scarlet: u.s. stocks closing at a record high for the dow industrial. the s&p 500 inching lower by four points. joe: the question is, what did you miss? scarlet: microsoft expanding cloud offerings. it could be cannibalizing the core software business. joe: what sicilian mortgages show was, how difficult it will be to rent from sicilian banks. day two of the republican national convention. we have a live update from cleveland about the agenda. we begin with the market minute. the dow industrial closing out a record high. the s&p 500 in the red. interest rates -- interest groups in spite of the decline. financials performing better than expected. materials and energy laggards today. joe: a very tight range on

equities, not much doing on the upside or downside. oliver: a little bit of a breather. it has been a fast run up the past couple of weeks. you mentioned the dow, so i will take industrials. , theare in the s&p 500 industrial sub index is doing well. a few stocks really jumped out. kansas city southern, general dynamics, delta airlines, lockheed martin, as well as going. they all closed above a percent. good winners on a day where there was not much as joe pointed out, tons going on. we also want to look at the trends that has not gone away. that is a low day, even when you are flat. the vix keeps on plunging new lows, volatility absent from the market right now despite the geopolitical events happening all over the place. joe: also a very quiet day on the government bond run. here is a five day chart of 10 year yields. you see them taking higher for

several days. we are still incredibly low. a little bit of a decline, but even that is pretty quiet. u.s.et: in currencies, the dollar at a three month high. this run-up is nothing like what we saw in 2014 and 2015, but still something to be wary of in an earnings series. , resuming his decline against the dollar. central bank cut interest rates by 25 basis points, less than it had been doing up until this point. -- president hertha he is hiring institutions, the academics of the next to be removed from their post. as we heard yesterday, it is a bad time. not confidence inspiring. take a look at silver. silverlight gold, off to an incredibly strong start -- silver, like gold, off to an

incredibly strong start. four days in a row down, the worst in eight months, amidst lots of bullishness, keep an eye on that. scarlet: those are the market minutes. let's take a deep dive into the bloomberg. you can find all of these charts using the function of the bottom of the screen. taking a look at bank earnings. pa go.ng here we can highlight how will the financials have done right here. on average, sales down 2%, 6%nings-per-share rise better than the s&p at large. if we dig into financials and you look at banks and the results, we will highlight that here, go into company by company names, what you will see here is that if you list them out, every single one of them has beaten estimates. the exception is comerica, with the surprised to the downside ever size slightly -- ever so

slightly. citigroup, bank of america, on the sale side as well. if you backtrack into the diversity financials, which is what goldman sachs is considered here, let's pull that up, you can see that these names have beaten as well. you know what, that was the wrong sticker. this is live tv, this is what happens. we have diversified financials, including goldman sachs, schwab, blackrock all feeding in. certainly for goldman sachs, the biggest margin ever. not ever, but among those groups. a big thing for the reporting season. how much the post brexit trading would lift capital market revenue. so far, it is good. joe: and the bar has been set pretty low. you have to wonder are we at an inflection point where people have gotten too pessimistic on the financials? i want to talk about the lira

and go into the bloomberg. i am looking at lira volatility, specifically between one month implied volatility and three months. both asserted there has been a surge lately. people are concerned about the short-term, what will happen in the next several weeks and posted a slightly longer term. if you look at this surge, the last time there was a similar surge in red was last summer with the turkish elections. so we have seen volatility rise across the curb, one month, three months, but the one-month surged much higher than the three-month. people are concerned about huge development happening now. we have not seen this sort of inversion since the elections last summer in 2015. oliver: that is a huge spike. you see there is a trend upward over the next several months as well. scarlet: let's get breaking news in here. we have microsoft reporting earnings. the fourth quarter adjusted

earnings of $.69, topping consensus estimate of $.58, higher than the most bullish estimate compiled by analysts. 60 nine cents for adjusted earnings per share. when it comes to revenue, $22.6 billion, also higher than analysts looking for, which was $21.1 billion. coming in at $6.22 billion, and that is better than what was expected. microsoft, the story here is the ceo transferring just transforming the company from old-school software to a vibrant cloud services company. competing against the lots of salesforce -- likes of salesforce. this past quarter, we got news microsoft bought links in. -- linkedin. the deal has not yet closed. oliver: the news is being absorbed well.

