in these vehicles where investors use to create alternative lenders. you are seeing increasing interest in london and the continent and from u.s. alternative lenders that have been successful, raising assets in that marketplace. to an earlier theme, i may be somewhat like the financial crisis, brexit -- alternative lenders could slip into that space and raise more debt capital. scarlet: do they require a steeper return, like an equity stake or something more onerous than the banks? see a smallmetimes

equity state come in. but a lot of it is about investors searching for yields. when you look at business development companies, investors are getting a yield that is better than what they can get in there other investment. thele look to reduce returns, but in this environment, it is not necessarily necessary. scarlet: all right, mark thierfelder and jeff mccracken. matt: coming up in the next hour, speaking of bank regulations, managing director , christine lagarde, will sit with tom keene, and will speak about credit banks hurting small countries. it will be live on bloomberg

radio, and our life event channel at bloomberg.com/live. ♪

scarlet: this is "bloomberg markets." i'm scarlet fu. matt: i'm matt miller. fiat chrysler said to be under investigation by the department of justice because of securities fraud. prosecutors looking to see if the company violated securities law. give us the crux of the charge. what is fiat chrysler being accused of? gete are still trying to details on the actual investigation. what we know so far is it is a criminal investigation by the justice department. it is a securities fraud investigation. what so we do not know kind of securities fraud, or do we know what this is related to? >> we do not know what directly

it is related to. the carmaker is defending itself against some civil lawsuits, sales byit of padding having dealers inflate the number of cars they have sold. think buying demos was one of the things they were asked to do. scarlet: what separates this from being a civil action? the lawsuit was brought by dealers in chicago. will, once department occasion, look at allegations filed in civil courts and decide to open an investigation. they could presumably have a whistleblower, someone who would come with information. matt: fiat chrysler feeling the heat, ferrari specifically, for

not reporting deaths and fatalities in accidents as quickly as they should. is this unrelated? could be related, though if they are going to go in to one investigation, whether it is the sales padding or how they reported recalls, usually that would be separate investigations. there is a civil lawsuit out there, claiming that public statements over recalls were inaccurate. scarlet: and a quick mention of the stock. if you are to look at an of the out, it is a leg lower, erasing the gains from earlier on. matt: what do we know about the timeframe? how long until we find something out or is this an open ended investigation that could span over a number of periods? tom: according to my sources,

the investigation is in its early stages. so the company, at some point in time, will decide whether or not they think it is material enough to report to the public. a lot of times, these investigations could last several months to a year or longer. matt: tom, thanks. tom schoenberg. and sean moore again, a spokeswoman for fiat chrysler, did not immediately respond to requests seeking comment. gotten the have not response from fiat chrysler. and we will be looking for that. mark: -- scarlet: coming up in the next hour, imf managing director christine lagarde will sit down with tom keene. ♪

good monday afternoon. we are live from bloomberg world headquarters in new york. i am matt miller. scarlet: i am scarlet fu.

let's begin with the bloomberg first word news. mark crumpton has more. republican national convention begins this afternoon. donald trump's top advisers says he plans to bring -- to give a prepared speech. the theme of the first night is "make america safe again." a number of big-name elected officials and republican donors are staying away from the convention. we go to michael bender of bloomberg politics from cleveland. thanks for your time. i have to begin with the theme of that was announced, about making america safe. can you give us an idea of what security is like in cleveland? michael: security is very tight. if you're coming in and out of cleveland, in and out of the

convention center, i would not bring a bad. -- a bag. it would take longer to get in and out. there is a lot of people around the perimeter of the town. a lot of streets are struck down -- are shut down completely. it is difficult to get in and out of the city, but that is a measure of the type of security, the level of security in cleveland now. mark: i have heard political pundits over the weekend likening mr. trump's call of "he is the law and order candidate" to richard nixon. are there parallels to be drawn? michael: there are some parallels. we spoke with trump's campaign chair, and he said they are using nixon's 1968 speech to that public and convention as sort of a template for what trump will say this week. as you know, trump has tried to seize on the unrest around the

country, after five officers were killed in dallas recently. modified histrump campaign slogan to "make america safe again." that is the theme tonight. he sees that as a benefit for his campaign. mark: the protests that have taken place at various rallies, trump rallies, throughout the entire primary process, how they helped or hurt the candidate? paul mannacording to manafort, he thinks these protests help the campaign. it is difficult to see how these protests, particularly if they turn violent, could sway its to his side. aboutare talking independent voters trying to decide between trump and clayton, it is hard to see how that could help him. , itetween trump and clinton

is hard to see how that could help him. but this election is turning out whoe the one where it is can get out the most active voters. so this does seem to be helping him. mark: what is the perspective from the speakers' list? made ofthere is a lot who will not be addressing the convention. michael: well, we will see a lot of trumps this week. about half a dozen, between his wife tonight, his children will speak. ivanka, his well-liked daughter, will introduce him ahead of his keynote a what you will not see are many politicians, at least well known competitions. there are plenty of tributes to bob dole. republicannly living presidential nominee expected to be in cleveland. mark: does mr. trump take

advantage -- take offense, or does he take this as the establishment trying to push him out, that the system is rigged? michael: as you point out, this plays into his talking points. and it certainly was successful for him in the primary. he needs all factions of the republican party, if he is going to win in november. that is going to include the establishment. despite what he says about a rigged system, we can see that moved from trump in his choice of mike pence as vice president. he is anti-trump. he was a former member of house republican leadership. the main reason he chose hence -- chose pence was party unity. ofk: michael bender bloomberg politics joining us live from cleveland, ohio, the site of this week's republican

