several divestitures plans to attract the antitrust concerns in the market for health plans according to the person we spoke with. the u.s. has said to be preparing to sue to block this deal. up 15% yearhad been today and the stock had come down on concern this deal would not go through. coming up 1% but you see a bigger jump i guess about 1%. they have come up about the day and have come back down. has been looking into this stock. like this may be an beginning or mid point of ongoing negotiation between these companies and the u.s. government. the other pair we are watching is anthem to see if that deal

with cigna is going to go through. when you look at stocks more a record onceee again for the dow and s&p 500 as we see stocks rally on the strength of earnings news we've gotten today. been the bigs leader of the day, largely because of microsoft and other earnings we have watched. have been watching the s&p 500 in this ongoing rebound in the wake of the u.k. vote to leave the european league -- the european union. here you have stocks how they have done since following the vote. as we know, it has hit records frequently in the last week or so. look at the groups on the move -- technology the best performing group.

we see some rotation out of the defensive and into the more cyclical groups. on theft shares rising wake of the company's earnings reports that came in better than estimated. its cloud-based business did well and cisco is trading at its highest in nine a half years. facebook trading at a record. -- sharesings winners surging 15%. uniform maker of after earnings beat estimates and tupperware, raising its sales forecast. tupperware shares also rising. matt: what about outside of : we haveand mark julie been watching the dollar. over the past week, we have seen .9%.y gains here, up

the same time, we have been watching oil closely. data shows the night -- the ninth straight decline in weekly inventories. we saw some volatility around that number but now oil prices are higher. the 10 year note, the yield up for basistoday, points despite some calls over the past two days that we will see the yield continue to go down. stanley?1% from morgan matt: not yet. what's check in with the bloomberg first word news with mark crumpton. turn in is ted cruz's the spotlight at the republican national convention. the texas senator who donald trump called lying ted during the primaries speaks tonight. it is not clear exactly what he

will say or whether he will endorse mr. trump, who is now the parties residential nominee. his older son made it official, speaking for the new york delegation. to be able to throw donald trump over the delegate count with 89 delegates and another six for john kasich. congratulations, dad, we love you. has running mate, indiana governor mike pence, will speak tonight. democrats are waiting to find out hillary clinton's choice of a running mate. the new york times reports she will announce her pick this saturday at a rally in florida. the people of baton rouge, louisiana are remembering three slain police officers, attending rallies with some faith and community leaders gathering to discuss ways to improve police

relations with the african-american committee. the officers were fatally shot by a former marine on sunday morning. authorities have identified all of the 84 people killed in the terror attack last week. despite several people remaining in critical condition, the death toll has not climbed. some of those killed died at the scene, others while hospitalized. no official list has been released. russia's top olympic official is expect did -- expecting a final decision as to whether the team will be banned from the games in rio. the olympic team is down -- is analyzing legal options of a theket ban after accusing sports team of doping its athletes. russia is not ruling out legal options if it is hit with a total ban. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 company -- 120

countries. scarlet: more breaking news taking place in washington, d c. that is a live shot of u.s. attorney general loretta lynch peaking on the effort to seek $1 billion in of assets misappropriated from a malaysian sovereign wealth fund. fascinating story, including proceeds from the movie "the wolf of wall street." isrlet: the one probe continuing. largest clip the talker see seizure in history. that came out a few minutes ago. loretta lynch speaking on one mdb. takinghe appears to be questions about law enforcement officials being shot and killed around the country, saying law-enforcement feels as though it is under siege. we will monitor that speech for headlines.

more repercussions in turkey coup.ing the failed smp lowering its rating and cutting its outlook to negative. this has added more pressure to the turkish lira which weakens to a record low against the dollar as the u.s. dollar turkey cross -- you see it climbing as it gets weaker against the dollar. yesterday, you could buy less than three. let's bring in our currency reporter to talk about what is going on. just as far as the cross is concerned, we saw a huge drop after hours on friday and we saw a little bit of a recovery, but it is still below three. how big a deal is this for turkey? is a big deal. people are selling assets in country. coups, butot like

they like urges even less. many thought the worst of the news was out and the markets were calm and it is accelerating. president's turkish emphasis is on solidarity and gaining control. is there anything he could say that would calm investors and keep the currency under wraps? vincent: if he calls the political situation, investors will go with it. turmoil andlitical the geopolitical place turkey has with relation to europe and the middle east, that's a big problem if it does not get under control. : it has been a fascinating

story and tragic in some ways. a lot of lives were lost on friday but the bigger problem for the european economy is the pound. the huge drop we saw after the exit vote, has it stabilized? vincent: it has stabilized. i think what people lost in this is that you had a 15% evaluation in the currency and that has made it attractive. softbank's purchase and a couple of more mergers and acquisitions closeon -- you just don't down the biggest financial center in all of europe and a heartbeat and everyone exits. because ofd that is the stabilization in the pound that we saw the bank of england pullback from cutting rates. aes this mean the ecb is in wait-and-see mode? vincent: nobody is looking for the ecb to do anything tomorrow. but mario draghi has surprised us before. if he opens up the basket of hans that the ecb is allowed to purchase, it would be a big surprise.

: which is not unlikely. they are having difficulty finding bonds to purchase. gocent: the more the bonds negative, at some point, they will need to expand that in order to complete the efficacy of qe. risk to the downside? vincent: at least for tomorrow because no one is building in any surprise. we are at 110 right now. how big is that? vincent: it is more of a psychological level. certainlyu will see buyers come in below it because it is that psychological level, but we shall see tomorrow. reporterour currency here at bloomberg news. matt: speaking of the euro and the pound, we will take you live to berlin where uk prime

minister theresa may and german chancellor angela merkel will be holding their first joint press conference. very interesting stuff. you can catch it live here. this is bloomberg. ♪

matt: you are watching bloomberg markets. i'm matt miller. scarlet: matt: i'm scarlet fu. halliburton swung to a loss in its last order. the figure was less painful than analyst addicted. comments from the ceo indicate a rebound in u.s. drilling may be close at hand. that shifting sentiment is key to the oil services industry: market that has been rocked by the crisis sending drilling down to a 70 year low. upturna little into this

is the senior equity research analysts of oilfield quitman and services at societe generale. resurgence?g a as we see the underlying price stabilize? there's no count that rig counts are starting to move higher and there's optimism that crude prices will gravitate upward as the supply and demand balance start to converge. bethink 2017 and 2018 will to some extent a material recovery, but versus times like 2005 through 2000 eight, things will be much more constrained and perhaps expectations are starting to do somebody. describe the path to recovery. you can bump along the bottom for years. there are many basins