observers pushing $55, close around $53. a few dollars jump there. apparently something they are liking. scarlet: intelligent cloud revenue, this is the part of the business every one is excited about, $2.19 billion for revenue there. the consensus was $6.58 billion. if i looking at the right numbers, that is a huge miss for the intelligent cloud service. personal computing, more million, far off the estimate of $8.7 billion. i am not sure if i'm looking at the right numbers. we will get into that more. joe: joining us now to discuss this we have tech economy founder david patrick and bloomberg editor cory johnson. what is standing up to you so far? cory: the cloud revenue is a weird number. we have to look at the context.

lookn all, these earnings a little stronger. operating income at $6.2 billion. expectations were only $6 billion. the goal of course is a shift from this license software model to a cloud model that can keep profits up when they want less money. i will dig into that. the operating number, $200 million is the plus side of what expectations were. joe: david, i know you don't have a computer in front of you -- you are looking at turnaround by sergey a delly. looking at the four q, $2 billion versus $2.2 billion. what do you want microsoft to spend that money on? cory: call related stuff. -- david: cloud related stuff. my problem with microsoft is , not just they have to

become a cloud company but have to fundamentally continue the transformation of their corporate image of they are seen as a troop here of google -- true peer of google and amazon. they got addicted to old-school that it isr so long taking time to get to this new art. scarlet: and david kirkpatrick, ceo of tech economy. anrosoft is applying applelike approach to hardware. what do you mean? oliver: they service -- david: they service at themselves. one of the most incredibly transformative devices in the computer industry in the last two years, taking charge of the hardware design again in addition to making maps with the software they design, which is doing well. , computerf tablet

hybrids that they have taken to market, is making a big impact. that is helping windows. windows is a little slower than i hoped for windows 10, sales. be a growthinue to opportunity. a lot of my thoughts -- apple is as well. owning that microsoft is a resourceful company. they have shown that most of all by giving the company to the ceo. he is extraordinary. scarlet: we have more headlines coming out, trying to find out the right number versus the consensus estimate. we have adjusted earnings of $.69, and we also have a fourth quarter earnings of $.39, andaps one is a gap number one is adjusted. it is hard to figure out which one we are comparing it to. this must be on a gap basis. the company was expected to earn $.57 -- that was the last, current quarter.

we need to go back to the previous. on a gap basis, microsoft was expected to earn $.44 on average for the fourth quarter. it would appear on a gap basis, microsoft did earn $.39. on the adjusted basis, they earned 60 nine cents in the fourth quarter, and it is expected to earn $.58. so this would be a beat. you look at the numbers more, are they making sense to you, comparing what has been reported versus estimates? part of the confusion was the division. we see the numbers looking back in comparison. what i am looking for the 2016 gap revenues, they are well off estimates. ,he gap revenues were reported they are $20.6 billion, which is well under. at the prophet is a high level. i will try to figure out what is going on. such profitability while missing the numbers, it looks like, on

the top line. this is their first time reporting with these new categories here, so we will look through and see what to make sense. it does go to show take a company that was addicted to software licensing revenue, shrinkwrap software in effect for decades, and do such extraordinary job with that, now having to become a fundamentally different type of company. it requires a big transformation of managerial style, the weight you count things, and the way you present your company to the world. if they are doing a good job, but it is painful. scarlet: perhaps we are seeing some of that now. i like how you say it, how you count things. david: you were a good counter. tech economy.f and bloomberg editor at large, thank you for your analysis. we have much more coming up, td ameritrade ceo running us. ♪

scarlet: td ameritrade reported earnings up, assets climbed to 9%. shares are trading near a four-week high. it is down more than 10% for the year. joining me now is td ameritrade ceo fred. good to speak with you. give us your sense of what your results for the past quarter says about the health of equity market and demand and capital markets. >> there was a couple of things to take away. trading was good in a relatively tough market.