national convention. authorities in louisiana say a gunman sought out police officers and ambushed six of them. three officers were killed, three others wounded in the shooting in baton rouge. the gunmen was killed at the scene. he was identified as an african-american man, a former u.s. marine. prosecutors in baltimore, maryland failed to win a conviction for the fourth time in the freddie gray case. a judge acquitted the highest ranking officer charged in connection with great's -- with gray's death, brian rice. previous trials have resulted in two acquittals and a mistrial. british prime minister theresa may is scheduled to make her first trips abroad. first stop, germany, where she and german chancellor angela merkel will discuss their direction. prime minister may will then

head to france, where she and president francois hollande will discuss counterterrorism strategies. global news 24 hours a day, powered by more 2400 journalists and analysts in more than 120 countries. to watch,hree stocks ibm, netflix, and apple. we will bring their data best the numbers to you when they disclose. you can find these charts by typing in the orange function at the bottom of the screen. i am looking at netflix. the question is how much money they are paying to get its content. show thee bars international streaming cost, the cost of content for international markets. that is the cost to netflix. bars show the contributions of margin, or in

this case, the negative contribution. it is taking away from profitability in netflix. the issue here is netflix, at least in international markets, does not yet have the scale to spread out the costs. player in are a new lot of these markets. you can still go to develop western european countries and not have access to netflix. because of that, i do not think they have the reach. consumers there are used to stealing movies, because it is easier than at -- then accessing netflix or hbo go. scarlet: but i have been able to access netflix in france last have myd was able to kids watch. because they do have agreements with certain markets. matt: i was unable to use , solix or hbo go in spain

the damage has already been done. let's talk about yahoo!. yahoo! and netflix and others are releasing their earnings. this chart shows comparative returns over five years, though you can obviously at it the range. -- edit the range. yahoo! incan see white. netflix in yellow. and ibm in orange. absolutely horrendous. over the last five years, if you have invested money in ibm, you have almost broken even. scarlet: you cannot be happy with ibm buying their shares back like there's no tomorrow either. is one thing i think executives do to help the bottom line, but as a shareholder, that is not what you want to see. scarlet: coming up, we go to san jose with an exclusive interview

with -- ceo chuck robbins of cisco. this is bloomberg. ♪

scarlet: you are watching bloomberg. i am scarlet fu. matt: i am matt miller. scarlet: the brexit vote taking its toll on london home prices. new: yahoo! may have a owner. whoever emerges victorious is likely to cut thousands of jobs from a company many analysts say got fat. scarlet: and the supreme court's

raising raising is calls to remove lifetime tenure for justices on the bench. london, where in the seven-year housing boom may be about to end. london home values could fall more than 30% because of the leave thecision to european union. some companies will certainly have to leave written to retain assess -- access -- to leave britain to retain access to the european union open market. more cities are putting on a curb to keep -- says there will be further cooling off. >> we will see the national sales growth, especially the

strong base last year, into 17. i think the growth will slow down -- of the slowdown will be even more obvious. maywe are looking up to 2017. scarlet: japan's softbank has a slice of virtually every computing gadget on earth. they agreed to acquire arm holdings $432 billion. and yahoo! make -- they agreed to acquire arm holdings for $32 billion. and yahoo! may have a new owner. analysts say the new owner could slash thousands of jobs. matt: time for the bloomberg the u.s.e pay of supreme court is made up of justices nominated by the president and confirmed by the senate. keepystem was designed to

justices free from election pressures. nevertheless, the court's decisions have become more years, andn recent its public approval rating is sliding. in july, republican presidential candidate donald trump called for justice ruth bader ginsburg to resign after she said in interviews that he was a faker and that she did not want to think about the prospect of a trump presidency. she then said she regretted her comments. in march, president obama nominated merrick garland to replace justice antonin scalia a, who died on inspector lee in -- who died unexpectedly in february. the number of justices gradually rose to attend since the supreme

court was established until settling at nine. supreme court decisions have frequently shifted their national direction, from brown b. the board of education, from gore inade, to bush v. 2000, which stopped a vote recount, making george w. bush the president. supporters of lifetime tenure says it allows the use of justices to evolve far from the sdeologies of the president who named them. critics say there is no recourse when justices appeared to violate ethics laws or hear cases in which they have conflicts of interest. reformers say one solution is term limits. year termtion is 18 limits, staggered. others think 10 years where be better. that idea was supported by two

thirds of americans in a 2010 poll. you can read more about these the bloomberg terminal, ni quick. ♪

we are closing in on the one-year mark since chuck robbins stepped in as ceo of cisco. in that year, the company has may 15 acquisitions. chuck robbins has been keeping busy. emily chang is in san jose with an exclusive interview. thank you so much. ceo chuck robbins. about to hit your one-year anniversary. you took over after one of the longest running and maybe one of the most a miss he owes and

silicon valley history. how would you rate your performance? first of all, welcome to our campus. we willgive you -- give you a good tour before you leave. first of all, you have to really assess what part of your past, that has made you great in your past, it will continue to make you great in the future and what parts do you need to change. i am pleased with where we are. i think we are well-positioned now. we have spent the last few months with several innovation announcements. emily: john is still the chairman pay what does he think about what you are doing? chuck: he is actually upstairs now. he has been such a tremendous mentor for me, but he is also a great ambassador for the company around the world. he continues to engage at a