where things are profitable at $40 or $45 a barrel, so we know drilling will move forward and progress higher unless something pushes it higher. brexit could be a head wind, but in the grand scheme, we think it is reasonably modest. have a chart here that i think alix steel put together. the current contango we see at the top on white. five dollars more expensive to buy oil 12 months out that it is right now. last month, it was a steeper trade. what does that mean? does that mean people don't expect rising prices going forward? ofst: given the backdrop that it hassurprise

not come off to the degree people wanted, but it i expect it will go higher at a much slower rate. why we have seen the recent pullback in crude prices and despite any chatter that is positive, a real inability to move forward. matt: isn't that good for the m&a situation? buyers and sellers have not unable to come together and with a stable price, it seems like it would be easier to make a decision to sell or to buy. in the price range we are at now, the pain will last longer. likely you will see a continued up tick in m&a if we tend to stay down here a little bit. the quicker the prices go up, the less impetus there is to do row productionan material and get a higher price for your company. scarlet: halliburton had to call

off his purchase of baker hughes. what does it do next? does it pursue a smaller market or sit tight for a while? organicallywill grow their businesses as well as by their smaller companies. there are perhaps if you public companies out there they could buy but market cap wise, those things will be sub a billion dollars. scarlet: it doesn't move the needle? guest: not in the short run. matt: what do you see as far as vague oil companies shedding non-core accident? halliburton baker hughes is a large transaction that is going to draw regulatory scrutiny. see a lot more fill in acquisitions as people shift off smaller at -- smaller assets? the prospects for

earnings recovery are a lot more tempered then what the companies have seen in the past, so you see a lot of step out transactions where companies are buying into areas of the business they were not at before. the industry is really trying to figure out a new way of doing business to try to restore some of the profitability backdrop that it has perhaps lost. i call it the puck -- the plus pricing supposition that the industry wants to have. things just are not that robust in that there's a good backdrop for commanding a lot of pricing power. scarlet: what is priced into shares of companies like halliburton and schlumberger? your theory is it is set to bottom. is that priced in? bottomnot only is the

priced in but in terms of rig count going forward, it seems people are expecting rig counts will go north of a thousand in north america and you will start to get material pricing improvement. the bigger issue for us is that the industry has become so good at growing production so efficient that as you start to get to that, you will start to flush the system and cause some bearishness. basically lose the pricing momentum you would just be starting to get as you approach those levels. scarlet: a vicious cycle. thank you for the update. coming up, uk prime minister theresa may and german chancellor angela merkel will be speaking at a joint press conference in berlin. we will take you there live.

this is bloomberg. ♪

scarlet: this is bloomberg markets. i'm scarlet fu. matt: and i'm matt miller. scarlet: bill ackman is not giving up his fight against herbalife. the claim against the company was settled last week but ackman says he plans to maintain his bet against the company. theing us for more is bloomberg recut -- bloomberg reporter who covers herbalife. could walk away because they forced some kind of resolution but he is doubling down. the sec hasys that agreed with what we have been saying. they did not use the term pyramid scheme, but ackman did point out that they did not say it wasn't a aramid scheme, so they left that to interpretation. that company is paying this as a bump in the road and they will get the on that that he says

how fundamentally changes they are paid to focus on retail sales. he says it's only a matter of time before this thing collapses. he says herbalife has been shut down by the ftc, they just don't know it yet. will go to foreign regulators and now before we risk a had fun -- a hedge fund shorting the stock, the main regulator of herbalife says they basically a great. matt: but they didn't really come out and call it a winner or call it a pyramid scheme. guest: they said people are getting hurt financially and have in light to about their income. if you read the complaint -- pyramid says they are a

scheme without saying they are a pyramid scheme. guest: i'm not going to say that. matt: why isn't anybody going to say that? we had a top line going now on bill ackman -- i haven't pulled up my bloomberg but his hedge fund did really well in 2014. 20%.year it was down two of the big problems are valiant, which he thought would and450 which is not even 25 of course, herbal life -- these have in big losers. our you hearing from investors that he needs to learn to call his losses? guest: that has in one of the big things -- he is three and a half years into herbalife and is saying we are betting against herbalife and we will continue to bet against herbalife because we think the stock is overvalued. he is emboldened now on this

call to discuss the second quarter results, that we are not going away and it's only a matter of time before the shoe drops on this company. there is criticism that he is continuing with this bet. the highainst them in 40's, so it is a long way to go. aarlet: you talked about three and a half year campaign i bill ackman. what is the investor base of herbalife? how actively held as it by big institutional investors? guest: as far as i know, it's mostly hedge funds. , whoig long is carl icahn can expand his stake.

ackman had some nice things to say and some not so nice things to say, saying carl icahn tried to mislead people. the ftc says we do not endorse that comment. there is still a long way to go. what happens with herbalife in the next year will be very interesting. i'm pulling up the screen on oval -- on herbalife showing the holdings. yes whose did his holdings in the green line. more than $500 million at least in paper earnings so far. matt townsend, a fascinating story. a press we are awaiting conference with british prime minister theresa may and german chancellor angela merkel. ♪

scarlet: let's get you some

headlines on bloomberg first word news. mark: vice presidential candidate mike pence takes stage convention tonight. he will make a case to conservatives why donald trump should be the next president. despite his stint as governor and as -- and in congress, he's relatively unknown "the new york times" says she will appear with her pick for ate president this saturday a rally in miami, florida. republicans prefer a candidate from outside the political system. authorities in germany say the teenage afghan immigrant who attacked train passengers with an ax and knife was inspired by

islamic state but they say he probably acted alone. the attacker wounded five passengers before he was shot and killed by police. the hollywood writer-director behind the movie "pretty woman" and "happy days" has died. garry marshall dead at the age of 81. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. >> mario draghi and the european central bank are gearing up to make their first policy decisions since the brexit vote in june. global rate strategy was asked what she expects from the ecb tomorrow. >> the ecb announced this massive qe, they are still doing