really had one day the market moved over 2%. last quarter we had 16 of those, but we had a nice pickup in trading going into the brexit and following the brexit vote. with respect to investors, they were reticent to move into the market, but client moved in after the vote and took advantage of the dow drop in the market, and they have done quite well coming back. -- the down drop in the market, and they have done quite well coming back. we have had good earnings. when you talk about what investors are doing, there is a lot of interest in the shift from individual stocks to etf. there is a particular interest to various strategies whether it is volatility strategy, express, smart beta, low volatility strategies. what are you seeing? how much of that shift is affecting td ameritrade? fred: there is no questioning

the report today about the amount of money that moved out of actively managed funds and into passive funds. there is a long-term secular trend we are well-positioned for. treating clients use index -- trading clients use index a lot. they will increase the futures. to get exposure to other things around the world, trading five/24. but we will continue to see this in this world with low-cost index, where returns are hard to come by. , butr: so people trade etf other people like it because it is a sort of index exposure. you can ride out longer terms. market structure changes where index providers, that is where the money is right now. how does that sort of affects the platform, which i am guessing you will be making money on trade, volume. does that hurt the business at all?

fred: we will make money on mutual funds than etf. the reality is our business continues to grasp assets, and go where the market and the as start -- investors are going. to $14 billion in new assets in the quarter, so what we are doing in the market is appealing. your to date, $45 billion. we are good at gathering assets. scarlet: here is the other thing to keep in mind. ,ou see how revenue per trade that is the blue line. limited. the white line daily asset trading is trading higher. where does this go? is it permanent, wide cap down, or is it stabilizing somewhere? fred: in the long-term, the wide path is true of the history of

the industry. it will continue to go down. what is affecting us is two things. we make more money out of options than equities, but we make less money on futures than equities. we have seen a pickup in futures of volume, particularly in the quarter, because people were trading around the brexit vote. so that has the tendency to bring commission per trade down. we also get you are option contracts per trade. -- fewer oxygen contracts per trade -- option contracts per trade. mixed.ly it is mostly mixed. oliver: thank you for joining us. that is the chief executive officer of ameritrade. scarlet: here is breaking news on microsoft. $.58. intelligent cloud revenue, microsoft is excited about this,

fourth quarter in coming in at $7.1 billion. that is better than analysts looking for. computingersonal revenue, that was a $.9 billion. it is the biggest part of the business that is higher than analysts on average had anticipated. you can see shares higher by 3.25%. joe: i want to bring back in corey to talk about microsoft. we have clarity to the numbers beyond that cloud number. what does their performance tell you about this quarter? cory: we have three divisions of the company. we have deferred revenues, and they will recognize overtime. productivity that you mentioned, that is 5% better than the expectations compared to the analysts or whatever. the cloud doing better, 2%. personal computing, [indiscernible] basically the numbers are

better. , combiningd revenue with short-term and long-term was 10% better than expected. that is good or this company, because it suggests new products moving into the customers are paying in advance of four, paying in advance inside, and the revenues will be there in the future. so that is good news for the company. it shows the transition to the cloud is working even better than wall street had hoped. scarlet: what do you think microsoft learned from the experiment with nokia, partnering with it, buying it, shutting it down? cory: it was a painful lesson, to be sure. it was a big whiff and it expensive. linked in. was with the disaster of the nokia thing, they go and do linked in, another giant technology acquisition. is not a lesson that they have taken away from this.

