welcome to bloomberg markets. we are watching the word stimulus could be underway in reaction to the brexit folk. what this means for the meeting taking place next week. dunkin' donuts beat on its earnings result. we are talking with the ceo later in the hour. donald trump set to take the stage in a few hours. we will bring you the latest from cleveland. let's go to the markets desk. julie: the selloff is accelerating. volume is about even. there has been an uptick in volume versus earlier.

down by now when hundred 12 points. we continue to fall. again, it all comes back to earnings. that is what people are paying attention to and what stocks are moving on today. qualcomm beating estimates. more progress in its chinese business. raising sales and profit forecast for the full year and bio gender placing its ceo. flipside, intel shares falling after that company

continues to struggle with waning pc demand. earnings per share missing estimates for the first time in five years. it is now facing the challenge .f how to raise fares and union pacific, less demand for moving stuff around the country. that company's earnings suffering. and industrials are the worst performing groups today. that includes things like union pacific. >> m&a has been a big theme also. on the been a busy day corporate front. an acquisition from a japanese company, the second-largest in -- second-largest.

that is 1.5 $3 billion, 30 two dollars a share. those shares surging on a large premium. butpandora has turned lower the wall street journal reported liberty media had made an offer -- but thosehat shares are lower. pandora reports earnings after the close of trading. and the department of justice saying it is going to sue to block the two big health insurance acquisitions here. humana, cignahat, trading higher at the moment. they say they will fight this. it's nottioned today clear this acquisition will go through. humana also raised its forecast. thank you very much.

let's get a check of the headlines. in france, five suspects face preliminary terrorism charges. they are accused of helping the driver who killed 84 people with a truck along the beachfront in nice. have overseasso terrorism investigations. people -- police have arrested one dozen people allegedly plotting a terror attack for the summer games in retail. authorities say wiretaps reveal messages supporting racial and religious intolerance and the use of firearms and are a little tactics. tactics.lla tonight, donald trump will formally accept the nomination for president.

he will attempt to make the case to the country and members of his own party what he should be the next commander in chief. a day after being booed following his address, ted cruz todefending his refusal endorse mr. trump, speaking to a divided texas delegation today. he said a pledge in the primary season to unconditionally --port the nomination >> i will give you this response. i am not in the habit of supporting people who attack my wife. he is not cruz said voting for hillary clinton. president obama welcomed the kansas city royals to the white house. the royals gave the president a team jersey. the royals to feed to the new

york mets last fall to win their first world series since 1985. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. david: josh earnest is a royals fan and he got a jersey as well. mario draghi saying he is ready to ask if needed. by getting your read on what the read of the year nominee is now. inknows apprise they are wait and see mode. no reason for the ecb to jump in

early. i think they will be patient. if the data does show weakening, i think we will see more stimulus down the road. >> what steps might the ecb take? >> a look at some way to treat the program. rateot sure the negative tool has proved effective. doesn't really make sense to move further down the negative rate? i think some tweaking, perhaps extending. david: listening to mario draghi this morning, he seemed

surprised at how little reaction there seemed to be to that referendum. are you surprised by the way that has rippled? >> i think you saw that initial reaction but we have seen a pretty nice recovery. sentiment dataly you are starting to get. it will take a couple months to see how it plays out to see if there is that ripple effect. vonnie: where do you see the eu going with u.s. treasury's? further into treasuries? >> i think yields stay relatively low. there is demand across the world .or yield in duration even though we are close to all-time yields in the u.s., we look quite a bit better than the rest of the world. getting back up will be met by buying. another two day meeting

next week. what do you expect to come out of that if anything? >> i think it's a consideration. we don't get a press conference, and i think what you will hear from the fed is more of the same, which is data dependent's. they push off any action. but kind of a broken record i don't think the fed will be raising rates anytime soon. we seen a lot of interest in muniz. i think in this low rate environment, yield but you have to be careful there because everyone is buying into yield. think about preferred to but up

in quality. i think that dean continues to play out as long as interest rates and inflation continue to stay low. as people pile in, they are more susceptible to shock. you, brian.k and aggressive strategy to get customers back after a food fight scandal last year. we are taking stock of how the company is doing. david: three of wall street's largest investment banks slashed compensation. vonnie: tom in new york right now, 3:10. the dow is accelerating its losses there. .20% and theown nasdaq down just more than .5%. this is bloomberg.