it. they don't have that many tools left. we haven't yet seen enough data post-brexit to see the impact of the u.k. our viewers, it will be a fairly boring meeting. i think he's going to say that we've got lots of policy options , we stand ready to act, but we don't have enough data right now. >> they don't have data but they have a lot of projections, which all seem to point in one direction. it will hurt the u.k. the worst, but also the e.u. are they going to wait till data comes in rather than trying to anticipate and make sure they are moving forward? >> uncertainty is very high. don't know when article 50 is triggered, we don't know how long this process will take. we don't know what the end state

for the u.k. is. modely go with the norway -- our view, they won't be able to get the norway model. think the conviction level to do a lot will be lower, particularly because they've done a lot. they posit right now, say they are ready to act. let's go to when the debate is not boring. over $10 billion of corporate debt. they have been buying schlumberger debt, glencore.com and others. inot of people are sitting europe on trading calls --dering how on earth that >> behold from the ecb standpoint is how do we ease credit conditions. if they buy periphery and bonds,

does that translate into the corporate sector? companiess that more come out, actually invest, issue more debt, and that's how it can transmit into the real economy. they don't need to depend as much on the banking system. the banking system in europe never easily capitalized. if you go down the route of interest rates, it's getting stuck. corporate debt, they bought things which you don't necessarily see as being that economy positive. going forward, we hope more companies will say, let me issue ecb buys, let me invest and buy a factory. >> companies in europe are financed by the banks. this process will take years. >> that was misra there. theresa may, the newly elected chancellor of great britain, speaking with angela merkel

there on your right greater this is their first joint press conference together. angela merkel is speaking in german right now. they have a translator for that. if they don't, i can translate for you. let's listen to this press conference. >> my thoughts and prayers are with the families, the relatives in germany but also in hong kong. for the people who were injured there, we think of you and pray for you and hope with all our might that you may quickly recover from these attacks that leave both a physical but also a psychological trauma. thank the police for what they did in order to prevent even more danger and to contain also the dangers of the public. i would like to thank the doctors, i would like to thank and thelance workers

medical and training staff that looks after the people. the federal ministry of the interior in form constantly, briefed me on the state of affairs and the minister has briefed you already on what we know about the background of this deed, but there is quite a lot yet that needs to be explored, that needs to be clarified. perpetrator,nd of i have every confidence in the federal prosecutor's office and development authorities that we will see to it that clarity is brought about as regards to this too, and today is certainly early to say anything definitive, but we will do everything we can in order to prevent any form of violent extremism. today, our thoughts are with the relatives and victims of this terrible deed.

ladies and gentlemen, i am delighted to be able to welcome the prime minister. i'm delighted that she was able to come here so early during her term of office. it's clear our countries are united by close bonds. we have already started our talks, our work. i'm looking forward to a very good relationship and let me say that irrespective of the decision the people in the taken tongdom have leave the european union, we are linked by very close bonds of friendship, of partnership. our two countries have always acted on the basis of clear and firm and similar convictions. values.d the same this in many ways determines how we deal with present challenges. we are partners with nato. both of us will be in attendance at the g 20 meeting in china, with members of g7.

-- this willhip determine the relationship and the spirit in which we will carry out the negotiations on the united kingdom leaving the european union. irrespective of this process, independently of this process of leaving the european union, we want to continue to foster our relations on the economic field and political field. this is after all in our mutual interest. have alwaysbritain cooperated very closely within the european union and i very much hope that this is the spirit within which we will continue to pursue those negotiations. i saidrom the start after the referendum was decided it is now up to the british government to define how it wishes to see its future relationship with the european union and to then also pursue the following steps, as particularly with regards to the process leading up to invoking only then will the

proper negotiations start, the treaties of the european union are clear on this. today we will discuss the discussion as it presents itself now and we will also discuss what is relevant in the connection with article 50, without engaging in any formal or informal talks and negotiations. but we will also discuss what is on the international agenda. we will go to the g20 meeting in china. we will also be hosting the g20 meeting and next year here in germany we will work closely with britain then. we will talk about the situation of refugees, the situation in turkey and the relationship between russia and the ukraine. i'm very much looking forward to this first exchange of views. i would very much like to welcome the prime minister again, and i promise you that from the german side we will certainly stand for our

interests, as britain does for its own citizens as well, but we will do this in a spirit of friendship and on the basis of many shared convictions. thank you very much. i'm delighted to be in berlin. may i start by offering my condolences to all those affected by the terrible attacks on monday.n my thoughts and prayers are with all those who have been affected by this terrible attack. chancellor, thank you for inviting me to berlin. i'm delighted to be here on my first international visit as prime minister just a week since i took office. it underlines my personal commitment to building a strong , a constructive partnership partnership that works for the benefit of people here in germany and people in britain too. visit tohe first

germany of a british prime minister since the british people took the decision to leave the european union. i've been clear that brexit means brexit and the united kingdom will make a success of it. here, today, and across europe in the weeks ahead, we are not walking away from our european friends. an outwardl remain looking country and germany will remain a vital part of that and a special friend for us. we have centuries of shared history, our language and culture is deeply intertwined. havecent decades we developed a strong alliance and it is reflected in her majesty the queen's historic -- just over a year ago. it is in a constructive spirit that i come here today to lay a foundation for a strong relationship in the months and years ahead. continue toin to work with our european partners to boost trade and economic growth and tackle the sure challenges we face. alreadye issues we've touched on in our meeting and

which i look forward to discussing further over dinner. i'd like to say a few words on each. first, the economic ties between our countries. we have both leaders who want to drive stable economic growth and believe in making sure everyone benefit. the germany is the uk's second-largest trading partner worldwide and a second most important for investment into britain. in germany there are 1300 british companies employing more than 22,000 people. the nature of our relationship is going to change as the u.k. we want toeu, but maintain the closest possible economic relationship between our countries. i believe that is what german and british businesses want to mac. it's good that we start from such a strong foundation and a position where both our countries believe in liberal markets and free trade. these should be the principles that guide us in the discussions ahead. we must continue to work together on the global challenges we face, from

standing up for the sovereignty and territorial integrity of ukraine to helping the millions suffering in syria. germany and the united kingdom have often been a strong and united voice around the world. we must further that cooperation. alreadytries have agreed to deepen our bilateral military partnership and two together, to tackle organized crime, and we will continue to work together to stem the flow of migrants across the agn and mediterranean. in light of the terrorist attacks in nice, we must strengthen our efforts to defeat theh and stand up for values we share. as we continue to work together we must also negotiate the uk's successful exit from the european union. this will take time and require serious and detailed work. as long as we are a member of the eu, we will respect the rights and obligations of membership great i want to work with chancellor merkel and my colleagues around the european council in a constructive spirit to make this a sensible and orderly departure.