country level with how cisco can change how countries think about gdp and job growth, etc.. he has been a great sounding board for me. some of the decisions i made were 100% aligned on. others were closed or maybe not, but he has been incredibly supportive. emily: there are questions as to growth cisco will see again. what are some realistic expectations for its future? chuck: there are a few things going on. obviously, there are massive transitions in the technology landscape. towardsng is moving being delivered as a service to we of all our portfolio in that direction. there is the notion of software and cloud. what we are focused on is how do we transition our business model

to how customers would like us to deliver these solutions to them. it does lead us to a model of more predictable revenue. it is great when customer expectations and what you need to do come together. emily: what are your internal targets? chuck: to deliver as much as we possibly can. it varies across the portfolio. we have had growth engines insecurity, like collaborations. -- we haveating in had growth engines in security, like collaborations. you are talking about the arm acquisition, which is an important statement on this market. the security required will be key drivers. emily: many acquisitions -- this arm acquisition is a $32 billion

acquisition. forosoft buying linked in $25 billion plus. are you into large transformative deals like that? chuck: our strategy is to look at what our customers need from us. then we look at our capability and the speed on where to leverage mna and where to leverage new partnerships -- leverage m&a and where to leverage new partnerships. this bead we need to move, we have a greater affinity for -- the speed we need to move, we have a greater affinity for smaller lines. emily: where will those be? chuck: we will always be opportunistic and that. emily: what areas are you looking at? chuck: iot is so important for us. insecurity -- in security, it has been so important for us.

our acquisitions have all been in cloud and security and analytics and iot, and those are the key issues we will continue to align around. emily: some people say cisco's security offerings are not easy enough. is that an area you will push on? chuck: if you look back five years, that was the feedback we got. our team has done a great job in innovationinternal and acquisitions. they drew significant acquisition of those capabilities. what willk at iot, happen is we will operate in this massively distributed world , where there is no perimeter for an enterprise. a the network has to play huge role in security. that is one of the announcements we may last week. machine learning analytics capability that begins at the

network, which is what you will have to do from a security's perspective. so i feel good about where we are. emily: you guys are a huge global business. you have an office in turkey, where offense have been unfolding. what does instability like that mean for your business? equated it to writing a different roller coaster every not knowause you do where the twists and turns are a bad is the world we live in. whether it is the constantly changing geopolitical landscape, the technology transitions, these are things we all have to deal with. tremendousrtainly a loss of life, which is the real issue. it is incredibly sad. we have so much tragedy around the world and it is disheartening. but we take the things going on geopolitical and we focus on the things we can control. we assess the implications for

us and then move on. emily: what about brexit? what does it mean for global output? wask: i think brexit unfortunate for the european union, because they were moving towards continuing to create a single market. they were trying to create a single digital market going forward. from that perspective, it has the potential to set them back. for us, we do not have operations in the u k we used to do business across europe. global invocations of that are probably similar to what other countries would see. implications of the are probably similar to what other countries would see. on this morning with a customer from the u.k., and we continue to stay close. emily: i know you normally vote republican. some other folks who normally

vote republican in silicon valley say that donald trump is not someone they can get behind. do you? chuck: what we care about is the policies the candidates represent. we will focus on the policy, regardless of who gets elected. our employees, customers, our business -- there are issues of inclusion, tax reform, immigration reform, patent reform. there are all these things that matter. when i spent time in washington with either side of the aisle, that is what we focus on. emily: chuck robbins, ceo of cisco, thank you for joining us. we will have more of this conversation on "bloomberg west." my demo and there is guard from the imf. we will join the next -- and there is a downed christine lagarde from the imf. we will join her and tom keene next hour. ♪

welcome to bloomberg markets.

scarlet: from bloomberg world headquarters in new york, good monday afternoon. matt: in this hour, we are covering stories from san francisco, toronto, and new york. i am of managing director christine lagarde sits down with tom keene at the new york fed and we will show you that conversation live. scarlet: the republican national convention kicks off in cleveland today i got an exclusive interview with tom barrick who will take the stage and support of donald trump this week are you matt: plus, the ceo of pete's coffee joins us, celebrating their 50th anniversary and how it competes with big names like starbucks and dunkin' donuts. scarlet: first, let's go to the markets desk and julie hyman. i have been watching

volume, about 20% below the 20 day average for the s&p 500. you can see markets are trading a little higher but you can call it a sideways move. big action last week with the dow and the s&p at records but the nasdaq is gaining the most, up half a percentage point. we have strengthened technology. take a look at the bloomberg. it's tech and financials, the most heavily weighted groups in the s&p 500 which are tipping the scale. energy, however, is holding things back as well as health care. that is playing out in the index contributors to the up-and-down side. the most heavily weighted stocks contributing the most two gains, we've got two techs and a financial. bank of america came out with earnings that beat estimates but profit fell.

apple and alphabet are getting caught in the tech upsurge in on the downside, two energies in a health care. merck is trading lower along with exxon mobil which are not declining that much but because they are heavily weighted, they are having a negative effect. go is fueling games at gamestop after that company's ceo said after gamestop's are pokemon go gyms, that people are going there to catch pokemon's and spending money. best buy is higher as well and nintendo is gaining steam. are you players customer matt: i do. scarlet: you do? this is what you spend your weekend doing? matt: i spend all my time doing it. it's live, 24/seven. julie: are you doing it now question mark matt: if there was a pokemon set, i would get up and get it.