but they also see they are clearly focused, much more on the enterprise microsoft has had with this thing. it is linkedin and microsoft's focus. they are from is on enterprise, moving that way. oliver: thank you for joining us today. we will go through the tech earnings. scarlet: emerging-market stocks climbed to eight month highs. a chart you cannot miss ♪

scarlet: emerging-market stocks climbing for the first time in nine days, but holding near eight-month highs. in my chart, i want to show you how they have gone on a tear once the dust settled from the brexit czar.

the blue line shows the etm. the white line measures demand for that, the number of stocks outstanding on this particular etf. the plunge in long-term rates in the u.s., europe, and japan has fueled a rush of money into high-yielding assets like etf stocks. but you wonder how much they will go true in turkey, given investors a little pause from diving head first into these. things can turn a very quickly. joe: with a little bit of ,elling of major em currencies like we saw with the reality fell a little, but not much. index is notmarket in spite of the two. you think it would be -- in spite of the coup. you would think it would be. i want to talk about nintendo, which is writing an incredible way for things to the pokemon go phenomenon.

wave.ting an incredible it also has surprised sony's market. remarkable reversal, weird. it is absolutely remarkable. deutsche bank came out saying this run might be over, it is all priced in, but who knows people can't stop going crazy i guess that is the power of augmented reality the bill love it. -- people love it. . think we are a gym nintendo was known for innovation, but i will switch back to stock. there is a great function called world equity index. if you type this in, you get a screen with a bunch of different

indexes, america on the top. you can click in over here, and this shows you the percent of ,tocks trading above the wrsi and you can go and build a very cool function, which is at g #2146. this shows the number of companies trading with a high momentum over this box. it is pretty low considering how far and fast we have come. it is interesting given the 10 day moving average has zoomed. a lot to take in. scarlet: important for this rally we have seen. oliver: there is support and also kind of questioning, because you look at the 10 day moving average, they jumped high over the long-term, but ultimately a down day but not far down. scarlet: my exclusive interview with colorado governor and hillary clinton potential running mate. ♪ [hip hop beat]

♪olympics 2016, let me get you on my level. ♪ so you never miss a moment, ♪ ♪miss a minute, miss a medal. ♪ ♪ why settle when you can have it all? ♪ ♪soccer to wrestling. track and field to basketball. ♪ fencing to cycling. diving to balance beam. ♪ ♪all you have to sa♪ ♪ is, "show me," and boom it's on the screen♪ ♪ from the bottom of the mat, ♪

♪ to the couch where you at? ♪ ♪ show me the latest medal count♪ ♪xfinity's where it's at. ♪ welcome to it all. comcast nbcuniversal is proud to bring you coverage of the rio olympic games. mark: let's get the first word news. it could be a big night for donald trump. he is excited to speak at the convention and will see two of his children take the podium. tiffany and donald trump junior, his oldest son. also addressing the audience, mitch mcconnell and house speaker paul ryan. hillary clinton called donald trump the most dangerous candidate ever to run for president. the likely democratic nominee spoke to charlie rose. hillary clinton: when i gave my first speech a somewhat he had said, i have followed it of

course. was surprised when we began pulling together all of the information. let's return to torture, and i will order the american military to commit more crimes. let's pull out of nato, we don't need them. this kind of talk, which some people say, he can't possibly mean it, maybe we would have been one thing six months ago and that had listened to people that knew more than he ever will know. maybe so, but not now. mosthe has laid out is the dangerous, reckless approach to being president then i think we have ever seen. mark: you can watch the entire interview with hillary clinton on child -- charlie rose at 7:00 here on bloomberg television. bridge north of new york city will remain closed through the evening commute. that word from state officials after a plane fell across the bridge, blocking all lanes.