all of us will need time to prepare for these negotiations. the united kingdoms will not invoke article 50 until our objectives are clear. this will not happen before the end of this year. will not please everyone but it is important to provide clarity on that now. we should strive for a solution which affects the decision of british voters but also respects the interests of our european partners. together we should maximize the opportunities for both the u.k. and the eu. to conclude, i said recently that the united kingdom should not be defined exclusively by the precipice of our withdrawal from the eu, nor should it define our relationship with the world.round of course there are challenges ahead and much to be worked through, but i believe upon leaving the european union, the united kingdom can forge strong and successful relationships with european countries, and those relationships can benefit not just britain, but our partners too.

as we embark on this new chapter i look forward to working with you, chancellor, to develop that successful partnership. thank you. [inaudible] met prime minister, manage chancellor, the eu wants to prevent britain from doing -- the first signals from london trying tont at that, maintain advantages and reducing disadvantage, for example in , is there nobor scenario to actually ward off brexit and on turkey, the eu reintroducesy that the death penalty cannot become member of the european union.

but can such a country be a partner in a pact with the european union on the refugees? >> well, i think it is understandable that only a few days after the referendum, only a few days after a new government was formed in britain, the government will -- have to seek to identify its interests. one also has to talk about the other parts of this great britain as it is called. advantager all to our to have the united kingdom define its negotiating stance in great detail and clarity and if possible to clearly outline how it sees the future relationship with the european union. these have to be parallel processes. bonds and cut off the after a long, winding, negotiating process, come up with one house sees the future relationship.

andod negotiating process sensible and constructive one is in all of our interests, so we will wait for the moment when the united kingdom applies for this and then we will put our guidelines on the table as to how we see the future relationship. as the prime minister has said, we have to look at realities. of thelity is that 48% citizens of the united kingdom voted for it, but after all voted for remaining, that 52% voted for leaving the european union. that is the reality of the day that we have to look at. thise refugee pact, has at itsgreement core the aim of combating human trafficking. to fact that people had

confide in traffic lawyers -- traffickers that were ruthless, and they paid a lot of money for being smuggled, sour responsibility is determining to turn this illegal migration into legal migration. this illegality has to be it'sed right now while working. part and parcel of this is also that on a voluntary basis, humanitarian contingencies of refugees come in a legal way from turkey to the european union. what has always been the basis of this agreement and will remain so is that we have security for the people who are sent back to turkey and you are monitoring this very closely, those people who are sent back turkey.ece to indication i have no of turkey not abiding by the agreement.

it's in theay mutual interest that we don't allow people to drown in the mediterranean sea every day, and that illegality reins over the agn see -- aegean sea. we have been vocal in our criticism, particularly as -- thereith people were many who came out strongly against this military coup. very vigilant and already in a telephone call to the turkish president i was clear invoicing my concerns. >> thank you, prime minister. at the center of your talk no doubt will be how you balance eu trade with immigration. is it worth sacrificing some of our prosperity to have more

control on immigration? merkel, is it remotely realistic for the u.k. to expect to keep its trading rights and introduce tighter limits on immigration? i may, first impressions matter. you just met for the first time, what do you make of each other? it's very clear to me that one of the messages the british people gave in their vote that the u.k. should lead the european union was that they wanted to see control brought into the movement of people from the european union into the united kingdom. issuesll be one of the we look at, we as a government will deliver on for people. i'm also clear that we want to get the right deal in trade and goods and services for the u.k.. it's important for us. it's important for other countries in the european union who are trading with the u.k. as well.

this will be part of our wecussions and decisions as go forward. we will be taking some time in the u.k. to determine the principles and our objective before we trigger that formal process. you asked how we got on. who at two women here once got on and had a constructive discussion, two women who got on with the job and want to deliver the best possible results for the people of the u.k. and the people of germany. chancellor merkel: exactly. i can only underline it in full. the people in the united kingdom in the majority voted for leaving the european union. that is the mandate that the new

government has been given. we have not asked the united kingdom to leave the union. we respect the decision that has been taken. we have to know exactly what shape and form this relationship of the people of britain with the european union is to be. we are saddened that we will that we willed have good bilateral relations. europe, remains part of if not part of the union. it is not as if the british prime minister would sit then at the table of the european council. we will have to find other ways and means to conduct our bilateral relations. we are listening to the united kingdom, listening to britain, what it actually wants, and then we will give the right response to that great it doesn't mean it makes any sense to now engage in speculation.

27 countries will give you different perspectives, depends on their view of the matter. we don't want any turbulence. we don't want to much disturbance. there has to be trust built, with mutual respect, in the spirit of mutual friendship we will pursue negotiations that pursue a certain goal. pursuing a certain goal means we sure in what the goal of britain will be. you have to contend with it, but we too have to contend with it. how can we successfully contend with the situation so that each out, who can get the best of it. [inaudible]

>> prime minister, can you explain what made you a point orest johnson -- boris johnson? on are you putting a player the pitch who doesn't want to play? youme chancellor, how do think you will be able to negotiate with such a foreign secretary? think itister may: i would be dangerous for a british prime minister to talk about football in germany. this is not something on which we have perhaps quite as good a record as the germans do. i have appointed a team of ministers who will take forward the position of the british government, were very clear that as a british government and the prime minister, we will be looking to build good relations with all the european member states, and that's why i'm here, to start constructive discussions. we want to build on a positive

partnership the u.k. has had with germany, and those positive relations will underpin everything i do is prime minister, everything my minsters do across the whole u.k. government. chancellor merkel: no matter with him you negotiate on the british -- whom you negotiate on the british side, you have an experienced country here with the chromatic scales. -- grammatic skills. negotiations have always been interesting from technically intelligence negotiations and we are trying in this competition to work, and to be at eye level with you and be experienced competitive partners. we have long-term experience with this great when we negotiated the terms within the

european union, let us think of the financial perspective, these have never been all that easy in negotiations that we've always come to an acceptable conclusion. on the secretary, the first meeting of foreign ministers has already occurred among the 28 -- >> we continue to follow this press conference, the first joint press conference between theresa may is prime minister and german chancellor angela merkel, and indeed the first press conference we've seen between these leaders since the brexit vote. interesting that they has said they won't be talking about how to proceed with brexit until article 50 is invoked, but they won't invoke article 50 until the objectives are clear. will continue to monitor these headlines trade you can check it out on bloomberg oh. -- bloomberg . ♪