friday night into the weekend, the attempted coup in turkey, is that affecting the markets? julie: it is ended did. you are onset friday. it was an amazing course of events. we saw a big drop in the turkish lira on friday because of uncertainty. people did not know what was going on. this is the dollar versus the lira but it has recouped about half of those losses and the same thing has happened with the turkish etf. it saw a big drop on friday and has recouped at least some of those losses today. matt: still decimated. julie: there are still questions about what happens now. scarlet: thank you so much. let's check in on the bloomberg first word news. thank you, in cleveland, ohio, the republican national convention begins at this hour.

the theme of the first night is make america safe again. that was announced hours after the baton rouge killings of three police officers. the convention will culminate thursday night in cleveland with donald trump accepting the party's presidential nomination. a number of big-name elected officials and republican donors are staying away. u.s. attorney general loretta lynch is condemning the weekend killings in baton rouge. she offered her condolences during an address before the national organization of black law enforcement officers. >> there is no justification whatsoever for violence against law enforcement. i know that i stand with all of you when i say that my thoughts livesayers are with those we lost, the families they left behind. the justice department is assisting local officials in baton rouge. we are learning more about the investigation into the terrorist attack in nice, france. a prosecutor says the attack was premeditated.

the attacker expressed support for the islamic state. the president of turkey had a accomplicesown on on the failed coup and that could jeopardize their position in nato and potential european union membership. the u.s. and the eu are monitoring the widespread purge which kicked off with a wave of over the weekend. they bar capital punishment in turkey but people are demanding the death penalty. global news, 24 hours per day, powered by more than 2600 journalists and analysts, in more than 120 countries. the republican national convention begins today in cleveland and some prominent members of the business committee will take the stage and support of the presumptive nominee, donald trump. matt: colony capital founder and

executor chairman tom derek explains what he will say when he speaks on the national stage thursday. >> i plan to try to give a point of view that nobody has heard basically an up close and personal view of the man. erik: donald trump? >> he has been a friend of mine for 35 years. i have been in business with him on and off for 35 years. we have had our kids birthdays together. we buried our fathers together. i'm going to try to give a point of view of the character of what you don't see every day. erik: oil that down, what is it we don't see question mark >> what you don't see his compassion, commitment, dedication, character, integrity. you see it in his children.

a measure of a man is ready simple. you look at the kids and you get a good glimpse of what that it licks her or that blend of things are. the world which is shattered and it's at a tipping point. we need leadership. the bestp is not being military strategist, is not having the most experienced at foreign policy as we have seen. that does not blend very well. it's somebody that has a vision and can inspire people and can then take that vision and make it a reality. i will just give a little glimpse of what he has done in the past. the character and integrity of the man inside the donald. erik: you told me a few weeks ago your support for donald trump was not political. why do this? speakingon stage and in front of 2500 party delegates is decidedly political.

>> it's a decidedly active act. today,look at the world and you say i don't want to participate, you will participate by at all being taken away from us. there is no good news anywhere in the world. there is no good news at home so you look at the social imbalance of what's going on in the status quo is not acceptable. it's not about hillary. she is qualified but it's about status quo. if you don't have people from the outside who are willing to step into this quagmire, donald is one of the few. nobody sane wants to go through this unbelievable death march of agony in order to get to a political job. it will be the worst job he has ever had. he has money and power and he has all of those things. i am behind the idea of having somebody standing there naked saying what i will do is chip away the status quo.

whether he gets there are not, it's a great thing for america. that's why i am there. erik: you support donald trump or leadership. you support donald trump as a break from political tradition and the status quo. what about some of the other stuff? with these issues things. you are the grandson of lebanese immigrants. do you not have some personal issues or concerns with some of the anti-immigrant rhetoric from donald trump? it the bassist impulses inspires and americas, nativism, xenophobia, even racism. >> it's a delicate balance. he has taken the politically incorrect route. i am a lebanese-american and i have grown up with my best as and as sunnis and shi --s idea of islam in my mind

donald will tell you it's not a negotiating tactic -- in my mind, as somebody who deals with them every day, it is a pretty good negotiating tactic. our best allies, saudi arabia, the united arab emirates, qatar are also the subject of his fundamentalist terror going on in spite of them. they don't like it, they don't want to come of it want to stamp it out, it's a few out of the billion or 800 million muslims that america has to step in and have a descriptive foreign policy that is firm and supportive. it has to do with trade but what , saudi arabia is our greatest ally's and the 1950's and 60's. abu dhabi has the greatest young leadership and in a moment switched iran. the shah of iran was our man until he was in. we have a catch and release foreign policy. we catch them and support them

until we don't like them. that is what has happened across the arab world. the arab countries, most of arab countries, the gcc countries who are allies want a supportive immigration policy. then they will support them themselves. is the way you negotiate everything. mexico has the same issues on nafta and on the illegal immigration. will they pay for a wall? have thet but they same problem with illegal alien sending money and arms back to them. that's not a great thing for them. all of these positions are saying the posture of what has been is not working. we need something different and it needs to be dramatic to matt: that was the founder of colony capital, the executive chairman, tom barrick and exclusive interview with erik schatzker. scarlet: coming up, later this

hour, christine lagarde will be sitting down with tom keene at the new york fed. it will be on bloomberg television, radio and our live event channel at bloomberg.com/ live. this is bloomberg. ♪

matt: you're watching bloomberg markets. walmart has increased pressure on negotiations with visa. the retailer has stopped accepting visa stores after failing to reach a deal over what it calls unacceptably high fees. us fromichie joins canada with the latest. this battle between visa and warmer has been going on for quite some time.