at least four people were injured. one -- the to turkish president took to the internet. when factions move to take power, they seized control of radio and tv stations, but failed to clamp down on social media. facebook and other apps were blocked and became home to dozens of livestream protest, even the president who supported this, utilized face time to announce you still in charge. inon rouge, louisiana is mourning, but they are trying to heal after the fatal shootings. sterling's aunt and the father of montrell jackson, embraced and praised law enforcement at eight memorial. they express love and support for one another in their city. sterling told nbc news she was hurting for the families of the police officers.

hard by more than 120 countries -- i am mark crumpton, this is bloomberg. back to you. get a recap of the market action. you have s&p retreating from a market high. basically stocks trading in the narrowest range of 2014, earnings reports have come in. yesterday better than expected, -- came shy of estimates. joe: pretty quiet in stock markets and 10 year. microsoft it good after a solid performance in the cloud business. what'd you miss?" day two of the republican national convention is underway, and the theme is make america work again. we have bloomberg reporter from

the convention. wasn, yesterday extraordinary for multiple reasons, chaos on the floor, lania'sersy over me speech. what is in store for tonight? kevin: heading into tonight, the trunk campaign still reeling from that speech, the controversy surrounding it. there being portions of this that are really comparable to michelle obama's speech at the democratic -- the last convention. tonight we are going to be hearing from donald trump junior as well as tiffany trump, two of his adult children. the other two will speak tomorrow night. we will also hear from paul ryan as well as mitch mcconnell. again, republicans trying to project unity and a party that is coming together. we will also hear from dr. ben carson, who enjoys strong support with evangelicals. but i am got to be honest, this

is a night in which the trunk campaign needs to be able to show they can get it all together after a lot of controversy on the first night of the campaign. scarlet: with paul ryan -- paul ryan speaking it fascinates me, because he is not endorsed on altra. he seems to be endorsing more of the anti-hillary stance rather than pro-donald trump. tepid to say the least. a lot of establishment republicans still skeptical of a trump candidacy. i was speaking with donald trump junior earlier today, and he said he will deliver a largely personal speech. that is going to differ sharply from what we are going to hear from the house majority leader -- speaker of the house. we will hear from speaker paul ryan, attack hillary clinton. he will try to throw a lot of red meat, draw that contrast, traditional type of public in red meat they will throw toward their audience.

they got to get this convention back on track. a lot of pressure tonight on the umpnk children -- tr children and also mcconnell and ryan. oliver: i love it is make america work today, but it does not seem like it is working so well for trump so far. it is that the way we are covering this? is there some story where his group is feeling good about the way things are doing? kevin: i think at the end of the day, they view this as a couple of months ago, we were expecting -- no one expected him to be the nominee. there is that element. the bottom line is this. hillary clinton and donald trump are extremely unpopular candidates, and in a more -- a lot of americans don't like them. so the trunk campaign -- trump

campaign is trying to show a new side of donald trump. they will take him beyond the brash billionaire and show him as a multifaceted person and whether our they are not to do that, remains to be seen, but look for that to start in full force tonight, and start with donald trump junior. joe: i want to go back to melania's speech, do we have more as -- insight on how this paragraph word for word with michelle obama got in there, and what kind of actions they are doing in response to that? kevin: the sources i spoke with today, they are not firing anyone. campaign as a result of this, they are defunding -- defending you -- defending melania. first language. they also know she is an

immigrant, but the controversy overshadowing the message. donald trump in your as well as paul manafort speaking publicly today, saying she thought she did a good job. aftermaths not the that the trunk campaign wanted to have. there is no question the stakes are even higher because at the end of the day, they are not controlling the narrative on day two of their convention. they cannot have half the convention be dominated by a plagiarism scandal, if you will. they need to get this contract. and they have an opportunity last night with a freshman senator, joni ernst, who spoke to a fairly empty auditorium yesterday, well after the speeches spoke. they have got to get that on tonight. kevin, great stuff from the convention. thank you very much. scarlet: as for the democratic side, hillary clinton is still