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matt: it is 1:00 p.m. in new --k, 6:00 p.m. in new york 1:00 p.m. in hong kong, 6:00 p.m. in new york.

scarlet: welcome to "bloomberg markets." ♪ scarlet: from bloomberg world headquarters in new york, good afternoon, i'm scarlet fu. matt: i matt miller. --i'm matt miller. here's what where watching. stocks higher today as the dollar gained straight investors striking a cautiously optimistic tone ahead of europeans -- the european central bank meeting tomorrow. we have an earnings scorecard for this season so far. donald trump is the official republican candidate for president of the united states. so far the rnc has been a family affair. so what's next at the convention? to head to thet markets desk, where julie hyman has been tracking the earnings, the effect it's having, and right now we are looking at tech shares rising. day, because of

earnings coming out. not just from giants like microsoft, but smaller companies as well. out's why the nasdaq is the performer today of 1%. we are seeing the dow and s&p at record levels. this effect is not just helping the nasdaq, it's helping the other averages as well. all of this is on relatively low volume except in tech. we are seeing the 20 day volume for the s&p 500 down about 10%. the only one of these bars to tire is in tech. doesn't usually happen, although volume for the s&p 500 dow and today, for the nasdaq it is higher. a little bit of a divergence there. microsoft shares are indeed trading higher today on the strength of its numbers, up 7%.

it keeps building on its gains today, especially seeing strength in its cloud-based business. the chipmaker also beating estimates, searching 14%. it's not just in tech. other earnings that have beat estimates include tupperware coming out and raising its sales forecast for the full year. intuitive surgical, the maker of the da vinci surgical robot, seeing higher demand than anticipated. also doingoans, that better than estimated. there's one miscellaneous movement. key bank says because of civil unrest we have seen bubble up around the country, you will want to order in rather than eating out. you might want to eat some pizza. they are upgrading papa john's.

matt: i want to stay home and order in regardless of social unrest, but that's an interesting call. what are we seeing as far as losers today? julie: the dow is the underperformer. one of the reasons why is disney, shares falling after the stock downgraded to hold. analysts are talking about a valuation of the company and should be -- segment valued on different multiples, that they are worth different things at these levels. the analyst says he expects "flattish" operating growth over the next few years. 20th century fox also declining on reporting that it looks like roger ailes on his way out as head of fox news, and those shares declining about 2%. disney's full earnings report on august 9. back to you guys. with let's check back in bloomberg mark crumpton for the first word news. day three of the

republican national convention in cleveland. last night donald trump officially became the party's nominee. now indiana governor mike pence, mr. trump's running mate, gets his turn in the spotlight. withll speak tonight along texas senator ted cruz who earlier this week said he has no plans to endorse mr. trump. the campaign manager paul manafort says he expects a speech from cruz that will be quote, pleasing to the trunk campaign and republicans. staff writer for the trump organization is taking responsibility for passages from conventionmp's speech resembling michelle obama's 2008 democratic convention speech. says she offered her resignation to donald trump and his family, which they rejected. joining me from cleveland, where he is covering the convention, is our bloomberg reporter.

good to have you on the broadcast. let's start with ted cruz. there was no -- no love lost between him and mr. trump during the primaries. he made accusations about mr. cruz's father. what can we expect from senator cruz tonight? uz is walking this fine line, not just tonight but all week. he's here in cleveland, he's been meeting with conservatives and delegates. he's making the calculation, should he embraced donald trump or be the outsider candidate now that donald trump is in bed with the republican party and rnc. where does cruz's brand fit in? we expect him to tread a fine line in his speech tonight. is this about trying to

get the convention to coalesce around donald trump or is this about ted cruz's future? uz has been meeting with people and one thing he's saying when he meets with some of these for a few months now he's been comparing this election to 1980, comparing himself to ronald reagan. lately he's been talking about 1976, hwere reagan -- where said, lost and as cruz set the foundation for a win 4 years later. he's talking about journeying forward. we've seen with him setting up his own political organization, he really does have an eye for the future. matt: -- mark: i'm loath to bring this up, although i have to. i mentioned melania trump. her speech writer saying she made a mistake, offering her resignation. why are we making a big deal thet this, considering

violence we have been reporting about it seems on a daily basis? >> the campaign would agree, they have been trying to quash the story for the last day and a half and they are hoping this statement from this trump organization writer taking responsibility for plagiarism will put this finally to bed. interest in it, in part, a lot of people were interested in what melania trump would say. the similarities to michelle obama's speech in 2008 were offputting to people tonight's ago. -- two nights ago. bek: mike pence will speaking to people outside of the convention hall. is his speech aimed at folks who are still on the fence about mr. trump or who have decided they don't want to vote at all?

>> donald trump has been pretty clear about why he chose indiana governor mike pence. it's in part because he's a conservative bona fides great he's had a lot of experience in washington and on the state level. he was a well-known radio personality. now he's kind of back in the spotlight and he's trying to reach out to a lot of voters who might not be enthused about donald trump great as we've seen with a lot of other speeches at the convention so far, they are trying to tap into frustration and somewhat fear of what it would be like to have another democratic president, especially hillary clinton. : a reporter joins us from the cleveland sight of the 2016 republican national convention. john kerryf state says momentum is shifting

against islamic state. he spoke at a pledging conference in support of iraq at the state department. secretary kerry said the real challenge lies in securing the areas that had been reclaimed from the militant group. he says radical islamism cannot be defeated by military action alone. theu.s. is cohosting conference along with canada, germany, and japan. isturkey, president erdogan meeting with his top security officials for the first time since last friday's attempted coup. make promising to -- to an important announcement. or suspendedred the credentials of 60,000 people. 80% of americans say race relations is the top issue in a poll. 10 what a president who supports a path to citizenship

rather than one who opposes it. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. back to you. scarlet: to give you a snapshot of how things have fared so far, especially with stock index is at record highs -- i want to highlight how the big tanks have performed -- banks have performed. not only have they surprised on the bottom line, which generally tends to be the case because they can control that, they've also surprised on the top line, on revenues. -- 18 out of 92 financials reporting and sales have surprised by 2.3%. han for the s&p 500 overall. if you go inside and take a look at the banks that have reported, when you see here his that only 2% of the banks -- here we are talking about m&t bank in comerica -- have disappointed