do we presume that mastercard is the winner? >> they could be. bay, ontario which is 800 miles northwest of toronto, just a hop skip and a jump from duluth, minnesota, it's a port city on the great lakes. it's got about 180,000 people. the walmart there this morning, people walked in and were warned that visa would not be accepted. some people turned away and some people said ok i will use cash and some of the cashiers started offering the walmart mastercard sign up for people to take a crack at. from are has to come down on acceptably high transaction fees according to walmart. set exactly what the fees are but this is part of their negotiating tactic. stores across canada so the threat is that all of the stores will no longer be able to accept visa as a proof of payment. matt: this is a serious threat

to visa. how much market share do they have in canada? what is the breakdown? a is the go to cart in canada, about 50% of transactions are performed by visa. 35% on mastercard and american express moves in around 5% depending when the report is done. it most recent reports make dead break it down to 60% so this could be of big bite. canada has emerged as a battleground, a testing battleground for retailers. and payment systems. 2014, costco and its relationship with american express in canada first. a few months later, the same thing happened in the u.s.. .. it has been in place for they have tried some of these new

payment relationships in smaller markets. scarlet: speaking of that, walmart is looking to roll out its own new payment system but in the united states first? right, they have done a month-long trial and they are across 4600it out walmarts across the country. is not unlikestem the idea of apple patriot it's available in ios and android. excepted onards are that. the difference between apple pay and a retailer's version is it's only for payments at walmart where is apple pay you can go to different retailers. lots of questions from analysts about whether this will take off properly but some will argue that perhaps getting visa out of its universe are getting them down to much lower transactions cost is part of the rollout of

walmarts on payment plan. scarlet: thank you so much. it is time for the bloomberg business flash, look at the biggest is missed stories in the news. chrysler is under investigation for securities fraud. prosecutors are scrutinizing whether the u.s. carmaker violated security laws. matt: a civil lawsuit may provide some clues. a chicago area dealer alleges the company inflated its u.s. sales by paying dealers to overstate results. scarlet: that is the bloomberg business flash. matt: still ahead, peet's coffee started out as a small shop in earthly but it has grown to 240 stores and we will talk to the ceo. this is bloomberg. ♪

scarlet: this is bloomberg markets. 's coffee and he is a

san francisco bay area specialty coffee roaster and retailer. it was founded on a small shop in berkeley. existrs later, 250 stores in the company is fighting to compete with the likes of starbucks and dunkin' donuts. we are joined by the ceo of peet's. it's an interesting business. for me, it's still a local business in northern california from that little store in berkeley and has expanded to how money stores? >> about 400 stores around the u.s. expanded, theave way you sell coffee is focused on providing fresh product to the market but on a massive scale. >> that's right, we like to say we scale the smallness of her business. we source coffee from all over

the world and hand roasted here in alameda. they use their senses to roast the coffee to perfection. itt is key as we distribute on her own so we are not only 400 stores around the u.s. but also 14,000 grocery stores around the u.s.. it's important to get that coffee to the stores quickly because once it's roasted, it starts to degrade. it want to grind it and brew as close to the roasting date as possible. we have 500 different route sales trucks. each truck drives around delivering to grocery stores every day. when you why the coffee in the grocery store, this is what makes us different, it might be 30 or 45 days old at the most. would be moreolks like a one year to almost 18 months. and that shows up in the quality of the product. where do you see the business going forward? where does it have to be as far as growth and better margins?

is it buying smaller coffeehouses? is it providing more food service? starbucks and dunkin' donuts are strong in that area. where is it for you guys? >> it's a little bit of everything. this is our 50th year in the first 46 years, we achieved $400 million in revenue. in the last four years, we have doubled that revenue. we will be well over $800 million this year and the way we got there was growing across multiple channels. the beautiful thing about the coffee category is people will consume it everywhere, where you live, where you work, where you play. we have our cafes and we go to grocery stores as i mentioned and mass merchants. we also innovate. ready to drink coffee is a big area right now. in addition, being affiliated and having purchased smaller

businesses allows us to play against the 18-34-year-old coffee consumers. this is $45 billion in the u.s. and its growing faster than any consumer category. to continue the growth is to continue to grow across multiple channels and multiple brands and innovate as aggressively as you can. millennials the coffee drinker different? >> they are interested in different experiences and want to sample different things. they may not be as loyal as the consumers before them. they want to see how coffee is prepared and they are interested in experiencing more things. they are looking for a unique experience and they want to be smart about what they are drinking. they care about sourcing. they probably care about the idea of the product is much.