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david: this is bloomberg markets. chipotle mexican grill released its latest results after the closing bell today and shares have plunged as the company tries to recover. now is jennifer. good to talk to you. i noticed in my neighborhood a new chipotle and i wonder what sign that is that the company is opening up new stores? >> the new restaurants are something that had been in place for quite a while. it's a source you are seeing opening now.

the real question investors have is whether chipotle will start to slow down until they get their sales under control. things already in the pipeline may be needed to be reevaluated according to new standards. vonnie: does that mean an end to discount programs and the we are sorry cards? >> right now, you are starting to see more people in line in the stores but they are still very dependent on these promotions. they are still giving away a lot of free food so the people who are in line, are they the right people to have and live because what they need is people who are willing to pay full price. >> i remember talking with a reporter that this was a very

fine line to tell. it could bring up some desperation to bring people back in. what is your read on that? the core clients are the main concern. i think they are getting some of largeack but there are a number of people saying they will not come back because they don't yet have the trust they used to have a regarding chipotle. in newrying to bring customers but the background to which they are trying to recover is hard so the overall , limitedt industry service restaurants were only .1%. has a harder time to get back on track in a

competitive environment. hearing asbeen consumers continue to spend, it's experiences and things like that. >> people are pulling back a little from restaurants. spending morebe in supermarkets and supermarkets have upped their game. they are adding more prepared and across the board, the restaurant industry is seeing that pullback. vonnie: thank you for joining us. still ahead, many folks who work on wall street are about to see their pay slashed. who gets hit hardest. this is bloomberg. ♪

david: it is time for options

insight with julie hyman. julie: joining me for today's options insight is ken victim, --d options -- ken victim tim bigham. this scene is this superlow volatility, certainly the lowest we had seen this year. you are asting is little concerned. why is it not necessarily a good thing? mix, it'st just the also the fact we have seen such low stock volume, the trading with the lowest back-to-back volume me past few days. we have seen valuations on stocks getting stretched. priced sales at the highest levels since late 1999.

it's that kind of combination of everything and when complacency reigns, history points to this short-term cap in the market. either any fundamental catalysts coming up that are concerning to you that could be the trigger for a short-term drop? >> certainly with some big names coming out, apple, amazon, some big earnings may do it. we see interest rates starting to creep back higher here and that may signal the fact we are starting to roll over a bit. it may be healthy longer-term to have that watch. this recent rally crept higher. i think a pullback may be good overall. looking ton prices,

next week with the vicks under 11:00 this morning, shorter-term was tracking under nine. pullback,ng for a they only cost 50 basis points so it won't take much to get them going. also not a bad portfolio. clear, whatto be you're looking at for next week is put at what level? how far do you think it could go? pullback, you 1% sol get a double on those those will triple in value. julie: thank you.

back to you. vonnie: thank you. three of wall street's largest investment makes have slashed. morganrgan chase and stanley collectively set aside money for employee pay by 70%. laura keller has been looking into the numbers and joins us now. why are the banks pulling back so much? >> you almost always see some kind of cutting on the compensation line. that is what we are seeing now. david: i wonder if folks on the street i wondering about this. are people worried about this being a long-term thing? i think you don't like to see

. it is an industrywide thing we are looking at. these are still very high averages for these investment banks. goldman sachs put aside 170,000 with the cut. multiply that by two and you are still around $350,000 on average. is there a ratio, a percentage they want to get to? linethink banks have a where they need to consider that because if someone else will pay you more and you are at morgan stanley and morgan stanley did willabout this a bit, they have some bankers who may go to another shop.