--m&t bank and comerica -- have disappointed. wells fargo, jpmorgan, all top analysts estimates. diversifiedto the financials, and there you can really see the goldman sachs, morgan stanley, what you will see their once we hit on all securities is morgan stanley and profitssachs each beat by about 20%, at least 20%. big question mark heading into the earnings season was how much will the post-brexit bump in trading lift capital markets revenue? the early read is pretty well. are: definitely they beating analysts estimates. the question is how hard is this. 76% of companies in the s&p 500 beat analysts estimates. click on iske to growth. of course there's going to be a surprise. analysts are lowballing these

becauses, maybe companies are making it too hard to do their jobs. you can see how these companies have fared compared to the same quarter a year ago to you look at earnings for the entire s&p 500, 69 companies only have reported so far, but they are down more than 5% from the same quarter a year ago. as far as sales are up about 2%. getting topline growth, but they're not able to cut costs fast enough to get earnings growth to come with it. a lot of analysts will tell you the reason is they've already taken out so many costs, not necessarily the financials, but everybody else, that they can't take anymore costs out. it's good news that we are going topline growth but they can't cut costs quickly enough to keep up with that. scarlet: you can check out all of that on ea go. we take a look at tech and internet companies like amazon coming up. ♪

look at u.s.e stocks, the s&p 500 on track for its sixth record high in eight days. matt, the real action is in the nasdaq, up better than 1%. microsoft results giving that index a boost. matt: i'm looking at the dow. ine record closes in a row for the dow jones industrial average. scarlet: let's check in with abigail doolittle, whose live at the nasdaq with the latest.

at ail: we are looking nice rally for the nasdaq, outperforming the other 2 indexes, up 1.1% at session highs. microsoft is a big piece of this. it typically comes down to tech and biotech. today is no exception. is the big story today, after the software giant did eat fiscal fourth-quarter estimates fiscal fourth-quarter estimates. it was really the cloud business, resurgence in consumer and recovery in the legacy business that really helped microsoft. speaking of record highs, microsoft is still about 5% from its all-time record high set all the way back in 1999. strength we are seeing in biotech, it's also in .ealth care in general intuitive surgical of 6.1% after the medical device company put

up a strong fiscal second quarter. they beat estimates. procedure growth growing by 16%. on today's strength, the fifth best performer in the nasdaq 100 and 2016, up 31% year to date. scarlet: thank you so much. it is time for the bloomberg business flash, a look at some of the biggest stories in the news right now. a senior manager at hsbc has been arrested in new york for his alleged role in a conspiracy to rig currency benchmarks. mark johnson is the first person to be charged in the doj three-year investigation into foreign-exchange rigging. matt: singapore state investment firm is offering $869 million to buy out xmrt corporation. the big comes as the nation's

biggest subway operator undergoes a reform after multiple service disruptions in recent years. according to the filing, the temasek already owns 54% of the company. scarlet: spotify plenty to go public in the second half of next year. the music streaming company raised $1 billion in convertible debt from investors who in march of value the company at more than $8 billion. spotify dominates hates streaming with more than 30 million customers. last year sales doubled. still ahead, oracle was slow in reaching for the clouds but now it's going full steam ahead. will that company be able to catch up with its rivals? this is bloomberg. ♪

.carlet: we have breaking news the justice department is said withear the beer merger

the sale and the u.s. expected to announce a decision to approve this beer merger today. shares of anheuser-busch in the united states taking a hike higher. -- i'm looking at shares of course in the u.s. -- coors in the u.s. carol: we welcome everybody to bloomberg radio. we have the senior vice president of product development at oracle based in redwood city, california, in our new york studio grade you guys are obviously involved in the cloud. where are you in terms of the move there and focusing your efforts? >> we started building our applications for the cloud over 10 years ago. division, thatad this shift was happening. we are well underway, but we feel like the market is

accelerating in the pivot to cloud based on several destructive aspects of technology that i would love to get into an sort of talk about, some of the underlying issues. carol: like what? >> globalization. you have now a billion and 1/2 people on facebook, 4 billion people with a mobile phone, smart phone. more people with a phone than ever before. four billion people on messaging platforms. the world is truly flat. that's one trend. the second trend is explosion of data and visualization, making that data look liquid or you have more and more data coming at companies. how do they manage and integrate that? enables that capability much more so. there's a couple of things that shift to the internet of things, expected to be $2 trillion in business -- of business in 2020.

a.i. andthing is machine learning, these are somewhat scientific terms. they are good -- becoming more relevant now. a.i., chatusing bots, which is how do you communicate a messaging platform. theshift to cloud is underpinning that every corporation needs to be able to enhance and add these new capabilities. customer experience is increasingly defined by these startup companies like airbnb and uber on a mobile that defined that experience. companies have do increasingly find ways to compete and cloud is a great example of that. is the privatet cloud to what oracle offers in terms of competitiveness? privatehave said any

cloud isn't truly cloud but it seems to be something that your customers want. >> the key aspects we feel very good about our hand is that we offer customers the flexibility to have any configuration or capability in terms of private cloud, public cloud, transition from on premise to the cloud. what we stated is 100% of applications are cloud-based, and 100% of our customers would be in the cloud. we would be focused on helping them transition that in their timeframe as they see fit. i think it's a definite -- we are the only company we believe that our scale that offers platforms of service, infrastructures of service. cloud driven by the desire of a customer to adopt something slowly, or security concerns? >> it's both. we believe that the cloud ultimately offers more secure

environment than any environment out there. it's a matter of giving customers flexibility and time to make that. carol: that's interesting. in terms of the progression by companies, how quickly are they moving to the cloud, how much of their business are they moving to the cloud, are they taking baby steps here? about 400,000 customers globally. drive thes going to business based on their unique needs. we are seeing an acceleration of our business. if you look at our service --tform, service business our fiscal year which we reported, 52% was the year number. 80% forrojecting 75% to our physical t1. we see an acceleration of our

business despite the fact that we are scaling now and have over 20,000 customers in the cloud. carol: good to get a check with you. thank you. scarlet, back to you guys. scarlet: thank you so much. quick recap of the breaking news we just got, abm said to win u.s. antitrust approval for the sab miller deal. that is abm and the united states. a straight shot, up 2.5%. its beert will double production in the u.s. scarlet: this is bloomberg. ♪

matt: from bloomberg world headquarters in downtown manhattan, you're watching "bloomberg markets." scarlet: let's begin with the

headlines on bloomberg first word news. trump reportedly was interested in making ohio governor john kasich's running mate. " reports mr. times trump's son reach out to a kasich advisor with an offer to make him quote, the most powerful vice president in history, placing him in charge of domestic and foreign policy. governor kasich has refused to endorse mr. trump or attend the convention in his home state. indiana governor mike pence will take stage at the convention tonight to the hispanic chamber of commerce is backing hillary clinton. first-ever presidential endorsement in the organization's 38 year history. france, authorities have identified all of the 84 killed in this month terror attack in nice. despite several people remaining in critical condition, the death toll has not climbed.