>> exactly, there is no true authentic story behind the product. they are not nearly as interested. they want to know in depth what it is they are consuming and affiliate themselves with the values, if you will, of that company. you guys have been buying the smaller boutique coffee chains. do you plan to do more? acquisitions? >> i think we will do anything we can to continue to grow the business. there are great roasters out there but we have our hands full right now. consumertart with the and what the consumer wants. thee can provide it with businesses we have, we will continue to do that. if other opportunities present themselves, we will consider other ways to grow. we are all about growth. four years ago, we doubled the business but went private.

there is a connection there as well and we can do more and be more aggressive. with a heavy focus on topline growth. cory: very interesting. thank you for your help even though i am well caffeinated. scarlet: thank you so much. up next, our mystery stock of the day. we will be toying with new products and it has been a beat of a job so far, transforming itself past frozen profits could take another year. give us your best guess. this is bloomberg. ♪

from bloomberg world

headquarters in midtown manhattan, i am matt miller. scarlet: this is bloomberg markets. julie hyman has the big reveal on the mystery stock. here is the clue, our pick is having a tough day while toying with new products and they are transforming themselves after frozen profits could take another year. transformers, frozen, you want to do the honors? , i got a lot of guesses but mike smith was the first person to e-mail and said the ponds gave it away. that's the point. -- of the puns gave it away. julie: it is indeed hasbro which came out with earnings that beat boy earningst the are taking a beating. matt: because boys don't like frozen? --ie: it's the civic boy it's the specific boy category for those who like their toys gendered.

they are in between transformers movies so that's why there is a gap in the transformer toy profits. year to date, the stock is done well. is becauseallusion they took over the frozen franchise from mattel and is benefiting from that. the girl profits are still doing well. if you look at today's session and the drop in the stock, you can see it's substantially down, 7.5%. the sales growth in the second quarter, boyce sales growth was 4% which is a slowdown from last quarter. girls profit was up 35% and that has to do in part with frozen. the problem is, only 4% growth boys but 40% of its growth in sales comes from boy toys. you can see the problem. it's the largest unit by sales and it's the slowest.

matt: free to be you and me was released in 1972. i want to be a cocktail waitress or a fireman and yet we are still stuck on this? i cannot believe we have not come further. scarlet: you are bitter because you were scared when you watched frozen. matt: it's a little scary. thelet: executives in united states are dealing with a time of unprecedented change. in a new study of ceos, 2/ say the next3 three years will be critical for their industries more than the past 50 years. they are transforming into their -- their companies into different entities. joining us on these finding is lynn dowdy. thank you for joining us. tell us how this year is different from outlook surveys were ceos look on a quarterly basis or annual basis? >> what makes this survey interesting is that it's not backward looking or even current looking. it's looking out three years to

get insight into how ceos are viewing their growth prospects. the headlines from the survey this year is that ceos are despiteconfident and uncertainty that they are dealing with, a lot of risk and concerns, they are feeling like growth from a global economic perspective, the u.s. economy as well as the growth prospects within their own organizations, they are feeling good about that. matt: that has to be the headline because it's amazing withdering brexit negative interest rates and the geopolitical issues we are looking at, regulations, cyber terrorism. it seems like a time you would not be terribly confident. why are they? >> you are exactly right. when you look at what they are concerned about, the number one concern was the geopolitical risk and what that means to their business. they are also concerned about new technologies and if they can

stay up to speed. the other interesting part was the customer. one of the most strategic priorities as they look at the things they want to do over the next three years. it's understanding the customer and they think they will get their growth from that perspective. the other aspect that i thought was interesting compared to the prior year was that they see their growth, they will continue to look at ways to build and by but the aspect of partnering to get their growth was interesting. will have more partnerships and more strategic alliances and joint ventures because some of those capabilities to know the customer and grow your business, they may not have that core competency in-house. their ecosystem of partnerships to enable that growth was a key finding this year. scarlet: by doing that, it might require going out and making acquisitions. accordingnvironment,

to the findings, 41% of those surveyed plan to change the capital structure through equity. with a take advantage of stock prices and issue shares to take over other companies? >> when they were looking out three years, they were feeling we are heading into an environment where you are almost taking a page out of the playbook of. private equity they are looking for value but they are also just as likely to look at areas where they may be divesting as well. i think companies are flushed with cash and there are some deals out there but they are also looking at where they will bring the most value and fitting into that category of what is my business going to be three years from now. that maybe do i have we need to get rid of as well as the acquisition front? i think they were looking at

partnering more so than acquiring which was different than what we have seen in the past. we talk a lot about the opportunities for investors in health care because of an aging demographic. from your study, i saw that ceos are more concerned about millennials. that's the customer they want to know and they don't understand the technology. it seems acquisitions would go in that direction, buying technology company and disruptive technologies. >> that was one of the top concerns was understanding the wants and needs of the millennials. they are now the biggest generation. ceos are very concerned about how to get to understanding how products may need to evolve and shift to meet those demographics of the millennials. it also leads to the talent that they will have internally. it's the kind of talent they want to acquire. matt: in terms of hiring, you mean. in terms of hiring as well so

that helps from an innovation perspective. ceos also said that innovation was one of the most strategic priorities. despite that, they also struggle with it the most. matt: 81% were concerned about the technology that they have to use and not understanding it. >> they also believe they have some issues in making innovation part of their culture. they say today it's more reactive and ad hoc and silos as opposed to being pervasive across their organization. , innovation is an area they see they will have to invest in going forward. again, that may involve new talent and it may involve new partnerships. scarlet: they want to think of it as being more offensive. speaking about being on the offense come in terms of countries that offer the greatest growth, india came out on top, 44% versus the u.s.