it's everyone across the board and these are some of the largest investment banks. david: you has spoken to executive recruiters as well. how much of a challenge is this posing? >> of course they always make convio is for people and their is a little there too. vonnie: i'm sure the people and thecut more -- rainmakers will always get taken care of. >> it plays out a little differently across the board but generally, you pretty much confined a job at some shop. at the moment, hundreds new york stack up against london pay?

with brexit and things that will change or you will see a different mix. i think that will be interesting going forward. new york state actually came out on the data they collected. i think it was 250 million for their first fiscal quarter. street is a- wall lot of where we get our taxes in terms of income taxes. probably not some and you want to see more of that we don't get a lot of disclosure from them. goldman sachs, morgan stanley

specifically will break out its investment bank that we don't have the same information from bank of america or citigroup. we talked about this element happening before bank earnings banksw that we have the support and getting those numbers, we have more clarity but would like more transparency. compensation data, we will probably do a few more enterprise stories looking at the larger picture. still ahead, a sweet quarter for dunkin' brands. we will talk to the ceo in a couple minutes. this is bloomberg. ♪

?c+sv >> you're watching bloomberg markets. let's begin with a check on the

headlines bloomberg first world mark: the voting to replace united nations secretary-general is underway. the security council today held andfirst secret ballot narrowed the field to 12 candidates. diplomats say portugal's prime .inister was first three candidates were reportedly tied. turkey's parliament has endorsed sweeping new powers. he has declared a three-month state of emergency that gives him the authority to expand a crackdown in the wake of last week's failed military coup. turkish governments will now be able to issue decrees that have the rule of law. cold spoke in london shortly after the court of our patrician

rejected an appeal by 60 a russian athletes that thought to compete in this year's rio games. 's new york mets may help hockey's new york islanders find a new home. people with knowledge of the discussions say the islanders are in talks with ownership about building an arena adjacent . this is bloomberg. the u.s. stock market closes in just under 30 minutes. let's go live to the nasdaq were abigail doolittle is watching the nasdaq. >> it is coming off its lows but it's also well off its highs. , right off those lows.

the question around today's decline is whether or not it will be consolidation of yesterday's big 1% rally or if -- or if it's the beginning of a reversal back down. some of the answer to that could come not so long from now after the close. for $1.21are looking in earnings on roughly $750 million in revenue. that is the first revenue decline since 2009. on smartphone weakness, he does think that is achievable in the focus will shift closely to guidance.

looking at ae strong quarter or weak quarter, it could really have a big influence on apple. 44% of sky works revenue is attributable to apple. it could certainly set a positive tone for apple and the nasdaq but the opposite could be true. sky works could have a pretty big influence on the nasdaq tomorrow. be reportinge will earnings next week. are there any noticeable earnings reports that could set the tone for tomorrow? stands out as a potential . not so much as an influence on the nasdaq. the stocks could be setting up to make a huge move. investors are looking for the chipmaker to produce a loss of eight cents on non-hundred $56 million in revenue.

the company could come closer to turning into the black. the stock actually moved up 52% after the last quarterly reports. when we take a look at a near-term chart, we see the shares have been consolidating in a tight range recently, suggesting we will see a big wake up out of the range or below. the stock is holding up to its up trend but anything is possible though it does seem amd is setting up for a pretty big move tomorrow. tonkin brands reported earnings that beat estimates. dunkin a brands reported earnings that beat estimates. joining us is the chairman ceo. let's talk about these international markets and china

in particular. you have tried to expand before. what are the challenges you face and how are you going to overcome those? >> good afternoon. i think china is inherently a difficult market. it's got the cultural differences, a fast-moving population with changing aspirations and changing consumer needs. , i think we are very focused now on working with two very big partners. we have a big partner in shanghai and beijing. they bring anonymous experience to our business. they understand the chinese consumer. a have experience with the supply chain. i was there a few months ago. i think we are moving forward nicely and i recognize there