authorities say some of those killed died at the scene. others died in the hospital. presidents of baton rouge, louisiana are remembering officers killed in a weeklong ambush. churches,ned out at rallies, and makeshift memorials. some faith and community leaders have led discussions on ways to relations with the african-american community. the officers were fatally shot by a former marine. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. matt, back to you. matt: time for our medals bulletin. -- metals bulletin. today, both gold and silver are dropping as the strong dollar curbs demand.

silver extended its run of losses to the longest so far this year. our next guest is bullish and says he expects continued safe haven buying a precious metals for the remainder of 2016. joining us is the president of ever bank world markets. thank you for joining us. it's amazing the numbers you see there. 41% yearrate silver, to date. what an incredible run. >> really tremendous returns. it was probably the best asset class returns this year so far. today we have seen them selloff mainly because of interest rate expectations. with probability of a fed increase at the end of the year, and stronger dollar. both of those weighed on precious metals today. scarlet: that 40% gain has as much to do if not more with the fact that it is an industrial metal, not a precious metal.

>> absolutely. it's more positive news on china's global recovery, and really questions about whether or not china was going to have a hard landing. also, the demand for alternative energy such as solar panels, which increases demand for the silver. at the same time we've seen a lot of russia's metal buying and demand their. matt: what do you think about the gold-silver ratio? it is now recovered down to around 70. do you put any stock in that? >> we looked at it earlier in the year and said that silver had some catching up to do as far as gold and silver ratio. it has caught up, but there is still some more room. an area around 60, high 50's or

60 is more normal. i think silver still has some room to catch. scarlet: when we talk about gold-silver commodities, it's about supply and demand. let's talk about demand for gold as a nonfinancial assets. isn't the high point already processed? you have the indian wedding season. what is going to drive it higher in the second half of the year? >> i still think you are seeing an expanding middle class in india and china. gold and silver is seen as a good storage of wealth for the middle class people in india and china. therefore, the expanding economies there, in india in particular, we will see increased demand. at the same time you have all this uncertainty regarding the global markets. election uncertainties, brexit, eu uncertainties. that will drive demand for a

safe haven. matt: how much weight do you put a hide actual use of the metal versus safe haven financials? >> we think financial drives the price. we have seen the physical demand at very high levels as we see on the world markets at everbank, demand for coins and bars, physical demand has been extremely high. the financial sector, fund flows and etf's a really what drives the price. matt: it used to be miners that were proxy for the metal. we have seen those etf's drive dramatically higher. scarlet: are you looking at the leveraged ones? those tend to be fairly dangerous for the regional investors. especially with the movement

we've seen this year and the uncertainty that abounds. >> we are looking for more volatility in the markets. we don't typically suggest using any kind of leverage. most of the people we deal with preferred to have a physical metal again. they prefer to have that insurance of actually holding the metal and knowing it is there in case of a catastrophe. matt: that's interesting. i would want to have the metal also because it's cool to have a little bit around. i would think storage costs, transportation and storage costs would really rise above a management fee on an etf like gld. >> again, i think to get to what you areost, not getting as far as interest rates are at the lowest we have seen. opportunity costs for holding metal are low. as far as holding physical metals, there are unallocated products that don't charge a

physical fee. those are a way to play into the metals markets, and get physical metal without having to pay those fees. having someone else transported, store it, and hold it for you. you basically get the certificate that says, i own this portion of gold. >> a middle purchase plan or something where a dollar cost average into that position is very key, because of the volatile prices. i think we will see a lot more volatility going throughout the year. matt: thank you for joining us. 3arlet: coming up, after former traders are charged with security fraud, we will take a look at all the red flags. ♪

scarlet: this is "bloomberg markets." i'm scarlet fu. matt: i matt miller. it went from being a blooming hedge fund to when investigated by the fcc for securities fraud. before the tangle began, the firm's management was fraught with red flags. joining us with more is a hedge fund reporter who cowrote the story which you can find on the today.rg

investigation by the fcc in new york, but there's also more red flags coming up. what was the setting in which all these things happened? we found two key takeaways. were lots of compliance violations over a long period of time. that's one of the big red flags. number two is there were even more weird things that happened that the fcc is not even look that. in particular, a shift in allocation. they had a stand-alone credit hedge fund. that is sort of the key of this mismarking bonds issue. it was really struggling, late

2012, early 2013. what happened was that the main hedge fund more than doubled its allocation to its credit strategy at a time when it was really struggling. matt: so they needed the money and they shifted it from one to the other, that's how it looked at least. >> this was something that investors were concerned about. they decided to close it a few months later. you don't want to be putting more money in it from elsewhere. about the bond mismarking charges. are they fairly strong? bigger deallmost a than insider trading. insider trading is a little easier to understand. see either payment or money under the table or something like that, that's an easy one for mom and pop to get at. but the fcc documents -- scc documents show that they

overruled the independent administrators' marking of bonds 284 times in their favor over a period of 2 years. it's ok to do this sometimes, but that's a lot of times. that was part of the issues with the credit. i think there was a lot there. you have to ask a question of how does someone see this, how did the back office not raise questions and inform people this was going on? matt: did the player involved in the mismarking of bonds -- are we going to see this case go further? >> we are certainly going to see these trials go on. brother-in-law, x brother in law is one of the people named on that. regulators have to be asking questions about why did management not see this.

that is what we are continuing to ask. scarlet: simona foxman, bloomberg hedge fund reporter. you can find her story on bloomberg.com. prime minister of canada justin trudeau is set to make a set carbon price. comes as thesage provinces remain divided about how to set a carbon price for the whole country. let's get some perspective from pamela ritchie. what is the current system that canada uses to reduce emissions? bit piecemeal. some of the heavy lifting has been done. the four largest provinces of the 10 provinces we have in this country have already introduced or are about to introduce carbon reduction plans, either cap and trade or carbon tax. the money made through those systems are meant to go into green funds and so on. to go through the provinces to look at what they've done, we have a cap and trade plan.