which is 37% and china which was 36%. why india questio? >> in many cases, it's because you see the economic improvements they are making. place,eir new leaders in how do you make india strong? we see that with our client base as well. seeceos ice speak with india as a huge growth opportunity. you also look at india and their population. you see what that looks like and they also have a huge millennial base. i think they are making it friendly for business to grow in india. matt: let's talk about the biggest risk, more than regulation or geopolitical risk, they are concerned about cyber security. andmuch has that changed moved to the forefront and what are they trying to do to combat this? has it increasing

and it topped the list this year as the thing ceos -- scarlet: so it's the first time it came out on top? >> yes, this year and it makes sense. if you think about the areas where companies are investing, they need much more open environments, technology is changing rapidly. that in turn leads to a heightened cyber risk. feel they are 25% well prepared in the event of a cyber attack. oft means they have a lot work to do and it came out as one of the areas for investment going forward. cyber technology investments were part of the top three. matt: very cool study, thank you so much. coming up, imf managing director christine lagarde will sit down with tom keene for an

exclusive interview on international banking, financial regulators and the global economy. this is bloomberg. ♪

matt: this is bloomberg markets. over to the's get new york federal reserve where tom king is standing by with an exclusive interview with imf managing director, christine lagarde. the world is your oyster, go for it. tom: thank you so much. welcome to fortress dudley, the new york federal reserve in downtown new york. with me today is christine

lagarde with an important imf mission which we will address them and move on to other important questions. you are here for the small nations. we talk about united kingdom and france and china but there are small nations worried about the of the people who are in america, who want to send money to some of what, liberia, caribbean, why is this important? >> first of all, it's important for them. it is not a massive issue at the moment but it's important for us because it could become a massive issue. if we have more banks with and what theyties call correspondent banking , it will leave those ,erritories open to competition to third-party activity, to a funny way of channeling money around.

it's a risk for the entire community. important is that each and every territory, you talk about the caribbean islands, you also talk about mexico and the philippines and columbia which are under the threat of seeing some of those banks with drawing activity and withdrawing altogether from those territories. that is just not conducive to activity and growth and jobs and to legitimate business. the modern tension of this is global banking with all the regulations and money laundering, worried about who the customers customer is. they don't know where the money is going and they are worried about civil and criminal activity if they pursue this. how will you help relieve the tension between global banking and the idea of money laundering? >> in that case, it takes three to tango. riskave the countries at

inch have to up their game order to make sure they comply with anti-money laundering regulations, with counter financing terrorism measures, that's one group. then you have the regulators who legitimately require that they become compliant with the rules and then you have the third category which is the financial sector, the banking industry which says why should i take risks when i am not too sure about what's being conducted in those countries? together inget order to understand the concerns of each of the three. each of the three has to do something. the countries have to improve compliance.they have to make sure that anti-money-laundering rules are complied with. currents to make sure as a driver and make sure financing of tourism is up. then the regulators have to

encourage and explain and clarify their rules so there is no suspicion as to what is really their purpose. the banks themselves have to conduct their cost-benefit analysis and be mindful of not leaving territories open to what i would call the weak link, somebody who comes in and says i'm going into the financial business. tom: all of these issues can be folded over to one nation and that is turkey. we did not know thursday we would be speaking of turkey today. at the new speech york fed, how can the imf help? turkey has been turned upside down. how can your institution help turkey improve from the horrific events we saw friday? our thoughts are to those who lost their lives in the last few days and i would include more than turkey. if we concentrate on turkey, is after what

happened over the weekend, the central bank, the financial authorities have taken very immediate and very conservative an economicavoid and financial destruction that we could have had. all of us over the weekend were on alert monitoring the situation and wondering whether they would take the right measures. i think the turkish authorities, central bank, finance ministers, treasury operations have all reacted very strongly in a concerted way to make sure there would be liquidity available and the banks could function and market reaction was relatively moderate. the markets went down and then up a little bit. so it's down by about 3%. the lira which is the currency of turkey went down but not by much. in the main, there was an orderly functioning of the market after something that was

massively disorderly. tom: in april, 2013, you went to new york and at the -- and at the economic club come you talked about the different speed of nations and about america as a two speed nation and the third speed nation, the ones most troubling were europe and japan. you are right. it has gotten worse. within a broad european perspective, how to you judge the immediacy of actions that need to be taken across a wide set of issues? >> if anything, in europe, the decision made by the british people to exit the european union has accelerated, in our view, the need to consolidate the european union and give a strong message to the european people about the benefit that ,urope can deliver for them concentrating on the positive, focusing on key issues for the an immediateope is

and urgent response that needs to bring together monetary space and those reforms that will deliver value for people. it's very well to say we need consolidation and reforms. what reforms? what benefits? what value will it bring to the european people so they understand there is value? deutsche bank is pushing aggressively for a substantial program with the italian banks. we had an article today on the bund is bank wavering on how they would respond to the italian banks. when you talk your best people at the imf, what is their prescription to help italy not be greece? >> i would not compare the two countries. they are totally different economies and different fundamentals. our sense at the moment is that the italian authorities are not only aware of the issues but they have an understanding of

what devices and what structure and what bad banks can be used. we also believe that these solutions can be operated within the european framework as it exists today. there is a framework that an incentive to organize proper bail in not to impose upon the taxpayer and restore financial civility. there is a way to deal with the italian banking administration, the high level of nonperforming loans and some of them in particular and to comply with the european regulations which provide for exceptional circumstances it need be. we are certainly not advocating a massive rebound of the regulations but complying with the rules, respecting the state aid and being focused on the real issues should help them. tom: it's interesting because you and other institutional leaders are learning as you go