have been a couple false starts. i think china in the next couple years will be fairly steady but , and can get it right particularly the supply chain, the supply chain can be very tricky. we are being very careful but i'm relatively optimistic. scarlet: a lot of people wonder why people aren't importing for south korea. >> i don't think we are the only ones with problems in south korea. you have very strange, unusual franchise laws. there has been some political concerns in the region. that we have a great partner. spc is the leading food company in that market and have many other brands. we are outperforming just about

every other brand. they are taking duncan and moving it more toward a beverage concept. a was originally much more of doughnut concept. asking robbins is a powerhouse. but i know a korea, they are very focused on innovation. sure they will. full test said duncan's brand positioning is in transition to fight competition from convenience stores and quick service restaurants at the low end and starbucks on the high-end. do you agree with that characterization? >> no i don't. i think our position has been very clear. we have america in the morning. by two or three things we are doing recently. we are very focused on beverages.

we have introduced cold brew. it has been introduced in some significant markets and its working great. people love it and it sets us apart from the convenient source you talked about. that really builds duncan's historical heritage of speed and this on the go mantra we have. we are putting this together with a new advertising campaign that you will see a lot in the olympics. it really builds on the positive and it willrand has enable our consumers to be energized and inspired and rewarded. that is what duncan stands for. i don't think our brand positioning is under threat at all. we are always making a few tweaks with products here and

there. continueing to building the quality in our system to make it even better. you've been spinning off company-owned stores. how much longer do you have to go there? >> we've never had many companies for us. is 45.t of that when i came to the company, i said we need company stores. bad markets,ome re-franchise those with great success. we are in a position now where i think we have the company operation. great gratitude to them for that. we are in a position now where we don't need any more company stores. it buys out business and it onns we are focused franchise economics, franchise

relationships, building the brand in the way i described and by the end of the year, we will be down to less than five. to be clear, we may have company stores again next year because things change and you need to adapt to circumstances. it is the last day of the republican national convention. we will bring you the latest from cleveland. this is bloomberg. ♪

scarlet: this is bloomberg

markets. let's get to your bloomberg business flash. the guest list at the republican national convention in cleveland offer a peak into the ip axis -- vip access. toe names are predictable biggest casino billionaire that recently endorsed trump. others came as a bit of a surprise. biogen ceo leaving the company. he is the latest executive headed out as biogenic continues to replace top managers. the company has struggled recently mainly due to stalled failure of its biggest products. exxon mobil will buy inter oil thandeal bought at more $2.5 billion. the deal has been approved i the boards of both firms.

adds to its successful pop a new guinea business. while caterpillar still has more than the combined sales of the two companies, the deal would give the manufacturer of the largest dependent maker of underground equipment and a means to better and peaked with caterpillar. david: it is day four of the republican national convention. speakingump will be tonight to accept the party's nomination for president. ted cruz is looking his wounds after he was booted during his speech last night. you, first of all, about what we can expect from donald trump tonight.

he has become more fast silent reading from a teleprompter. can we expect a script tonight? >> it's going to be the biggest speech of his life. he will have a very prepared speech from the teleprompter. he is known to add live quite a bit and that is a big part of his charm. that is what the base likes about him so we can expect to see some of that but he will try to distill his main campaign theme in front of the biggest audience he has yet. whether it's opposition to trade, immigration, a variety of things he's been talking about. he has the daunting task of uniting the party right now. scarlet: that happens at around 10:00 p.m. there are a couple speakers. there are a couple in the lead up, including his daughter who

will introduce him? david: i think that's right. scarlet: what will she say that's different from what is said children have already about him? >> the trap family is posed as character witnesses -- from family is posed as character witnesses. they have all talked about what kind of a man he is, what kind theather, husband he is, kinder side that he has that no one sees in the public eye because he's more of a combative person. i think that is what we should anka.t from a bunker -- iv she is a very good speaker. the trump family realizes she is a good asset. david: we will hear from business leaders, peter thiel. from, there --ar