quebec was first. ontario has a similar system to that. they also will trade the carbon credits earned by various companies, not using as much carbon, so on, through the system traded in california. those two provinces use the markets to sell carbon credits. you take a look at british columbia. they have been working for a long time to have a lower carbon economy. they have put the wings of carbon emitters over the course of many years now. alberta, the home of most of the oilsands, put into place a system set to come -- be introduced at the beginning of next year, and it is a carbon tax. it is piecemeal. companiesargue that have gotten used to this idea or it's been introduced so far. some of the heavy lifting has been done. der if some of the

provinces are against carbon tax plans completely. are any of them -- i think alberta would go against this. pamela: there are people who woke up and could not believe that a socialist leaning government was elected in the province of alberta less than a year ago and has now introduced this plan. mining province, saskatoon. if a national system of carbon tax is imposed on his province but nationally, he will look a legal avenues. he is so against any sort of tax coming in. ofhas said if some system carbon capture and storage is introduced, maybe that would be more powerful but the idea of an added tax very much against that whole idea. scarlet: canada, compared to the u.s. or china, a tiny emitter globally. what this it mean for its effort

to meet the paris climate change target? pamela: there's always the politics. you've nailed it. a tiny emitter when you put it on a grand scale of global emitters. but, the trudeau government came to power on the bench that they were going to create some sort of carbon pricing and they were also going to lower emissions. provinces in the form of the three amigos which met together. they have a full focus on there. it's a bit of a drop in the bucket -- matt: i have been to canada on many occasions. i was there with you in toronto. i guessever looked up, because i'm from new york i know i can't see the stars anyway. can you see the stars when you look up? pamela: yes. not in the middle of toronto,

but -- all around. of course you can. matt: you have to come outside of new york city to see the stars in the sky. very interesting. pamela ritchie there, bloomberg television canada anchor. up, the coming company's better than estimated third-quarter results. this is bloomberg. ♪

matt: this is "bloomberg markets ." i matt miller. scarlet: td ameritrade reported their earnings this week. the ceo discussed what the results tell us about equity and capital markets. >> first off, trading was good

in a relatively tepid market in this quarter. we only had one day that the market moved 2%. last quarter we had 16 of those. we did have a nice pickup in trading volume going into the brexit and following the brexit vote. with respect to investors, they were reticent to move into the market but our clients definitely moved in after the vote and took advantage of the downdraft in the market. they've done quite well by that coming back. expense control is good, and we had good revenue growth, good expense control. that resulted in the good earnings we've had. >> will you talk about what investors are doing? there's a lot of interest in the shift from buying individual stocks to etf's. lately there's particularly a lot of interest in various strategies, whether it's volatility strategies expressed through etf's or low volatility strategies. how much is that shift affecting td ameritrade? >> there's been a long-term secular trend we are

well-positioned for. trading clients use index products a lot. consider the spy and spx symbol to increasingly future symbols. this is a trend you will continue to see but particularly in this world, where returns are rather hard to come by. >> i get the people trade etf's but a lot of people like etf's because of the index exposure that you can write a longer term. .- ride out longer-term index providers -- that's really where the money is right now. how does that affect a platform which i'm guessing you will be making money on trades, on volume. does that hurt the business at all, and where do you make it up? >> we would probably make more money on mutual funds than we do etf's. the reality is our business, you have to continue to gather assets and go with -- where the market and investors are going.

things tend to work out over time. assetso $14 billion in in the quarter. what were doing in the market is appealing year to date, over $45 billion. we have been pretty good at gathering out and investing into the global markets. >> here's the other thing we need to keep in mind. here which blue line continues to decline as derivatives grow. daily average is the white line, and it is trending higher. joe: is this on a permanent glide path down or do you see this stabilizing at some point? long-term the glide path has been down through the history of our industry and probably will continue to go down. what's really affecting us is two things. number one is mix. we make more money on auctions than equities. we make less money on futures and equities. we have seen a pickup in futures

volume, especially in the quarter because a lot of people were trading around the brexit vote. we also see we are getting fewer option contracts for trade. he used to be 14 to 16 option contracts per trade. with a market where it is now, we are seeing 1.10. scarlet: that was the td ameritrade ceo. herbalife has issued a statement against bill ackman. we have alan hoffman, the executive vp of herbalife, saying that for moore to you -- for more than two years of working with the ftc, we understand the terms of the trade -- of the settlement very well. [indiscernible] says -- it's interesting they put this statement out at all. scarlet: the reason they put out the statement because the ftc settlement not help herbalife's case. matt: he says after more than

two years of working at the ftc, i think we understand the terms of the settlement agreement as well. scarlet: bill ackman has been betting against herbalife. it is something that we will continue to monitor. we look at the share price, it has come off its lows just a bit. matt: let's bring in joe weisenthal. cohost of "what'd you miss?" what do you have planned? joe: new bloomberg view columnist tyler cowen, who a lot of people have been reading for years. he's now in the bloomberg family and he's going to be appearing on our show. he's off to a great start. first one right after the turkey attempted coup news, interesting piece on what coup tends to mean for growth going forward. and his latest one on how some of the angst and rage that might be driving trump supporters could be a result of low savings

rates and they'll your to save for retirement on the ongoing anxiety this is creating. stagnationrget wage and job displacement from globalization. he's talking about insufficient savings for older americans as the unrecognized force influencing american politics. joe: personal savings rate of since the crisis -- up since the crisis. this is a good conversation topic for later today. ceo we will have intel stacy smith. that begins at four clock p.m. new york time. --4:00 p.m. bloomberg time. ♪

11:00 a.m. in san francisco, 2:00 p.m. in new york.

i am david gura. quinn. i am vonnie what come to bloomberg markets. david: we are going to los angeles, silicon valley, and , andland in the next hour covering stories in detroit and turkey. results from microsoft and morgan stanley's per optimism that corporate earnings can support further games. then it is day 3 -- day three ofit is the republican national convention at nothing has been by the book. ted cruz speaks tonight. an endorsement, or is is part of a bigger plan? david: the recent market turmoil to caused the price of gold drop to medically. vonnie: the markets close in two hours.