weighing who she wants on the ticket alongside her. colorado governor john hickenlooper is considered a possibility. they met on friday. in an exclusive interview earlier today, i asked how things have evolved since that meeting. john: i have got to say no comment. no further questions. journalist, id almost became a journalist when i was younger -- i kate saying that, but -- hate saying that, but you should ask the campaign. scarlet: so she said she focused on governance rather than the election, when she considered vice president of candidates. putting aside the western presence you would offer, what is it specific attribute and skills that your experience as a small business owner offered to a presidential ticket? john: i don't feel comfortable commenting on that. i do think it is worth pointing out that her command of policy, especially economic development and how well -- her father was a

small business person, he was a draper. she does understand it, at a very deep level. like almost all aspects of public policy, she has studied it, she understands it. she has worked with people all across the country. the difference between her and donald trump, who does not care about public policy to a large extent, it is dramatic. especially in terms of the consequences to the economy and talking about the u.s. economy, it is a global economy. so much is based on having good policy and also picked ability. if you have someone who is caught to the changing their mind, you know, there is one thing one day and then the next day they are changing their mind, do this trade agreement but they are not sure what they are going to do -- i mean, predictability drives comfortable -- capital investment. suddenly we have

unpredictability at the highest levels of government. this would without question go down significantly. scarlet: that was a portion of my exclusive interview with john hickenlooper. oliver: just ahead, italy's bank of three and 60 million euros of nonperforming euros. what they are doing. ♪

scarlet: it is time for the bloomberg business flash, looking at the biggest stories in the news right now. shares of microsoft rising in after-hours trading. the company reported fiscal profits and sales that beat estimates. it was boosted by an aggressive push into internet-based software and services for business. the company's corporate cloud

platform doubled in the quarter. volkswagen facing new losses, this time being sued by new york and two other states over environmental damage caused by devices that helped them keep the emission test. new york alleges the former ceo and others orchestrated an elaborate cover-up when the scandal came to light. maryland massachusetts are firing these as well. the largest technology merger in history creating original -- major portal today, approved, subset $68 of the company. the deal remains on track to close for the original terms in october. it is subject to regulatory approval from china. that is the bloomberg business flash. sicilian mortgages are proving just how hard it is to rescue italian banks. one problem is the length of ink of the proceedings. there was an average of nearly eight years, compared to two

years for the rest of europe. joe: let's bring in a reporter who wrote a story today about sicilian nonperforming mortgages and what they tell us about the current content -- current attempt to rescue the banking system. explain the story. reporter: thank you for having me on. i was looking at how you mentioned it is grappling with a huge banking crisis, 360 million euros nonperforming. as on the table, various options that are being considered to kind of sort out this mess, securitizing those assets. so putting them in bonds, take them off the bank thomas seldom to investors. sell them to investors. italy, i wentin and investigated how they performed. they performed for the badly.

one in particular called island refinancing, a sicilian bill that you mentioned, where it was had -- 2007 deal where they loans from 2001. in there are mortgages from the 1990's, that had not been resolved as to this day. that securitization is having losses. is a real mess. oliver: great article. one thing that pops out immediately as the length of the bankruptcy. money is being tied up as they wait for those to get resolved. , andolds these instruments what are they doing, how are they not writing more -- fighting more to get these expedited? reporter: sure, well i think theytors in italian debt

learned this the hard way. the real question is, the precrisis deals that are speaking, which i written about, there are not that many of them. the markets are a little small. the more you have to think about is italian banks bringing forth a wave of new securitization. who is going to buy them, and what will be the cost for the investors, because a lot of the outstanding bills which i read about today, you have the rating agencies saying even by the time these bonds mature in 2025 or whatever it is, there will not be enough cash recovered from the defaulted mortgage it to pay the bonds. so it is really bad. scarlet: it is. we go back to the idea of is thereainters anything -- bankers.