tom baruch. >> they will make the case for donald trump the businessman and why there should be a businessman in the white house. it's highly uncommon and donald trump broke the mold by being a non-politician never elected to office. i think we will see them making the case as to why this is important. scarlet: there has been a lot of protest outside the arena. do we expect them to ramp up this evening? unclear. the threat level has gone up and down throughout the convention. people came in expecting the worst and there have been some bizarre interests -- instances that have peaked the interest of law enforcement. but for the most part, it's been

pretty peaceful. not the kind of chaos and physical violence that people worried about. i don't have any indication we will get more of that. security will be on high alert no doubt. david: ted cruz spoke and there arena.wing in the i'm sure that was something to see. what has ted cruz done today? what has he had to say about what happened last night in the arena? >> his message today is he's not sorry for refusing to endorse donald trump. we know from his strategist that trump did view his speech before he gave it. trump new ted cruz would not endorse him and let him speak anyway. he's saying he spoke his mind, refused to go out on a limb and say something he didn't believe

in and ted cruz took a big strategic political gamble. he is essentially betting. by refusing to endorse him, he will keep his fingerprints off this trap train. ted cruz is about 45 years old, still has presidential ambition. we could see a lot of him in 2020. part of his game last night was to preserve them. a lot of republicans angry with him now but that was the gimbal he took. anger playing out right now? do the attendants, are they talking about him in that way? >> yes. a lot of people very angry at ted cruz. the new york delegation in particular had a front row seat and was audibly jeering his speech at the point where he had

to make a snarky comment about them onstage. a lot of people blame him at this moment for refusing to do what he could to unite the party rivals,r primary including scott walker and marco rubio have endorsed trump. ted cruz is standing apart and saying he will not do that. david: thank you much. scarlet: we are made earnings right now. we have almost 50 companies reporting earnings after the bell, including chipotle. investors looking at how the company is recovering from a bad case of e. coli. we have the chart to show you. this is bloomberg. ♪

paradethe earnings continues. 49 companies in the s&p 500 report results after the u.s. markets close in a few minutes. julie hyman joins us. julie: what has been incredible about starbucks is its steady growth. the sales growth has averaged a little more than 6% over the past five years. the company's operating margins have in relatively high and there you see it on the chart. sales growthame year-over-year on a quarterly basis. you can see the average is close to seven here. i have grafted against the stock price, which is steadily rising. perennialthese questions that come up every few years. 10 starbucks sustaining that

growth he comes last quarter, it did fall below that average. service has been doing different things to keep it up. it has been beefing up the food offerings. all of that has been tried to keep it up. we will see if it can at the end of the day. everyone goes for the frappuccinos, at least i do. julie: the margins are much higher on the beverages. atrlet: i'm taking a look these have. i have a charge that shows across quarter volume growth. the trendline is going down. this is industry lingo for cash on growth for the issuing country. a real-world example would be my at a my card last week

gastro pub. this is a key metric for visa. of course, any kind of uncertainty caused by the brexit vote that would cause people to pull back and not spend as much whether it's people in the u.k. visiting europe. numbers that it releases today will probably have the added benefit of how that compares with the same time a year ago. that goingfits forward may be a challenge. you have the effects of the various acts of terrorism. you don't tend to think of visa as a travel company. david: chipotle struggling for many months now. a chart looking at comp

sales. news storiesthose broke. we have seen that real decline. incentives for customers to come back. we will see. julie: that's a new loyalty program. scarlet: they want to reverse that 30% drop. david: they need you. scarlet: maybe. julie, thank you. that does it for bloomberg markets. miss" is next. the s&p 500 losing eight points. ♪

?c+sv >> moments away from the closing bell. i'm scarlet fu. >> i'm matt miller.

scarlet: u.s. stocks closing lower this afternoon and the dow ended the nine-day winning streak. joe: "what'd you miss?" scarlet: we break down a number of them are facing brands. joe: how has globalization helped the economic outlook. matt: general motors hosting record second-quarter results. scarlet: the dow ending the winning streak. treating the record highs. eight out of 10 major groups were down, industrials and energy the laggards. se: not a huge