like anyone else. in and somed bail would say it is a cram down where in italy, they forced the losses on the public and the a time of populace a motion an activity. what is the prescription to avoid that pain within italy or for that matter portugal? >> transparency is, in our view, necessary, focus on the institutions that need either or a way of resolving the issues they are facing. nonperforming loans is one, certainly. complying with a set of rules that have just recently been adopted to the extent, as we believe, that those rules provide the space to resolve the issues. there is a dialogue ongoing between the european authorities

and the italian authorities. a tying authorities are spot on in identifying the problem and they seem dedicated to resolve it. the european authorities want the rule to be complied with. we believe there is a space to address the issue and complies with the rules with eventually the space and the flexibility that is needed. tom: because of time, i need to move on. have you spoke to prime minister may? newo, but i spoke to the chancellor of the exchequer, philip hammond. the last country i would think the international monetary fund would give advice to is the united kingdom. after the success of the brexit referendum, what is the path you can take to assist prime minister may to move the united kingdom forward in negotiations with russell's? -- with brussels. >> there has been significant progress in the macro economic

situation of great written over the last five years. we have seen it could really move from a fiscal deficit to more than half of that now. torecommendation would be reduce the level of uncertainty, identify clearly what the goals and,identify the timeline as philip hammond said, understand that it will take time. it will require understanding on both sides in order to eliminate the trade uncertainty, the regulatory uncertainty, the passport uncertainty. there is a whole range of issues which need to be addressed which have brought the european country together -- countries together and the united kingdom has indicated its intention to withdraw. , rapidity oftent

institutions, identification of both the goal and the timelines would be helpful. tom: are you pleased with what you seen -- with what you have seen out of european leaders so far? focused on the united kingdom but are you pleased with the messaging from chancellor angela merkel and others in europe? notor the moment, they have and deliver release so, decided to lay out the terms and the space and the maneuvering that they all want to offer or expect from their partner. i understand that. there has to be certain about the timeline. article 50 has not been invoked yet but it will open a limited period of time and i can see why they would not want to put their cards in the table yet. if the united kingdom moves in clarity ofon of of

purpose and transparency an indication of timeline, certainly, the europeans should respond. my real hope is a european myself is that the european leaders will find the strength and determination to bring about some of those structural reforms , changes that will deliver value to the europeans that will demonstrate that it is worth being together and it's the future. tom: it is the future and our future may be in cleveland with a republican convention or in philadelphia with a democratic convention. you have been exceptionally overt about your comments on this presidential campaign. what you fear in the comments from mr. trump about the international economy and the political economics? candidate,rom any anywhere in the world, but it's more pressing now, i fear from

any candidate in the world this withdrawal behind borders, this focus on domestic markets issues exclusively, this turning their back to globalization and global issues. problems are of a global nature. we are in this together. disease, climate change, terrorism, threats have no barriers or no borders. we can do away with international trade? we can do away with globalization, i think that is wrong. i think of world war ii and charles de gaulle trying to move the dialogue forward -- with the henry kissinger system of nations, is the washington consensus debt? >> the future will tell but it's

clear that there are large economies and powerful authorities that need to have a seat at the table and assay and the global game in which we all are. perspective, large emerging market economies like china and brazil and india have a legitimate place around the circle of nations interested in one but we need a response to the global challenges we are facing. it cannot be a zero-sum game. it cannot the a1 nation strategy -- it has to be a much broader table. olivier blonde chart who work for you for many years -- blanchard who work for you for many years, calls helicopter money a scam.

are we exhausted by our creative policies? you have said many of the strategies won't work. i believe professor blanchard agrees with you. when you are of helicopter money, how do you react? what do you do? >> it's more of a soft sell. he is a fantastic counselor. the scam notion which is provocative as only he can be on occasion is another way to say this is fiscal stimulus to the extreme involving different agents but essentially it's a fiscal device. at this point, i think he would agree with us that some countries have some fiscal space but not many and what the other should do that don't have fiscal space is recalibrate and redesign their fiscal policies to make it more growth friendly rather than less growth friendly. what we need is inclusive and sustainable growth so people can

actually find a meaning, get a job, and have a decent income. tom: thank you so much, christine lagarde of the imf. thank you so much. fascinating conversation. talking about everything from the current political climate in the united states. to what's happening in europe and the u.k.. shery: she is seeing some consolidate that some consolidation in the european markets. also about turkey so it's a broad conversation out of imf chief christine lagarde. about the intent of execution when it comes to the u.k. the chief economist at the imf will join bloomberg markets tomorrow morning at 10:30 a.m. eastern. markets are closing in two hours a let's go to the

markets desk where julie hyman has the latest. are seeing a little bit of a lift and it's likely to be a record close at least for the s&p 500 and possibly for the dow. didn't quite make it to the intraday record level, but stocks are gaining a bit of traction as we continue. the s&p 500 did get it a few points of that intraday record. the caveat is the low volume. take a look at the bloomberg, , allolume on the s&p 500 down except for financials which are seeing a small of the. overall volume is about 20% low the 20 day average. just something to consider here as we have this kind of drift. it feels that way given the volume and the lack of decided direction major averages. when talking individual stocks, though, we definitely have