is there anything being done to speed up the process? alastair: there is. even in greece, less than a year , the netherlands and denmark, less than two years as well. it is quite amazing it takes so long. one thing being done in addition to that securitization program is to try to reduce the proceedings. matteo renzi, prime minister of italy, will try to reduce it from six to eight years to six to eight months. i did sound remarkable, but in a ball flight new mortgages to new -- it will apply new mortgages. so they will not be affected by it. it looks right on the surface, but when you scratch a little bit, he will not be very helpful. we don't know exactly how much investors and the securitizations are going to end up losing. what do the rating agencies say

about it nonperforming loans? alastair: in a few cases, we do know there have been some losses that have been [indiscernible] they have long maturity, so they are away away from the actual thing. but rating agencies said cash being recovered from the bankruptcy proceedings in the court is taking so long that only the most senior, the most highest rated bonds in that securitization will be paid for. which means the junior bonds, which can be, some of the deals to be as much as 60 million euros or 30 million euros, those will be wiped out. joe: thank you very much. scarlet: coming up, the chinese currency forecasters say that you want slump is close to being over. ♪

scarlet: yuan weakness may be nearing its end after the first quarter on record it raised -- erased losses against the dollar. so what probed the turnaround? we have daybreak asia coanchor betty liu. great to see you again. tell us the forecast. julie: we talked about this last week. betty: we were talking about how the chinese currency, among others actually seemed to be one of the more stable ones after brexit in late june. that was how the central bank had handled this global volatility. so now you have got forecasters, including others like bloomberg. the tide may be turning

on the currency. the central bank may be pretty happy with the level right now. they don't want it to go any lower. it will not force depreciation, and we may to the market stabilize. i want to go into the bloomberg, interesting chart that bloomberg intelligence came up with. the gold line is dollar you want -- dollar-yuan, but the white line is yuan volume. there is an increase in volume over the last three months or so. -- we can see it sort of taking higher. maybe there are some economic still rumblings under the surface. maybe it looks controlled, it has ineffective global markets like earlier this year in august, but there are deep anxiety. what does it say, even if the

currency stabilizes, are there still deep underlying concerns? julie: when it comes to china, there will always be concerns. you see that reflected with the volume. i want to remark that it is all relative in many ways. you look at that chart, you stretch that back to over a year ago when the volatility was really bad. the volume was sparked in that time in august. joe: going back, that august massive spike in you one volume -- yuan volume. betty: they devalue the currency, and that spoiled the markets. i hate to make it sound so relative, because you wonder if this is a trend of something bigger, but when you look at something back in august, you can see why forecasters like saying, given the gdp numbers, what were expected out of china later this year with the imf

special drawing rates included in that, maybe that is a better situation. someone whoe had was on earlier that was very bearish on this. you kind of look at the same data and come to conclusions. what about the bullish investors that you want to talk about improving china? what are the bears missing? betty: just look at the date of the past weekend. gdp comes out. it shows that growth in the second quarter with 6.7%, not out of line with what economists are saying, but more important than that, the property sector seems to be doing well. that is outpacing other parts. a majority of the expansion in china came from the services side. so this looks like the chinese, it is working. they are seeing consumer and domestic demand in china. so the more we say, look at that data, you will see a much more

stable second half for china. scarlet: and the g-20 will be in china. they want to put their best foot forward. betty: that is right. scarlet: you can catch betty and yvonne at 7:00 new york time and 5:00 for daybreak asia. what you need to know about for the trading date next. ♪

scarlet: we have breaking news from 21st century fox. the chairman and chief executive officer is at work. the review into his behavior is ongoing, and they have said that the only agreement with him is the existing employment contract. get 21st century fox

saying the review is ongoing by theexual harassment former anchor, he is still at work. his only agreement is with the company, t

john: i am john heilemann. mark: i am mark halperin. with all due respect to last night's big entrance, tonight is going to be even more huge. ♪ [cheers] ♪ welcome to cleveland and day two of the republican national convention. the only thing the political world is talking about now